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opening new shop

Posted by CHRIS V 
opening new shop
March 19, 2004 05:18AM
<HTML>Hi everyone, I am opening a new shop in erie, pa. I have been detailing cars for 12 years, but for the past 5 I have been more in the painting buisness. I have always used 3m products ( machine glaze, perfect it II, foam pad polish,etc.) I have always had good results with these products, but I would appreciate any info on any products that may be better suited for detailing rather then body shop use. I could also use some input on price ranges. I am thinking of offering hand car washes for 7.00 and a full detail for 150. these prices are for cars. This is about 40 dollars less than a major detail shop in my area. Any info. will be greatly appreciated.
Thank you, Chris</HTML>
Re: opening new shop
March 19, 2004 01:20PM
<HTML>Chris, how many washes will you have to do a day to make any money? We charge $15 for a hand wash on a car and I only do them for good customers or when I have time (which is rarely). Honestly, you can't even go to an automatic car wash around here and get a wash for that price (and you have to buy 25l of gas to get a better price!). Charge minimum $15 for a wash and $29.95 to start for a wash/vacuum. $150 is a good starting point for a complete detail but still a little low in my opinion. DO NOT base your prices based on what other shops are charging. What does how much they are charging have to do with your costs and what you need to charge to turn a profit? Not to mention the differences between your quality of work? Nothing! So don't do that! Envision how you want to be perceived by your customers and try and project that image to your customers. How does being the guy who is cheapest or is willing to "wheel and deal" on pricing project a positive image? If people only wanted the cheapest then no one would drive a Mercedes or buy Starbucks coffee.
Might I suggest you invest in some business classes before you launch this business to give you a better understanding of the economics of how a small business works. 99% of the guys entering this business don't do that and fail within the first couple of years.</HTML>

Re: opening new shop
March 19, 2004 02:40PM
<HTML>Scotty,

Well said. Good advice.

Rob</HTML>



&quot;Put your car in the Winner's Circle&quot;
WC Detailing Products
Cyclo, MF Towels, Clay, and more!
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Re: opening new shop
March 22, 2004 01:32AM
<HTML>That's what I like, and respect about you folks on the forum. I haven't seen anybody steered wrong yet! My hats off to you guys once again, as you help steer us fledglings as we get started. I hope that everybody who gets their questions asked here on this forum, realize how much monies that you guys save us. I know its people helping people, maybe we can repay by purchasing some " Stuff " from different folks here,there, and Yonder on the Forum...................Brandy!</HTML>
Re: opening new shop
March 22, 2004 03:02PM
<HTML>Author: CHRIS V
Date: 03-18-04
QUOTE: I am thinking of offering hand car washes for $7.00 and a full detail for $150.

CHRIS,

This may sound a bit unpopular compared to the other replies, however, I would suggest that you should be the person to decide whether or not you want to offer a $7.00 hand car wash. After all, you are the person who is opening a new shop and offering a $7.00 hand wash may actually be a good way for you to get 'full detail' customers to come in and try your new service. You may even want to think about calling your $7.00 hand wash a 'Grand Opening Special'. Remember, in order to 'turn a profit' you must first begin to attract new customers.

Also, just because an established shop charges $15.00 per wash does not mean they are in the same situation as you are with your new business. Isn't it a bit of a contradiction when someone tells you; 'DO NOT base your prices based on what other shops are charging' while at the same time that same person tells you that you should charge $15.00 because that is what they charge?

In summary, it is always a good idea to know the difference between when someone is offering you 'good advice' compared to telling you 'what you should do' simply because that is the way they do it.

