Considering making big business changes, would appreciate input

VP Mark

VP Mark

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Well folks, they say if you are not changing you are not growing! I'm considering some really big changes, and would appreciate some good input.

1. Removing basic services. My basic detail package is simply a wash/wax, vacuum and quick interior cleaning. The problem is, this package more than ANY other attracts people who want something for nothing. Has anyone out there eliminated low cost/quick details completely from their menu? What has been your results.

2. Ceasing all mobile detailing. Yes, you heard me. Here are my reasons.

a. 4-5 months out of the year here, it is too cold to mobile detail. I do all pick up & delivery and drop off in those months. It is hard to explain my services to new customers that part of the year I do mobile, the rest pick up & delivery ect..

b. I live in a really poor climate. It is either screaming hot, raining, or freezing cold. The climate really does not work well with mobile detailing. I would say only 1/3 of the year is truly workable conditions for mobile service.

c. As a higher end service provider, I feel I can provide better work working in my (soon to be) finished residence based shop. With all of my tools, lighting, equipment right there are my finger tips.

d. People are very leery of mobile service. It is a very small market and it is just "strange" to people that I would come to their house. I have had some success with it, but even after 4 years still 60 percent+ of my work is pick up & delivery.


Well, I would appreciate some thoughts. These changes would be HUGE for myself and my business, but I am continually feeling that they are the right path forward. Any opinions would be appreciated!

Feed back please :dblthumb2:
 
First off Mark, I want to say I always appreciate your posts and input. You are always looking for new ideas and know that you've got to be a business person over a detailer.

1: I have this issue also, if I were not planing to scale the business I would drop the lower end services. Especially if you are consistently booked. You're right, most of the customers who want these packages are headaches and don't understand quality over quantity. Plus these vehicles are usually the worst. When someone comes for "just a wash" it's usually covered in green growth and caked in brake dust and bugs that haven't been removed in 5 years. Though I have found interiors don't have quite the same problem. Everyone thinks "oh I can do the outside for that" (we AGers know that isn't true haha) but when their interior is blasted they don't even know what to do. Detailing is like being a mechanic in this aspect, people will pay for services they don't know how to do, they are less apt to pay a premium for services they think they can do themselves. This is my biggest pet peeve, my exterior services are not cheap but people think washing it and waxing it with walmart products themselves can get the same results as when I take a buffer to it with AIO and take the water spots and light swirls out. I've been thinking about making a list of the costs of the products I use to show people that just to buy everything to do what I'm doing to their vehicle will cost at minimum what they are paying me.

2: Yes, Go for it. I've never been happier. I hated showing up to a job and seeing that I've got to wash the vehicle in a gravel pit (or worse, a poorly cared for muddy lawn) and I hated fighting the wind and sun and trees and weather. Here in Oregon we have a very similar situation (150-200 days a year of rain) and one unique thing is we get all 4 seasons in one day often haha. I agree that my professionalism with a fixed location and my quality of work and service is much better. And I don't have to load and unload multiple times. Also I find it much easier to upsell extra services because I always have everything with me. Another advantage is the ability to have product available for retail sale (if someone wants to wash their own vehicle between details I can sell them a new bucket with grit guard, ONR, CarPro Mitt, a dozen edgeless microfibers.

Sorry for the crazy long post, I could go on forever about this topic. But alas I get to go into my shop early today to get started on a swirled out 63 Nova show car today :)
 
No apologies needed, I appreciate the input greatly! Will reply this evening once my slew of appointments are done.
 
now I'm not a pro like most around here...

If I was a customer that used your mobile service every month for the last couple of year, I would be disappointed not to be able to get mobile service anymore. I would stay mobile for well maintained cars that have been clients for a long time, and ditch the mobile part for new clients or cars that are not maintained regularly. or at least see with the people if they would mind switching over.
 
You could charge more for your basic service to chase away riff-raff, and give your customers who take better care of their interiors and exteriors a "discount"...
 
