Illegal Business or Opportunity?

Every problem truly is an opportunity:

  1. Problem – cars have become increasingly expensive to repair.
  2. Some auto mechanics prefer options to utilize their skills and training where their vocation is carried out on their own terms.

A recent article in the Austin Statesman described where auto mechanics and car owners come together in an outdoor parking lot in East Austin.

The benefits are mutual:

  1. Consumers are saving a tremendous amount of money on car repairs.
  2. Auto mechanics have more latitude over when they work and when they don’t.
  3. More work availability is guaranteed for those who may be otherwise unable to find a job.

But here is the problem:

  • For established businesses that play by the rules, competing with unestablished entrepreneurs is burdensome and unfair.
  • For the unestablished entrepreneurs, benefits that may be offered through an established employer (including health insurance) are lacking unless they obtain it themselves.
  • For consumers who go to the “parking lot,” repairs are agreed upon with the understanding that it will be difficult to seek recourse if things go wrong.
  • For the city and state, potential tax revenue may be near nonexistent.

Libertarians (pure free-market proponents) may argue that everyone — every business and every consumer — should make their own decisions, without burdensome roadblocks and regulations.

Yet many may argue that not enough rules brings total chaos in the marketplace. Therefore, rules are there for a reason.

But is there room for a compromise?

  1. Is it possible for the parking lot auto mechanics to still be licensed to operate where they are contributing to a business tax?
  2. Can there be environmental safeguards protecting against oil and other auto fluids spilling into the ground?
  3. Can a simple “acknowledgement form” be created for a customer to read and approve for such services – with the knowledge that different rules may apply to unestablished businesses?

Finally, the education opportunity:
Consider the explosion of the trades. A significant percentage of these young people are interested in entering the vocation of auto mechanics.

Is this an opportunity to better train and serve them as a way to increase their training?

Remember, every problem really is an opportunity
As always in situations such as these, the onus is on the established businesses to point out the value proposition for customers to patronize them instead of the parking lot mechanics.

While considering the pluses to the consumers for going to them instead of the parking lot mechanics, this may also be a blessing in disguise. Now they have somewhere to refer a customer who is unable to afford their services. Additionally, it will no doubt remove a segment of hagglers who use up the professionals’ time and energy.

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