Thinking of starting a detailing business

[KJ99GT]

Hi everyone,

There is an expression - when it comes to making a living, you can either work for the man, or you can BE the man...

I'm far from a detailing expert, but I know a bit about it, as well as general business, marketing, sales, operations, personnel, legal, that sort of stuff ... and I'm wondering ... what are the economics of starting a detailing business?

1) How much do you need ($) to get started?
2) How much do you need ($) to get the business established?
3) How do you assess the marketplace (i.e., demand)?
4) What kind of production do you need (units) to shoot for?
5) What kind of gross margins do you see, generally?

Any thoughts, or pointers to info about this on the web, would be great.

I'm not ready to quit my day job, but, running a detailing business sounds like it might be a blast. WHAT'S THE REALITY?

Thanks all!

-kj-

[Jngrbrdman]

Well, I've been hiding from Uncle Sam with my little "hobby" for over 3 years. One of these days I'll get a shop and go legit but for now I still need to eat. There are a lot of places that can help you get a business off the ground. First you need to determine if you want to go mobile or have a shop. I know a lot of detailers that will even make house calls for important clients. I make house calls to people that I know are going to refer me to their friends. Thats what makes them "important" to me.

Depending on where you live and what the climate is will have a great effect on what kind of business you do and for how long. Unless I had a fleet contract or did business for dealerships then I would sink after one season in Salt Lake. I do cars from about April through October. So I've got about 5 or 6 months of detailing a year. After October I don't make a dime. If I was doing it for a living then I would have to work my ass off during the summer so I have enough to coast off of for the dead season. In detailing there is only season you can detail and the one you can't. There isn't a "slow" season here in Utah. I'm sure its different in climates without a sloppy winter but its the reality in Salt Lake.

I work for about $35 an hour. I've gotten pretty good at guaging how long a car will take me to detail and I quote the price accordingly. Most of the small jobs I can do in under an hour so I'm doing fine there.

I just sort of built up my supply of things gradually as the years have gone by so I'm pretty well prepared to tackle any job now. The important thing for me is to save $500 for the beginning of the next season. First off in Spring I stock up on my supplies so I don't have to worry about running out on the job. I buy things in bulk or concentrate so I always have a ton of stuff. I'm soooooo glad to be moving into a house with a garage next week.

On the weeks that I actually go out and work my "hobby" I can make 2 or 3 hundred dollars. Not a bad weeks work for a few hours of labor. There have been a couple weeks that I've made more than that but I'd say the average is about $200 a week through the summer. Its slower in the spring and picks up in Aug and Sep for some reason. Not a bad little part time job. It pays for my toys and for the detailing stuff that I want to try out. I would love to do it full time and "be the man" but I wouldn't even think about doing it in Utah. I'd starve after the first season. I'll wait till I can move back down to Dallas or out to California.

[catfishnugget]

hey just started with next to nothing; basically, you can get started with a few essetials. I have a good shop vac, an orbital, good wax, a good vinal cleaner/ condittioner. you know ......the stuff you'de want to do a good job.then, do a good job. hey I've baught some stuff lately to make my jobs better, and I'm getting better/faster. All I'd ask for is more jobs I worry where my next one is comming from, you know?

[Shiny Lil Detlr]

yeah - best thing to do is figure out how much you want to be making in profit per job on each car, then add on the overhead costs of water bill, electric bill (figure out how much each costs to do the job), supplies, equipment, etc.

Also keep in mind that you need to have the highest quality supplies you can afford to do the job in a cost-effective manner, and get the highest quality equipment you can get your hands on as it will reward you in the long run and eventually pay for itself.

Also you need to have paperwork all prepared for the job, and keep your work areas clean and orderly...... same with your vehicle. You need to make a good showing for a customer to feel they can trust you to do a quality job thats worth what they're paying you.

good luck!

[bretfraz]

From SLP - yeah - best thing to do is figure out how much you want to be making in profit per job on each car, then add on the overhead costs of water bill, electric bill (figure out how much each costs to do the job), supplies, equipment, etc.

Actually, I believe SLP has it backwards here but he's headed in the right direction.

You need to determine the cost of doing business first then calculate how much profit you'll need to make to cover fixed costs, estimated variable costs, then net profit.

It's easy and seems sensible to first think of how much money you can make and worry later about how much doing business will cost. But I'll tell ya, that's an almost sure-fire path to failure.

Bottom line is that you are going to have to spend $$ upfront before ever seeing Paying Customer #1. How much $$ depends on many variables. If I were serious about starting a detailing business, first thing I'd do a develop a business plan. If nothing else, it'll get you head screwed on straight about the costs of doing business. From there you can decide if its even worth pursuing.

Hope this helps. Good luck. Oh, and read every post in the Professional Detailers section. You're not the only one here interested in this. Might be a good networking opportunity for you.

[Shiny Lil Detlr]

bret: yeah, I do have it backwards..... but thats mainly because for me its more of a part-time hobby type of business than a full time money maker. I do it in terms of how much money I want to make, then figuring the overhead costs involved. This way if my prices come out to be outrageous, I will take a cutback on how much profit I make.

Probably not the greatest advice for someone not looking to do it as a hobby, but its just what works for me.

[4DSC]

Don't forget the most important thing:
Doing something "for fun" can be quite different from doing something "on demand" so to speak.

[KJ99GT]

Great responses all. I will check the PD forum.

A business plan is, in essence, what I am looking for input on. I'm very familiar with the process, have done several, and am looking for answers to questions that will help me answer the basic question: is it economically feasible given my location, market, and desired (ultimate after a few years to get established) sustainable income?

I also realize that something I do for fun now could easily become a major drag once I'm doing it for a living.

As an aside, I once looked into opening a local bicycle shop. Did all the research, started the business plan. The net of my analysis was that it was a low-margin business, too low in fact. According to the industry material I found, the average independent bike shop actually had a NEGATIVE margin, i.e., was losing money. That, and an assessment of the local market, was enough to convince me it was a bad idea.

The research continues!

-kj-

[PrinzII]

Personally, I am looking into doing the same thing. Right now, I am at the stage of getting the clientele going. Eventually, I want to get a storefront (There is a place in Midlothian, IL that fits my needs nicely).