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04-07-2022, 04:10 PM | #1 | ||||
Thailand Specials
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Just saw that a well known and long established QLD automotive business (Zok Race Carbs/Zox Performance) is closing down, due to inability to find a suitable factory in an industrial estate to run their business out of:
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Not so much that they couldn't find a suitable property, more that landlords of commercial properties don't want automotive workshops in their buildings - holes in the floors to mount hoists, fights over car parking spaces with neighbours, cars being road tested constantly and also noise, from their social media posts it looks like as soon as they mentioned they had a dyno or hoists, that was a hard no from land lords and their custom was rejected. Quote:
It seems everyone either wants apartment building developments or factories just being leased for basic things like warehousing - theres been a loss of many automotive workshops recently as their custom isn't really wanted from landlords, as well as the general public and the government having the ****s up with modified cars. Whats your thoughts? Do you think we're going to keep losing automotive businesses through issues on finding suitable locations and being frowned upon by the public - or isolated issue? |
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04-07-2022, 05:10 PM | #2 | |||
Cabover nut
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Surprised they still have transport yards too. Automotive hasn't got a hope. A good truck mechanic here in Wang was forced out of his shop due to him still using a pit. Said dangerous pit is now filled in to keep the townsfolk safe.
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04-07-2022, 05:13 PM | #3 | |||
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Seems the only thing people are interested in is warehouses where its just a bunch of smaller boxes inside a huge-*** tin box |
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04-07-2022, 05:41 PM | #4 | ||
Former BTIKD
Join Date: Mar 2005
Location: Sunny Downtown Wagga Wagga. NSW.
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Sounds familiar Franco.
A little like starting a very good Auto Electricians business (in an industrial area), then having someone opening a Gym just down the road.....then they complain about the noise and traffic! I wonder how Sam's getting on?
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04-07-2022, 05:50 PM | #5 | ||
DIY Tragic
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Location: Sydney, more than not. I hate it.
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I’d be far unhappier about a gym opening up; too much risk of idiots on drugs, with guns.
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04-07-2022, 05:53 PM | #6 | |||
IT Drone from Sector 7G
Join Date: Nov 2011
Location: Macedon Ranges, Victoria
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His guys now run the local RACV Tow truck after hours as well... |
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04-07-2022, 06:02 PM | #7 | ||||
Thailand Specials
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There's been a bit of a shakeup over that side of the mountain with two big players, him in Gisborne and one in Woodend. Quote:
Or another time apparently our air impact tools were too loud and the gym next door cracked the ****s because they had a presentation on. There was three new gyms in the same street as us and in the industrial estate multiple automotive workshops they all got the ****s up over, some had been there for circa 20+ years. All but one of the gyms is gone now apparently, I'm a bit of a fan of keep industrial estates for noisy ****ty stuff, including automotive workshops, a gym can be in the centre of town, but its a bit of a case of the rent is way cheaper in the industrial estate than in the commercial ones so they move out then have a whinge when there's trucks and cars everywhere, there used to be a lot of complaints about the concrete precast place, the concrete plant and the freight company, because trucks in the industrial estate.. The crossfit gym that was there was good though, they never whinged about anything and they'd be there at weird times of the day flipping tractor tyres and other fitness stuff around the street. Even when I was working in Essendon Fields, there was a business there that got the ****s up with all the dealership workshops and the cars, absolutely ridiculous. There was an aircraft workshop next to us and one time they had jet engines fired up and filled up our workshop with fumes, we all had to wait outside until it was done, did we complain? No, we're next to an aircraft workshop in an airport and sometimes this **** happened. Last edited by Franco Cozzo; 04-07-2022 at 06:29 PM. |
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04-07-2022, 06:05 PM | #8 | ||
Former BTIKD
Join Date: Mar 2005
Location: Sunny Downtown Wagga Wagga. NSW.
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Is he still using the 'Mouse on wheels' Mercedes as a loaner?
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04-07-2022, 06:39 PM | #9 | ||
Thailand Specials
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I'm glad I don't have to put up with any of this **** anymore thats for sure, comes to a point where you look at it and its not worth the hassle, issues with getting property to run your business out of, then if you do, people with businesses that shouldn't be in an industrial estate chasing cheap rent complaining to the police every 5 minutes about cars, trucks and machinery coming/going/operating.
