How Much Does A Mechanic Shop Owner Make?

How Much Does A Mechanic Shop Owner Make

Being a mechanic shop owner takes more than just the skill of a mechanic. You have to be able to manage a business and supervise your employees. If you are a mechanic looking to become a shop owner, you will need to consider your ability to manage a business. You will have to deliver quality customer service to keep your business profitable.

This post addresses what determines how much you, as a mechanic shop owner, make and manage a mechanic shop. Just hang in there and read on.

So, how much does a mechanic shop owner make?

If I tell you a specific amount, then I might be capping you or holding you back. How much you make is up to you. The goals you set for your business and your diligence determines how much you make. You can earn $100,000 or $500,000 per year. It solely depends on you.

You have to figure out how much profit you want to make and work towards it. For instance, if a mechanic shop owner decides to work towards $100,000 per year, you will have to make about $8,333 per month, which will be $347 per day for 24 days.

You might decide to make your service fee $100 per hour. And then, aim to work for 6 hours per day on 1 car or 3 hours each on 2 vehicles. This will help you meet your daily profit goal. You will still have some money left for overhead expenses.

What Determines How Much A Mechanic Shop Owner Make

How much time it takes you to get the work done: 

If you own a smaller shop, there is usually a tendency to take a longer time to get the job done. This is because of fewer employees, which are traditionally less competent. And so, smaller shop owners find it hard to work on more than two vehicles in a day.

If you can get the job done in a shorter time, then you will make a higher profit.

Competent employees:

Most of the highly competent mechanics tend to work with dealerships. The higher pay and work benefits come from dealerships. Shop owners have to deal with this factor. The higher the competence of your mechanics, the higher your chances of making more money.

The number of mechanic shops in your area:

If there are fewer mechanic shops within your locality, then there is a higher chance for you to make more profit. In a case where there are more shops, you will face a lot of competition. And this will have an impact on how much you make.


Your ability to manage your business well plays a role in how much you make. You should be able to pay attention to details. Be mindful of your customer service. Manage expenses and supervise your employees properly. It can also help if you delegate some roles so that you can focus on essential functions. For instance, you can hire someone that answers the phone or email customers.

Availability of dealerships within your area:

When there are many dealerships within your target market, it affects your customer reach. People mostly take vehicles that need expensive repairs to dealerships. This is because they believe dealerships have better quality than shops. Whether it is true or not. Also, most manufacturers sell some parts only via dealerships. So the shops have to depend on the dealerships for the role.

Business strategy:

The business strategy with which you run your mechanic business determines how much you earn. For example, you can have a website where customers can book an appointment or subscribe for vehicle maintenance. A business strategy can ensure the smooth running of your business. It will increase how much you make over time.


To make more profit, automate most of your work. If you do this, you will get more job done in a short time. For instance, you can generate estimates to look over the vehicle and know what you need to fix within a short time.


You have to spend a lot of time and money to increase brand awareness. When people know your brand, you won’t have a problem with the inflow of customers. You can do this through traditional advertising or online marketing.

Rent and shop space:

The amount you spent on rent or mortgage determines how much you make. For instance, you may pay $4000 a month on rent and charge a fee of $150 per hour. But you earn more if you spend $2000 a month on the same space and charge $100 per hour.

Benefits Of Being A Mechanic Shop Owner

Most mechanics dream of leaving their jobs in dealerships or garages. Being a mechanic shop owner has a lot of benefits. These benefits are usually the primary reasons why mechanics become shop owners.


You get to choose how many hours you work. You run your shop however you want it to be and determine what business strategy you wish to use.

Ability to connect with your customers:

You can connect with your customers one-on-one. And even give special treatment or maintenance checks for your best customers.

Access to independence:

When you run your mechanic shop, you do what you think is best. You become able to maximize your skill and expertise. You get to implement new ideas and test run growth tips.

Control over income and charges:

You determine how much your charge per hour. You can choose to charge per service. Because you are the shop owner, you decide to sell parts and make extra income from it.

Choose your staff:

You choose the level of competence of the mechanics you hire. Since you have the freedom to choose the people that you work with, you can hire people you trust.

To maximize the benefits of being a mechanic shop owner, you must manage your shop effectively.

How To Manage A Mechanic Shop 

You miss out on the benefits of having your own business if you don’t manage it well.

Increase productivity of technicians:

You have to make sure your employees stay productive. Make sure your work area maintains a comfortable temperature at all times. You can have fans or heaters, as the case may be.Sometimes, you can acknowledge your employees and appreciate the work done. This can increase their productivity.

Use automated software:

You can also make work easier by using technology. You can improve reporting, customer service and communication, booking, and inspection. This will also put you ahead of your competition at all times.

Introduce discounts and sales offers:

When you practice giving customers discounts, it leads to luring and generating more customers. Who rejects a discount after all? You find out that volume is more than margin as you make more sales with a lower profit margin but more turnovers.

Excellence in customer service:

The old saying that “the customer is king” has not changed yet and may never change. How you treat your customers matters a lot and determines how they come back to you again and again. People are always ready to pay where they feel at peace; a communication flow that makes customers feel at ease will make you a lot of sales and, in turn, money.

Improve your capacity to lead:

Everything rise and falls on leadership. The team of workers, the software, the recourses, the strategies all depends on the management. They increase as management capacity increases and decrease as management capacity decrease. It calls for consistent capacity building on those in leadership.

Give guarantee for your services:

What stands you out from other mechanic shops? Your ability to give an honest answer to this question shows how reliable you are. Your services must be top-notch. To prove that you have the best services, you should offer a guarantee for your work. It will enable your customers to trust your services. It will also place you far above your competitors.

Let your customers see that you trust your capability by offering a guarantee on your services. For instance, when you fix a customer’s brakes, offer a warranty. It will show him you are doing a good job. So he won’t have to fear coming back again within a few months.

Have a shop budget:

Your shop budget is crucial when you want to manage your mechanic shop. It should be part, if not the most basic monthly indicator you look out for. Having a report helps you see your overall spending per month. Have frequent reviews with your accountant to keep everything on track. Always keep an emergency fund for unforeseen circumstances that can happen at any time.

Appreciate loyal customers:

You have to reward loyal customers. Make your loyal customers feel appreciated by giving them incentives. You can give them rewards like free oil change occasionally. Such customers are likely to refer you to others.


In essence, how much you make as a mechanic shop owner depends primarily on you. Every factor that determines how much you make still revolves around your decision as to the shop owner.

You make as much as you put in the effort to meet your goals and manage your business well. I hope you enjoyed this post.

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