Dealership Coating Contract

Bmw123 said:
I don't think anyone disrespects anyone taking pride in the work they do and of course one needs to educate the consumer to "create" a market.
I respect all you guys here; wish I could "intern" with you to learn more as a hobbyist,
however there is a reasonable price for any skilled job, what I referred to in my earlier post was the unreasonable "upselling" or "more margins" which would now link the good guys in professional detailing to the money grubbing dealerships.

and btw, I get it that its only money and that no one can take it when one dies but then again it's not a very persuasive argument to have anyone part with his money to just give it away if that's the feeling he gets-maybe he may want to donate it or give it to his kids!!
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I'm not sure if you realize this, but detailers don't have as much control over the price of a coating job as you might think. One of my 2016 goals is to offer a pro coating option. It's one of the ways I am further establishing myself as the premium detailer in my area. Every company I have talked to sets the minimum retail price of the coating install.

Say the brand sets a minimum retail price of $1000 exclusive of any paint correction. I can certainly sell it for $1500 if I choose, but I can't sell it for less than $1000 if I want to keep getting it. Hopefully that sheds some light on why the pro offerings are so expensive. I could choose not to offer a pro coating, but it's part of my business plan and a part I'm not going to forego.

Most of the guys on here are small businesses maybe one man shops or a few guys. They are making money with a higher margin doing low quantity and high quality, not a lower margin doing large quantity and low quality. When all the hours and overhead get tallied, I think you'd find the guys here aren't getting rich, they are just making a living like anyone else.


15-20 years ago, when sealants became popular, most shops were upselling a sealant for $50-$100. You'll still find that in a few places. The sealant was easier to apply and didn't cost any more money than the wax (probably $2/car) but they were charging for a benefit of better durability. Today, if you find that structure in a shop, it's pretty bad because what they are using for wax is likely already a sealant and they are charging you for a applying a different product that probably has the exact same ingredients and cost. So they are either trying to screw you or they really have no clue about their products; either way, not the person you want working on your car.

Coating are much like sealants 20 years ago. They offer much better performance than the traditional LSP. In this case however, the product cost is much higher, the effort to install is much higher and I have more disposables, thus, the cost is higher. In the end, you are paying for a premium product.
 
Setec Astronomy said:
Yeah, so the only way this works for the OP is to try to work out a deal with the dealer(s) to get a referral for a real coating for the people that turn down the dealer "coating", where the dealer makes as much or more money on the referral than they do for their own "coating" (or maybe a little less if they don't have to deal with warranty issues since they aren't the installer).

What this would mean for the OP is less profit on the coating, perhaps in exchange for higher volume. Again, like most high-quality detailing, this is only going to be attractive to customers buying more expensive vehicles plus having the disposable income to make this make sense to them.

My 2 cents.
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Actually quite a bit different. Optimum has a dealer program in place where an Authorized Installer is the manager/trainer for their own dealer client and makes a healthy commission on their dealer's sales. Very lucrative actually. You would need to make sure the dealer is properly trained and offer them support as needed.
 
David Fermani said:
Actually quite a bit different. Optimum has a dealer program in place where an Authorized Installer is the manager/trainer for their own dealer client and makes a healthy commission on their dealer's sales. Very lucrative actually. You would need to make sure the dealer is properly trained and offer them support as needed.
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Um...so why didn't you mention this to the OP in the first place?

On another note, I was aware that OPT was trying to do this, but this is the first I've heard of it actually happening. Do we know anyone that has done this?
 
David Fermani said:
Actually quite a bit different. Optimum has a dealer program in place where an Authorized Installer is the manager/trainer for their own dealer client and makes a healthy commission on their dealer's sales. Very lucrative actually. You would need to make sure the dealer is properly trained and offer them support as needed.
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There's no way I'd trust a dealership "detailer" to install a coating, can't even teach them how to correctly wash a car.
 
David Fermani said:
You must of missed my 1st post on this thread:
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Oh, sorry, I guess I must have missed some posts in the middle :o let me go back and catch up.

FinishingTouchA said:
There's no way I'd trust a dealership "detailer" to install a coating, can't even teach them how to correctly wash a car.
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Yeah, and it seems unlikely (although there are always exceptions) that a dealer is going to pay the rate for a "detailer" that can. Which is why I asked David Fermani if there are any OPT installers we know from the forums who are doing this and what their success has been.
 
FinishingTouchA said:
There's no way I'd trust a dealership "detailer" to install a coating, can't even teach them how to correctly wash a car.
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That's why it would be your responsibility to train them properly. Washing, polishing and coating a new vehicle isn't all that difficult to teach and learn.

