The Chemist Who Chose a Smarter Formula💡

THE ECONOMICS OF A SMOG TEST BUSINESS

Ray, the owner is 61 with a PhD in chemistry…. What??

I knew the answer before I asked it, but I had to anyway:

Ray, why didn’t you do anything with chemistry?

“Because I make more money here and it’s easy.”

==Profit==: $30k/ mo —> that’s $360k / year

==Start up==: Ray said at the most 40-45k and you’d be good. It’s all in the equipment.

Back when he started you had to buy it all. Now you can lease it and the smog equipment company takes care of the maintenance as part of the deal.

==Biggest expense==: The rent. All area dependent

Ray is in an industrial part of the city at the end of an alley not visible from the street.

He runs zero ads and averages 35 vehicles a day.

If he were to hire a technician, the going rate in CA is about $1700 a week.

Instead Ray does it himself.

Sure it’s a job, but he’s saving several thousand a month… worth it?

Me— Ray, when you retire, are you going to sell this?

Ray— I’m not ever going to retire, it’s too easy.