Company: Joe’s Garage

How we met: He’s my father!

Reece O’ConnorNichols CollegeBusiness & SocietyMGMT-100-08

Joe’s Garage is a sole proprietorship.

Joseph chose this structure because the business itself is too small for more than one person.

Joe’s Garage provides automotive repair and towing.

My father has been in business since 1982.

How he got started: Him and his partner were looking for a place to rent as a garage or a gas station. They found the building used today and asked if it was available, which it was. After getting a business license through the town, they started asking different petroleum companies about purchasing gasoline.

Joseph and his partner split the lease half way, in order to finance the purchase.

They also got an oil company to give them gasoline on consignment.

My father started his business because he wanted change, he was sick of working for someone else, and he wanted to be his own boss.

Joseph was always around cars while growing up, as his uncle owned a repair shop that he hung around in throughout his childhood. He took automotive classes in high school and attended 1 year at Rhode Island Trade Shop in 1977.

WHEN IT STARTED: TODAY:

Joe sold gasoline

He rented the building

More customers

Bought more tools

He owns the building now (purchased in 1994)

Less customers, but higher prices

Car parts and materials cost more

As cars evolve he has attended more seminars

What have been the successes?

Being his own boss

Making up his own hours

Closing when he wants to

Flexibility to be involved in family life

Gaining a good reputation locally

Good customer loyalty

Long and friendly customer relationships

Joe’s most rewarding aspect has to be the fact that he’s repaired a countless number of cars in his days, his business hasn’t gone belly-up, he has stuck through tough times, and he is giving people their money’s worth.

The critical success factors in the vehicle repair industry are; having good education in both automotive and business, keeping up to date tools and technology, and perseverance in a tough economy.

What have been the challenges?

Trying to stay afloat in this bad economy

Trying to keep prices low when competitors undercut

Getting information on new vehicles or technology from manufacturers with little to no effort

Large dealers get the information with no hassle

The most challenging aspect?

Cars are always changing – you have to keep up with the new information and new technology

How has Joe overcome those challenges? He learns as much as

he can in an efficient manner

Fatal flaws in this type of business:

Getting a bad part from a manufacturer and installing it He has to pay for

another part

The customer often becomes angry

Overall he loses customer loyalty, time, and money

Who are his two closest competitors? Grafton Tire

Sam’s Auto Services

How does he acquire competitive advantages? Buying tools and

becoming educated on specific repairs that those shops don’t offer.

How does Joe keep his customers satisfied and how does he build customer loyalty? Being honest

Keeping prices low

Joe’s strategies for marketing:

He used to advertise in the phonebook, but not enough people use it anymore

Local advertisements like little league baseball and charity basketball games

He has his contact information on his tow truck

A lot of his customers come from peer-to-peer advertising

How does Joe staff?

Trick question; he doesn’t, he’s a one man crew

Joe plans to stay in business for as long as he can

He would like to specialize in one type of vehicle

How did he end up becoming a sole proprietorship after starting out a partnership? He bought out his partner because there wasn’t

enough space or profit for two people

Has it always been Joe’s Garage? No, it was “PJ’s Auto” for a year, when he had his

partner

How did you handle different gas crises? He would tell people he didn’t have gas, but he

would have friends come late at night to buy the gas he had

What advice does Joe have for you? Go in to a field that is secure

Take your time, don’t just jump in to business

Investigate every factor of a business you’re interested in

It is going to be tough at first but it gets must easier

Work hard and put in a lot of hours, and you will be rewarded

What did I learn? I learned that being honest and hard working can

keep you afloat in a bad economy