Targeting Used Car Dealerships

Good evening everybody,

Just got myself posted in the introductions section and wanted to fully explain my plan and get some feedback.

As the title states I want to target used car dealerships and provide the following for vehicles that come in on trade that need to be "restored" to get the most when put on the lot.

All of these would be additional options to a full detail.
-Paint correction
-Faded plastic and trim restored
-Engine detail
-Removing headlight haze
-Alloy rim repair
-Carpet dying Services
-Leather repair
-Removal of harsh smells (via:fogger, and a/c clean up)
-Scratch touch up, and paintless dent removal

I am capable of all of the above with the exception of alloy rim repair and paintless dent removal. I would get this done with sub-contractors, until I have enough of a customer base to justify buying the infrastructure to do it myself.

My question is what everybody`s opinion is on the most potent wax and polish for vehicles that have been neglected (most likely the vehicles I would be dealing with).

One final note: I realize there are a certain number of dealerships that do detailing in house, the point of my services would be to offer specialties that people the dealerships pay minimum wage would not/and could not perform. Any input is appreciated!

JTSchubert -

Welcome to a great website !

Impressive set of skills you have - how long have you been Detailing then ?

Are you sure you want to target used car dealerships ? I believe that historically, almost all businesses that end with "dealership", are going to squeeze every last ounce of work out of their people and give not much in return. I hope it works out the best for you.

There are a lot of "cut and fill" products out there that people that do this kind of work use. You can also find good advise at an Automotive Paint Shop, as well.

I don`t do that kind of work, so I am not a good resource, but others who read this may have better information.

Have you considered going to a high end repair shop and asking them who Details their Bimmers, Bentleys, Porsche, Audi, etc., and see if you can work your way in there to be their 1-stop shop for all of the above ?

I did just that several years ago and had non stop Bimmers and other really nice vehicles coming into my garage for years, and would still be doing this there if my wife had not left our marriage and caused me to have to move.

A good high end repair shop with a good Client base will always have very nice cars that do get Detailed as part of the process while it is being fixed. Trust me on this, when you hit the right one, you will never be wondering what to do with your spare time again..
But you will still be able to manage it because you can control yours and their calendars if you are really a good Detailer and they know it.

You find one, get to know the guys at the front counter, and perhaps offer to show them your work ( in addition to your immaculately Detailed vehicle you drove up in) on their Shop vehicle, or something, and if you do this right, well, the rest is history..

Good luck with your plan !
Dan F

Dan,

Thats something I didn`t think about but a fantastic idea and has potential for better margins!

To backpedal to your other question I have been detailing for about 6 years now but like I said not on a pro level I was using a buffer and getting all my products from autozone (mostly meg`s if that makes it any better). I have had some friends that have messed up things on their vehicles and were just going to live with it but were thrilled when I asked to try out a few things to fix it so I`ve gotten a range of practice.

Thanks for your insight there are several hundred body shops in the 20 square miles around me that I could try to work with.

I will just throw in my opinion with respect to Stokdgs comments. He is right! When it comes to making money off of dealers, you`ll never get rich.

I used to manage two districts (21 stores) of automotive repair shops that sold tires and batteries. Corporate determined we were to hit dealerships hard with tire sales. Now, at that time we were the nations largest tire retailer. It goes without saying we bought the tires as inexpensively as they could be purchased, period.

Dealers would whittle any profit to the point where it just wasn`t worth it. Their demands were high, they need it yesterday, they want it for free and are slow to pay their bills. It was this way almost across the board.

It took corporate about three years to finally see there was no real money to be made selling into dealers and they pulled back on the pressure to do so. Now if you find a dealership that truly appreciates service and is willing to buy higher end products, it can be a decent relationship but my experience has shown these to be few and far between. Fleets on the other hand did have profit potential and from one fleet to the next could be the difference of day and night.

Quote:

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Originally Posted by GearHead_1

I will just throw in my opinion with respect to Stokdgs comments. He is right! When it comes to making money off of dealers, you`ll never get rich.

I used to manage two districts (21 stores) of automotive repair shops that sold tires and batteries. Corporate determined we were to hit dealerships hard with tire sales. Now, at that time we were the nations largest tire retailer. It goes without saying we bought the tires as inexpensively as they could be purchased, period.

Dealers would whittle any profit to the point where it just wasn`t worth it. Their demands were high, they need it yesterday, they want it for free and are slow to pay their bills. It was this way almost across the board.

It took corporate about three years to finally see there was no real money to be made selling into dealers and they pulled back on the pressure to do so. Now if you find a dealership that truly appreciates service and is willing to buy higher end products, it can be a decent relationship but my experience has shown these to be few and far between. Fleets on the other hand did have profit potential and from one fleet to the next could be the difference of day and night.

