tell us your start-up stories - the good, bad and ugly

[imported_thecarguy]

Please briefly write about how you started in detailing. When you bought more equipment, mistakes and how you avoid them now, did you start mobile then go fixed or vice versa?



I look forward to reading them and thanks!

[imported_mirrorfinishman]

I started as a part-time mobile detailing business in 1986. For years I had worked as a quality assurance manager for a local car wash manufacturing firm. During that time I came upon two realizations that helped me to launch my new business.



First, I began to realize that there was a growing need for specialized automobile detailing services. Second, I also began to realize that I could earn extra income doing something that I really enjoyed. Since I had always kept my own vehicles cleaned and polished, it was only natural to start to offer the same service for other people.



When these thoughts started coming to me, I did not jump right into the detailing business. I started by attending entrepreneur small business courses at Rutgers University in Camden, N.J., and followed that up with advertising and marketing seminars at Drexel University in Philadelphia.



One of the very first things I did after attending a few of these business courses was to write a business plan. I still write down everything. Every idea, every thought still gets documented. Actually the original mission of my business is still the same as I had written it back in 1986.



I really believe that professional detailers need to concentrate on business principles even more than they concentrate on detailing principles. I would say that 80 percent of the educational effort should be focused on learning more about what it takes to own and operate a successful and profitable business. The other 20 percent should be learning more about the actual process of detailing.



Too often, many detailing businesses fail because the owners are too busy taking care of the technical side of the business. These guys may be good detailers, however, that does not necessarily make them good business owners.



My detailing ability comes naturally from my father. My ability to do detailing was the result of my dad taking the time to teach me everything he knew about how to properly clean, polish and wax a vehicle,� he says. He always had a clean car and he always did all of the work himself. It was only natural for me to follow in his footsteps.



My detailing business is strictly a mobile detailing operation where all of the cleaning, polishing and waxing is done at the customer’s business or home. I learned early on that in order to become successful you must constantly be focused on meeting the needs of your customers. My customers are now like family and friends. Our mutual respect for one and other goes well beyond the scope of detailing.



Professionalism is the key to operating a successful and profitable detailing business. Of course, customers expect to see good results; however, they are equally concerned with all of the things that you do that adds up to creating an overall good experience. For example, since I operate a mobile detailing business it is very important that I arrive on the job at the agreed time of the appointment. I also dress in clean, professional-looking, color-coordinated work cloths. Matching work hat with embroidered company name, etc. All of this makes a professional statement with the customer.



I constantly try to look at everything from the customer’s prospective. I treat my customers the same way I like to be treated. I use only the finest professional products because that is what I would use on my own cars. I understand that my customers are not interested in just getting the lowest price. They are much more interested in knowing they are receiving high-quality service and getting their money’s worth.



Too often, detailing businesses fail because they are constantly trying to compete with other detailers and constantly lowering their prices. In the detailing business, that is simply a mistake. A low price may matter when you’re doing wholesale restoration work for a dealership; however, most retail customers care more about getting a high-quality job and they are not afraid to pay a much higher price for that kind of service.



As with most small businesses, I have experimented with a number of marketing avenues before finding something that worked. In my case, customer referrals are what worked the best. My customers just love telling their family and friends about my detailing service. They are constantly sending me new customer referrals. I have also found that just talking with people who own an expensive car often yields good results too. That is why I always carry a couple of business cards with me. You never know when someone is going to ask about my detailing services.



The main thing to becoming successful is to learn how to operate a business. You have to create a strategic plan that will help to identify the customer and why that customer needs the service being offered.



Remember, when it comes to detailing, it’s not about price. It’s more about offering a high-quality service. Finally, always remain focused on meeting the needs of your customer. If everything else fails just providing professional services and meeting the needs of your customer can make you a success.



Too many detailers spend way too much time worrying about the competition and how everything relates to their own personal needs. Doing that is a sure recipe for failure. For a detailer to be successful they must remain focused on constantly giving the customer much more than they expect. They must remain focused on meeting and exceeding the needs of their customer. To be successful the customer must truly come first.



I think the major growth of my detailing business will continue to come from specializing in the care and appearance maintenance of more and more high-end vehicles, such as exotic sports cars, antique and classic cars.

[doged]

Me, I’m a little different.

I have done what many inspire to do or at least that’s what my friends tell me . :chuckle: Be a big shot account sales rep for a Fortune 500 corporation . Then became a corporate sales and marketing manager who taught the account sales reps how to become big shots. Along the time line I was able to train with the best sales and marketing experts the corporation would pay to send me too. I also was able to attend national sales think tank retreats. At 42 I decided to retire from the corporate world and start my own business, detailing. I have been detailing cars for family and friends since I was 16 because it relaxes me and I love it.

Almost forgot about 10 years ago I designed, patent, market and sold the rights to a dog toy. Hence the name doged!!! :spot

[imported_thecarguy]

mirrorfinishman - thanks for your great description of how you got started and what worked and what didn`t. It`s interesting you say 80% of your time should be focused on the business end. I never would have guessed that. That makes sense now that you say it. If you`ve ever read the book, "E-Myth" (which is a great book for entrepreneurs), it makes perfect sense.



Thanks for your comments!

[livinlowkey]

I just currently started a new mobile detailing business in Florida, about 5 weeks ago. I have no background in business whatsoever, I joined the marines right out of highschool and did 4 years then got out and immediately opened my business.

I have put a lot of time into introducing myself to as many local business owners and managers as possible offering my services to all of them. Also I give out fliers and cards like its gonig out of style. So far the biggest mistakes I have made is not getting enough info on a vehicle to give a proper price quote. So needless to say I have shorted myself on a few occasions but business is still going well. I have made just over 3K in the last month. Im not sure how that compares to other companies in the industry but I feel that for not having a business background I am doing quite well for my first month in business.