Just my thoughts...</HTML>

Re: opening new shop
March 22, 2004 04:41PM
<HTML>I don't believe I told anyone that they had to charge what we charge Frank. I actually gave the example that we charge $15 for a hand car wash and even at that is is a very difficult proposition making money doing that. Basing prices on how other operate their business is a foolish mistake made by uneducated people. Using that logic maybe Lexus should start charging the same price for a es300 as Hyundai does for an Elantra? After all - they might get some good service work out of it later even though they'll lose their shirt initially.....
Seriously though, sound business practice dictates that you need to charge enough to make a profit or you will not be in business for long. Evidens being how many shops go out of business after a few short months for doing exactly what you are professing might be a good idea - working for nothing.</HTML>

Re: opening new shop
March 22, 2004 06:21PM
<HTML>Author: S. Perkin
Date: 03-19-04
QUTOE: Charge minimum $15 for a wash and $29.95 to start for a wash/vacuum.

Author: S. Perkin
Date: 03-22-04
QUOTE: I don't believe I told anyone that they had to charge what we charge.

Isn't this a bit of a contradiction too?</HTML>

Re: opening new shop
March 22, 2004 06:26PM
<HTML>www.poorboysworld.com everything you need is there GOOD LUCK</HTML>
Re: opening new shop
March 22, 2004 09:01PM
<HTML>I stand corrected Frank. Poor choice of words on my part as it was a recommendation. Now that you have pointed that out how about responding to the point of my post?</HTML>

Re: opening new shop
April 01, 2004 03:27AM
<HTML>Hi chris i think you have a good idea on the $7 handwash at first to bring in new customer. everyone knows that people do not like change so why would they want to come to your shop to get there car wash. unless you offer them somthin new or less price. anyone with common sense know you need a leader in a new shop to draw in bussines. all big and small companys use a leader to draw you in so the intend that you will buy more other products from there store where they make good profit on. will thats how we got started we have been in the bussiness now for 35yrs here in the motor city. but we didnt forget how we got started. i think your on the right track to start.</HTML>
Re: opening new shop
April 01, 2004 04:55AM
<HTML>I agree with Frank & Custom image-mich on this.

It's called a "loss-leader", and is used in all retail business to get the customer interested & in the door. Then you can sell them other(higher priced) products or services once there in your store or shop.

It's a great way to get new customers in the door, but then you must focus on offering the customer services that can increase the value of their vehicle.Try offering a FREE inspection after the hand wash & point out the improvements you can make to the vehicle and how much you charge for your detailing services.ALWAYS Give them a written check-list inspection after each wash, with your services & prices listed on it. Plant your seed everytime, you never know if a wash customer may purchase detailing services at a later date.

Also try advertising coupons/specials in the local newspaper.Offer a "express-maintance detailing" at a lower price to get them in the door, then you can sell them "high-end priced" complete detailing IF it's needed.

The point is, you must create an interest or need for your detailing services to attract customers to your business, be willing to take a small loss to get them to try YOUR SERVICES instead of your COMPETITIONS.

Just my 2 cents,</HTML>



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ColesCountyAutoDetailing.com
Re: opening new shop
April 01, 2004 05:31AM
<HTML>Chris,

Congrats on the new shop, as for advice.......3 words....."Girls in bikini's!"

LOL, just kiddin!

When I moved I had to start all over digging up new clients and I I can't ever remember under pricing others to get work. I feel as if they (the client) don't want to pay my prices then I don't really care to have the cheapo's as my clients in the first place.

So while others were charging $10 for washes several years ago I charged $20 and now that many are charging $20 or $25 I am charging $40 to $50 and I have a solid client base which continues to grow at a slow but steady pace, which I prefer. So don't sell yourself short by thinking low prices will draw people in, I mean it will draw people in for sure, BUT it may also turn off the higher end car owners. Something to think about.

Anthony</HTML>



Details, Details, Details....It's all in the details!
www.UltimateReflections.NET
Re: opening new shop
April 01, 2004 06:55AM
<HTML>Anthony,

You said your NOW charging " $40 to $50 for washes"

What kind customer would pay that much for a wash ?

Someone who dose'nt care about SPENDING their money, and thinks the MORE they spend, the BETTER the service or product.Most educated consumers know that paying more dose,nt always = better, it just means your willing to pay more for a service & your NOT willing to shop around for a better value for your money.Why pay more when the quality is the same ? Why buy a "brand name" product when you can the same quality product for less ? EGO ? Maybee there are a few "whales" out there, but far more "fish" in the sea.Most consumers would just laugh at paying that much for a wash.