I would open up a shop and run the mobile service. Just schedule your appointments at different times.
 
aim4squirrels said:
You could charge more for your basic service to chase away riff-raff, and give your customers who take better care of their interiors and exteriors a "discount"...
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:iagree:

There's a fine line somewhere there. I'm not a pro, and I only take a few, selected referrals from friends, family and co-workers, but in a past life I was a sole proprietor technician in a different (new-at-the-time) field. I learned about the bottom end of the market back then.

tl;dr to follow:

When I was one of the few with the specialized tools and adapted skills to do a specific job in a new, emerging trade, I made a decent living offering my services to people who were willing to pay for a specialized job done properly. As more and more "technicians" entered the business (and more corporations offered competing services, hiring sub-contractors to do the work for peanuts), prices tumbled, and more basic installations were offered. Eventually the companies providing the equipment were offering "free basic installation" and paying their own "certified" installers $15 an hour, and contractors $35 a job. I went from grossing $60 an hour as a fully-equipped, fully-insured contractor for full custom work on jobs that took anywhere from four hours to a couple of days, to trying to figure out how to break even on basic, ugly jobs that still took at least an hour and a half (on average) for just $35. I had to let my sub-contracted assistant go.

But the worst part? The people taking advantage of the "free" installations always demanded work that was specifically stated in the boilerplate to be extra-cost; they all wanted my custom installation skills, that I valued at $60 an hour before costs, for the $35 a job that I was getting from the equipment vendor. After a few months of losing money I sold the business and got a "regular" job.
 
OP, What you are looking at doing is changing your market, and target customer. I have a few questions, if you do not know the actual numbers, rather than what you think, get those answers before you make any decisions.

What percent of your total tickets are "basic services"
What percent of your total income is "basic services"
What percent of your net profit is "basic services"
The last one is most important, so many people focus on what makes the most money, but fail to look at what nets you the most money. The most expensive doesnt always make you the most
What percent of you clients start with "basic services" but upgrade to more on later visits.
What percent of your "basic services" clients are repeat customers?

All of these same questions apply to your mobile detailing business as well.

Changing your strategy and market can be a good thing, but you should always have accurate info before you make those type of decisions.
 
VP Mark said:
Well folks, they say if you are not changing you are not growing! I'm considering some really big changes, and would appreciate some good input.

1. Removing basic services. My basic detail package is simply a wash/wax, vacuum and quick interior cleaning. The problem is, this package more than ANY other attracts people who want something for nothing. Has anyone out there eliminated low cost/quick details completely from their menu? What has been your results.

2. Ceasing all mobile detailing. Yes, you heard me. Here are my reasons.

a. 4-5 months out of the year here, it is too cold to mobile detail. I do all pick up & delivery and drop off in those months. It is hard to explain my services to new customers that part of the year I do mobile, the rest pick up & delivery ect..

b. I live in a really poor climate. It is either screaming hot, raining, or freezing cold. The climate really does not work well with mobile detailing. I would say only 1/3 of the year is truly workable conditions for mobile service.

c. As a higher end service provider, I feel I can provide better work working in my (soon to be) finished residence based shop. With all of my tools, lighting, equipment right there are my finger tips.

d. People are very leery of mobile service. It is a very small market and it is just "strange" to people that I would come to their house. I have had some success with it, but even after 4 years still 60 percent+ of my work is pick up & delivery.


Well, I would appreciate some thoughts. These changes would be HUGE for myself and my business, but I am continually feeling that they are the right path forward. Any opinions would be appreciated!

Feed back please :dblthumb2:
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I certainly understand your concern. I am located in Montreal and it's just a nightmare being mobile here. 80 percent of my calls are a waste of time. Even though my website is very clear about the fact I am mobile, when it is time to set up the appointment people want to bring me their car and when I explain I am only mobile the vast majority don't book the appointment. I have to start off my phone calls by asking if they understand I am mobile. I keep forgetting to do that when people start to explain what they need ;(

I have been looking for a garage with low rent for 2 years and can't find anything. If you already have an existing Customer base, I would definatelly go fixed if I were you. The reason I can't is that I don't have one and I can't afford a fixed place that will not pay for itself.

Regarding your basic services, that's hard for me to comment on. It really dépends if your business is dependant on them. If you have a lot of demand for it, I would not remove it. Maybe you can change them to include more services and this make it more interesting for you to sell. If it's something that you rarelly sell, then sure, but remember that people often look at the basic services first in order to estimate how much (or little) your services cost. So if from one day to the next you base price go from 100$ to 200$, people might not take the time to read what it includes.

It's really a judgement call, but if your business is doing well, try not to make huge changes. You know the old saying: "If it ain't broken, don't fix it". If I were you I would take baby steps, don't change too many things at the same time.

I would open a shop first.

Then I would start to cut down on the mobile aspect until I only have regular customers with cars you have maintenance plans for.

