Open Shop or Not??

[AlphaOmega]

A question for you all - especially with shops. I just got a spectacular offer from a client today. He owns industrial properties. $350/month for a 2500 sq ft warehouse w/ office and restroom, water and elec. It is not roadfront property, but could offer me the chance to expand into tinting or stereo/alarm install. But here lies the dilema:

I have been strictly mobile for the last year and a half. My customers know me for convenience and flexibility. Most have me do their cars at their work. I have read some articles and sites that suggest offering vehicle "pick up" and drop off service to make a shop marketable. QUESTION - I`m not sure I would be comfortable with my detailer driving my car across town to his shop. Will they???

Liability issues aside ( I carry $2,000,000 coverage) my clients like me, they respect me. Several have no problem with me driving their car a few blocks away due to shade issues (Florida). But - those of you with shops - do most customers readilly hand their keys over knowing you are taking their car a few miles away?

Help me out here. Short of purchasing a car-hauling trailer, how do I convince people to let me bring their cars to the shop? (I do plan to keep the mobile rig, but would like to build up the shop side.)

[Troy@Protekt]

Is that a lease or month to month? Either way it sounds like a great deal. I would be leary of trying to establish it if it`s only month to month though. The rent is bound to go up substantially as the market recovers. Will you be able to handle that?

I wouldn`t worry about losing your mobile customers. You could do both and share the building with an existing window tinter or alarm/stereo installer. Might be a great way to expand or slowly work your way out of being a mobile service.

As far as driving customer cars you need a "garage keepers" policy to be properly covered. Half of my customers would be OK with a pick-up and delivery but I would hate to lose some of the high-end customers who would rather me come to them.

[Tex Star Detail]

Is your business only you or do you have employees?
If you are serious about the shop, do you plan on stopping the mobile service? Thos is one thing that you should think long and hard about. If so, then you are pretty much telling your clients that you can either pick up their car, they can bring them to you, or they can find someone else. It`s a risky move. You will need to advertise, advertise, advertise. Since you will be in one location, and not on the road front at that, you will need to draw clients to YOU. Whereas when you are mobile, everyone sees you detailing. I too have thought about this move and cannot seems to make the transition. It would be nice when it`s 110* or 32* outside, but I service clients in a few different towns that have contracts. I would have to drop them or tell them to drive.
On various occasions, I do have clients hand me their keys to drive them to my house to do them in my garage overnight.
Another thing is, if the shops business takes off, will you be ready to handle it?


Edit, just seen you plan on keeping the mobile rig. That brings up another thing.
Say you have a mobile job on Monday, do you close the shop? If Bob drives by, he sees you are closed, he goes somewhere else.
Then he drives by the following Monday and you are open.

I`m confusing myself. Are you going to have set days that the shop will be open and different days you are only doing mobile??? Sort of like a trade off??

[Ron Harris]

Some things to take into consideration beyond just the rent.

#1 Insurance.
We have excellent coverage for our shop and it cost a little over 300.00 per month.

#2 Alarm System
You will have cars staying over night. Can you sleep knowing you don`t have a monitored alarm system. Don`t fall for the free this and that only to find out your locked into a 3 year contract. It will cost you a few hundred up front depending the type of system you go with but you will save in the long run if you go with a local company that doesn`t have yearly contracts.

#3 Phones and Internet.
You might think you don`t need them. You do! People like to put things on credit cards.

#4 Don`t Share
It`s your deal it`s your shop. Why cut some one in on the deal. Sub out what you don`t do. You can negotiate wholesale rates with these subs adding on to their price for your profit. You control the job you determine if it is good enough for your customer you should profit from it as well. This will further enhance customer loyalty knowing you can be a one stop shop for detailing, paint repairs, PDR, tint and accessories.

#4 Employees
Your going to need them. You can`t do every thing on your own. To be successful and grow you will need to run your business not work it.

#5 Location
Will people be able to find you? People tend to trust a brick and mortar business more then a mobile business. It gives them a sense of security knowing that if they have a problem they can come back to you rather then hope you will respond to their calls and come back out to see them. If they can`t find you easily they will go some where else.

#6 Equipment
Yeah you have every thing to detail a car. However do you want to take you towels home every night to wash? No you will need a set at the shop along with a fridge and drinking water for you and customers. When a customer comes in during the summer and wants you to look at their vehicle and you offer bottled water it really goes a long way. You have just given them something for just stopping by.

I could go on and on. You also need to look into a good marketing plan. Your going to lose some customers from your mobile service so you will need to work on bringing in new ones. Once you have spent some time in your own shop working in a controlled environment you will not want to mobile again.
Be prepared to pay your self only a % of what your shop makes. Gone are the days that you have no overhead and you spend what you make.

Just a few things to take into consideration from a shop owner.

[Troy@Protekt]

There you go. Sounds like some great advice to me.