Even my previous employer, we got forced out of where we were to turn into a housing development, then we moved into an industrial estate in the outer suburbs, then we subsequently start whinging because surprise surprise the industrial estate has many automotive workshops with many loud cars offending the precious admin staff in their nice office who look down on people who work with their hands for a living. Its the same as people having a sook about planes coming in and out of Essendon Airport or cars racing at Calder Park, was no houses around those places when they were built many decades ago, suddenly cheap land next to the airport or race track opens up, they buy in then they want it closed to push up their land values. There's some dramas over Melbourne Airport wanting to put in another runway at the moment, Melbourne Airport has been there well before all those suburbs started expanding. No one is allowed to make money anymore unless its through capital gains or renting properties for a very specific purpose, mostly only storing boxes within an even bigger box and you better not paint lines on that floor either Last edited by Franco Cozzo; 04-07-2022 at 06:45 PM. |
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04-07-2022, 06:51 PM | #10 | ||
Donating Member
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I helped him build his dyno room.
Zox is a good guy, good mechanic and very honest. Sad to see him shut down.
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04-07-2022, 06:58 PM | #11 | ||
IT Drone from Sector 7G
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I think I was one of the last, if not the last, to use the single remaining A-Class unit he had running.
I have driven some crappy cars in my time and that one made the list, easy. The second-to-last car was out on loan and drove past a couple of new roundabouts near the freeway overpass just as some Council numpty came passed with a slasher and slashed the river pebbles on the roundabout (pro tip: they didn't need slashing as they were pebbles) just as they were driving past. Pebbles and bits of pebble everywhere...broke every window on that side of the car and dented every panel... |
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04-07-2022, 07:02 PM | #12 | |||
Thailand Specials
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Maybe he could still work his magic on carbs from a home workshop, or lease someone else's dyno and workshop when required. I reckon he should start a YouTube channel or a twitch stream, he has an interesting niche and he could monetize it. |
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04-07-2022, 08:28 PM | #13 | ||
FF.Com.Au Hardcore
Join Date: Sep 2014
Location: Catland
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Agree on pretty much all the points above. To actually make stuff, getting dirty and making noise is a thing.
Is there any way he could buy his own workshop? I priced one in local region at 400K (that's probably on the exxy side, wait 18-24 months...) and how much would you need to make clear of expenses to pay it out in 4-5 years? Sorry if this is naive, just dislike renting stuff. If he's a carb wizard then there will always be demand.
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04-07-2022, 08:34 PM | #14 | |||
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05-07-2022, 07:36 AM | #15 | |||
Cabover nut
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There was a great little custom spray painter in Harris Street, Pyrmont who operated there for more than 60 years but with all the highrise closing in around that part of the inner city he had no choice but to close down due to cafe goers complaining about paint drift. That area had a great history of shipping, boatbuilding, rail and transport but has now gone like the rest of $ydney. It a shame Sydney Harbour is no longer a working port it once was. On the carbys, found a good carby place in Shepparton recently, very old school ways, only had to look at his front desk to see the rebuilt Carter, Holley and Weber units awaiting customer pick up to gauge how popular this guy is. Nothing like a good quarry and multiple truck rotations to get the punters complaining.
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heritagestonemason.com/Fordlouisvillerestoration In order that the labour of centuries past may not be in vain during the centuries to come...... D. Diderot 1752
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05-07-2022, 07:42 AM | #16 | ||
Cabover nut
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House sat a place opposite one recently and was intrigued by all the comings and goings late at night in the back carpark, funny seemed no one ever got out of their cars.
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heritagestonemason.com/Fordlouisvillerestoration In order that the labour of centuries past may not be in vain during the centuries to come...... D. Diderot 1752
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05-07-2022, 09:12 AM | #17 | ||
Regular Member
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Share a yard with a dyno tuner. Sure it’s loud, and we can’t talk to people on the phone in the middle of a run, but also like a free car show seeing what rumbles up the lot each day. Get some avgas fumes drift across from the airport every now and again. And always have lots of ‘test rubber’ in the entry cul-de-sac on a Monday morning. But hey, it’s an industrial estate. Life goes on!
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05-07-2022, 09:50 AM | #18 | |||
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Quote:
It's pretty quite outside the room. Gregaust and me had a few fun days on that dyno testing. Zok is a naturally curious guy and enjoyed testing cars.
