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Auto Business
Moorings
#1 Posted : Friday, November 22, 2013 1:42:51 PM
Rank: New-farer


Joined: 1/3/2011
Posts: 67
Location: nairobi
Jambo,

along one of Nairobi's busy road, i have this 0.25acre plot that i'm exploring the viability of setting up an auto shop for tyre repairs, wheel balancing & alignment, car wash and sales.
Anyone who's got experience along this line of business, kindly share.

regards.
nakujua
#2 Posted : Monday, November 25, 2013 12:00:42 PM
Rank: Elder


Joined: 12/17/2009
Posts: 3,583
Location: Kenya
for the tyre biashara is very competitive especially the low end and unless you can bring in the tyres yourself at good rates it very hard, but expect a 30% margin when you are getting from the local distributors. If you want growth hapa, if you can target companies, especially tours na farms (tractors)

I would go for a higher end shop, get the computerized wheel balancing and alignment equipments, a decent alignment equipment will go for around 1.1 - 1.2 if you get locally and the balancing one will most likely set you back around 500k.

with those two you can design a nice bay, where you can charge premium rates - since the toyota guys rarely balance or align their cars so your target can be the more expensive cars.

mambo ya car wash na sales sijui, but there seems to be a car wash at every corner these days and a good number of guys are discovering self importation of their cars as the process becomes more straightforward.
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