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Costs of Opening a Detail Shop


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#1 THESANTINI

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Posted 16 February 2003 - 02:27 PM

I am finally beginning to research the costs of opening a detail shop in Bethesda, MD or Washington D.C. so if anyone has considered opening a job, please help me out.

Obvious costs are going to be

  • Rent
  • Water
  • Electricity
  • Products
  • What else?

How much can I expect for each of those listed above, etc?

Thanks Professional Autopians !

#2 Redcar GUY

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Posted 16 February 2003 - 02:33 PM

gas, you got to heat the place as well.... ;)
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#3 THESANTINI

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Posted 16 February 2003 - 02:40 PM

Redcarguy - can't work when its 30 degrees outside! (VERY GOOD POINT, lol)

Also, I'd like to mention I am researching going the detail + hand car wash. The plan is to open it up in a high traffic area.

Thanks again.

#4 ronvonhagen

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Posted 16 February 2003 - 02:58 PM

Insurance......Advertising cost....

#5 Aurora40

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Posted 16 February 2003 - 03:10 PM

Any initial investment in machinery and equipment, and of setting up your location (shelves, bays, whatever).

Maybe an attorney to set up the business?

#6 Redcar GUY

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Posted 16 February 2003 - 03:13 PM

also a phone......



A buddy of mine has a small shop here in town, he can do 4 cars at a time and his gas bill was $600 this month:eek:
DEDICATED TO THE PURPOSE BEYOND REASON... Oakley ..
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#7 THESANTINI

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Posted 16 February 2003 - 04:14 PM

Thanks guys. In addition to the specific supplies and such I was looking for more specific numbers as I write a business plan (if thats possible).

#8 thomasfl

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Posted 16 February 2003 - 06:06 PM

Thesantini

You will need to know the difference between your costs. You will have fixed costs (telephone, utilities, rent, etc.) and also variable costs. Variable costs are costs that are determined per customer, like products, maybe your detailers income.

You can do a calculation for the profit that you can expect from a typical scenario of when you are up and running and what to expect in the beginning, I recommend it by month. I would use this: Total Costs= Fixed Costs + (variable costs * number of customers).

Perform this calculation with various number of customers and you can get an idea of how many customers you will need a month to make the amount of money you need. If you need some help with this I can help you and I am sure many professionals here can as well.

#9 THESANTINI

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Posted 16 February 2003 - 10:10 PM

Originally posted by thomasfl
Thesantini

You will need to know the difference between your costs. You will have fixed costs (telephone, utilities, rent, etc.) and also variable costs. Variable costs are costs that are determined per customer, like products, maybe your detailers income.

You can do a calculation for the profit that you can expect from a typical scenario of when you are up and running and what to expect in the beginning, I recommend it by month. I would use this: Total Costs= Fixed Costs + (variable costs * number of customers).

Perform this calculation with various number of customers and you can get an idea of how many customers you will need a month to make the amount of money you need. If you need some help with this I can help you and I am sure many professionals here can as well.



Excellent, seems like an economic equation from good old macro!
I understand the variable costs, so I suppose in order for me to get an accurate assumption of opening a shop, it will be important for me to get a idea of the fixed costs and have estimates. So if anyone could help with that- greatly appreciated.

Best Regards,
Maulik Patel

#10 Nagchampa

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Posted 16 February 2003 - 11:11 PM

Originally posted by THESANTINI
...................... in order for me to get an accurate assumption of opening a shop, it will be important for me to get a idea of the fixed costs and have estimates. So if anyone could help with that- greatly appreciated.

Best Regards,
Maulik Patel

You might want to consider calling your local utility companies for help on this problem. They should be able to provide you with accurate estimates for similar businesses in this area.
HOLLA!!HOLLA!!HOLLA!