Thirds I would start to slowly change the basic services but increasing the price a little bit and adding services to them. For exemple, if your basic plan is 100$, I would raise it to 110$ or 120$ and add one or two services to it. Can be really small things but when people ask you why it's more expensive you have a valid reason to give them.

Good luck with all of this. Keep us posted on what you decide to do and how it's going once it's done.
 
Hey Mark, sounds like your going through a lot of changes and desires to change things up a lot. I thought that you were just looking at getting a new mobile detailing rig? Did that end up not working out and is that playing a part in this decision? Or just another change?

In regards to your questions, I know what you mean about the lower level packages, they are usually not your "ideal" customer as they are usually the dirtiest cars and they want the most. Like someone else mentioned, I think it would be best to increase your prices on this lower package to "scare away" bottom feeders and then when you do complete this level of detailing, you'll feel like it's more worth it.

As for the ceasing all mobile operations, that's a pretty big change, especially for customers who are used to you coming out to their place and that was the reason why they hired you. I know for me, I'd probably lose half of my customers if I decided to move to strictly a shop. Your weather sounds worse than mine, but back in Seattle I had to deal with quite a bit of bad weather and still made it work - although some times not very pleasant.

It's definitely something that you can do if you'd like, especially if you've got a nice shop right at your house (ideal situation in my opinion), but I'd probably keep the mobile aspect available for your customers that hired you simply because of that part of your business.

Good luck with it either way, and keep us posted on how the transition takes place.
 
Do you think people will be less leary to come to your personal home? Serious question, I'm not being a jerk. I'm curious about that aspect of your change.

I haven't discontinued my basic detail but I increased the price and removed a service. I still get "those" type of customers but now they pay more for my headache. Plus not everyone in their referral circle is as frugal.
 
One small change you could make is to create a service level that is "membership only." This way you could still offer mobile detailing to maintain your best clients. At the same time your base level services for new customers (non-members) would start at a higher price point and not available for mobile service.
 
I appreciate all of the commentary and insight. I'm still mulling it over, but here is some further information:

Only about 15-20 percent of my business consists of my basic detail packages, but I make the least amount of money. Part of the loss is when the service is provided mobile, I have to spend -+25 minutes each way to perform the service. When you are adding an hour to a $80-$100 service, the margin goes down quickly.

Mobile service is only about 30% of my business, and about 75% of that would be fine with pick up and delivery, but simply take the mobile service because it is offered.

I do not have hardly any regular maintenance clients(weekly, bi-weekly washes), simply because I get booked 2-3 weeks in advance most of the year, and I am usually not available to show up and do a wash at a 1-2 day notice. Forget same day service, it just does not happen unless I have a cancellation. I never wanted to gear my business around maintenance cleaning, therefor don't have much in the way of that business.

Most of my regulars consist of locals that I do pick up and delivery for. They usually purchase the basic details, but I perform them every 2-3 months, so the vehicles are never in horrid condition.

One thing, I'm definitely going to "grandfather in" all of my current clients. Meaning that anyone who has ever purchased basic services from me can still do so, because I don't want to use regular clients that have been faithful for years.
 
Do it all Mark. If you're solo working from home is great.

I will not do a wash and wax on a vehicle I haven't detailed or isn't brand new. My most popular and least expensive exterior services for a Honda Civic is a wash, clay and sealant for $100-125. I explain why the clay bar and decon is the most important part (IMO) to get the smooth feel and gloss back the paint, plus the results are truly feel-able. I rarely have price shoppers and when I do, we are on the phone for 2 minutes or 10+ minutes plus while I explain to them what exact detailing mean to my business, because detailing is VERY broad.
 
Scott@IncrediblyDetailed said:
Do it all Mark. If you're solo working from home is great.

I will not do a wash and wax on a vehicle I haven't detailed or isn't brand new. My most popular and least expensive exterior services for a Honda Civic is a wash, clay and sealant for $100-125. I explain why the clay bar and decon is the most important part (IMO) to get the smooth feel and gloss back the paint, plus the results are truly feel-able. I rarely have price shoppers and when I do, we are on the phone for 2 minutes or 10+ minutes plus while I explain to them what exact detailing mean to my business, because detailing is VERY broad.
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This is great advice! I think some of my issues that have arose over the years has been sitting in the muddy middle, trying to catch business from every end of the spectrum. I think doing away with mobile service will help my business look more focused and professional to the market I really want to reach.
 
