Who here has their a retail space they are working out of?

**David703** · 05-12-2007, 03:53 PM

I have the opportunity to start a detail business in my area that requires me to pay about $3000 a month rent. Do any of you have a large business and pay rent, or are you mainly a sole proprietorship or a mobil detailer? Thanks for any input.

**imported_WCD** · 05-12-2007, 06:45 PM

Can you describe the area? Traffic Count, auto related businesses near by, is the space set up for detailing, zoning issues, etc. Pls. explain first the area.

Thanks, Rob

**todd@bsaw** · 05-12-2007, 08:09 PM

I have a brick and mortar operation in conjunction with a very high traffic convenience store and service station. It`s kind of a unique situation, but I`d be happy to give you any info to help you. What kind of input are you looking for?

**David703** · 05-12-2007, 10:45 PM

I`m just trying to figure out how to determine my gross sales.. I know my fixed costs and have no idea how many cars I can do a day.. I can fit 8 cars easily inside. How can I sign a lease when I have no idea what to expect?

The store is right next to a mechanics shop. Good traffic area. Near affluent towns. A few blocks away from a detail shop that can do two cars at once. This place used to sell cars so it has a beautiful glass garage door.

**David Fermani** · 05-12-2007, 11:08 PM

$3000 is alot for rent. I never paid anything more than $2000 for 5000 square ft on a somewhat busy main street. How big is the place you`re considering? You really need to make a minimum of $500 per day with employees to break even. Volume is the only way to make money.

$10,000 = total sales for breakeven

-3000 - rent

-5000 - labor

-1500 - utilities/insurance/transportation

-500 - chemicals/supplies

**David703** · 05-13-2007, 08:05 AM

Originally Posted by todd@bsaw

I have a brick and mortar operation in conjunction with a very high traffic convenience store and service station. It`s kind of a unique situation, but I`d be happy to give you any info to help you. What kind of input are you looking for?

How many cars do you do a week? How long did it take you (in months) to get a steady business?

**todd@bsaw** · 05-13-2007, 11:08 AM

I do about 16 to 20 full details per week with about 20 hand washes (or wash + wax) from regular clients. We started the operation November of last year, which was not very ideal because of the Minnesota weather but it did give us a change to ease into it. After the weather got nicer, it took maybe 3 months to get steady business (mostly from weekly/monthly clients). We make between $3k and $5k per week depending on weather.

I do most of the detailing myself with the help of two others. On a good day, I`ll do three complete details while one other is busy hand washing cars. There are still days, however, where I have two appointments, one will cancel, and I have to fish for work.

We only have one garage but we are in the process of adding two more. I`d like to double our efficiency and hire a second full-time detailer.

**imported_WCD** · 05-13-2007, 07:46 PM

Your costs will be determined by your expenses, not someone elses. If you were in my neighborhood in CA. you would pay 5k per month for a 2 bay gas station- a closed one with no tanks running. What is the wash bay like? Do you have a water reclaim set up? If not, you are asking for real trouble. You will need something in place and approved- a clarifier or separater meet the EPA, but some cities will allow other methods. I suggest you become involved in your community through the Chamber, sponser youth teams, etc. You will really need to put a business plan together. "Affluent neighborhoods nearby," does not make money. What is your market? If you don`t know yet, than you don`t have a plan. There are some great books out that deal with marketing, finding your market and directing your money to getting your market to make you money.

I wonder if you can purchase something? I would rather buy a property than rent since the monthly payments are much less than a rent payment. Plus, you own and then will build appreciation in the value of the property. Heck, work for three years, make a positive gain, and then sell for triple net!!!

The E-Myth Revisited...read it!

Think about car flow. The more you have to move cars, the more risk. How much insurance will you carry? What`s the customer area like? Will you sell retail items? What software are you using to track customers? Sales? How often will you send out mailers? Will you do add-ons...tinting, PDR, etc.?

Just some well intended thoughts.

Rob