PDR Business Model II

Back to Contents

PDR Business Model II

setting up oin the stormThe Business Model II as it will be referred to here is more aimed with the model focused on a company system with management. This model offers far more flexibility and long term gain as compared to a team of technicians and in fact is further up in the chain hiring the sole trader or teams of technicians. Given the layout described below, it requires far more planning and scope to ensure successful deplyment.

Setting up in a location after the storm

Setting up your business within a storm is an extremely tricky and costly exercise (layouts of $50,000 for rent is not uncommon) and often is crucial to the success of maximising profits from the storm. Companies with national contracts may be invited into the storm event with venues provided for them or may use that knowledge of assured work loads to plan what type of venue or the number of venues to acquire.

Most PDR businesses are not so fortunate and the amount of work available is an unknown variable. The initial acquisition and monitoring of profit-loss statistics is critical in determining the time frame and affordability of a venue. In some cases, it may be viable NOT to enter into specific storms as it could render an overall loss.

Renting industrial estates are done on quarterly, six-month or yearly leases. The upfront costs can be substantial and beginning companies will definitely feel the pinch. Regardless of whether you are an established business or just entering into the industry, profits for each storm should be considered individually to help the business grow stronger. If not done properly, the viability of being in that storm can lead to disastrous consequences and even failure of businesses particularly in the first few years of operations.

There are a number of factors that influence the location chosen within the storm apart from rent. When arriving into a storm zone, extensive research should be undertaken to determine the extent and nature of the damage. Contacts within the insurance industry can assist in determining the number of claims processed within the short time frame of the storm but the research undertaken is still essential to provide evidence of how much PDR work is available. A good guide is to divide the region into grids and rough percentage estimates of PDR repairable vehicles should be noted. Consideration should be noted of what other paintless dent repair companies may be in town.