And there are several dealers currently on the OPT program.
 
Interesting.. maybe I could get on the OPT program and make some money... Although I'm sure none of the dealers around me are really up to the task.
 
David Fermani said:
That's why it would be your responsibility to train them properly. Washing, polishing and coating a new vehicle isn't all that difficult to teach and learn.

And there are several dealers currently on the OPT program.
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And you're also on the hook to fix issues when they mess up, no?
 
David Fermani said:
Explain what you mean by "on the hook"?
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You're responsible to fix the issue, not the dealership or their detail department. That's they way the program was explained when it first rolled out and why so many disliked the idea of it. It may have changed since then but that's why several people disliked it when it rolled out. It a lot of responsibility for the small % you got in sales. Not to mention it potentially steals away clients that would have normally come to your shop for the coating.

I also REALLY dislike the idea of dealers selling OCP as IMO it ruins the brand image by lumping it with all the other dealer offered coatings. Dealer offered coatings have always had a perceived image of being a sham/money grab and a simple Google search will show that.
 
RaskyR1 said:
You're responsible to fix the issue, not the dealership or their detail department. That's they way the program was explained when it first rolled out and why so many disliked the idea of it. It may have changed since then but that's why several people disliked it when it rolled out. It a lot of responsibility for the small % you got in sales. Not to mention it potentially steals away clients that would have normally come to your shop for the coating.

I also REALLY dislike the idea of dealers selling OCP as IMO it ruins the brand image by lumping it with all the other dealer offered coatings. Dealer offered coatings have always had a perceived image of being a sham/money grab and a simple Google search will show that.
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^^THIS! This is why i opted out of my OCP relationship with OPT. For me, knowing what I know being the the auto side of selling cars and sealants, it was just plain stupid. Cheapen the brand, allowing others to apply the product, and then taking all the heat for warranty issues as they arise.

Xzlion and other companies warranties cover the full cost of repair and replacement, not just the cost of replacement product. Whats the point of a warranty if it's really not going to cover anything? And what's the point of a detailer paing a few hundred bucks for a "warranty pack" when it's not going to cover your work? I might as well just sell it how I want to sell it, and guaruntee it on my own and keep all the money except the cost of the product. But Opt decided to stop selling product only, so I'm out.. and onto something newer, less expensive, and so far MUCH BETTER . Anyone can PM me if they want info on this product.
 
David Fermani said:
That's why it would be your responsibility to train them properly. Washing, polishing and coating a new vehicle isn't all that difficult to teach and learn.

And there are several dealers currently on the OPT program.
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You realize what the turnover rate is as a dealership detailer? Is it even worth the effort to teach a new dealertard every few months? I'd rather invest my time in my own employees who I personally select and plan to keep for years.
 
RaskyR1 said:
You're responsible to fix the issue, not the dealership or their detail department. That's the way the program was explained when it first rolled out and why so many disliked the idea of it. It may have changed since then but that's why several people disliked it when it rolled out.
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To my knowledge that isn't accurate. Each dealer is primarily responsible to correct their application issues and warranty concerns. You make is sound like it's some huge ordeal which it isn't. Leveling off a few high spots is extremely simple. And so is reapplying the coating to the panel or 2 if that *might* ever be a concern so the dealer should have no problem taking control of these things if they ever happen. Especially if you trained them properly. And any warranty work is obviously covered by the OPT anyways so not a big deal for me.

RaskyR1 said:
It a lot of responsibility for the small % you got in sales.
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An average sized dealer can earn you SEVERAL THOUSAND dollars in income each month. Doesn't seem small to me!

RaskyR1 said:
Not to mention it potentially steals away clients that would have normally come to your shop for the coating.
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Keep in mind that dealers are only able to promote the coatings to new & existing clients. And they're aren't listed in the Installers Map either. This shouldn't interfere with you any more that what the old stand-by protection products have.


RaskyR1 said:
I also REALLY dislike the idea of dealers selling OCP as IMO it ruins the brand image by lumping it with all the other dealer offered coatings. Dealer offered coatings have always had a perceived image of being a sham/money grab and a simple Google search will show that.
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This might be your opinion, but there's more people who purchase dealer protection services each day than any other on the market. At the end of the day you're buying a warranty. Most could care less if the product is a sealant or a real coating.
 
