Those with shops...

[MirrorDetailing]

Well I posted a thread awhile back and the location I found was ideal location at a great price. But unforently, due to one of the owners in the building being a complete douchebag, I lost out of that location.



So I have been on the search for the last month and a half and I am going up empty handed. I am either finding good deals, in less ideal locations, with "okay" buildings or good deals, great buildings, okay location. The current location I am pursuing, is am amazing building, good price in a good location, but the landowner is being pretty stringent in the lease terms. I am hoping that when I send back my counter offer to the lease tomorrow that the landowner will renegoiate on some of the terms and the location works, but I am going to go ahead and plan for the worse and start searching again...which leads me to my point.



For those that have locations...



Are you strickly physical, meaning you do not go mobile?

Do you schedule certain days of the week to do work at your shop, then with a few customers on certain days, do you go mobile?

Or do you it half and half? Get those customers that do not have area to work on it at their house and bring it to you, then when you get customers that want you to come to then, you charge them a mileage fee and go mobile?



Reason I ask, is if this location I am pursuing does not happen, I have another location in mind that puts me next door to one of my customers shops and puts me within 5-10 miles of 2 other shops I contract for that would bring their customers cars and personal cars to me. Then, 15-20 miles from about 2 other shops I contract for that bring customer cars to me. I know the price for the above mentioned shop is 2000sq/ft at $1000 with utlities. This would give me a location to store my products, a location to work out of for my customers that do not have enough garage space or none ideal area to work and a location to host car meets at, to market more business.



Just looking for some insight from those that have tried this, do this, or are attempting this.

[C. Charles Hahn]

The only potential problem I can see with trying to do both right off the bat is that you increase your overhead costs -- you wind up purchasing equipment and supplies for both your fixed location as well as a mobile rig (which also requires maintenance).



Sure, you could just use the same stuff for both applications but that can be a hassle for a few reasons:



1) You limit yourself to buying equipment which will fit into a mobile unit, instead of being able to take advantage of larger, higher capacity equipment which will save you time when working in your shop.



2) Every time you have a mobile job you have to take the time to gather your equipment and pack it up, all the while taking inventory to be sure you`ve included all the stuff you`re going to need on the road (it`s easy to forget some of the little items if you`re not careful) AND then take the time to unpack all your stuff and put it back into an organized workflow at the shop for use the next day. All of that can be an hours-long exercise which you`re not getting paid for.



The only way I can think of to get around this would be if you have a contained mobile setup in a van or trailer, and just plan on it always taking up one parking space inside the shop so you can work out of it just like if you`re at a mobile site.



Personally I`d say if you want to establish a brick-and-mortar location, I`d start off doing just that for a while and once you`re profitable enough and have a broad enough customer base, hire on a guy or two to keep the shop running while you branch out and put yourself in a mobile rig to offer an additional avenue to get more customers. Just doesn`t make sense to me to ever have overhead costs which aren`t actively working for you as much of the time as possible.

[MichaelM]

If you`re going to take on the expense of a fixed location you should make sure that that space is profitable for you, regardless if you are mobile as well. Try to determine what your cost is per day to keep the doors open (total expenses for the year / days per year you will be open = CPD).



I would treat the mobile unit and the fixed location as two different business units so you can better judge profitability. You don`t want to be robbing peter to pay paul.

[Richard Grasa]

I`m not currently doing both but I have also thought about going mobile some days when the shop is not busy. But that would mean I would not be here to answer the shop phone and any walk-in customers would walk up to a locked door and then go somewhere else. So I decided I need to be here in the shop to be able to properly run the shop.



I`m thinking about setting up a mobile van and hiring someone to work the mobile stuff, as there are alot of people who ask if I still do mobile work (I did it for a few years before setting up a shop). I have someone who works for me when I get really busy, perhaps I will have him start doing some mobile stuff when I have the funds to set up a van. I`d have him do it in his car, but I would rather have a company van with my info on it.



Whatever you decide to do best of luck with it and best of luck finding yourself a nice shop!

[Jean-Claude]

I will say one thing.



Have a reasonable early opt out included in the contract. If the location isn`t all it`s cut up to be you will want to be able to get out with a minimal loss.

[buda]

Anyone doing $400,000 to $500,000 a year in business with a mobile rig?



Regards

Bud Abraham

[C. Charles Hahn]

Anyone doing $400,000 to $500,000 a year in business with a mobile rig?



Regards

Bud Abraham

So now you`re anti-mobile detailing too?

[Blackthornone]

Anyone doing $400,000 to $500,000 a year in business with a mobile rig?



Regards

Bud Abraham

Paul Dalton for one.

He is hired by clients to go to Japan, the Middle East, ect to detail their cars. I would say that is a very mobile rig. I also think he makes a lot more than 500k.

[Ron Ketcham]

So now you`re anti-mobile detailing too?

I don`t think he is being "anti-mobile", just bringing up a serious fact.

Few mobile detailers,unless in business for a decade or so and in a high population area can do what a fixed location shop can do as far as volume and sales dollars.

When I was still in the mix, our auto processing center did over 1,000 new vehicles a month, a few recon details, very few individual`s details.

The new car prep was the main meat on the bone, and was profitable.

