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What Happened to the 75,000 Body Shops?????????????

Posted by Bud Abraham 
What Happened to the 75,000 Body Shops?????????????
November 02, 2003 08:33PM
<HTML>It is very interesting how everyone expresses a different opinion about the future of detailing. I guess that is what makes our country great, the ability to have differences of opinion.

However, I am concerned that many in the industry do not see what "could" happen in our "cottage industry." And that is what detailing is at present, a "cottage industry," not a recognized auto service industry or business.

As mentioned, in 1975 there were 128,000 body shops in the USA, today less than 55,000. These were shops that had far more invested in equipment than most detail operations. Most had investments in space, operating out of fixed locations.

SO THE QUESTION: "WHAT HAPPENED TO THOSE 75,000 SHOPS?????"

Are we so naive in this industry that we think that this could not happen in the detail industry?

This commentary is not intended to be "doom and gloom" in any way, but to keep those of you "pioneers in the detail industry" aware of what "might" be on the horizon.

Think about some of the things that Jim Hammill said in his original post about dealers and carwashes getting into the business.

Because a dealership and a carwash are already established the only costs they have for detailing would be labor and materials which means they can offer the service at a much less price than any freestanding detail business.

The dealers and carwash operations are already doing that with Lube & Oil Services to compete with the Jiffy Lubes and Grease Monkey, etc. And, they are successful in capturing some of this business away from already well established businesses.

This is not a black and white thing I am speaking of, it is simply an observation of what could happen and to get "pioneers" thinking about "what if" not to get upset and beligerent and say "I am better than any big boy that would come in the industry and I will keep my customers because I give good service and quality."

Keep in mind that carwashes and dealers have built their primary businesses on giving good service and quality. What makes you think that when they commit to this industry they will not give good service and quality?

In fact, a carwash and the auto dealer stand to loose way too much if they turn out a bad detail job. Not just the detail customer, but the carwash and dealership customer which represents a lot more money than a detail.

Not to belabor this issue I just hope it is taken in the light given.

Regards
bud abraham</HTML>



buda
Re: What Happened to the 75,000 Body Shops?????????????
November 02, 2003 09:14PM
<HTML>Bud:

In my honest opinion, the body shops went under and out of business because over the past 30 years, paint technology and body procedures have changed dramatically and price and investment to change with the times became to expensive. I guess this is why the say "survival of the fittest" eliminating the hacks and Maaco's of the industry--even though they're still in business (how I have no idea.) And now the shops who did great work and trained their personnel, attended courses for new paints and procedures, I would guess they were the ones who had the best income because of their work and could afford to change with the times. So Darwin was right, nature has a way of eliminating the weak.

As for dealerships (no offense Jim) but around here our dealers do the lousiest work I've ever seen. I'm not saying all but most. I'm talking about the detailers who are employed by the dealership at $7.00 an hour and not by a detail business run out of a dealer.

Dealers are in it for the big buck up front and not looking at the whole picture, quality = maximum value over time.</HTML>



Take care,

Brian
Precision Auto & Marine

Learn to detail boats! Visit www.detailtheboat.com
Re: What Happened to the 75,000 Body Shops?????????????
November 03, 2003 03:54AM
<HTML>I'm in with another volley. In my opinion, to commit to washing and maintaining another vehicle that is not yours requires an absolute passion and desire to do this work. To spend the time required to complete a job that not only satisfies you but also leaves the owner smiling and digging into his wallet, not only for the invoice money but for a tip as well. This is going to be a very difficult industry for the big boys to get in to. Ask yourself a very honest question, how many of you would detail cars 8 hrs. a day for say $7.00 per hr? How about $9.00 per hr? Mandatory weekends, no insurance and in the end to watch the owners roll up in their luxury rides earned by your sweat and demand to know why you aren't up-selling 80% of your tickets? Catch my drift, for the money paid for the work expected, employees will tell you to go and take a flyin leap. Unless of course, you intend on hiring cheap (Less than minimum wage) hispanic labor that you will pay under the table, because they need a job. Owners who exploit this are the lowest forms of human beings, just my opinion. Let's say just for arguments sake that we find this all elusive employee who will work hard, good, be loyal and then you tell him you going to promote him / her to manager position that pays what, 25 - 30K a year and requires many more hours of paperwork and covering for the employees who don't show up. Pretty soon that loyal individual feels a little used and realizes he / she can make a way better living doing this on their own, so they begin to tell the better customers that they are going to open their own detail shop or mobile detailing business.
What these companies will realize in the end, is they are training these employees only to see them eventually become their competition or go to work for their competition. Some will stay, but in the end they will realize it's not worth the headache. You have to be willing to give, to get people to be loyal and unfortunately that is not in the corporate equation to success.

Mark G.</HTML>
Re: What Happened to the 75,000 Body Shops?????????????
November 06, 2003 02:09AM
<HTML>I also don't fear competition from the big boys. I think it is pretty common knowledge that 99% of car dealers are a lousy place to work for a detailer. I get people all the time coming to me from dealerships where they start at $10 an hour plus benefits asking for a job because they don't want to put up with the abuse, lack of respect and unprofessional attitude towards the work we do. Let's face it - to the dealers we are a commodity and they fail to see our value. Detailers are the people in a dealership who are expected the most from and are treated and paid the worst. For example: a good friend of mine's father owns a large GM dealership and has recently opened a Cadillac-Hummer store. The detailer at the new store makes over $10 an hour and works in a new state of the art facility. They are not moving a massive amount of inventory so he is not overworked like most dealership detailing staff and the guy still hates his job and does a VERY poor job of "detailing". This is typical of all the dealers in my city and most areas from what I read. Now add to this that 99% of dealership personell do not understand what detailing is or the value of detailing to their livelihood, I am not worried one bit. The high turnover of staff in our business alone will prevent a large percentage of dealers from making a dent in our business because as Bud said - they cannot afford to sully their reputation by turning out poor quality work. That said - after an initial foray into retail detailing I feel most will outsource the work or not do it at all to eliminate the aforementioned risks.</HTML>
Re: What Happened to the 75,000 Body Shops?????????????
November 06, 2003 02:35AM
<HTML>I also found a good link here regarding the cost vs benefit of reconditioning used cars for resale by Manheim auctions. Enjoy!

[www.manheimnews.com];
Re: What Happened to the 75,000 Body Shops?????????????
November 06, 2003 03:20AM
<HTML>Great article Scott, thanks for sharing that.

Jim.</HTML>
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