[AlphaOmega]

AArRRGGHH!! All my questions bring more questions!! I hate it when that happens!!

No, seriously, I appreciate the insight. And here are some answers:

It will be month to month and I`ll be detailing some of the owner`s stuff in order to get the deal. He said he`ll also send associates my way. He owns about 60 industrial warehouse locations with about 30 units each ( x`s however many business owners are renting warehouses. And most of his clients are in logistics - you know, big trucking/distribution businesses. So I consider him a potential source of new business.

The agreement will be that I can close my doors and walk away whenever I want if things don`t work out. No lease.

I have no regular employees. Just a couple of guys who will jump onboard whenever I call to make some extra $$. I usually call them on heavy days or when I do a big plane. So I am continuing the mobile side to hold onto the customers I have now until I start attracting new clients into the shop. I`ve heard of a detailer in the Ft Meade area who has some big dealership accounts and takes a car at a time to his shop (and yes, I know how cheap dealers are.) I`m figuring I can take on some employees once I realize I cannot handle the load myself.

My end goal is NOT to have to drive clients cars to the shop. But I`m kinda looking at that as a way to hold onto what I already have. I`m thinking a sign on the door with my cell # so people can call me when I`m out and make appointments.

It feels like a big CATCH22. If I open a shop, I will have to grow quick. But a shop seems to be the way to enable me to grow. I do headlight restoration with ReNuLite hardcoat. (maybe some of you saw them at Mobile Tech last year in Clearwater) That stuff is difficult to use outside - especially in sun or wind. I` have windshield chip repair equipment - damn near impossible to use in hot weather. I also have shyed away from boats - just beacuse it seemed like way too much hassle to do outside (I have a boat.....it IS too much hassle). But with a shop, I`d welcome the boats. I would also start paint chip repair. I know how but have never offered it before (mobile) because of the drying time involved.

My advertising will have to be what it has always been - me handing out fliers on foot door to door. Here in the Lakeland area, I have only heard one detailing outfit advertising on a local radio station. The only other I`ve heard is the area`s biggest car wash. So I think I`m average there.

It`s a tough decision. I`d like to have a bunch of capital to get things started right up front, but I don`t - an I don`t think I will have it anytime soon by just doing mobile. The guy is offering me a hell of a deal, and I think he is sincerely offering it to me because he thinks I`m a good detailer and buisinessman and can make it work. A year and a half ago I had no idea how to make detailing a full time business...and here I am now - still going - and no idea how to draw the masses into my detailing shop. Decisions, Decisions.

What I like is being able to shut down and just go back to strictly mobile if things don`t work. It seems to take a big chunk of the risk out of the equation.

Keep the advice coming. I`m still thinking.

[Ron Harris]

I

t`s a tough decision. I`d like to have a bunch of capital to get things started right up front, but I don`t - an I don`t think I will have it anytime soon by just doing mobile. The guy is offering me a hell of a deal, and I think he is sincerely offering it to me because he thinks I`m a good detailer and buisinessman and can make it work.

This gentleman has confidence in you. Now you need to find it with in your self to make a commitment like this. Life is full of risks and if you don`t take a few then you will never grow.

Sounds like you have a good arsenal of add on services to get you going.
To really be profitable you are going to need them. Detailing alone is very labor intensive and your ROI will be very low. However when a car comes in for a detail and you sell them on chip repair, glass repair and any other services you offer you can double your ticket for just a little extra time and labor.

It`s usually easier to talk your self out of doing something then to just do it. I talked myself out of it for years. During the summer of 08 I decided that I was going to open a shop and stop being mobile. What ever the out come I was going to give it a shot. If your are resourceful like me you will find ways to make it work. If it does go bad for me I can say that I gave it a shot and learned from it. Nov of 09 was our first year in the shop. We will see if we can learn from our mistakes we made during our second year.

[AlphaOmega]

If I may ask, what kind of financial reserve did you have when you opened the shop?

[Ron Harris]

I had about 7000.00 stashed away. I really wasn`t worried about paying bills. My wife had a good job at the time and my partner and I had plenty of customers to work with.
We really thought and planed on being dead for the first 3 months. We were wrong. We were dead for the first week then every thing started taking off. We told our customers in advance about our plans to expand and they were ready to be a part of it.

I recommend you have more working capital then what I had.

[JohnHenry]

Sounds like an exciting opportunity, Brian. Best of luck! Give me a shout if you need weekend help.

Jay

[AlphaOmega]

Thanks Jay. But you`ll be waiting a bit. I`m going to hang on a bit longer and save up a bit more. Maybe I can get me some of that magic Obama stimulation money.

[witness]

I guess the discussion is over for now but I figured I`d pitch in my two cents for future reference.

First and foremost, the fact that you have returning customers means youdo quality work. Convenient or not , no detailer that does a crappy Job is called to return just because it makes things easier. That being said I`d emphasize or should I say re-emphasize the quality of your work to your customers. A drive, no matter how long or short is worth it if you`re confident your receiving the best service for your money.