#11 thomasfl

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Posted 17 February 2003 - 07:43 AM

Maulik,

You need to get an idea of the size space that you will need in sq. ft., check around for retail rates for sq. ft. in high traffic areas and in lesser traveled areas. This gives you a rough estimate of your rent. Try asking a auto repair shop a few questions about rent, utilities, etc. I have found that the going rate is from $5-20 per sq. feet depending on your area.

#12 Nagchampa

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Posted 17 February 2003 - 08:11 AM

In a fixed location you will definitely need to look into payroll costs as well as workers comp insurance. You will need to hire help to be efficient. You may need to change or repair fixtures such as lighting, plumbing, drainage, etc. Some sort of uniform will make your business appear more professional. You can get T-Shirts made or buy some Polo shirts and have your logo embroidered at a local mall for a minimal price.
HOLLA!!HOLLA!!HOLLA!

#13 84GTV6

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Posted 18 February 2003 - 07:11 AM

What about insurance?? God forbid something happen to that F-40 that just pulled in!!! :nixweiss
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#14 thomasfl

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Posted 18 February 2003 - 07:00 PM

Entrepreneur magazine publishes some books to help people get into business. I found that they have a book for starting a detail business and also a carwash. These books tell you about: Business Plans, Market Location, Legal Requirements, Facilities, Record Keeping/Taxes, Start-up Costs, Advertising & Promotions, Financing, Operations, etc. It seems you could answer alot of questions from these books not only for yourself but for others on this board. The books are expensive but seem well worth it, $59 each. Here is the site, www.smallbizbooks.com 800.421.2300. Good luck.

#15 Iowan_Juggalo

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Posted 18 February 2003 - 07:36 PM

You might also need some bookeeping software or an accountant.
Retail is Detail

#16 THESANTINI

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Posted 19 February 2003 - 07:55 PM

Thanks all! I'm going to start working on this business plan. I just spend all this time writing my business plan for mobile, but I guess this is all for the better!

:D

#17 Jimmy Buffit

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Posted 19 February 2003 - 10:31 PM

In a fixed location, what is included, and what do you have to supply? I'm doing this right now, and a hundred 'little' items are eating up my budget. I'll be using a Sensei extractor, and it requires about 28 amps... I had them run additional circuits. My air compressor pulls 13 amps, and runs when ever it wants to... dedicated circuit!

I had to paint the floor...$400 + time.... what's included? Ceiling? Cost me 1400!

Signage? This will be different for every location. Local ordinaces are mind boggling... look around to see how serious the enforcement is.

Plumbing! My local codes require absurd back pressure valves (with 6 month inspections!) I asked for extra hose bibs, don't have the bill yet...

What ever # you come up with, add a nominal figure of $2000 for Sh** you didn't imagine.

Nobody mentioned operating capital. At least 6 months (including 'salary'). My Landlord's delays have forced me to spend 25% of my stash!

Lots to think about...

Jim

PS Spent the last two full days prepping and painting the floor. Pics to follow after it is dry. Right now I'm real concerned about roller overlap marks...
Hope the morning will prove me wrong!

#18 THESANTINI

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Posted 20 February 2003 - 06:23 AM

jim- did you by chane write a business plan? If so I would be very interested in reading it. Best of luck with the shop. I am going to PM you later on this afternoon.

Best Regards,
Maulik Patel

www.younginvestors.net

#19 thomasfl

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Posted 20 February 2003 - 07:15 AM

Maulik,

Have you done any research between a mobile operation and a shop. It seems that the mobile detailers have such a lower overhead. The only thing about a mobile detailing operation is that you get a little stuck, one detailer can see only so many clients a week and they have travel time in between details.

#20 THESANTINI

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Posted 20 February 2003 - 07:58 AM

thomas- I have done a little research in regards to shop v. mobile. Startup capital would not be an issue as I have an investors/mentor who is interested in the idea and would like to open a shop. So, if after all the research a shop seems to be the best way to go- I'll learn a lot from it and hopefully make some money.

The problem the way I see it is with a mobile setup is you have to be full-time. Whereas, if I run the shop I could have a manager and concentrate on advertising, marketing, etc.




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