^^ do you have any dealer contracts under OPT? Its been about 1.5yrs for me and OPT, but theyre old warranty was worded to actually not cover anything, because it can always be put onto the detailer that they didnt install it properly, or the customer didnt maintain it properly. The typical dealership sealant warranties have no such exclusions.. they cover it and the labor, and the replacement products 100%. Ive done customer warranty clqims for xzilon, dupont, glassguard, etc without even being a dealership related business. Thos companies just cut me a check for labor which i set myself, and mailed me replacement product. It was a small hassle i admit, but once they seen i was a licensed and insured business it was smooth sailing. *edit: and btw, the customers have to push that they want YOU to do the work and do not trust the dealership
 
David Fermani said:
At the end of the day you're buying a warranty. Most could care less if the product is a sealant or a real coating.
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I'm deeply bothered if that's what a coating company is about. My experience is based on having coated my personal vehicles. I love coatings because of the ease of maintenance and the resistance to contamination, not because of "protection from fading and peeling."
 
David Fermani said:
To my knowledge that isn't accurate. Each dealer is primarily responsible to correct their application issues and warranty concerns. You make is sound like it's some huge ordeal which it isn't. Leveling off a few high spots is extremely simple. And so is reapplying the coating to the panel or 2 if that *might* ever be a concern so the dealer should have no problem taking control of these things if they ever happen. Especially if you trained them properly. And any warranty work is obviously covered by the OPT anyways so not a big deal for me.

No, it says it pretty clearly. I can provide a screen shot if you like, but I don't feel that's necessary, nor would Opt like it.

It is a huge deal. It may be a quick fix for a high spot, but if I have to drive out to dealerships each week to fix such issues, that time adds up. As mentioned above, turn around is high at dealers, not much pride in the work, and management is constantly pressing to get the cars out fast and quality goes down.

An average sized dealer can earn you SEVERAL THOUSAND dollars in income each month. Doesn't seem small to me!


Keep in mind that dealers are only able to promote the coatings to new & existing clients. And they're aren't listed in the Installers Map either. This shouldn't interfere with you any more that what the old stand-by protection products have.

99.9% of my coated cars are brand new, cars which come from dealers, which would compete against me.


This might be your opinion, but there's more people who purchase dealer protection services each day than any other on the market. At the end of the day you're buying a warranty. Most could care less if the product is a sealant or a real coating.
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It's the opinion of many, most just won't say anything in public or the private Opt group because they don't want to get an email saying they've been dropped for "talking bad" about the company. I have screen shots of those emails too....


It's just sad that such an excellent product went this route.
 
FinishingTouchA said:
I'm deeply bothered if that's what a coating company is about. My experience is based on having coated my personal vehicles. "
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I have no idea if there is any difference in the performance of the coatings, though I suspect there is. But clearly some of the programs mentioned are designed to be warranties that a customer purchases for ease of mind, not appearance. They are profit centers for the dealership, in much the same way floor mats and roadside hazard policies are.

Your experience is in purchasing a different value: you are seeking performance and appearance. You likely have no interested in 'peace of mind'.. ie warranty, and I suspect none of the products you purchase offer a warranty for your car's paint. You are buying a very different product. Whether the chemistry that is used in those is different is hard to know, but likely.
 
roguerobot said:
I have no idea if there is any difference in the performance of the coatings, though I suspect there is. But clearly some of the programs mentioned are designed to be warranties that a customer purchases for ease of mind, not appearance. They are profit centers for the dealership, in much the same way floor mats and roadside hazard policies are.

Your experience is in purchasing a different value: you are seeking performance and appearance. You likely have no interested in 'peace of mind'.. ie warranty, and I suspect none of the products you purchase offer a warranty for your car's paint. You are buying a very different product. Whether the chemistry that is used in those is different is hard to know, but likely.
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You are obviously talking about something completely different. "Coatings" refers to a real ceramic based coating that chemically bonds to the paint forming hard layer of clear coat essentially, rather than a wax or synthetic sealant which is a film of product that simply sits on top of the paint.
Here on Autogeek we talk about quality products that provide real value to the customer, not warranties that cover things that don't even happen to modern clear coat systems in a matter of 5 years (oxidation and clear coat failure come to mind with the bs warranties for products like xzilon).
I'm an opti-coat installer, and yes the difference between a coating and sealants most dealers currently upsell is night and day. They are not comparable products. Opti-coat resists contamination, makes the vehicle easier to clean, is chemical resistant, provides scratch resistance, and actually does last 5 years. I could put a polymer sealant on every car too and warranty for 5 years against clear coat failure and severe oxidation but I'm not going to because I have higher standards than that.
 
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