Also upon opening a shop I`d suggest two things. These suggestions are just personal opinion. My wife and I have considered our long term detailing plan and our future hopes are to someday open a garage. To start we will be mobile so at the point that we make a transition we will facing the same dilima as you. We came up with the following options to consider when that time arises.

1. To offer an incentive to your customers to replace the one they`re losing. You mentioned how Many additional services would be available upon opening a shop of your own. You also mentioned that you don`t perform some of these services now because of the uncontrolled variables such as weather, dry times etc. More than likely some of your mobile customers would benefit from these services. I know just about everyone at some point needs paint chip repair. Why not offer them a greatly discounted service to get them into the shop. A $20 wash and wax or perhaps even a free one if you can afford it. Even if you end up spending $100 in materials to get them there it`s worth it if you get to keep just a few clients. But remember that most people are sold by sight. Getting them onto the shop and showing them how it will enable you to increase the caliber of your work, especially concerning their vehicle will really detract some attention from the fact that you aren`t coming to them anymore.

2. For those customers who may be a little more money conscious we had considered offering a permanent discount. When opening a shop your business will expand and your prices will no doubt be altered at some point to reflect the higher quality materials, equipment, services you`re offering and the costs of the shop. However when it comes to your mobile business, could you possible assess your savings. By not goin to your Client your saving in many areas including

gas for your vehicle, gas for a generator if ones being used, wear and tear on your equipment and vehicles from being used in a harsh climate possibly with extreme heat. You also eliminate factors like having to move your clients vehicle to a shady spot, having to carry a portable shelter with you, or having to worry about debri, sap bird droppings ect setting you back on the work you just completed. Also I don`t know how much equipment you haul with you but owning a shop most importantly eliminates the risk of a job not being completed due to equipment failure. Again, idk about you, but for me even on a full size truck it`s very hard to pack 2 of everything. In a shop you can have all of your equipment available at all times. Your main items. Your backup items. And your back up back up items. You never have to cancel a service and miss out on a check dueto rain etc, and no worries about traffic or vehicle malfunction keeping you from a job.

All in all there`s a great deal to be saved on your part. Why not pass the savings along. You`re worried about losing your mobile clients which means they must also be decent people. If they`re willing to stick with you as a loyal customer why not turn the $5-$10+ that you`re saving in gas and pass it along to them on a permanent basis.

Again. Just my two cents. Many may disagree but I believe every Returning customer should be fought for. Hope it helps, and sorry it came so late

[GothamAuto]

Hey, I know exactly how you feel about opening up a shop vs staying mobile. I was a mobile service for about 3 years before I opened up my shop.
As far as your current mobile clients, if they are loyal and you have worked with them a few times, they should be fine with you picking up their cars. You may not get a lot of "NEW" mobile clients for a while, and you probably will have to sacrifice a few, but that`s how to grow a business. You have to weight the positive vs the negative. I managed to keep a large number of my mobile clients. I either went and picked up their cars, or I went to my shop first, turned on all the lights, put the open sign up, put all my signs out, but then I left a message on my machine saying the days date (so when people called they knew it wasn`t a message from a month ago or something), and stuck a sign on the door stating that I was on the road for the day. The message on your Voice Mail is key. I would have more messages to check when I got back to the shop when I said I was out for the day then I did over days that I didn`t. People just want to know that you are not closed forever. (This past holiday season, I even had people leave messages Thanksgiving, Christmas and New Years.)
What I have found is that people just want to know that you are a real business. That you are not just some guy with a hose.
The downside of having a shop vs being mobile is that you HAVE to be there, which is a mistake I made for the first few months I was open. If your website, door or VM message says you are open, you had better have some indication that you are either working somewhere else, or you have to be there. Case In Point: My shop is in Danbury, CT. We had a big snow storm here last Thursday. Every car wash and detail shop in the area just closes on these days. I am always open, and my parking lot is shoveled. I had one pretty loyal customer come in in the middle of the storm. He had parked under a pine tree earlier in the week, and there was sap all over his BMW. Since it was a snow day, he had the day off from work, and had time to bring his car in. He brought it in, and was THRILLED that I was actually there. He payed me double JUST for being open.
What it all comes down to is one simple statement one of my mentors taught me. If you want to have a successful business, you have to treat it as a business and not a hobby anymore. It`s good advice for anyone who is making the move from weekender to full time business owner.

One final thought on Sub Contracting: Find people you can trust. Don`t use people just because they hand you their card stating they have a tinting business. Both my window tinter and my electronics install guy have their own well established mobile businesses in their respected field. They have both been in the business since before I even knew what car wax was. Remember, even if they are not your employees, it`s your name going on their work.

[Dirt-B-Gone]

I know this is an old thread, but it has a lot of good info.