We raised our prices to chase away the "bottom feeders" and got almost double as busy. Me and my guys are all scratching our heads over it.

I thought of running some kind of exclusive membership thing, where we start off doing one of 2 or 3 different detailing packages to be chosen based on vehicle condition. Then lower end "maintenance services" such as quick details and such to maintain them. I decided not to do this and raised my prices instead. Might work for you though.

Our most basic service went up 50% but included some other minor services to make up. We discount monthly visits 10%, and customers who've done one of our details get 20% off wash services when they use us monthly.

We also thoroughly emphasize that we will not do simple detail packages on cars that are not well maintained, we either force them into a detail that fits their vehicle condition or we pass. Yes we lose money over it, but to me its better than working harder for less money and putting your reputation on the line on a car you know just wont look good after a basic service. MY favorite upselling line "I dont mean to be pushy, but if we did this package on your car it would be equal to a doctor putting a band-aid onto a wound that needs stitches.. its just not professional and not the right thing to do"

This one lady, we turned her down for our express detail like 5-6 times over the course of 3 years.. she kept coming in with this single stage white Rav4 that was oxidized to hell and just didnt want to spend the kind of money we are asking for a correction. I kept telling her "no, waxing a car like this is wasting money.. your paint needs correction before it gets waxed". Well finally earlier this year she got it, and wrote us a glistening 5 star review about how she felt we were so honest for not taking her money just to make a buck.

Good luck!
 
jrs1418 said:
We raised our prices to chase away the "bottom feeders" and got almost double as busy. Me and my guys are all scratching our heads over it.

I thought of running some kind of exclusive membership thing, where we start off doing one of 2 or 3 different detailing packages to be chosen based on vehicle condition. Then lower end "maintenance services" such as quick details and such to maintain them. I decided not to do this and raised my prices instead. Might work for you though.

Our most basic service went up 50% but included some other minor services to make up. We discount monthly visits 10%, and customers who've done one of our details get 20% off wash services when they use us monthly.

We also thoroughly emphasize that we will not do simple detail packages on cars that are not well maintained, we either force them into a detail that fits their vehicle condition or we pass. Yes we lose money over it, but to me its better than working harder for less money and putting your reputation on the line on a car you know just wont look good after a basic service. MY favorite upselling line "I dont mean to be pushy, but if we did this package on your car it would be equal to a doctor putting a band-aid onto a wound that needs stitches.. its just not professional and not the right thing to do"

This one lady, we turned her down for our express detail like 5-6 times over the course of 3 years.. she kept coming in with this single stage white Rav4 that was oxidized to hell and just didnt want to spend the kind of money we are asking for a correction. I kept telling her "no, waxing a car like this is wasting money.. your paint needs correction before it gets waxed". Well finally earlier this year she got it, and wrote us a glistening 5 star review about how she felt we were so honest for not taking her money just to make a buck.

Good luck!
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You know, I really appreciate your reply. I've never run into someone who took steps such as yourself and regretted it later on. In fact, everyone I've ever known that has raised their prices/standards has reported a huge increase in business in a very short time.
 
Thanks. Yea it was almost instant. Feb we ran old prices and did 170 cars, march new prices and did same amount roughly. April we did almost 300 cars and made almost $18k, this month is trackin equal, we have $9500 made for the month. I had to hire 2 more guys to cover and we're still turning people down for time purposes.
 
Well, I have listen on my website as of tomorrow I will only be doing exterior work mobile. I will finish the rest of the year that way, then as of winter this year shut down mobile services completely, other than traveling to install coatings.

I'm going to keep the basic package, but after the summer is only make it only available for clients that have my 2nd or 3rd stage package in the last year.

Planning on doing a price raise, in the 15-20% range, at the end of the year.

It's been kind of a gut check doing these changes, but if you don't change you can't go forward.
 
jrs1418 said:
Thanks. Yea it was almost instant. Feb we ran old prices and did 170 cars, march new prices and did same amount roughly. April we did almost 300 cars and made almost $18k, this month is trackin equal, we have $9500 made for the month. I had to hire 2 more guys to cover and we're still turning people down for time purposes.
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In April you did 300 cars for $18k, so you average job was $60. Which was after you raised your prices.

What kind of packages do you guys offer?

Your able to do 10 cars a day (300 cars over 30 days)? That's pretty damn busy.

Around me its hard to get much more than a wash for $60.
 
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