Did I hit a jackpot?

Tlefe091985

Tlefe091985

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Hello all. I'm new to the site, and have been detailing for over 8 years. I have been thinking about starting my own solo business for a year now, and think I may have found the jackpot.
I called about a garage for rent close I my house, and the area I want to stay in. Talking with the guy, he tells me he used to recon out of the same bays, but has gone back to teaching. The current tenant of the bay (long bay with wash station and room to pull forward) has not been paying his rent on time. Now, he also informed me, the building in which the detail bay is attached to, is in the works of being turned into a Public Auto Auction! Usually auction dealers are looking for local detailers.
The guy renting out the bays, also has a pressure washer, an extractor, and some other equipment in the bay, that he says I could use. The only catch is if something happens to it, I would be responsible. He is charging $750/month for the bay. I néed to talk to him about some other details, but this sounds very promising.
Could this be my open door I get myself into my own business? Is there any concerns, or anything special I should ask?
Thanks for any input on your end.
 
Sounds like a good setup!

Get everything in writing
Get insurance asap
Make sure you have enough capital to start
Read up on how to operate a small business. Detailing is fun, but this is a business.

Sent from my DROID RAZR using AG Online
 
Sounds like it has potential. I highly recommend you read Renny Doyle's book.
"How To Start a Home-Based Car Detailing Business"

This book is an eye opener and walks you thru the entire startup process.
 
VP Mark said:
Sounds like a good setup!

Get everything in writing
Get insurance asap
Make sure you have enough capital to start
Read up on how to operate a small business. Detailing is fun, but this is a business.

Sent from my DROID RAZR using AG Online
Click to expand...

:iagree: You need to ask what that $750 includes. Like water,power and sewer. You need to decide if your doing production work of high end work. $750 a month+ over head.
 
I would mainly be doing production work. I will be speaking with the guy more before I make my decision. I will definitely read up on both. Is there anywhere online I am able to find the book your speaking about?
Thanks again for your input
 
Thank you...I am going to get renny Doyle's book on the kindle so I can start reading ASAP.
 
-For whom...or what Business...have you been detailing, for the last eight years?
-What type of detailing are you currently doing?
-How many vehicles does it now take to make $750
-Extrapolate that into the number of vehicles you think it will take to make $750 to cover just the rent, when running your own Business.

Always keep your Family apprised in the decision making process.
Good Luck!

Bob
 
I have been detailing for a few car dealerships since 2004. All together it has been 8 years of actual detailing. There was a gap of about 2 years where I was working for Dart Container Corp.
I have worked at Sutliff Saturn to begin my detailing. Then went on to Chevy dealership bc I was offered more money. Left there bc of issues with my driving record. Which is when I worked for Dart Container. Could not handle night shift work, so went on to a recon shop. Was laid off because work slowed down and I had least seniority. Was on unemployment, and then hired at a Cadillac Saab dealership. Left on bad terms with the new service manager, and now work for a small used car dealership.

I figured it would take about 6 cars to cover the $750. I could do 10-12-15 cars a week. Now that is before I would take out taxes.
 
Do you really wanna detail dealer auction cars?? I know all money spends the same but dealers are cheap period. I've had tried the shop thing twice and being mobil has so many more benefits. You can just figure $1500 a month in costs before you make a penny. If you do hire/partner up it's still a stretch if you are building/establishing yourself with custmers. Once you have a fixed location you are there everyday work or no work. If this shop is in an industrial area forget it.That $750 is serious cash to advertise and accumulate equipment while being mobile. I would sugest once you have regulars and weekly accounts then locate a fixed location.If there is equipment left behind you can guarantee it's just waiting to break down on your dime.If you've been detailing for 8 years it's time to get your own set up.You will never make any real money working for someone else. Im not trying to put a damper on your plans but shops are a dime a dozen.A shop's location will enable lots of drive ups and preferably feed off connected businesses customers. My 2 cents for what it's worth :props:
 
When I worked for a recon shop, we did 99.9% Auction cars, for the Manheim Auto Auction (Private Dealer only auction). The auction that is opening up is a Public Auction. The only detail shop near me does cars for their own lot, and the Manheim Auto Auction, and some daily driver clientele. They have an add running in the Clipper Magazine for a complete detail for $99 gets interior, exterior, trunk, motor, wheels, tires. and minor touch ups. It is normally $149.99. Now, it says nothing about compounding, and polishing so I don't know if that is included. Being myself, I can keep my prices lower then theirs.
Also with the Auction being connected to the bay, more dealers or private sellers would probably rather get their vehicle detailed on the same grounds as the auction itself, so then there is no worry about transporting from them to a detail shop, then the detail shop to the auction.
Also, I have requested a meeting with the local SCORE group. Hopefully I can talk with someone with knowledge of the industry and get some more insight that way.
 
