A recent post from my blog for pro detailers.
There's certainly more ways to fail, so add to this thread if you have some insight.
"On paper, a detail business looks like a cash cow. How much can it cost--beyond the elbow grease--to deep clean a car? But if you've noticed the failure rate of detail businesses in your town, there's obviously something going on--costs you don't obviously see--that's sinking these boats. Here's three of the most common causes of failure that I've seen over the years.
1. Toxic Pricing.
The most common mistake is "undercutting." Undercutting is not just setting an "affordable" price. It's pricing yourself 25% or more cheaper than the average price in town. "Hey, I'll make it up in volume" says the undercutter. But he ends up losing it in volume when--months later--he calculates his true cost per-car cost and finds he's losing money on each car. There's nothing wrong with pricing yourself cheaper when you're the new guy, but be conservative: maybe 10 - 15% less than average. After a few months in business, sit down and find your true per-car cost (including everything--the gatorade you drink while thirsty, laundry...everything). If you can afford it, and you think it will bring more business, drop your costs. But never make assumptions or guesses about costs. Only work off of the facts."
2. Excessive investment.
I emphasize that you shouldn't spend more than $2000 to get a mobile detail business started. I even encourage buying the expensive stuff (pressure washer, polisher, compressor) used on Craigslist to get your costs down to around $1250. Why start small? There's so many variables that go into a detailer's fate: weather, competition, the economy, and your untested sales skills to name a few. I can't count the number of times I've seen barely-used $10k - $20k detailing trailers on eBay and Craigslist. Start small, and test the waters. Test yourself! If you put in a solid 4 months and still have the passion, THEN it's time to invest in better equipment, more advertising, and hire help.
3. Careless customer service.
Never forget this: you're selling a service that no one needs. I'll repeat: no one needs car detailing. People need food, clothing, and a roof over their head. Detailing is a luxury and your customers have high expectations when they pay $200+ for a clean car. If you want to be a pro, and stay in business for years, never fail to: show up on time, finish on time and listen to and follow every customer request (with a few exceptions). You're going to make mistakes (that's a certainty), but customers forgive mistakes. What they never forgive and never forget is poor effort."
There's certainly more ways to fail, so add to this thread if you have some insight.
"On paper, a detail business looks like a cash cow. How much can it cost--beyond the elbow grease--to deep clean a car? But if you've noticed the failure rate of detail businesses in your town, there's obviously something going on--costs you don't obviously see--that's sinking these boats. Here's three of the most common causes of failure that I've seen over the years.
1. Toxic Pricing.
The most common mistake is "undercutting." Undercutting is not just setting an "affordable" price. It's pricing yourself 25% or more cheaper than the average price in town. "Hey, I'll make it up in volume" says the undercutter. But he ends up losing it in volume when--months later--he calculates his true cost per-car cost and finds he's losing money on each car. There's nothing wrong with pricing yourself cheaper when you're the new guy, but be conservative: maybe 10 - 15% less than average. After a few months in business, sit down and find your true per-car cost (including everything--the gatorade you drink while thirsty, laundry...everything). If you can afford it, and you think it will bring more business, drop your costs. But never make assumptions or guesses about costs. Only work off of the facts."
2. Excessive investment.
I emphasize that you shouldn't spend more than $2000 to get a mobile detail business started. I even encourage buying the expensive stuff (pressure washer, polisher, compressor) used on Craigslist to get your costs down to around $1250. Why start small? There's so many variables that go into a detailer's fate: weather, competition, the economy, and your untested sales skills to name a few. I can't count the number of times I've seen barely-used $10k - $20k detailing trailers on eBay and Craigslist. Start small, and test the waters. Test yourself! If you put in a solid 4 months and still have the passion, THEN it's time to invest in better equipment, more advertising, and hire help.
3. Careless customer service.
Never forget this: you're selling a service that no one needs. I'll repeat: no one needs car detailing. People need food, clothing, and a roof over their head. Detailing is a luxury and your customers have high expectations when they pay $200+ for a clean car. If you want to be a pro, and stay in business for years, never fail to: show up on time, finish on time and listen to and follow every customer request (with a few exceptions). You're going to make mistakes (that's a certainty), but customers forgive mistakes. What they never forgive and never forget is poor effort."
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