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detailing for dealers

Posted by A.T. 
detailing for dealers
June 06, 2004 05:31PM
<HTML>I am intrested in offering my services to dealers, I am currently just doing retail.
My question is how detailed is the detailing for dealers, do they expect you to clay, compound, polish, wax, etc. Do you give the same type of quality job you would to a retailer that pays what the job is worth, or is it a scaled down service.

The reason I am considering offering my services to dealers is because I have only been in business for two months and need more cash flow until I can increase my retail. I am a mobile unit if it makes a diffrence.

I would appreciate any suggestions or comments on doing business with dealers.</HTML>



A.T.
Re: detailing for dealers
June 06, 2004 06:35PM
<HTML>A.T.

You may want to consider some of these questions before you resign yourself to offering your services to dealers.

What are some of the advertising, marketing and promotional activities you are now doing to increase your retail customer base?

Have you thought about contacting local small business owners in your area letting them know about your detailing services?

Do you make time to talk to at least twenty-five people per day about your detailing services?

Do you let your customers know you appreciate their referrals of friends and family? Do you offer a reward for new customer referrals?

Do you send your current customers reminder post cards every three months?

Do you have business cards and flyers?

Have you thought about creating a detailing newsletter? Do you mail out your newsletter at least twice a year?

Do you send your customers a holiday greeting card?

Have you placed a small advertisement in a weekly shopper newspaper?

Have you thought about placing a small advertisement in the Yellow Pages?

Have you written a mission statement of what you want your business to become?

Have you written a strategic plan for your detailing business?

Have you truely decided whether you really want to also service wholesale dealership customers?

Have you put together a list of targeted professionals who would be interested in knowing about your detailing services?

Have you created a customer database file?

Have you figured out the prices you need to charge? Have you identified your hourly rate? The rate that is actually necessary for you to make a profit and stay in business?

Have you fully decided on primary territory your business will serve?

Have you identified what makes your detailing business interesting and unique?

Do you have a plan on how you intend to have your detailing business become target market driven?

Have you identified your specific target market segment?

Have you considered contacting your local newspaper, asking for a schedule of up-coming featured sections?

Do you read as many articles as you can that are printed about other local businesses?

Have you identified those articles where your business could just as easily be featured?

Have you written an article that you think the newspaper editor would find interesting and unique? Have you ever submitted an article to the newspaper? Did you follow-up with a phone call to the editor?

Have you identified television features where your business could just as easily be featured? Have you ever considered contacting a TV station to let them know why your business could be featured?</HTML>

Re: detailing for dealers
June 06, 2004 06:55PM
<HTML>My advice is to STAY AWAY from dealers at ANY price,they will take advantage of you IF you let them,sooner or later ! They expect you to make their auction cars or trades or neglected cars on the lot "LOOK" like new again(for half the cost of a retail job),so they can "sell" them for a HUGE profit to somebody who dose'nt know the difference in a QUALITY detailing job. Stick with retail ONLY, thats were the REAL money is ,if you can't make a profit doing RETAIL work, change your target market until you find your niche in the retail market.But don't get SUCKERED into doing work for a dealer,no matter what they "tell" you. And don't forget they are salesmen,don't let them "SELL" you into beleiving ANYTHING they tell you,THEY only tell you what you want to hear,just let them find somebody else to do there "dirty" work ! ONLY desperate detailers do DEALER work,because they can't find RETAIL work,in my opinion.</HTML>



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Re: detailing for dealers
June 06, 2004 07:17PM
<HTML>AT.

There is plenty of dealer work out there to do, it's just finding the right dealer to work with. The first thing to establish is if they have their own detail bay already. If they have then save your time and money.

If they havent then take a drive around the lot when they are closed and inspect the work, see if you can do a better job. If you can then you will need to get in touch with the Used Car Sales Manager and make your pitch.

It is critical to establish exactly what your cost is , and how much you charge the dealer. Work out the price it will cost you to do the work, then add your profit. This is the price you present to them, dont go any lower. If they want to haggle over the price then just walk away. If your price is higher than what they are currently paying , then you need to add something to your package that they dont currently get, for example you could use a sealant instead of a wax.

I have worked for dealers (still do) and they are not all what some would have you believe. A friend of mine has just started up his own detail shop in my town, he details 4 dealer vehicles a day and gets $115 per vehicle. Do the math, he makes between 2300 and 2500 a week gross. I sometimes help him out in the evenings, and he does as good a job as anyone else here I have seen.

One advantage is that the above dealer ships all his unpleasant vehicles out to wholesale lots, they dont even get washed. The vehicles that get detailed are all late model , or have come in from the auction.

You can make good money at it if you apply your business skills.

If you need any more help feel free to e-mail me .