[imported_thecarguy]

livinlowkey - that`s terrific, I think. Especially for the first month. Without saying where in FL you are, would you be confortable sharing your price ranges for what you offer?

[ninee3cobra]

livinlowkey - that`s terrific, I think. Especially for the first month. Without saying where in FL you are, would you be confortable sharing your price ranges for what you offer?

+1 My brother and I are also starting a mobile detailing business here in houston, and we are gathering as much infortmation ex: prices, products, etc. if anyone would be kind enough to post a "menu" of the prices they offer for different sized vehivles just to get an idea, i would definately appreciate the help/info. thanks in advance!

[zippymbr]

+1 My brother and I are also starting a mobile detailing business here in houston, and we are gathering as much infortmation ex: prices, products, etc. if anyone would be kind enough to post a "menu" of the prices they offer for different sized vehivles just to get an idea, i would definately appreciate the help/info. thanks in advance!

Welcome, do some searches and most all our questions will be answered. Prices are discussed here regularly.

[imported_mirrorfinishman]

if anyone would be kind enough to post a "menu" of the prices they offer for different sized vehicles just to get an idea, i would definitely appreciate the help/info. thanks in advance!

In order to cover expenses and stay in business you should consider pricing your detailing services based on what you actually need to make in order to make a reasonable profit and stay in business.



Try to figure out how much you think you need to make per hour in order to keep the business going. Once you know what your hourly rate is, then figure out how long you think an average size car will take you to detail. All of this information will give you a clear picture of the hourly rate you need to make and the time required, then it is a simply matter of charging accordingly so that you can make a profit.



Here is an example;



Let`s say you need to make $50 per hour. Since it takes about 4 hours to detail a mid-size car, then you would need to charge $200. (4hrs x $50 = $200)



Another factor to consider is the size of the vehicle. Here are some examples based on the same $50 hourly rate. These are just examples. Your hourly rate may vary.

Small compact car: ....3 hours to detail $150 (3hrs x $50 = $150)

Mid-size car: ..............4 hours to detail $200 (4hrs x $50 = $200)

Full-size luxury car: ....5 hours to detail $250 (5hrs x $50 = $250)

Sport Utility Vehicle: ...6 hours to detail $300 (6hrs x $50 = $300)

HUMMER: ...................8 hours to detail $400 (8hrs x $50 = $400)



From a marketing standpoint it is important to let your customers see that your prices reflect the amount of time that you need to spend on a particular size vehicle. The owner of a small compact car will appreciate the lower price. While the owner of a full-size luxury car will understand the higher price.



The point of all this is that you should always figure out your own pricing based on your own situation. Not that of other people. Your cost of doing business will almost never be the same as another business and the profit that you would like to make is strictly up to you.

[imported_thecarguy]

mirrorfinishman - well put - thanks.



I wonder if anyone has a spreadsheet they are willing to share or links to business model informaiton?

[crobinso]

This is a great thread, and I`ve enjoyed reading it. Mirrorfinishman is definitely the star of the day regarding operating a business.



This year, I looked into starting a fixed detail business. I found out that it will take M-O-N-E-Y $$ due to overhead. What is overhead? Oh, little things such as the building you intend to buy/rent, taxes and fees for just about everything, utility bills, employee salaries, taxes, and benefits, equipment, what have I left out?



I decided that I am not yet ready to leave my day job. :-)



Charles



Mirrorfinishman, I`ve PM`d you.

[imported_thecarguy]

Try to figure out how much you think you need to make per hour in order to keep the business going.

mirrorfinishman - If I read you correctly, you have one HUGE assumption - you are working 40 hours/week. From what I read about business in general, you should assume 30% less revenue and 25% more expenses than you anticipate.



In other words I might figure I need to make $50/hour if I had 40 hours of work per week. Your first 3 months you should bank on, say, 15 - 20 hours per week. You thought your supplies were going to cost $200/month - you should plan on them costing $300/month.



Given these new assumption, how much do you need to charge to make a profit?



This is the lesson entrpreneurs in other lines of business have shared - does that make sense for detailing?

[imported_mirrorfinishman]

This year, I looked into starting a fixed detail business. I found out that it will take M-O-N-E-Y $$ due to overhead. What is overhead?



Oh, little things such as the building you intend to buy/rent, taxes and fees for just about everything, utility bills, employee salaries, taxes, and benefits, equipment, what have I left out?

Here are a few more things to include:



Payroll Taxes, Marketing, Advertising and Promotion costs, Office Administration, Legal and Accounting, Operating Supplies, Bad Debts, Repairs and Maintenance, Insurance, Licenses, Depreciation and Interest on Loans

[imported_mirrorfinishman]

mirrorfinishman - If I read you correctly, you have one HUGE assumption - you are working 40 hours/week. From what I read about business in general, you should assume 30% less revenue and 25% more expenses than you anticipate.



In other words I might figure I need to make $50/hour if I had 40 hours of work per week. Your first 3 months you should bank on, say, 15 - 20 hours per week. You thought your supplies were going to cost $200/month - you should plan on them costing $300/month.



Given these new assumption, how much do you need to charge to make a profit?



This is the lesson entrpreneurs in other lines of business have shared - does that make sense for detailing?

All of this does make a lot of sense. Especially the part about `you should assume 30% less revenue and 25% more expenses than you anticipate`. That would certainly add a cushion in case things do not work according to plan.



I am still thinking about your question; `how much do you need to charge to make a profit based on the assumption of working a 40 hour week`. I have had a busy day and I will post more on this in the next day or two. Stay tuned.