SOUTH WEST AUTO SERVICE BUSINESS WITH IMMEDIATE EXPANSION OPPORTUNITIES
KEY HIGHLIGHTS
International Branded Service Centre: The business is a recognised global branded service centre, benefiting from the association with a globally renowned quality brand, enhancing its reputation and customer trust.
No Website: This is a great opportunity for a new owner to immediately expand the customer base through profile and online bookings.
Diverse Service Offerings: The business provides a wide range of automotive services, including vehicle servicing, repairs, brakes, clutches, suspension work, and pre-purchase inspections.
New Vehicle Servicing: The business offers new vehicle servicing without impacting warranties, providing customers with peace of mind.
Lean and Dedicated Team: The business operates with a small yet committed team of five full-time staff, ensuring personalized and efficient service.
Strategic Location: The workshop is situated in a region undergoing rapid expansion and poised to become the second Central Business District (CBD) in Western Australia, with high car ownership per household.
Customer Loyalty: An impressive 90% of the 3,000 customer base consists of loyal repeat clients, demonstrating trust and satisfaction in the services provided.
Opportunities for Expansion: This business is positioned for growth, with opportunities to explore the corporate and business sector further. Additional training in areas like Hybrid and Electric Vehicles within the Bosch network is a possibility, as is venturing into air conditioning work.
Contracts in Place: offering security and stability: The business has established contracts, providing security and stability to its operations.
This successful auto business has operated in the South West region for the past 20 years with the existing competition having little or no effect on the growth and profitability of the business.
Like any major regional city in Western Australia experiencing population growth, businesses in this location continue to thrive and expand their customer base.
The population of the region serviced by the business, now at 182,500, is set to reach 230,000 by 2031 and by 2050 it is possible that as many as 500,000 could call the southwest home (South West Development Commission, 2019).
Car ownership of households in the area in 2021 shows that 88.8% of the households owned at least one car, while 5.4% did not, with 36.0% of the households owning one car; 36.0% owning two cars; and 16.9% owning three cars or more.
A major law change in 2021/22 was the creation of the Australian Automotive Service and Repair Authority (AASRA), and the creation of the AASRA Portal for independent repairers to access previously proprietary vehicle information.
So whereas before, vehicle owners had an incentive to take their vehicle to a dealership for servicing, now any mechanical shop can have the same access to data.
While dealerships invariably insisted the only alternative was to use expensive OEM parts and thus pad their margins most mechanics are happy to use generic parts, equally good aftermarket items.
That means demand from independent workshops is rising and will continue to do so as more owners realise they're free of the need to visit the dealership for servicing and repairs. That translates to greater demand for the services offered by this business.
The forecast population increase for the region, people maintaining vehicles for longer and driving longer distances, all are strong stimuli for increasing sales for the business.