Jim Hammill.</HTML>
Re: detailing for dealers
June 06, 2004 08:07PM
<HTML>Good luck finding a dealer(used or new) willing to pay you MORE than they already are paying somebody else to do their detailing work.They are ONLY interested in paying you less,NOT more.They are NOT interested in a QUALITY job that cost them more, they are only interested in making the car "look" like new (cosmetic make-up job that only takes on avg.1-2hrs to complete) not in a true restoration job(4hrs avg. to complete).They are ONLY interested in getting the car SOLD and off the lot as soon as possible,with the least amount of money invested in the vehicle as possible(more profit for them, not you).

DEALERS is the LAST place I would go to find detailing work(only if I was starving) or for that matter the last place I would go to buy a vehicle,the mark-up is huge(new & used) and not worth the service they provide for that mark-up(profit), in my opinion.Save your hard earned money and buy your next vehicle from a trusted private local individual selling there own vehicle(or freinds or family),not a dealership !

This information is based on me working for several dealerships in my early days of detailing(chevy & ford dealerships) including my uncle who is a dealer,they are all the same,no matter what "they" tell you !</HTML>



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Re: detailing for dealers
June 06, 2004 08:11PM
<HTML>Thank you all for taking some time to answer.

Everyone makes a good point and that really helps.

Frank; about 90% of the things you mentioned I am doing my first mail outs went out last week hopefully will see some results, I do have an ad on the yellow pages. My operating cost I have broken down to the hour and totals to $28.00hr thats including payroll taxes, I charge $60.00 to detail.

C.M. I understand exactly what you are saying but Jim makes a good point that if you can find a dealer willing to pay, well why not .....right.

Like I said I am just trying to find some extra work until I pick up my retail by no means will I undercut myself.

By the way do you guys think that I am marking up my profit to much.</HTML>



A.T.
Re: detailing for dealers
June 06, 2004 08:24PM
<HTML>You said "I charge $60 to detail" ......what does that price include ? What does your $28 hourly rate include,besides payroll taxes ? Most charge around $40 rate on avg. but it all depends on YOUR expenses to operate YOUR business and your location,is it seasonal or a year around steady business ?

less expenses=more (net) profits</HTML>



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Re: detailing for dealers
June 06, 2004 08:44PM
<HTML>C.M.

For that rate you recieve a detailed handwash engine comparment what ever paint corrections are needed detail interior shampoo & extract etc. My guys go out look at the veichle and set their price according to the condition.


The $28.00hr covers my tow veichle payment ,mobile unit, communications, yellow pages, insurances, payroll, in other words I need to make $224.00 a day five days a week 42 weeks a year to be able to operate.

I operate in the southwest and for the most part can operate all year for an exception of a couple of days here & there.</HTML>



A.T.
Re: detailing for dealers
June 06, 2004 08:44PM
<HTML>CM: you use capital letters a lot. It's quite annoying smiling smiley Anyways, you make some great points but at the same time, work is work and as long as you're turning a profit, it's worth it, especially if you have the man power to do a few jobs at one time.

Frank: One of the best posts I've ever seen! I definetly plan on checking off that list! Thanks!!!</HTML>
Re: detailing for dealers
June 06, 2004 09:02PM
<HTML>My use of CAPITAL letters is to make the some words STAND-OUT from rest of the sentence,so that you don't miss my point.If it's annoying to you, feel free to NOT read themsmiling smiley Just jokiking,OF COURSE !!!!</HTML>



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Re: detailing for dealers
June 06, 2004 09:13PM
<HTML>Is that $60 per/hr rate(for a complete detail) less $28per/hr. for your operating cost which =$32per/hr. net profit per/hr.? OR does $60 for the total job include operating cost for ALL those services(complete detail) you listed in your post ?</HTML>



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Re: detailing for dealers
June 06, 2004 09:56PM
<HTML>AT.

There are over 100,000 vehicles a month that flow thorugh dealer lots, either trade in's or lease returns. Thats a huge number of vehicles that are being detailed by someone. If 75% of those vehicles are detailed by dealers who have their own detail bays then that is still some 25,000 vehicles that are being detailed by "desperate detailers" each month, a lot of whom make a very good living out of it.

The guy I was talking about in the above post is making a very good living out of it, and only works Monday through Friday. Granted , there are many dealers out there who will screw you, just as there are many detailers out there who screw thier customers and the dealers through shoddy work.

Like I said, if you sue your business skills then you can make a good living out of it and there is plenty of work there.

Jim.</HTML>
Re: detailing for dealers
June 06, 2004 10:26PM
<HTML>C.M.


