Frank:
The next questions become how big is your potential market? And how do you reach them and convince them to pay you the extra $$$ for this service?
One view of the market is:
Take all the people who buy used vehicles.
Subtract those who already have a mechanic.
You’re then left with two types:
a) Those who already know they should get the vehicle inspected. Some may see your advertisements, but will then evaluate the benefits of the added cost. I suspect most will default to their existing methods to find a mechanic.
b) Those who do not even think of getting a vehicle inspected before purchasing it. I keep learning that this group is larger than I originally thought. You need to reach these, convince them that they should spend money inspecting their vehicle, and then convince them it should be you that they spend their money on.
It appears you’ve started several businesses already, so you should be familiar with market research.
All the best.
Yes - those are all great points. From what I’ve found so far, the ideal target group is those who would like to schedule an inspection, but have trouble doing so.
I talked to BringaTrailer subscribers who almost always bid on and buy cars remotely. Because they’re enthusiasts, they understand the need for a PPI, but they tend to skip the hassle of scheduling the inspection, at their own risk. Those people see the value organically.
In order to target those who aren’t familiar with the value of an inspection, I think advertising on high-volume car exchanges (AutoTrader, Cars.com, etc.) is the answer. Harvesting existing demand is key, but until I can build credibility within the smaller enthusiast demographic, I’m thinking I should stay away from converting customer habits. Do you agree?
Enthusiasts (my early adopters) see scheduling an inspection as a hassle
Willingness to pay is ~$4-500
Enthusiasts don’t have reservations about mobile inspections
The market is large enough to support about 10 major players with the same business model. All of them assign inspectors to requests based on availability, not based on expertise. Though there isn’t a reliable source of PPI data, the fact that so many basically undifferentiated companies can survive in the space gives me confidence.
Yes - definitely a fair point. The reality is that the majority of dealership/indy mechanics already perform side work, but not in an organized fashion. If I organize them in my network, they become a potential target for dealership owners, etc.
I’ve learned that performing an inspection actually doesn’t violate non-compete clauses, as it’s not “work” that they’re performing - only an evaluation. But that isn’t to say that dealerships couldn’t take action against technicians who work with me. It’s a risk I communicate to all new technicians on our platform.
Considering that hourly labor rates for typical dealerships in my area are still less than $200 per billed hour, your price seems high
However, I could possibly envision a scenario where a potential buyer of a classic and/or rare vehicle would consider this money well spent
I don’t know about the other mechanics, but when I was at the dealer, even performing a paid inspection would technically have been in violation of the employee agreement(s)
But I live in California, which seemed to be very strict at the time, and I don’t know where you’re located
Sorry - I should qualify. Mechanics have told me that as long as it isn’t repair work (i.e., turning a wrench), it isn’t a violation. May differ from dealership to dealership, but I’ve received that feedback from several sources.