The "recon`s" were ok, however that was not what fit our business plan, just did them to keep a very few dealers happy and keep their new car prep business.

The manager hated individual details, it mess up the work and process flow.

Grumpy

[Jean-Claude]

Actually, if you`ve got 5 or 6 mobile units keeping busy you could.



But as you know, it`s the profit that counts more so than the gross sales.

Anyone doing $400,000 to $500,000 a year in business with a mobile rig?



Regards

Bud Abraham

[Lotuseffect]

Well my fixed location is my garage. I also travel to detail a vehicle but when possible I`ll even drop off and pick up rather than work in someone elses garage or driveway. I work 3 nights a week ad sat, and sun if necessary to accommodate clients.

Granted detailing is my 2nd job not my primary but while I understand the wanting to "branch out" the business I would say if you have found a good fixed location, use it. Establish premium service and name recognition within the area. Then in a year or two when you have established customers and a good cash stream decide whether you want to announce going "mobile" for customer convenience.



My 2 cents.

[MirrorDetailing]

Well update. The one location I was looking at, which was in a nice gated business park in a very upscale building, did not come through. After negoiating with the landowner, the best deal he could do me was 3 year lease with a 16 month quarentee/out. It was not the most ideal location, but was central to most of my clients. Well luckly yesterday morning I got lucky, one of my shop customers gave me word that a space was going to be coming available in his street front building. Got in touch with that landowner and within 5 minutes we had a deal over the phone. $950 a month for 2000 sq/ft, nice building, street front in a nice area. 4 of my other shops I do work for, are within 10 miles and their are 3 dealerships within 3-5 miles. On top of I am street front on a side rode and a 5 iron from a major highway. Plus they are only wanting a 1 year lease with a 1 year guarantee. So hopefully everything works out, I will be moving into this space next weekend.

[Jpostal]

Well update. The one location I was looking at, which was in a nice gated business park in a very upscale building, did not come through. After negoiating with the landowner, the best deal he could do me was 3 year lease with a 16 month quarentee/out. It was not the most ideal location, but was central to most of my clients. Well luckly yesterday morning I got lucky, one of my shop customers gave me word that a space was going to be coming available in his street front building. Got in touch with that landowner and within 5 minutes we had a deal over the phone. $950 a month for 2000 sq/ft, nice building, street front in a nice area. 4 of my other shops I do work for, are within 10 miles and their are 3 dealerships within 3-5 miles. On top of I am street front on a side rode and a 5 iron from a major highway. Plus they are only wanting a 1 year lease with a 1 year guarantee. So hopefully everything works out, I will be moving into this space next weekend.

Sounds like an ideal set up.



I cant believe property owners are still looking for 3 year terms given the state of the commercial market in most areas. Lease rates are a lot higher in my area, but you can get a month to month lease on nearly any property if the landlord is not having to make any changes to the building to meet your needs.

[autoconcierge]

Well update. The one location I was looking at, which was in a nice gated business park in a very upscale building, did not come through. After negoiating with the landowner, the best deal he could do me was 3 year lease with a 16 month quarentee/out. It was not the most ideal location, but was central to most of my clients. Well luckly yesterday morning I got lucky, one of my shop customers gave me word that a space was going to be coming available in his street front building. Got in touch with that landowner and within 5 minutes we had a deal over the phone. $950 a month for 2000 sq/ft, nice building, street front in a nice area. 4 of my other shops I do work for, are within 10 miles and their are 3 dealerships within 3-5 miles. On top of I am street front on a side rode and a 5 iron from a major highway. Plus they are only wanting a 1 year lease with a 1 year guarantee. So hopefully everything works out, I will be moving into this space next weekend.

I cannot stress how cheap this is, but if your area does not allow higher labor rate it is relative............... . One thing I have noticed is the pervasive us against them of BUDA and others who think if you do not have a 10,000 sg/ft building with 50 plus guys zipping through at least 100 cars a day(Like a car wash) that you are missing the boat on becoming "Rich", well maybe guys want to make a living without the "Headaches" of managing all the children you will have at the lower wage scale with issues and mistakes...............you have a big place like this you have to keep your eye on the ball 24/7 and have a "GREAT MID-LEVEL MANAGER" to deal with most of the crap before it gets to you.



This site is geared toward the individual owner/operator who does "One car at a time" and yes the profits are undeniable with high production, but I would be more impressed with a facility that could do volume and high level correction work which takes time and skill with WELL payed staff to accomplish said goals.



Guys that want to "Do it right" first have to learn the craft and "Get in where they fit in" as in knowing thier regions area for price point and level of vehicles thus establishing a business model they can manage, most of my new customers ask me point blank "Do you work on the car or someone else" this remark is motivated due to bad experiences with "High production shops" who zinged thier car up badly...................and now the lowly individual detailer has to fix the work of the "High production shop".



Bud if this sounds like I am always there to bang you...............you are correct, as you never present your point of view with "I have done well doing the business in this fashion.....might I suggest...." nuff said.

[WAS]

Bob is correct, you don`t need a massive building and you don`t need to turn a huge volume in order to be successful. If the lease sounds good to you, and it`s within your budget, I`d say go for it.