High-end car owners are my best customers, most people with money, got it by saving it, not spending it. They are the ones looking for value in there purchases.

It's simple, high-overhead=high-prices & low overhead=low-prices !
And the consumer is the one who MUST pay for high-overhead & high prices.

.......look at the success of WAL-MART "We sell for less" slogan says it all, and worked out great for them, most (high-overhead) retail stores can't compete with them because they(wal-mart) sell the same quality products for less. Most consumers love to save THEIR money, IF they can find the same quality for less money.

LESS=MORE</HTML>



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ColesCountyAutoDetailing.com
Re: opening new shop
April 01, 2004 07:43AM
<HTML>Wal-Mart sells products for less, not service. You can go to the dollar store and buy a can of Pledge for $1.00 or you can go to your neighborhood supermarket and pay $2.99. Doesn't matter, quality is the same.

Not the same for sevice. If you meticuolosly detail and it takes you 8 hours to do a car and you're charging low baller prices, you're only hurting yourself.

So is Maaco's Ambassador paint job for $499.00 better than my colleagues $3,000 paint job?</HTML>



Take care,

Brian
Precision Auto & Marine

Learn to detail boats! Visit www.detailtheboat.com
Re: opening new shop
April 01, 2004 08:20AM
<HTML>I beg to differ Brian, Wal-mart does sell service (oil-changes-tire service etc.)
And the quality of there service(and price) is as good or better than any dealership or oil-change or tire shop in the market.

Plus they(wal-mart) are already opening new car washes in supercenters test sites and soon to add detailing also, it's just a matter of time before we ALL are forced to compete with them on price & QUALITY, just like all retail stores were forced to do & lost business to them, a lot of business. Just wait and see!

As far as Maaco paint jobs(low-quality) compared to a quality paint job.
Is like comparing apples to oranges, the quality is not the same, and the price is different because they do low-quality work, and most people know that difference if they ask former customers & research it first & shop and compare. My point was IF the quality is the same, why pay more ?

But, you can find a quality paint job for way less than $3000 if your willing to search for the same quality job at a (low-overhead) shop that does quality work, but dose'nt have to charge you more to pay for the high-overhead expenses.

I'm just trying to make the point that high-price dose'nt=better, it just means the owner has to charge you(customer) more because his expenses require him to charge more to make the same profit as low-overhead operation, it's simply harder to compete with someone who operates with lower operating expenses & high-volume operations, in my experience.


LESS=MORE</HTML>



Visit my Web-Site
ColesCountyAutoDetailing.com
Re: opening new shop
April 01, 2004 08:35AM
<HTML>When I worked with my cousin at the Toyota dealership, our details consisted of wash, clay and wax; vacuum, damp cloth interior, shoot the galss and tires and out to the customer it went. That was high volume, high overhead and my cousin said retail was much better than high volume. If we spent 8 hours on 1 car at the dealership, he'd be out of business since the dealer wouldn't pay for it.

On the other hand, I have a very very low operating expense and charge very high. One question and one answer: Why? Because the market will bare it. You're a nice guy for passing the savings along to your customer but you're working as hard for less. Nothing wrong with profiting big.</HTML>



Take care,

Brian
Precision Auto & Marine

Learn to detail boats! Visit www.detailtheboat.com
Re: opening new shop
April 01, 2004 08:42AM
<HTML>Luckily I have exclusive rights at my yacht clubs and marine shops. Forgot to add that -- so no fear for their competition if they enter the detailing industry. Plus my customers are Target shoppers anyway :-)</HTML>



Take care,

Brian
Precision Auto & Marine

Learn to detail boats! Visit www.detailtheboat.com
Re: opening new shop
April 01, 2004 10:02AM
<HTML>Brian,

