Creating a New Revenue Stream
The Business/Financial Opportunity in Gas Tank Repair
Damaged plastic and metal gas tanks are frequently replaced because most businesses do not have a dependable repair process which is, financially, a disaster for your customers . Replacement can be veryexpensive, and discontinued or difficult-to-source tanks can leave vehicles and equipment out of service for extended periods.
Tech-Bond Mini-Packs give qualified businesses the materials, chemistry, tools and training needed to add professional gas tank repair to their existing services. This creates an opportunity to solve a costly customer problem while developing an additional revenue stream. Financially, repair instead of replacement is a better outcome for all.
Understanding the Direct Material Cost
The direct material cost of a Tech-Bond repair is determined by the size of the Tech Wrap patch and the amount of bonding chemistry required to install it.
Tech Wrap patch-material cost per square inch: __________
Bonding-agent and application-chemistry cost per square inch: __________
Combined direct material cost per square inch: __________
The combined figure represents the approximate direct cost of the Tech Wrap patch material, SI Black Bonding Agent and associated application chemistry. Labor, inspection, preparation, overhead, travel, taxes and other business expenses are calculated separately.
Example: 3-Inch × 3-Inch Patch
A 3-inch × 3-inch patch may be appropriate for smaller, localized areas of damage.
Tech Wrap patch-material cost: $ 5.40 for a water tank and most gas tanks.(1)
Bonding-agent and application-chemistry cost: $ $ 3,20 for all tanks
Total direct material cost: $ 8.60 Total
Customer repair price: See (2) below
Gross profit before labor and overhead: __________
Example: 3-Inch × 6-Inch Patch
A 3-inch × 6-inch patch provides additional coverage for longer cracks or larger damaged areas.
Tech Wrap patch-material cost: $ 10.80 for a water tank and most gas tanks.(1)
Bonding-agent and application-chemistry cost: $ 6.40 for all tanks
Total direct material cost: $ 17.20 Total
Customer repair price: See (2) below
Gross profit before labor and overhead: __________
Example: 3-Inch × 12-Inch Patch
A 3-inch × 12-inch patch provides extended coverage for longer repairs and more substantial areas of damage.
Tech Wrap patch-material cost: $ 21.60 for a water tank and most gas tanks.(1)
Bonding-agent and application-chemistry cost: $ 12.80 for all tanks
Total direct material cost: $ 34.40 Total
Customer repair price: See (2) below
Gross profit before labor and overhead: __________
(1) – a double layer of patch is recommended when there is a hole in a gas tank. For gas tanks with a hole(s), double the patch cost.
Important: When repairing a puncture or open hole in a plastic or metal fuel tank, a minimum of two layers of Tech Wrap patch material is recommended. The second layer must extend beyond the first layer to reinforce the repair and distribute stress across a larger bonding area. If the crack is on a seam, again a second layer of patch is recommended.
(2) If the company must remove, drain, clean, reinstall and test the tank, the total could reasonably reach $600–$1,200 or more. Current fuel-tank replacement estimates average approximately $1,685–$1,894, providing substantial room for a professionally priced repair that saves the customer money. RepairPal reports replacement labor alone at roughly $374–$548, while ConsumerAffairs gives a broader replacement range of $700–$2,500.
Customers Pay for the Solution—not Simply the Materials
The value of a professional gas tank repair is not determined solely by the amount of patch material used. Customers are paying to avoid the cost, delay and inconvenience associated with locating and installing a replacement tank.
A professional repair charge should account for:
- Inspection and evaluation
- Tank removal or access requirements
- Cleaning and surface preparation
- Patch installation
- Technician time and expertise
- Verification and testing
- Shop overhead
- Travel or mobile-service costs
- Warranty obligations
- The value of returning the vehicle or equipment to service
Estimate the Revenue Potential – Fill in your numbers.
Average customer charge per repair: __________
Average direct material cost per repair: __________
Average gross profit before labor and overhead: __________
Estimated repairs completed each week: __________
Estimated weekly repair revenue: __________
Estimated monthly repair revenue: __________
Estimated annual repair revenue: __________
Turn an Existing Problem into a Business Opportunity
Gas tanks are damaged every day. Some can no longer be purchased, while others are expensive or difficult to replace. A business equipped and trained to perform professional repairs can provide an important service to customers while creating a repeatable source of additional revenue.
Tech-Bond Mini-Packs make it possible to begin with the package that matches your expected repair volume and expand as the business develops.
All examples should identify the number of Tech Wrap layers included in the calculation. Actual material use and repair cost will vary according to tank material, damage, surface condition, accessibility, patch design and application requirements.