Profitability

[KyleTaylor]

Profitability

I have detailed cars for about three years, but mostly on the side or one or two a week. I have decided to go at it full-time. I have free use of space at Precision Motorcars, which is where I used to detail some as well as work on the Mercedes, BMWs and other high end European cars.

How would you suggest keeping a steady flow of customers that will keep one or two employees, as well as myself, busy?

I have about ten lined up for the next two weeks. That is not enough, but a good start. I think I will apply with the Yellow Pages toward April, if things go well. Also there are plenty of high end golf communities that I can service.

There are four or five large new-car dealers in my town, but I am not sure I want to solicit them quite yet. Nor do I think they will have much need of my services.

My ideal customer would want a full detail with paint correction, and be willing to pay $125 to $150… but I will do “spiffs” and light wash and wax for the cleaner cars. This is where the second employee will come into play.

There is also a large RV sales center down the road, but I am not sure I want to handle $200k+ vehicles, though I am insured too…

Any advice will be accepted and I am grateful.


Kyle

 

[SPiN]

Man if you have an indoor space you can use id hop all over that, whats kept me from doing customer cars is that I dont have a shelter and in the florida 100+ degree sun I just cant handle it.

 

[KyleTaylor]

Man if you have an indoor space you can use id hop all over that, whats kept me from doing customer cars is that I dont have a shelter and in the florida 100+ degree sun I just cant handle it.

I am all over it! Man I am excited, yet scared, but not scared! make any sense?

Just looking for advice from anyone who has made a detail shop work

 

[Pauly6401]

Where are you located?

Also, your idea of getting return customers for lower-cost wash and wax to maintain your initial correction sounds like a great idea. It will keep the income flowing in and build a customer base. If you have a helper I would hit those golf courses and things - he/she could be washing, claying and applying/removing sealant or wax while you buzz away with the PC or rotary and do the more advanced work. That way you could be doing a couple of cars a day instead of just one.

Also, have you thought about used-car dealers? They would need your services more than the new ones, and since a lot are privately owned might be easier to set up a deal with. Especially ones that sell sporty used cars like old Vettes or Camaros and want to appeal to younger people -those cars get beat on and could use some lovin on the paint before they are sold.

 

[KyleTaylor]

Canton, Georgia

I never thought I would say it, but I wish there were a couple more used car dealers around!

 

[Totoland Mach]

Kyle: good luck on your venture! I've decided to make the plunge to full time detailing (lost my Mon-Fri daytime job on a corporate buyout).

I'd recommend you decide 2 important things: How much money do you need to make a comfortable living for yourself and any employee's. And number 2: how many cars can you detail on an average daily basis. That should set a price range for your services.

I typically charge $300-$500 per vehicle for full detailing and the clients I target don't quibble at those prices. My biggest client base is Doctor's and medical professionals. I'd do a postcard mailing to that market. The other clents I'd recommend are real estate agents....they ALWAYS want a clean car! You could go to a real estate office and offer a quantity discount to a single office.

Hope that helps you. Personally, I think your pricing is too low to support a couple of people, but I don't know your situation. Believe me, it's your reputation for good work and, more importantly, your trustworthiness when dealing with high-end cars that brings business. I've had several doctors tell me that and they have networked additional business for me. After all, they don't want to leave an $80-$100,000 car with just "anybody"... It's their pride and joy and I always treat the car as such.

Toto

 

[Pauly6401]

I'd recommend you decide 2 important things: How much money do you need to make a comfortable living for yourself and any employee's. And number 2: how many cars can you detail on an average daily basis. That should set a price range for your services.

Personally, I think your pricing is too low to support a couple of people, but I don't know your situation.
Toto

That's why I wondered where he was located at, as that makes a big difference on how much you can charge. But I suppose if you attract the right kinds of clients and cars that will help.

 

[KyleTaylor]

Toto, I think my clients are just a shade behind yours, and I think $125 is too low as well.

Here is some thing else. I do "wholesale" for Precision Motorcars. $100 per car, but the sale cars do not require quite as much work. On the service customers they charge closer to $200, and I get $100, and don't have to pay rent, water, or anything. Just keep track of extras so I do not get screwed in the long run.