Example; we work a full day 8hr x $60. = $480.00
$224.00 operating cost
------------------------------
= $256.00 profit a day</HTML>



A.T.
Re: detailing for dealers
June 06, 2004 10:48PM
<HTML>If your producing that much business on a regular basis so far ,and making that much profit from retail.....WHY would you ask about NEEDING more business from dealers ? If YOUR already operating at that level, after ONLY 2mo. in a mobile business, why would you need MORE cash flow....from dealers, sounds like your cash flow ACCORDING to you is plenty to pay your expenses and make a nice profit,in my opinion.</HTML>



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Re: detailing for dealers
June 06, 2004 11:14PM
<HTML>C.M.

I think you misunderstood me, I am not busy five days a week yet those numbers I gave is what I charge per hour when we do have work. I wish we were working 8hr days I would be very happy with that type of money rolling in. That is why I was thinking of filling in those days that we do not have appointments with dealer work.

I know things will get better as I do some more advertisement. I just think I have a lot of overhead, but I wanted a professional looking unit and staff and that takes money. My trailer & truck are matching color lots of diamond plate, my guys always look sharp polo shirts, well groomed etc. My unit has a clairafication system on it filters the water enough to use a wash water if needed. I invested a few $$$ on looks and training for my guys and by know means are we close to the experience level as some of you here. I learn something new everyday in this fourm.</HTML>



A.T.
Re: detailing for dealers
June 07, 2004 12:55AM
<HTML>I won't touch a dealership with a ten foot pole. They are a differnt breed and I've been screwed one way or another by the four dealerships I had worked for in the past. All I can suggest is be careful. Very careful.</HTML>
Re: detailing for dealers
June 07, 2004 03:40AM
<HTML>If you are doing mostly retail and only charging $60 for what appears to be a complete detail you are charging far less than the market in any area of the country will bear.

You should be able to get from $100 to $125 for an exterior detail
The same for an interior detail
At least $150 to $175 for an exterior interior
And, from $175 to $225 for a complete, with engine and trunk.
A basic wash and wax should bring $75.

The problem with you doing dealer work is that you are mobile. If you do not contain your water most dealers will not let you work on their property because they are more closely watched by the local EPA authorities than others. Plus as a one man operation (do you have employees) you cannot do the numbers of cars they usually want done.

As Jim Hamill stated, there are dealers out there today (new car dealers) that value a professional detailing business to do their work and will pay for the service.

There are three dealers about 25 miles South of Portland, Oregon along I-5 in a town of 5,000 called Woodburn and they pay the local detail shop that happens to have our equipment setup $125 per used car. And they give the detail shop at least 10 cars a day between them. I would take that kind of work all day, everyday.

Frank's advise to focus on getting more retail business is probably your best bet being mobile, in my opinion.

Bud Abraham
DETAIL PLUS SYSTEMS</HTML>



buda
Re: detailing for dealers
June 07, 2004 03:40AM
<HTML>If you are doing mostly retail and only charging $60 for what appears to be a complete detail you are charging far less than the market in any area of the country will bear.

You should be able to get from $100 to $125 for an exterior detail
The same for an interior detail
At least $150 to $175 for an exterior interior
And, from $175 to $225 for a complete, with engine and trunk.
A basic wash and wax should bring $75.

The problem with you doing dealer work is that you are mobile. If you do not contain your water most dealers will not let you work on their property because they are more closely watched by the local EPA authorities than others. Plus as a one man operation (do you have employees) you cannot do the numbers of cars they usually want done.

As Jim Hamill stated, there are dealers out there today (new car dealers) that value a professional detailing business to do their work and will pay for the service.

There are three dealers about 25 miles South of Portland, Oregon along I-5 in a town of 5,000 called Woodburn and they pay the local detail shop that happens to have our equipment setup $125 per used car. And they give the detail shop at least 10 cars a day between them. I would take that kind of work all day, everyday.

Frank's advise to focus on getting more retail business is probably your best bet being mobile, in my opinion.

Bud Abraham
DETAIL PLUS SYSTEMS</HTML>



buda
Re: detailing for dealers
June 07, 2004 02:32PM
<HTML>Bud,

I believe you misunderstood me I charge $60.00 an hour to detail.

example; a midsize car in decent condition takes my two guys roughly about 3hr we would charge $180.00 to detail that car.</HTML>



A.T.
Re: detailing for dealers
June 07, 2004 03:08PM
<HTML>If you are charging $60 an hour to detail then you are getting a very fair hourly rate for your services.

I doubt if dealers will pay you that amount, however.

Rather than dealer business try fleets. That is companies with cars they want to maintain as Joe does, a great deal of maintenance detailing like washes and waxes can be good revenue.

