How Much Does It Cost to Start a Mechanic Shop in Australia

07 Mar 2023 Helpful Tips

 

Are you thinking about starting a Mechanic Shop in Australia and not sure how much it costs?

Workshop Mate has put together a list of the 6 most common expenses of starting a Mechanical Workshop in Australia and how much money you need to have.

Let’s get started.

1. Location

To start a Mechanical Workshop in Australia you will need to have location to trade from. Location is one of the biggest expenses that you will need to consider prior to opening a Mechanical Workshop.

You will need to choose a location that is big enough and allows you to service and repair Motor Vehicles from. It is important to choose a location that will help you scale into the future. Moving locations at a future date will require additional investment.

The price of a location will vary depending on state, suburb and more importantly size. A real estate will charge you based on the number of square meters your location has. Research has found the average location cost for Mechanical Workshops in Australia is between $2,200 and $6,600 per week depending on location and size.

2. Equipment

The second largest upfront expense that you need to be across is Equipment. In order to service and repair vehicles, you will need to have the required equipment. Prices of equipment will vary depending on the works and repairs that your Workshop is planning to do.

Research has found the average upfront equipment cost for Mechanical Workshops in Australia is between $32,000 and $150,000 depending on the equipment needed and quantity amount.

3. Motor Vehicle Repair Licence

To service and repair vehicles in Australia you will need to apply for and hold a valid Motor Vehicle Repairs Licnece. Motor Vehicle Repair Licences are issued by each individual Australian State.

Motor Vehicle Repairs Licence costs do differ between states and can be registered for anywhere between 1 – 5 years.

Click on the links below to learn more about Motor Vehicle Repairs Licences and the Price in your residing state.

*In the Northern Territory you are not required to hold a licence to perform vehicle servicing or repairs. To read the Government Obligations for Northern Territory, click here.

4. Staff

Your Mechanics are going to be pivotal for achieving success. To be frank about it, staff are expensive. Before you consider opening an Auto Repair Workshop in Australia it is vital that you understand how many Mechanics you will require and the salary that you are going to pay them.

Research has found that the average Mechanic Salary in Australia is currently $54,952 annually excluding super contributions. In saying that if you are looking to employ multiple Mechanics you will need to have access to and generate funds of more than $110,000 annually.

5. Marketing

Many Mechanics fail to realise the importance and costs of Marketing prior to opening their shop. To put it simply, Marketing will make or break your Workshop. Your Workshops Marketing needs to get customers through the door with vehicles for your to service or repair.

Unfortunately, Marketing is not cheap. Prices will vary depending on the type of Marketing strategy that you use. Research has found that the average small business in Australia spends between $10,000 and $60,000 annually.

6. Technology

Every business needs to have technology. An Auto Repair Workshop is no different. You will need a computer system, phone system, payment system, management system amongst others. Technology is another hefty cost that you will need to consider prior to opening.

Research has found that the average small business IT setup costs in Australia is between $3,000 and $10,000 depending on quantity and systems implemented.

Final Word,

To start a Mechanical Workshop in Australia you will need to have access to at least $500,000 to get up and running. Startup costs will vary depending on each individual situation.

We hope you enjoyed reading this article. To read more articles like this, please visit the Workshop Mate latest news page here.

About Workshop Mate,

Workshop Mate by Jeal is an Australian, Web-based, Workshop Management Software that simplifies and automates the daily tasks of running a mechanical Workshop. Using innovative technologies, Workshop Mate removes common frustrations experienced at the Workshop – opening your doors for future growth.

Workshop Mate features include Job Management, Stock Management, Quotes, Invoicing, Integrated Accounting, Barcoding, Customer Bookings, Service History, Job Allocation and more – in the one central, easy-to-use application.

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