What should I ask about a trailer repair shop’s mobile road-service calls?
Ask how many calls come in, who answers them and who goes out. Find out whether the service trucks are owned or financed, what the shop charges for travel, and whether the work earns a margin after fuel, time and tools. A repair shop can look busy on the road while the profit stays in the bay.
Ask first for the call log. You want to see where calls come from, how long each one takes and how often they happen outside regular hours. A shop that runs on a few fleet customers behaves very differently from one that takes random roadside calls. Ask how the shop prices a call that ends with no repair, such as a customer who decides to tow instead. Also ask what stock rides on the truck, who restocks it and how the shop keeps track of parts used on the road, since small items disappear quickly without a routine.
Then ask about the people. If one technician handles most of the road work, find out whether they are staying and how they are paid. Ask who covers the phone at night and who decides whether a call is worth the trip.
Look at the economics. The truck, its equipment, fuel, insurance and travel time all belong against the revenue from those calls. Ask your accountant to separate road work from bay work in the financial statements so you can see which one carries the shop. Finally, ask about complaints, comebacks and any damage on roadside jobs, and how the shop dealt with them.
Key takeaways
- Request the call log and see where calls come from and when.
- Find out whether one technician carries most of the road work.
- Ask your accountant to separate road-service results from bay results.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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