How to Price for Dealerships

DT08 · 10-30-09, 07:11

Hey guys! There is a guy in my area who owns a small used car dealership. He is interested in doing business with me. He usually keeps 30-35 cars on his lot. He was asking how many cars could I do in a week. Pretty much this guy wants the cars hand washed, waxed, interior vaccumed....etc. I was explaining my services to him and thought he should get the carpets and seats shampooed on the cars that needed it done. he still insists keeping it simple.

How much do you guys charge for something like this? This is new to me and I don't want to sell myself short. I told him I would get back to him in about a week with a contract and the price and we could go from there.

Another thing too.......he has a two car garage bay. He is supplying the water and electric.

tssdetailing · 10-30-09, 07:57

Dealers are Jackyls!!!! Whatever price you tell him, make him understand that it is set in stone. He is requiesting your service.

Jakerooni · 10-30-09, 08:07

you should consider yourself extreamly lucky if you can get him to agree to $80/car but put in there what the "Extra charges" would be. Like paint correction or even once overs with the polisher.

salty · 10-30-09, 08:40

That's about the size of the used dealership that I cater to. My average price is $150, charged by the hour. These are cars that came from the auction or other dealerships. If they are trade ins, the price is more like $200. That usually doesn't include correction of paint.

Of course they want work done cheap, but on the other side of the fence, they want the car to sell itself. Do they want clean, front line clean or show room clean?

If you explain to them that detailing is about the only service that the return on investment ROI is excellent. Someone stated 225%. You have zero return on mechanic work.

The truck that I am starting today will be around $400, bringing a work truck back to the other side. ROI should be around $2000.

"the exterior gets them in the door, the interior sells them"

DT08 · 10-30-09, 10:42

Yeah, these are cars he gets from the auction or trade-ins. Mainly the auction. I don't want to get low balled for my services.

@Jakerooni: Before I put this up here I was thinking around $75-$85. When I cook up the contract I will make sure to add specifics and the price of those specifics.

@Salty: A detail shop I used to work in several years ago would do work for this dealership that wanted everything done cheap. They wanted full details done for $90......lol.

tssdetailing · 10-30-09, 10:58

if you are willing to bust your *** for $85/ car, then you should start higher (around $110-125) knowing he'll try to low ball you down.

jeteast99 · 10-30-09, 11:27

i would suggest hire a few people to do it and check on their quality on every car and after you see good results every few cars. I wouldn't suggest doing the cars by your self

Danase · 10-30-09, 11:37

It's a little dealer. They won't want to pay much and they are not looking for a "detail" they are looking for a cleaning. I'd hire some kids for like $15-$20 a car to vacuum the interior, wash the exterior and throw on a coat of wax or glaze and call it a day. Then you make a small profit without having to do anything. LOL Honestly, if you get $80 per car you'd be doing good. I'd expect it to be more around $40 if even that. Just remember, they are not looking for what you think of as a detail. They want a wash and wax and that's it.

EcoAutoCT · 10-30-09, 12:39

I've managed quite a few franchise dealer's detail departments, avg was $75-90 per used vehicle for inventory. The key is to stick to the pricing and that every vehicle on the lot gets serviced, set this in stone regardless of condition. With this approach some vehicles may take 3 hours, some 2, some may just need the auction writing scraped and a wash/vac/wax.

Also bring in an additional package for delivery vehicles, a reclean at $15-$20. Just a quick hand wash/dry/vac/windows- have the dealer add it as a line item to the customer sales order. Wholesale accounts can generate obscene amounts of income, I've seen it firsthand, but it's not detailing as much as it is cleaning.

salty · 10-31-09, 01:00

Quote:

Originally Posted by DT08

Yeah, these are cars he gets from the auction or trade-ins. Mainly the auction. I don't want to get low balled for my services.

@Salty: A detail shop I used to work in several years ago would do work for this dealership that wanted everything done cheap. They wanted full details done for $90......lol.

Most dealerships want surface cleaning, making the first impression acceptable, shiny paint, vacuum-quick extraction and a quick wipe. It looks clean and then the salesman steps in and uses their skills to sell the vehicle. If a promising customer points out some flaws they will promise to take care of it if they buy the vehicle.

The agreement that I have is more of a reconditioning one, trying to bring it back to original. Meaning, what ever is needed to distance it from the previous owner. That could include paint touch up, stone chips, odor removal, paint correction (they love black), minor mechanical work, even squeaks and rattles.

For them, being a small family owned used dealership, they have realized that if the vehicles sell themselves it also brings repeat customers.

There is no problem with a dealership wanting a $80 cleaning, notice I did not say detailing, as long as they realize that extras cost more.

Paint correction, odor, dog hair, overspray, dirt, etc should be more or worked into an agreement that covers the basics.

tdekany · 10-31-09, 01:10

I got a call from a used car dealer who was looking for a mobile guy. He pays $100 a car but he even wants the undercarriege PWed. I asked him how long his regular guy takes per detail - he said 6 or 7 hours. His cars need to be mint inside and out, plus engine plus everything else.

We obviously didn't make a deal.

unleashedfury · 11-01-09, 11:22

If he just wants a "cleaning" Charge him what you would for a cleaning. But before drawing up an Iron clad contract make sure you both have your expectations staight. What he wants from a cleaning might be different than your standards.

If he wants "extra services" draw it up in the contract that these Al Carte services are upon request and prices may vary depending on work to be perfromed.

The perks are you could have someone to keep you busy in your downtime. And possibly some new clients. The only con could be he wants more for less.