I could'nt agree more with you,nothing wrong with profiting big-if you can find ENOUGH customers in your area that will pay big MONEY. But the market won't bare as much here in rual central IL.(surrounded by cornfeilds & farmers-students-factory workers mostly blue collar workers) as it does in a metro area like with you in NJ. Trust me I tried to charge more before, when operating at my uncles new trailer dealership last year, at the best location in town with the newest-biggest shop in the county, with the newest equiptment AVAILABLE.(www.matoontrailersales.com)MENU is still posted on his web-site,check it out, I only charged $96.50 for complete details to start-out(compact to mid-size cars) & got as much as $245 for (full-size vehicals)complete details, but most people around here laugh at prices that high, because they can get the same quality for on avg.$70 to $100max. at most shops in this area. I could'nt do enough (high-priced)volume to make a good profit, so I was forced to downsize my operation & lower my prices to make a better profit. I now make more profit than operating the high-overhead shop at my uncles dealership.I'm able to charge less & make more money- profit than at my uncles shop.I'm able to work less hrs.& make more profit per/car because I KEEP MY EXPENSES LOW. This has been the key to my success & survival in this area! You must adapt to your enviroment to surrvive long term in this business. I challange you or anybody to charge the same high prices you enjoy in your area, and charge like that in my town. You would'nt last a month before going broke due to lack of business. $70-$100 IS WHAT THE MARKET BARES(complete detail) IN THIS AREA, SORRY TO SAY. I wish it was more, trust me I would charge more if I could !

LESS=MORE, HERE IN ILLINOIS.</HTML>



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ColesCountyAutoDetailing.com
Re: opening new shop
April 01, 2004 11:47PM
<HTML>If someone can get a $1000 dollars to wash someone's car, GOD BLESS them! It all comes down to what your individual market will bear. I can buy a 4 bedroom, 2.5 bath house in Florida a hell of alot cheaper than in Chicago. When discussing what we charge, it's what our markets will pay. Being the cheap detailer is not the answer either. We all have to make money. We all have bills. It all comes down to how much we want to make. One company might work on volume. Another might work on impeccable service and quality. I won't sell myself short because I put my emphasis on quality, not quanity. If the customer doesn't want to pay my rate, so be it. There is always someone who will appreciate the time and effort I put into their vehicle.</HTML>
Re: opening new shop
April 02, 2004 02:27AM
<HTML>I appreciate all the feedback. I am not just trying to be cheaper than the competition. I am trying to generate business. My price ranges are between $150-$225 for a complete detail. I don't feel the market allows for higher prices at tis time. There is no way I could charge $50 for a car wash (not unless I don't want to wash cars). For those of you who can, more power to you. I can always raise my prices if I want to cut back on the amount of washes I do or when I have a big enough customer base. Thanks again, Chris</HTML>
Re: opening new shop
April 02, 2004 02:42AM
<HTML> Most average EDUCATED consumers are very aware of the price-range of most services or products they buy, before they buy them.

Being a "cheap detailer" dose'nt ALWAYS mean you do low-quality work, IT just means your willing to charge less than your competion,Because your personel/ business operating expenses are lower THAN YOUR COMPETION & you choose to pass that savings on to the customer & target the low-price market. A market that can produce just as much or more net/profit and overall yearly sales as the high-priced market in my experience.

The low-priced market is often ignored by most detailing business, which is why there is a NEED(market) for it.Once the AVG.consumer relizes they can get the same quality detailing service for less, they will NEVER pay more again.They will be a YOUR customer for life !

IF you can operate for LESS and still do QUALITY work, you will have created a niche that most detailers are not willing or able to fill.So you will have less competion than the high-priced detailer market.

The low-price market is MY niche, and I'm able to produce just as much profit or more than the high-priced market, with less competion and more success in the area I live in. This has been my experience business, in general, no matter what the business !

LESS=MORE Here in central Illinois !</HTML>



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ColesCountyAutoDetailing.com
Re: opening new shop
April 02, 2004 03:37AM
<HTML>Mr. Gaines,

While I appreciate your repy I am still scratching my head and wondering what I wrote that caused you to react the way you did.

You write as if it is a crime that I get $40 to $50 for a car wash when you have no clue as to what I do for that money nor if the work I do is worth that much, correct?