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05-07-2022, 10:58 AM | #19 | ||
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Also making good money at a performance shop is difficult. People think all tuners and high performance workshops are rolling in it, reality is, they are not. The cost of equipment is insane. Then you have rent, a shopfront you need someone in, etc etc. Compare that to my tradie mates who need bugger all tools and don't get out of bed for less than $800 a day, it's a business of passion for cars more than money.
Sure some shops are rolling in it, but they work a lot harder, longer and pay a lot more to keep a shop open.
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05-07-2022, 12:03 PM | #20 | |||
Thailand Specials
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Quote:
Then people turn around and reckon $150+ GST/hour for labour is too expensive, when you're paying thousands for your concrete box, thousands in yearly fees for your diagnostic equipment and tens of thousands on tools. We've all been retail customers, but I've also been a trade workshop, a reseller and also a wholesale distributor. It's the last one who makes all the money and the trade workshop makes nothing but does all the hard work and has the most expenses. I got paid more sitting on my fat *** in an air conditioned office with a phone, book, pen and a computer selling stuff to the people doing the hard work then I ever did as a fully qualified auto electrician, at least in Melbourne anyway. Mind you I've even been on the skills shortage list for about a decade. Lots of independent workshops have dropped off the perch and now OEMs like Ford and the partnership with ARB on the new Ranger is another hit to trade workshops taking away accessory fitment which is the highest margin work on the most popular privately owned 4x4 in our market. I guess you have to adapt, even buying from wholesale distributors and reselling to trade workshops and retail customers is way more profitable than having a workshop, you make more margin and have way less overheads - you don't need the skills and equipment, you just need to understand the logistics side of the industry. Last edited by Franco Cozzo; 05-07-2022 at 12:25 PM. |
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05-07-2022, 12:26 PM | #21 | ||
T3/Sprint8
Join Date: Jan 2005
Location: Australia
Posts: 16,589
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Got to say despite the cliche sign of the times alot comes down to business acumen/management.
Franco knows just as myself being in the Aftermarket the biggest achilles heal for any/every Owner Mechanic/Beater/Performance house all came from the passion side aspect which is a great start but many sadly don't understand book keeping and banking the money to cover thier monthly costs. I've seen it countless times and wonder how does this bloke have so much yet we're there chasing him up because he's 2mths in arears and some I see more when I used to work for another large company as a sales rep. I awlays wondered why don;t many of these guys do a business course after hors, yes I know time constraints come into it/family obligations etcetc but understanding how to manage your growing business needs extra time invested how to manage it. Look at people like Herrod/Harrop I could name a few smaller to mid house's who are doing fine despite the huge internal running costs. Another is my regular local mechanic who's main line is general servicing but he always wanted to make sure and today having the right diagnostic tools keeping up with the times so he could keep working on the later cars of today within reason. He can rebuild box's etcetc...... Over the years I've seen this guy own his own building, buy a mega property with acreage, have some collectables and buy investment properties off the equity - this is a smart general mechanic operator. Crawled before you walk to later run. Customers complain re price I have discussions with him BUT what else or where else can they go - they have to get their cars repaired. I don't see the game dieing for lets face it the need is there for quite some years yet before its all electirc And might I add many companies are looking ahead re servicing these battery vehicles, there will be many new lines/products and ways ahead believe me. Franco, you know OE Trade account discounts are piffle, always has been, 10% off RRP for as long as I've known. Re Labour, yer people complain for $150 - $120 is becoming the norm but they are willing to spend $1k+ on a new smart tv without question having 2/3 in the house lol...... People think fixing their car is 2bob still, more like its a neccesary evil they have to put money into that they can't see where the money goes compared to a tv etcetc..... By the way re parts pricing, I used to sell general parts back in the 80's on and the pricing today in many case's is cheaper than those days due to the many brand offerings and volumes. Our market used to be run by just a few brands back then and the rip off was way more than todays market pricing..
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05-07-2022, 12:30 PM | #22 | |||
Experienced Member
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I suppose you would have to look at rental payments compared to mortgage with how much your business income you are making but it in my opinion it is worth considering. |
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05-07-2022, 12:37 PM | #23 | |||
Thailand Specials
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Long story short, automotive is a 'sunset industry' |
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05-07-2022, 12:52 PM | #24 | |||
Cabover nut
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Location: Onsite Eastcoast
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Quote:
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heritagestonemason.com/Fordlouisvillerestoration In order that the labour of centuries past may not be in vain during the centuries to come...... D. Diderot 1752
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05-07-2022, 12:53 PM | #25 | ||
DIY Tragic
Join Date: Apr 2018
Location: Sydney, more than not. I hate it.