I'm very familiar with Manheim auctions. I did the whole auction thing for several years. It was always a rat race making sure cars were ready for auction and transport. We always shipped cars to Orlando and whatever didn't sell made their way to Bradenton by end of the week. We would only pay $65 per vehicle for a complete detail including polishing etc.and always kept the clean vehicles for ourselves and gave the blank boxes to our piece work guys.Even though they got roughly 30 cars a week they never made any money.Believe it or not they are still doing it for same prices today.There is always another detailer waiting to fill their shoes.Most dealers almost always have their in house detailer/lot guy @$10 an hour.Sounds like you will have plenty of parking and vehicles left outside overnight.If so, you can bet any ding, scratch, damage or theft will be coming out of your pocket. I would suggest leaving dealer work to younger less experienced detailers willing to work for crumbs. There seems to be alot more money associated with retail customers.With your experience I would not waste it on dealer work.
 
I spoke with the 2 guys that are starting up the auction in the building. They are a father/son duo if you want to call it that. I was basically just speaking with them, about possibly getting some info on sellers or dealers that would be auctioning off their cars.
After speaking with them for about a half hour, the son asks for 5 minutes with his father. I step outside to have a quick smoke.
When I return, the father asks me how set I am on doing everything alone. I told him not 100% set on it bc I flip flop between being really excited about it, and being really nervous about it.
From what I gathered, they may be offering to "team up". It was just a brainstorm on the sons behalf, and still want to talk it over with each other and figure out the "details" (pun intended). They sounded like doing so would help me, as well as them. The son has 30 years in the car business and has detailed since he was 14. The father has 50 years in the car business from running, to owning dealerships.
 
Tlefe091985 said:
I spoke with the 2 guys that are starting up the auction in the building. They are a father/son duo if you want to call it that. I was basically just speaking with them, about possibly getting some info on sellers or dealers that would be auctioning off their cars.
After speaking with them for about a half hour, the son asks for 5 minutes with his father. I step outside to have a quick smoke.
When I return, the father asks me how set I am on doing everything alone. I told him not 100% set on it bc I flip flop between being really excited about it, and being really nervous about it.
From what I gathered, they may be offering to "team up". It was just a brainstorm on the sons behalf, and still want to talk it over with each other and figure out the "details" (pun intended). They sounded like doing so would help me, as well as them. The son has 30 years in the car business and has detailed since he was 14. The father has 50 years in the car business from running, to owning dealerships.
Click to expand...
I am guessing this would help them more than you.
 
I could see potential problems arising with a partnership. Typically misunderstandings about who's responsible for what, compensation, etc.

Do what you think is right, but no way would I enter into something like that. You'd wind up working for them and working for others sucks.

Who owns the cars being auctioned? Dealers, private parties? Will they come to the auction already detailed? If so, where do you fit in? It sounds like you'd get some random dude who takes you up on your services right before the auction.

And don't tell people you flip flop. That brings up other issues mainly reliability. Approach this with the mentality that you're the boss. You dictate terms.

Negotiate your lease so that the landlord paints the floors and walls BEFORE you occupy. Fresh white paint on the walls, light grey on the floors. If he balks, explain to him that for a few dollars he'd have a tenant that actually pays rent on time instead of the deadbeat he has in there now. Which is just like not having a tenant anyway. And how did the $750 figure come up? Tell him you'll pay $600. See what his reaction is.

Good luck keep us posted.
 
I will definitely try negotiating the price. I asked about who will be the owners of the auctioned vehicles, and they said they're going to be buying and auctioning cars they own, and also other dealers, and private vehicles as well. They said they'll give me work, as long as I leave them a little room to make a little money off of.
They wanted to talk over details with each other, and will call me. I plan on talking that over with my SCORE counselor. I will also post on here to get other feedback and opinions.
 
I would steer clear of this whole transaction . With two seasonsed dealers trying to squeeze evety dollar they can out of you.Contracts are worthless unlless you have the funds to enforce and pursue them and most lawyers can undo them for whatever story they invent. These dealers probaly have had hundreds of detailers hired and fired over the years. If you come in and build this place up and establish a decent shop whats to stop them from sending you packing. Why should they make 1 cent off you? They seem to want to blur the lines on your detail shop and their auction business. I've tried looking up what a SCORE counseling consist of with no luck. Could you explain what they do? Instead of $750 rent maybe up to X amount of vehicles detailed. I can see their negotiations going more towards you doing all the work with a split etc.. Most dealers are bottom feeders that will do whatever to make a dollar off you. I have entirely eliminated them from my business plan. I sell my own vehicles (no trade in) The clipper $99 special you mentioned earlier would lead me to believe your same detail wholesale price should be like $60. If this is your only competition, you are very lucky. For those prices they must be a hack shop. I would run an ad next to theirs saying We fix $99 dollar hack jobs.With this forum and all the support and ideas offered you should have no problem establishing yourself as a top notch detail shop elsewhere. It's really important to distinguish your shop from these hack shops. Set your hourly rate and create packages and prices that meet your customers needs. You don't need a shop being a one or two man show.Either way, best of luck with your business ventures:props:
 
Score is a mentoring program of retired and successful business owners. They help with starting your own business, and keeping I running. They have business classes you can attend.
 
I had no clue an organization like SCORE existed. Seems like some great info and tools for small business owners. I will have to check them out locally. Thanks for the info.
 
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