Also, focus are more target markets that you can get business from with the least amount of time, money and effort. People you do not have to educate about detailing, people who understand it and want it.

bud Abraham</HTML>



buda
Re: detailing for dealers
June 07, 2004 03:36PM
<HTML>Without getting sidetracked on capitol letters and the what not let me add on to this subject. I have found dealers to be very profitable. You just need to speak there language and set their expectation for them. Any one who has been screwed over by a dealer knows what I am talking about. The key to dealers is over selling your conveince, instead of pitching just detailing and recon work pitch them new car delivery when they get a new shipment of cars in (a dealer hates being backed up!!). Would you wash and polish a brand new car for $40? I would if they had 10 cars waiting for me. And that could be just a half days work. With two guys (or girls) you can set up an assembly line. Also pitch to them power washing/spraying down every car on the lot for a buck or 2 once a week. This is for the purpose of removing road dust and pollen. You can do this in the early morning hours before your start your day. If a lot has 225 cars you could easily make $550 for 3-4 hours work. I also offer window tinting to my dealers for a hell of a profit. I hope this helps.</HTML>



Keith
Details on Demand Inc.
Mobile Auto and Boat Detailing
Re: detailing for dealers
June 07, 2004 04:33PM
<HTML>Amen, Keith! It is all about one businessman (person) approaching another in a business like manner and with a business proposal.

If you cannot talk to a business person, then, of course, don't talk to them.

But to say ALL dealers are bad is not good business. They represent a huge source of business for the right detail business owner.

I visited with one dealer about putting in my system and when we went over his outlay of reconditioning expenses he was putting out $350,000+ per year on detailing; paint touchup and PDR. He decided that was cheaper and less hassle to do it on the outside. What detailer would not like to have that income per year.

In fact, this has become such a hot topic that the last two Car Care World Expo conventions have had Dave Echenoz of Super 14/69 Super Center provide a seminar on "Dealing with Dealers." Dave is general manager of a large profit making reconditioning and new car get-ready center owned by a dealer conglomerate. He goes thru the same thing all detailers go thru with his dealers (there are several individual dealerships in the conglomerate) and he has the same problems as you all do.

Both sessions were well attended and the word I got was that detailers learned a great deal in how to "deal with dealers" from the session.

One of the smartest detailers I know in the industry in terms of dealing with dealers is Kevin Iden of Seattle, Washington who has 5 detailing operations in dealerships owned by the same dealer. He does nothing but manage the 5 operations and does everything for the dealers: detailing; paint touchup; PDR; gold plating, etc.

Regards
bud abraham</HTML>



buda
Re: detailing for dealers
June 07, 2004 05:22PM
<HTML>Bud & Keith

Thanks for the advice I will have my sales guy go out and start talking to some dealers.

If they like our service & price well we will do business if not I will continue my marketing on retail and I will try the Fleets.

Bud I also visted your web page at Details Plus and noticed you had some tech videos for sale on detailing, are those videos material from Details Plus or is that just someone else info that you are supporting.</HTML>



A.T.
Re: detailing for dealers
June 07, 2004 08:25PM
<HTML>Most dealers in my area will only pay 70.00 - 80.00 dollars for a complete detail. In that case you have at the most 2 hours to do a car. I knew a detailer that with 1 other person could do 6 dealers cars in 8 hours. He had it down to a system, not a waisted move. I was always amazedwhen I watched them 2 people work. I told them in another 15 years they wont be able to keep up the pase. Every car came out great .That was 3 years ago and he is already slowing down. Now he only does retail.</HTML>
Re: detailing for dealers
June 07, 2004 09:31PM
<HTML>Good luck finding those type dealers...they are few and far between,in my experience, in this area,they don't exsist.....their all about getting the most work done for the least amount of money.If you can't beat the price or willing to do more for less than their getting it done for already.......forget about it !
Let them find somebody else to do their dirty work,stick with retail,there are plenty of detailers willing to do it for less than most can.

I have no respect for dealers(new or used) at all,because I know from first hand experience how they rip people off(in-house financing add-on's & high mark-up's) & deceive there customers & the general public on a daily basis....."they have a license to print money, legally" like my uncle told me once and he is a dealer in the biz.

The only fair way for a individual to buy a new vehicle from a dealer is to know what the cost to the dealer is & pay cash in full for the vehicle and know exactly how much they(dealer) paid for that exact vehicle from the factory + destination charges to their lot,then add a $300 (max.) sales commision for the dealer(salesmen).Go in and offer that exact amt. for that exact vehicle and don't give a dime more,stand firm...if they know you know the cost to them,they'll make the deal, if not go to the next dealer,most high-volume dealers will make that deal.Thats a fair profit & acceptable to most dealers for making the sale,and most dealers(general managers) will approve that deal,but it's hard to get that exact info. unless your in the biz. or know somebody who is, and willing to share it with you. GOOD LUCK !</HTML>



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