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BINGO...this was my experience in my area even for the higher end used lots....The only thing that I get from one higher end lot, is paint correction on cars that are trashed and they need a heavy hitter, not the ten buck an hour guy that they have on call to do detailing

I am very glad I asked! I knew the dealerships were going to provide work with a low GP% but I figured if it came in bulk a nice profit could be made. But if they are nickle and diming you and taking a month to even do that it would not be worth my time.

Additionally it is not that I would not do details for the public, but around here there are so many larger corporately owned washes that can out spend me on marketing, it would be difficult to sway people from just being on a half @$$ detailing assembly line.

Quote:

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Originally Posted by JTSchubert

I am very glad I asked! I knew the dealerships were going to provide work with a low GP% but I figured if it came in bulk a nice profit could be made. But if they are nickle and diming you and taking a month to even do that it would not be worth my time.

Additionally it is not that I would not do details for the public, but around here there are so many larger corporately owned washes that can out spend me on marketing, it would be difficult to sway people from just being on a half @$$ detailing assembly line.

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One of the things that has made me stand out from any other detailer in my area, is service!

Quality work in detailing is a giving. However I run a pickup and delivery for my customers and they all LOVE IT. That said a mobile service would be as attractive to people that want detailing done. I`ve been asked countless times if I do mobile, and have lost a few jobs as a result ( I don`t)

Bottom line in growing your customer base, is look at the service you provide that is outside just the detailing of the car.

How can I make it easier for the customer to do business with me, that`s what I did and have been winning where I want to.

As mentioned dealerships can be tricky. It is possible to make a profit. You need staffing now to realize a profit even then. Higher end dealerships have a higher-margin leaving a little more room for them to invest in a proper detail. If you can get in with the dealership that offers you a decent profit margin you need to be able to handle the volume. Their focus is on how long the car sits on the lot and they can swamp you very quickly.

I have focused on higher end repair shops and the work can be steady. The car owners usually take better care of their vehicle when choosing a specialized shop to take care of repairs.

The biggest thing when making arrangements with another business is to make sure you can meet expectations and demand. They`re putting their reputation on the line referring you. A big account can be a big loss if you lose it.

As far as PDR is concerned it`s best to find somebody who is very good you can rely on. They can always complete the job faster than you can. Learning PDR take some time and some skill sets. I have practiced a little and at and am only "ok". It`s like heavy paint correction with a polish you may get there but it will take you longer. If you bring in enough business for them they can offer you a discount account you can profit off in the end.

One add-on that is profitable if you get the proper training and equipment is windshield bull`s-eye repair. You can offer the surface free to your clients and be paid directly through insurance once certified. There are big profit margins in this industry. Nice thing is it can be done mobile too.

Quote:

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Originally Posted by JTSchubert

Dan,

Thats something I didn`t think about but a fantastic idea and has potential for better margins!

To backpedal to your other question I have been detailing for about 6 years now but like I said not on a pro level I was using a buffer and getting all my products from autozone (mostly meg`s if that makes it any better). I have had some friends that have messed up things on their vehicles and were just going to live with it but were thrilled when I asked to try out a few things to fix it so I`ve gotten a range of practice.

Thanks for your insight there are several hundred body shops in the 20 square miles around me that I could try to work with.

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Glad to help !

There is a great amount of information on this Site that can help you with tips and information on products, etc..

Another thing I have always offered is Concierge services and I also have a PDR mobile guy and a great Wheel repair shop that does perfect work.

The last few Details I did involved an older Lexus that the owner wanted restored, repair and paintwork done, all 5 wheels refinished, new windshield, basically, he wanted a brand new again, Lexus when he got back from a long vacation.
I was able to take care of these needs at different shops, then do a stunning Detail inside and out for him and still run my busy business just fine.
When he got back, of course he was thrilled to the max, and the several hundred dollar tip he gave me showed me just how much he appreciated all the extra miles I traveled for him.
So, keep getting experience, think about all the awesome advice you have been given by these great, great, guys here, and you will be fine !

Lastly, I talked about getting to know high end auto repair shops, Independent shops, not body shops. Most Body shops have the Painter or his helper do all paint compounding and polishing, and for the most part, they do a pretty good job. They have their own set ways, and this has been historically the way it has always been done.

Good luck with your research !
Dan F

Well, best of luck with that.

Nine years ago, I came to this turdhole, known as New Mexico, just resigned from a $75K a year job, and seen a detailer`s job at the local ford-lincoln dealer here.

Oh wait, that job was already filled, from the next day it was advertised.

The manager then offered me a very "wonderful job", part time, at $6.30/hr scrubbing down garbage vehicles in a wash bay in 104 degree summer heat.

And here I am, a 48 year old man at the time, who wanted to get up, and cork the turd for even uttering such greed, and stupidity.
(Rant off)

Mark D -
I am sorry to hear about your experience in NM.
Have always wondered what it would be like to live and work there. It looks like it is really beautiful there with the Sandia Mountains, etc..

Is it getting better for you now? How can we help ?
Dan F