Alternator and starter rebuild workshop

Independent garages, fleet and equipment repairers, and farm, marine or heavy-vehicle workshops that need hard-to-find units.

You sell rebuilt units at trade prices that sit below new parts but well above your cost of components and labour. Core returns from garages keep your supply of units to rebuild coming in.

• Electrical and mechanical aptitude, ideally with auto electrical or mechanic training
• Careful testing and quality control
• Dealing with trade customers and managing accounts

• Commercial general liability and product liability insurance, since a faulty part can cause costly damage
• Safe handling and disposal of old parts, oils and any hazardous materials, so check provincial and municipal rules
• Check zoning and business licence requirements for your workshop, and workplace safety training (WHMIS)
• WCB/WSIB coverage rules by province if you hire help
• Warranty claims and returns can eat into margins, so test every unit before selling

Startup costs are typically estimated at around $12,000 to $60,000, depending on workshop space, tools and testing equipment. Monthly revenue is typically estimated at around $4,000 to $20,000, depending on the units you rebuild and your trade customers.

Check commercial general liability and product liability insurance, and safe handling and disposal of old parts, oils and hazardous materials under provincial and municipal rules. Also check zoning, business licence requirements, WHMIS training, and WCB/WSIB rules if you hire help.

Estimates point to electrical and mechanical aptitude, ideally with auto electrical or mechanic training, careful testing, and managing trade accounts. Plan for at least about 25 hours a week. Warranty claims can eat into margins, so test every unit.