You also seem to feel that "educated" consumers would not pay that but that is illogical for you would then have had to speak to ALL the so called "educated" consumers in the world but that is of course absurd. By the way 90% of my customer base are physicians, specialists in cancer, vascular surgeons, heart surgeons and neurologists, I would consider them all rather "educated" in some form.

Lastly, a great number of wealthy people love to shop. They can go to Target and buy a dress or slacks for much less but everyone and their brother Zed shops there so they want something unique and exclusive, something that caters to them, hence my services. I am a concierge of sorts to my clients. For some of my single female clients I hook them up with my single male clients, I go with them to shop for new cars, I make appointments for them to get their cars serviced, drop them off or pick them up at the airport and for one I manage their property when they are on vacation. I saw a niche and filled it.

Happy Detailing,
Anthony</HTML>



Details, Details, Details....It's all in the details!
www.UltimateReflections.NET
Re: opening new shop
April 02, 2004 03:49AM
<HTML>Anthony,

Sounds like you have a cool gig going on. You seem like a people person and with that, combined with your skills, makes you a very successful person and businessman.</HTML>
Re: opening new shop
April 02, 2004 04:18AM
<HTML>Mark,

Thank you for the kind words!

As for the succesful businesman........where's the money?!?! LOL smiling smiley

Take care,
Anthony</HTML>



Details, Details, Details....It's all in the details!
www.UltimateReflections.NET
Re: opening new shop
April 02, 2004 04:47AM
<HTML>$50 for a carwash, thats what made me react the way I did.I NEVER wrote LIKE it's a crime, but it's not what most detailers "include" in a carwash.

.....your right, I assumed when you said you charged $50 for a carwash thats what you mean, A carwash, not a concierge service for $50 that includes carwash also.

Also when I stated "educated consumer" I didn't mean they didn't attend a university or were stupid.I mean "not educated about the product or service they are purchasing" Most educated consumers research the product or service and shop & compare quality-price-reputation etc. before they make a purchase, but some consumers are impulse buyers, and if they want it, they just buy it. Some "weathy people" buy expensive stuff because they need to stroke their ego. But most "weathy people" prefer value in their purchases, IF they can get the same quality service for less, they will choose to save their money rather than spend more, in my experience.

On your last point, I'm glad you found your niche & filled it ! It sounds like a very creative approach to the detailing biz.If they will pay you for that extra special service,take that money ! but, most avg. consumers expect when they get their car hand-washed to pay $10 to $20 on avg. (not $50)but, they also don't expect to get a date either, nice perk !Sounds like your combining two or three business into one, very creative ideas.I like someone who thinks outside the box ! If your successful at it, and there is a market for it, go for it !</HTML>



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Re: opening new shop
April 02, 2004 05:20AM
<HTML>Mr. Gaines,

Again, thanks for the reply and I wish to state that I did not mean to offend you at all by my reply to you, if it came across that way please forgive me, not my intention.

It is true that many people do shop around and do some research, my wife for example is very frugal, but we also have folks that think in this manner...."Hey a car wash for $20! ..wait......look at the cars they are doing there. Not one luxury European sedan or sports car, only trucks and minivans!" Then they see a detailer with nothing but luxury sedans and exotics and they think...."That is the detailer for me!" It may be a shallow way to shop but many wealthy people do this.

Not ALL wealthy people nor doctors shop in this manner but only a select few. To demonstrate this I go to a hospital where some 1,500 doctors drive in and out daily but I only care for 35 of those 1,500. So the majority are very frugal.......or they just have no taste for a fine automobile!

Take care,
Anthony</HTML>



Details, Details, Details....It's all in the details!
www.UltimateReflections.NET
Re: opening new shop
April 02, 2004 06:20AM
<HTML>Anthony,

no offense taken.glad to see your continued replys.

