Need some help: dealer pricing

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Hi Folks,

Need some help figuring out dealer pricing. I made a connection with a guy who does body work and buys & sells used cars.

1.) For the body work business, he would like someone to do the interiors only (mainly because of dirt created during the repairs, plus to put someone back in a clean car).
Looking for: Door Jams, dash, gauges, console, cup holders, vents, all plastic and vinyl and rubber surfaces and interior glass. If there is leather he'd like that cleaned/conditioned, and if it's cloth he'd like it shampooed (which really means using an extractor).

2.) For used cars he goes to a place that does a quick detail on the interior, plus a wash and wax (no paint correction) on the exterior. I'm not sure if they do the engine bay, For this service he currently pays $100.00 and has drive it to the place and wait for it (which he doesn't like).

He asked me to figure up some quotes for both services and here is where I need your help. I'm just starting up, for exterior I got that covered, but for interior, I will need to purchase extractor, steam cleaner, air compressor w/ tornado, etc..
 
Unless he specifically requires an extraction, My opinion is you dont NEED one right away. I do work for a friend who is in the exact same position (small car dealer who does paint work on some of the cars) and I do not own an extractor.

As far as price I would think you can beat that $100 pretty easy. Figure how much you have to make per hour and how long it will take you average per car. Do the math and you have your answer.
 
Im not familiar with a shampooer and would consider that the same as an extractor.

Does he want the seats cleaned or does he expect the seats to be extracted? There is a difference. If he requires you to have a $1000k worth of machines to do his cars then there should be some kind of contract maybe that you will get 15+ cars a year for 2 years or something that works for both of you.

What I am saying is I wouldn't go out and buy a carpet extractor cause someone else says I need one. Its a big investment (unless you happen to have a spare $700-1000 in cash laying around). Ive had people say they were going to bring their car to me and never have. Most people on here have had customers back out of jobs so buying this cause he says hes gonna bring you cars makes me worry a little.

Perfect example just happened as I was typing this to you... car I was supposed to W&W Friday, guy just texted me to cancel. Literally.
 
dcjredline said:
Im not familiar with a shampooer and would consider that the same as an extractor.

Does he want the seats cleaned or does he expect the seats to be extracted? There is a difference. If he requires you to have a $1000k worth of machines to do his cars then there should be some kind of contract maybe that you will get 15+ cars a year for 2 years or something that works for both of you.

What I am saying is I wouldn't go out and buy a carpet extractor cause someone else says I need one. Its a big investment (unless you happen to have a spare $700-1000 in cash laying around). Ive had people say they were going to bring their car to me and never have. Most people on here have had customers back out of jobs so buying this cause he says hes gonna bring you cars makes me worry a little.

Perfect example just happened as I was typing this to you... car I was supposed to W&W Friday, guy just texted me to cancel. Literally.
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Yes, specifically he said, for leather, he wants cleaned and conditioned.... Easy enough, I use Pinnacle and Mike Phillips technique, and all my leather seats come out great.

For fabric he said, shampoo... So yeah, I'd have to spend over $1.2K++ in gear. I'd have to do 12 car interiors to to pay off whatever it is I buy.

I'm at that fine line where I'm a start-up, literally... I'm outlaying cash and haven't taken in $1.00 yet (build it and they will come mentality).

Do I break loose and take on anything and everything, or do I take my time, grow the business slowly with those that want "high end" exterior work (with the product I have), give a decent interior job (with the product I have), even if it's a car or two every other week...?

Starting a business... I'm on that fence of jump in with both feet or not.
 
You are 45 minutes north of me. If you'd like to come down to Massachusetts & help me with a job or two I'd be more than happy to let you play with all my toys. I've got a tornador, extractor, and steamer. You can see what works and doesn't work for you so you can make an educated decision how to move forward with your investments. I have a few very high end cars coming up that we can play with.
 
medicscott said:
You are 45 minutes north of me. If you'd like to come down to Massachusetts & help me with a job or two I'd be more than happy to let you play with all my toys. I've got a tornador, extractor, and steamer. You can see what works and doesn't work for you so you can make an educated decision how to move forward with your investments. I have a few very high end cars coming up that we can play with.
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I would love to! You're a godsend.
What can I bring? Pie and coffee?