Posts: 22,547
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In 2014 the fellow who runs the place I’ve moonlighted at times had to move; I strongly urged him to buy another premises - not look for rent. Suggested a two stage plan, 24-36 months of rental within 5km of old shop, while shaking down customers for the penultimate move. In that time the purchased property would be DA’d and short term leased.
It fell on deaf ears, I did his DA legwork for the current place (strata unit) and while he’s been there about six-and-a-half years you’ve no guarantee of continuity. When either the council calls time on the area as an industrial precinct, or the landlord divests, or strata get uppity - that will be it. And of course, the prospective buys I’d been eyeballing for him are now way up in value. |
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05-07-2022, 01:10 PM | #26 | |||
Cabover nut
Join Date: Aug 2015
Location: Onsite Eastcoast
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Quote:
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heritagestonemason.com/Fordlouisvillerestoration In order that the labour of centuries past may not be in vain during the centuries to come...... D. Diderot 1752
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05-07-2022, 01:34 PM | #27 | |||
T3/Sprint8
Join Date: Jan 2005
Location: Australia
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Who are the big corporates at workshop side ? some examples. Midas, been around for ages and most failures infact they have been a plus for the Independants gaining work. Ultra Tune, another been around for ages and originally thought the next standard and look where that is. ABS brake workshops, anoher hardly denting business from the local mechanic. There are many more BUT all I'm seeing is the % failure of the Independant not lifting their game and meeting demands. Another point being the game for so long, what comes around goes around re Distribution to Wholesalers to Mechanics. Whilst the big 2 do what they do it leaves a big hole to supply Independants. All won't be wiped out period it just won't happen plus whilst the AAAA body of the game keeps doing its job might I add fighting the other big monster trying to control is the OE's - look at this great win recently announced no mean feat : https://www.aaaa.com.au/news/aaaa-ne...dustry-begins/ No way will the big 2 Aftermarket monsters have it all to themselves forever, there in lies the chance for an Independant Distributer to step in to grow for customers don't want to put their eggs all in the one basket like one of the big 2. There is always opportunity when things look sewn up.
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Tickfords T3/TS50 '02 Sprint8 manual Sept 24 '16 Daily Macan GTS "Don't believe everything you read on the internet. Abraham Lincoln" |
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05-07-2022, 01:43 PM | #28 | |||
T3/Sprint8
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Location: Australia
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I'm just curious after 29/30yrs in business why wouldn't you buy so so long ago exisiting building or elsewhere looking ahead re growth and destiny in your hands so to speak. Maybe he liked putting his hard earned into property who knows and he's laughing in any case and just shutting down for its time to retire maybe as well. Just thoughts for if its the latter in that case good on him.
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Tickfords T3/TS50 '02 Sprint8 manual Sept 24 '16 Daily Macan GTS "Don't believe everything you read on the internet. Abraham Lincoln" |
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05-07-2022, 01:56 PM | #29 | |||
Thailand Specials
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You just don't get a crack at accessory fitment as it's packaged in lease deals at the dealership level which is better for a customer and a shrinking pool of servicing with fixed price servicing being hard to compete with. That AAAA decision is a minor win but it took until 2022 when Ricky Muir was the one working on it until he got taken out by the double dissolution election in 2016, it took 6 years before independent workshops finally gained legislative protection from OEMs in Australia and even then it's very vague in it's reference. It's also not something that just happened overnight when the legislation came into play, it takes a while before these benefits are finally felt by the industry. |
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05-07-2022, 02:09 PM | #30 | ||
T3/Sprint8
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Location: Australia
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Like I said, the Midas etc won't cause damage as for the OE's, mate they won't win it all as well as hard as they try with fixed servicing, % of consumers just don;t like going back to the OE period.
By the way they are consolidsting as well as you can see, so less workshops themselves might I add. No one can service the demands today by the way, the OE's won't prevail impossible. Mechanic mate and others I know are booked 3wks min in advance..... Yer nah I know all the background from Muir on as mentioned, its good work done by them I won't talk it down better than never. The game is flourishing might I add, sales are strong, those Mechanics better be smart and bank a good portion of the GP for it will slow in a year or so......
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Tickfords T3/TS50 '02 Sprint8 manual Sept 24 '16 Daily Macan GTS "Don't believe everything you read on the internet. Abraham Lincoln" |
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