Pitched a idea yesterday!!!

D

Detailingtime

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Have a friend who loves cars and i have pitched a idea his way He is wealthy and likes idea.We are looking at starting a indoor car lot where each vehicle would be kept to a showroom shine all full corrections.I would detail each vehicle for $800+ commision on eash sale and i would setup appointments and show cars.It will be small boutique set up 5-8 cars kept in imacculant condition indoors. heavily marketed with medium mile vehicles such as BMW,Classics,His passion Vettes,Each vehicle will get new rims, nice rims not blinged out crazy and a full correction detail.Basically if you lined up same brand and year model simiiar miles from 10 different dealerships ours would stand out that is the goal and break even on upgrades but help move autos faster.
 
sounds like a lot of risk, but the reward may be worth it.

one question: How do you know there is a market for this type of work?
 
You live in a large market, this could work, but do your research! This will not be a get rich quick scheme. You are going to have to do a LOT of building for a high end boutique business like this.
 
Well there was very successful auto indoor lot that did very well.I worked for him for about a year but the details were for $450 he paid me when the car sold and i did pretty well til he got really sick.These were ok cars with not alot of marketing behind them.So took that concept and have been reworking it for a year and the oppurtunity presented it self to pitch it.
 
Detailingtime said:
Well there was very successful auto indoor lot that did very well.I worked for him for about a year but the details were for $450 he paid me when the car sold and i did pretty well til he got really sick.These were ok cars with not alot of marketing behind them.So took that concept and have been reworking it for a year and the oppurtunity presented it self to pitch it.
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As VP Mark said, Dallas is huge and has a lot of wealthy people, it could work. But what will you do if it doesn't? Just make sure to always have a backup route, especially with high risk type things :props:

Good luck!
 
My only concern is the small # of vehicles we will have but that is his tolerance level for now he said.Remember this is the idea stage so we will see.
 
He has alot of connections and is willing to teach me what he knows as a successful businessman to make this go.Couldnt even sleep last night head full of ideas lol.
 
Just make sure you get a lawyer to look at the paper work. Going into business with a friend can turn ugly real fast just protect your self. Hope it all works out for you.
 
All i see is $$$$$$$$,$$$$$$$,$$$$$$$$$$$$$$,$$$$$$$$$$$$$$.$$

but goodluck!
 
Pureshine said:
Just make sure you get a lawyer to look at the paper work. Going into business with a friend can turn ugly real fast just protect your self. Hope it all works out for you.
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This is good advice. Even though you are friends, cover your self legally. Things can change, people can change, so make sure your are protected to the level you need to be.
 
:idea:

Have your friend join-up here at AGO!!

(I'd bet he'd enjoy hearing this forum's members input firsthand.)


:)

Bob
 
In the used car business volume is the name of the game. If a car is sitting on the lot(inside or outside) it is tying up money. Good used car lot owners are buying cars for people and selling them before they even make it to the lot. Good luck with your plan I hope you can make it work.
 
My advice...

If the following word begins with a vowel or a vowel sound because of a silent consonant, such as the word herb, then use "an" instead of "a".

Other than that, I would suggest researching and interviewing other boutique dealerships for advice. Make sure you actually have a set of questions prepared in advance, however. Create lists if what you love/hate about their websites.

You need to know how much they pay for their advertising (online, local, blackbook daily auction price subscriptions for trade ins, etc.) as well as budgets for carfax memberships, insurance, etc.

And the most important question I could think of, since a boutique shop will have different answers than b-lots & major dealerships... What is their daily loss value (how much they lose or are willing to mark down the car) for every day it doesn't sell. This is vital because knowing that plays into every deal or decision to trade it with another lot.

After that you need to start networking - do you already know what shop your going to use for minor fixes to get it ready for sale? And make sure they're willing work out a vendor trade agreement with you for rates. You'll want to find a foreign auto shop, a body shop and quality guy who does tinting and accessories.

You also need to get friendly with other boutiques within the 500-1000 mile radius to trade vehicles. You'll probably not get the best trades on the first couple deals but whatever you do, don't burn those bridges. It's a backstabbing industry but you can't afford enemies in this industry.

Oh and learning how to actually sell would be useful to... But when you have all that information to write up a business on, don't forget the bits about "an" or "a".

The one near me is called "Global MotorSports"

Lucky Joe,
Grammar NotSee

Sent from my HTC DNA
 
Joe has great insight there, when networking both locally and especially out to 500 ~ 1000 miles away. :xyxthumbs:

We have a similar concept here, although not an all indoor operation. What he does do is only late model, only higher end. He then keeps some select few inside, like if he grabs up a 911 GT3 RS, or a Ferrari, Aston, Classic Muscle Car, etc. He puts the hotrods inside, the DD's outside. If it's inside, it has a killer detail on it. If it's outside, it may be as he got it however, but.... he wouldn't have it if it were not a very clean car to begin with.

Remember they don't have to be new, just very clean, very low mileage cars. Stick with a singular plan and market the heck out of it. It's possible to make it work, but nobody is going to get rich at it.
 
Pureshine said:
Just make sure you get a lawyer to look at the paper work. Going into business with a friend can turn ugly real fast just protect your self. Hope it all works out for you.
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I totally agree with Todd :iagree:

I would definitely want to make sure to put some contingencies on the sale/marketing and in case you screwed up on the correction (who's paying for insurance and deductible etc..)
 
arjo.reich said:
Oh and learning how to actually sell would be useful to... But when you have all that information to write up a business on, don't forget the bits about "an" or "a".


Lucky Joe,
Grammar NotSee

Sent from my HTC DNA
Click to expand...

I think you meant too.
 
I hate the term "very low mileage", it's such a misnomer because people think that it's an indication of future reliability... and it is NOT.

Not that it matters for this thread but if you're buying a used car you should be calculating its duty cycle and trying to find a car that matches your own driving duty cycle, or how many miles you dive in a normal year. The duty cycle of a cat is (mileage / (current year - year manufactured))

If you buy a car that was only driven 50 miles a week for the last four years and then you start driving it 500 miles a week it's kinda like making a fat guy run a marathon - he'll be fine for a first leg or two but you know that stroke is coming...

IMHO, anyways.

Lucky Joe,
Wannabe Detailer

Sent from my HTC DNA
 
The biggest challenge for most dealerships is financing their customers. By adding upgrades and increasing the cost of the vehicle, you are making the financing even harder.

Couple that fact with the what will end up being your "market", people who can't afford new but want bling, you are going to have lots of tire kickers.
 
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