I think I will push the service manager to keep his price at least $200. I think I can swing that.

A friend of mine is a cosmetic dentist. Was in business for about 10 years, doubled his price, lost 30% of his customers... he works less and makes more. I want to do that after I get a reputation.

Canton is small enough, but growing fast so my timing could not be better.

 

[KyleTaylor]

I need an estimate of cost/ vehicle as far as supplies go.

Right now these are the products I have:
*3m Perfect-it Medium Compound $25/ quart, retail I over paid because it was an emergency.
*3m Perfect-it Dark Glaze $40/ quart, same as the compound, it was an emergency purchase
*Meguiars Light color glaze (#26 I think) $??
*CarBrite Phase Glaze Light color glaze, but works on dark cars too $25/ gallon
*Klasse Sealant $25/ 33 oz
*Glass Cleaner $??
*Tire Gloss $??

I have a 55 gallon drum of all purpose cleaner... it belongs to Precision, but it is included in my deal. So is the really nice Honda pressure washer (I just have to change the oil every now and then!)

I was guessing $5 to $10, but I know it will not be fixed, as some cars need more or less.

 

[Truls]

Believe me, it's your reputation for good work and, more importantly, your trustworthiness when dealing with high-end cars that brings business. I've had several doctors tell me that and they have networked additional business for me. After all, they don't want to leave an $80-$100,000 car with just "anybody"... It's their pride and joy and I always treat the car as such.

Toto

Word...

Geting a good reputation and keeping it "clean" is a nr 1 rule regarding business growth. Living by the rule "customer is always right" can be hard sometimes, but in general a negative experience travels WAY faster than a positive one, sad but thru...In my business we somethimes give away stuff to people that got a good rep in feks the public, they talk the talk, and spread the word...."hey bud, got a new car? No i have been at Kyles Detailing".......thats big time PR (as long as you do good work in the long run)

"Wash while you wait" give them a coffe etc, let them wait, and tune the washers to the max and to do it best/qucikest, guys/men have drop inns when it comes to feks the hairdresser, we are impulsive (most of us), and want things done ASAP....and after When they say the car looks good, you can say "yes it looks good now, but you got some bad bird dropps, swirls etc, that we can take next time but i need about 5 h, how about next thursday at 08?"

Best off luck Kyle

 

[makdaddy626]

I'm going to have to disagree that getting a good reputation and keeping it is the number 1 rule... I agree it's important but what has to come first is a well thought out business plan that will allow you to make that reputation and keep it. The NUMBER ONE reason small businesses fail is inadequate capital. Many people think that professions like detailing are great because of their percieved low start up cost - buy some car care products, a rotary, and go to work, right? wrong! You need to figure out the cash flow issue - how much money do you need every week to survive? That includes, not only any overhead for the business but your personal expenses, rent, food, etc. You need enough cash on hand to pay the bills until you have been in business long enough to build up the client base and become profitable. Consider your current income in the equation of profitibility... Let's say you make 40k a year right now (just making up numbers, it doesn't matter how much more or less the real number is) - how many cars will you have to detail at what price to "make" money. Also keep in mind, that there will be some weeks with virtually no income due to weather... I'm not trying to discourage you at all, just don't want to see you make the mistake that so many people do. Make a plan, be realistic with it, and you can do very well.

 

[KyleTaylor]

I'm not trying to discourage you at all, just don't want to see you make the mistake that so many people do. Make a plan, be realistic with it, and you can do very well.

Good advice. I have thought about that.

Being 20, I have little responsibility, and luckily do not pay rent. Currently I am care taker of my GreatGrandfather's estate. It only envolves keeping the grass nice, and keeping the inside of the house clean for when real estate agents come.

Anyway, my monthly responsibilty, insurance, food, car maintenance, gas (which has dropped considerably since I now comute 6 miles, instead of 32 one way) cell phone, and other stuff is about $600 per month.

When the my g-pa's house sells, which will probably not happen any time soon with our local housing market, I have no reservation about living with my father.

I actually was offered capital, by a good, well established friend. We discussed it, and I am going to hold off unless I feel I need it.

One step at a time with the best plan I can come up with, "Wing It"