How profitable are auto body shops?
Robert Miller
Updated on February 26, 2026
According to Body Shop Business, profit margins on parts sales typically average between 20 and 28 percent, while labor profit margins range between 50 and 65 percent (Source).
How do I start my own auto body shop?
Before getting involved in this industry, you will have to complete a few important steps along the way.
- Learn everything you can about auto body work and painting cars.
- Create a business plan for your auto body shop.
- Secure funding for your auto body shop.
- Find a location for your auto body shop.
How much does a body shop owner make a year?
According to Chron.com, the average annual salary for an auto body shop owner is $101,000, although this varies by region.
How much money do you need to open a body shop?
You should expect to spend at least $50,000 to get your shop up and running. However, as you make a list of your costs and research pricing, this number could potentially rise. Before you seek funding for your business, a good rule of thumb is to always overestimate your costs by about 30 percent.
How much do body shop owners make?
How much does a body man make?
How much does a Body Man make in California? While ZipRecruiter is seeing salaries as high as $57,511 and as low as $14,255, the majority of Body Man salaries currently range between $29,001 (25th percentile) to $41,290 (75th percentile) with top earners (90th percentile) making $54,562 annually in California.
Do body shop owners make good money?
How do body shops make money?
Profit Margins for Parts The sale of parts does make auto-body shops money—but maybe not as much as you would think. On average, according to the Body Shop Business website, the sale of parts generates between 36 to 44 percent of sales proceeds, while parts produce only 20 to 28 percent in profit margin.
How much money do you need to start a body shop?
Body Shop Business magazine states that 85% of body shop owners run a family-owned shop. Startup Jungle pegs the startup costs to run anywhere from $32,000 to $150,000.
Is auto body a good career?
Collision repair can be a very rewarding career for someone who likes hands-on work and working with cars. After an accident or collision of any kind, vehicles can be in serious disrepair and need the hands of a skilled collision repair body shop professional.
What’s the best way to open an auto body shop?
Be willing to invest in the best location you can find. In simplest terms, plan to open an auto body shop in the best location you can afford. In particular, you want a location that is easily accessible from major roads. Ensure any location you’re considering is zoned for commercial use.
How to choose the best location for your auto shop?
When running an independent auto shop or other automotive business, there are some specific considerations you need to make aside from just pinpointing a location that’s easy for customers to find. Mike Anderson is an automotive consultant specializing in the collision industry and founder of Collision Advice.
Do you need a franchise to open a body shop?
With a franchise, you have less flexibility in terms of designing your brand and shop. However, you’ll have a working business model that takes a lot of the guesswork out of owning your own business. Before you open your auto body shop to the public, you need to register your business.
Is it worth opening your own auto collision shop?
But opening your own auto collision shop can be an extremely lucrative venture. The automotive collision repair market brings in billions of dollars in revenue each year, and studies show that revenue will only continue to grow in the years ahead. Isn’t it time you got your share?
