Car bodywork repair garages operate on tighter financial margins than mechanical repair and service centres. Because the majority of their work is generated through insurance companies, bodywork garages have to offer competitive rates to secure large volumes of work, and that can impact their profits.
The modern car bodywork garage needs to make significant investments, and costs can run into many thousands of pounds. The average car bodywork garage generated £384,100 of gross sales volume, but profits would be affected significantly by investment in costs and overheads.
Car bodywork garages need an abundance of highly skilled staff, including panel beaters, paint sprayers and body fitters. These trade specialists have high wage expectations, and garage labour costs take a significant level of profit from the bottom line.
Materials and parts
A vehicle's repair often requires new parts and car bodywork garages make a small profit by buying them at trade prices and charging customers retail prices. Materials and consumable items such as masking tape also may be added to a final invoice.
The way a car body business is operated also affects its profit. It can be argued that repair rates established by insurance companies ultimately affect profits, too.