My point is simply this, higher prices dosen't always= high-quality.
but some consumers PERCEIVE if they pay more, they assume they are getting better quality or service...not always true.OR if you have a bunch of expensive cars in your shop, you must be the only one who is capable of doing "quality" service work on expensive cars. It's all how the consumer PERCEIVES your business.Quality-Value-Personalized service is how I try to be PERCEIVED by consumers & potential customers.

My customers cars vary from Porche to Pontiacs, mostly new & clean-garage kept.(just need "maintance detailing" not "restoration detailing") They dont care HOW or WHERE I get it done, just that it's a GOOD quality job, EVERYTIME. They want conveinance & value in their service with a personalized style(who like to know the person who is working on their car)
Plus iv'e got the hometown advantage in my town,born & raised in Mattoon, the high school football feild is named after my grandfather Harry Gaines(Gaines Feild), me & my family name is known in this town by everybody.People trust me with their vehicles. They know it will be done right at a fair price, this is how we do business in our town.

We each have different ways that work for each of us, the key is to find YOUR niche & FILL that need in your market.You MUST adapt to your enviroment to surrvive long-term.

Thanks for your reply,</HTML>



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ColesCountyAutoDetailing.com
Re: opening new shop
April 02, 2004 11:40AM
<HTML>This thread is getting long but I would like to add just a couple of things. First of all, Walmart did not become the new giant of retail just because of low prices. THEY ALSO KNOW HOW TO TREAT THE CUSTOMER. It was Walmart that first put a person at the door to "greet" customers. Certainly this was a decision not based on profit vs. man hours. It was customer service. And lo and behold, Kmart follows doing the same. Walmart is a giant because Walmart is a leader. When we bought a coffee maker a while back and it lasted a whole 4 months I was told at the service desk that the warranty given by the store was 3 months and I would have to send it to the manufacturer. Now keep in mind, the girl behind the counter was only doing her job by letting me know the store policy. I asked to speak to the manager and proceeded to let him know that I certainly thought an appliance even as small as a coffee maker should last more than a handfull of months and he agreed with me and told the girl to let me do an exchange. A while later another item I had purchased from Kmart had taken a crap and guess what, Kmart stood proudly behind their policy and sent me packing. Needless to say, I shop at Walmart all the time now when I need something.
Same in this business or any for that matter. You can live in a big city or a very small town but per capita you will more than likely have the same amount of competition. Example being, in Greensboro where I am going to go with a storefront location there are 43 detail shops listed in the Yellowpages. Now keep in mind, these are just the shops listed and does not include the ones that dont spend the money to list. However, in Reidsville where I live there are 6 listed the last time I looked. It is YOU and YOUR ATTITUDE towards your customer that will determine whether or not they will return. Pamper them as well as their vehicle. Give them the perks of reminders, suggestions, etc. and show that you are a professional. Treat your customers like gold and trust me, you will see the power of word of mouth advertising.</HTML>



&quot;Your image can be reflected in many ways, your vehicle is just one&quot;
Re: opening new shop
April 02, 2004 03:01PM
<HTML>One should consider the market in which they operate their shop or mobil business.

Since you are in a small, basically rural market, and word of mouth is a very effective marketing tool, that works for you.

Move to a major market, any city of over a million population, etc, and it all changes.

I know Mattoon, Charleston, traveled it for years, with Sheaffer and Yardley, and not a major market, nice place to live, very nice, but a different world than a LA, Chicago, or even Cincinnati market and the competition for business.

Hackers abound, shops open and close within 6 months, etc.

Ketch</HTML>

Re: opening new shop
April 02, 2004 04:21PM
<HTML>It still amazes me that people will still argue the merits of offering "loss leaders" and working for nothing. You need look no further than how many detailing businesses go out of business every day to see that this mentality does not work and never will. Comparisons to Walmart are not valid. Walmart is a multi-Billion dollar corporation that can afford to do business in this fashion and lose money in order to get a foothold. I would suggest seeing how well the businesses are doing that are offering the advice of doing a low ball car wash or any other low ball service and see how successful they are. Ask for some proof that these guys are actually making money doing what they are telling you to do. I expect no one will offer up any proof - just hot air.</HTML>

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