I'll PM you my number.
 
I am strictly trying to help so I hope it comes across that way when I post.

You can go buy some "carpet shampoo" at the stores/online and do it manually.

An extractor may be a GREAT machine, just being a start up im not sure the best way to go is "build it and they will come" what if they DONT come? Its totally up to you to decide. Maybe talk to him and ask if he will let you do a method other than buying a $1k machine and see if he likes it. You may not need one.
 
paul_g said:
I would love to! You're a godsend.
What can I bring? Pie and coffee?

I'll PM you my number.
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Lol. No need to bring anything other than some muscle. You can tackle the interior with the toys while I do the paint correction. I think next up is a Maserati Ghibli and a Lambo...so it should be fun. PM me and we can figure out when you are available.
 
dcjredline said:
I am strictly trying to help so I hope it comes across that way when I post.

You can go buy some "carpet shampoo" at the stores/online and do it manually.

An extractor may be a GREAT machine, just being a start up im not sure the best way to go is "build it and they will come" what if they DONT come? Its totally up to you to decide. Maybe talk to him and ask if he will let you do a method other than buying a $1k machine and see if he likes it. You may not need one.
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Thanks Don, your help is ringing through loud and clear. You have a a good point, and that is, let me take on one, do an outstanding job with what I have, and if he likes.. we go from there.

In the meantime, I'll get some interior OJT on toys I've yet to play with.
 
I've been in the same boat as you. In fact I started the same exact way by getting business from a car flipper. I've done interiors by hand using shampoo/brushes and then a shop vac. I'll probably purchase a tornador first since that seems to be plenty versatile and it could help with my motorcycle jobs. I started slow with used equipment and it's earned me enough to buy tools that make my job more efficient.

Just depends on how quickly you want to grow. In the last 12 months I've only turned down 3 jobs because I didn't feel prepared or had the equipment to do it RIGHT.
How many cars will he have lined up for you? Just starting out, I think anything in the $80-100 range is good for what he wants. There's also value in the fact that you can go to him and he doesn't waste time driving. Ask him what his time is worth.
 
OK, good. I didnt want to seem like I was being a D-bag. I was truly trying to get you some options to see things a different way and try to work with what you have.

Im jealous that you may get to go play with a LAMBO!!! Dang it.
 
dcjredline said:
OK, good. I didnt want to seem like I was being a D-bag. I was truly trying to get you some options to see things a different way and try to work with what you have.

Im jealous that you may get to go play with a LAMBO!!! Dang it.
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You were a huge help! Things seem a bit more clear this morning.
I realized "knocking them out for hundred bucks" really isn't the mission of my business.
I know if I listen to my gut I'll usually have the answer, it's the dang brain that screws it up...

I'm really looking forward to working with Scott. I know I'm going to learn a ton.
 
paul_g said:
You were a huge help! Things seem a bit more clear this morning.
I realized "knocking them out for hundred bucks" really isn't the mission of my business.
I know if I listen to my gut I'll usually have the answer, it's the dang brain that screws it up...

I'm really looking forward to working with Scott. I know I'm going to learn a ton.
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Paul, I guarantee even though you are new, I'll learn just as much from you. I encourage more of you all to do these types of meetings as it's always beneficial to see how others do their thing. Amazing the little tips and tricks you can learn from picking someone else's brain. Corporate America mandates this, might be a good best practice.
 
You mentioned "high end" exterior work. I guess it depends where you live, but I've come to find that Joe Public doesn't care nearly as much about exterior work/paint correction as I originally hoped for. I would take as much business as you can get, become a master at what you are doing and eventually hire someone to do that part for you as you start to build a name and reputation while working on expanding the "exterior" part of the business.
 
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