Cost vs. Profit

3

325iSBimmer

New member
I've been detailing cars for some cash on the side for about a year now. I'm now in the process of registering a business name and getting a Government grant becuase Im still a sutdent and Here in Ontario it is offered to us.



My question is what do you figure it costs (just supplies such as pads, wax, polish, glass celaner, dash protectant etc... not rent and equipment costs being factored in) to do your average Honda Civic $150 Full detail job.



Since my detailing service was not a functioning registered business I didnt really keep track. I have a rough Idea as to what it costs me but I was just wondering what you other proffesionals that have been at it longer than I have come up with.



Thanks Guys



Andre
 
You'd have to take your expenditures over a year and divide them into your gross sales to know. Just a month won't work because some months you need very little and others you need to stock up.



I've never really costed it out but you actually don't use much product per vehicle.



Take Meguiars #16 for example. I pay $11 a can at my distributor and can get around 60 wax jobs from one can. That is 18 cents per vehicle.
 
yeah, I see what ur saying. I just dont have those figures in order to figure it out. But Im guessing at around $5 worth of product to make about $150. Its more the equipment and time that makes the job worth what it is.
 
Scott, I'm kinda surprised you never did a single vehicle estimate...but if the yearly accounting works...well, obviously it does.



Part of the equation besides the actual wash, polish, LSP, would be the partial costs of other semi-consumables, i.e., wash mitts, polishing pads, towels. Gotta figure out if a polishing pad lasts for say, 10 cars, allocate 10% of the pad cost per car.
 
You guys are missing a lot of the expenses involved. You have to include the depreciation of the vehicle on iste, the equipment, and i mean all of it down to the extension cords. You need to include gas to get there, the cost of the marketing materials that brought the customer to you, etc... It is really a good bet to take a quarterly breakdown of all your expenses vs. income. Then take that number and average it out per vehicle size and type of job. It is a very complex equation, but it can be done (thats what a good CPA is for)
 
tpgsr said:
You guys are missing a lot of the expenses involved. You have to include the depreciation of the vehicle on iste, the equipment...
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No offense, but the thread starter specifically stated he was EXCLUDING those things...he was just asking about the supplies used.
 
:hide: :wall :sign



oops maybe i should read better, but anyhow those are pretty important to know for a cost vs. revenue curve
 
tpgsr said:
You guys are missing a lot of the expenses involved. You have to include the depreciation of the vehicle on iste, the equipment, and i mean all of it down to the extension cords. You need to include gas to get there, the cost of the marketing materials that brought the customer to you, etc... It is really a good bet to take a quarterly breakdown of all your expenses vs. income. Then take that number and average it out per vehicle size and type of job. It is a very complex equation, but it can be done (thats what a good CPA is for)
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Fully agreed:up



There needs to be alot factored in to that equation including even the depretiation time of the tools your using. But I just wanted to get a quick idea of what it costs in just supplies.



Once my business has been in full cycle for a few months than I will be doin that very detailed analysis so to know what the Business is really bringing in.



you did make a good point. the marketing items are sometimes forgotten that it was expense involved and can be broken do into the ACTUALL cost to do each vehicle (rent, equipment depreciation, gas, materials, supplies)
 
^^^ speaking of which.



What kind of coverage is needed/required/best to have



Im assuming damages caused by you to their vehicle is a nop brainer. But what about if you need to drive/move their vehicle



Im assuming also so sort of liability insurance incase someone comes into the shop slips and falls on a wet floor or something.



also insurance to cover the equipment and shop from being broken into/stolen/ catch fire.



is there one nice bundle that u can get that covers all of these aspects or do they have to be specifically asked for?
 
I pay $300 a year for $1000000 liability insurance but I'm mobile and I also pay $1800 a year for business insurance on my truck with three drivers.



I personally think that since insurance companies are making money off of you then it's best to have the least amount of insurance possible and if something happens then to pay out of pocket.



If it's way to big to pay out of pocket, dissolve the company and start over. Never had to do anything like that but I'm small and I don't think anyone is going to come after money that isn't there.
 
I add in my product costs with my labor rate I try to earn. Full detail is $80 and I add $15 to help pay chemicals, equipment rather than take all of that from my hourly rate. My numbers probably aren't set right. As stated above there are many other costs involved.
 
325iSBimmer-you really need to sit down with a few insurance agents and see what kind of coverage they recommend. Definitely shop around.
 
joburnet said:
I personally think that since insurance companies are making money off of you then it's best to have the least amount of insurance possible and if something happens then to pay out of pocket.



If it's way to big to pay out of pocket, dissolve the company and start over. Never had to do anything like that but I'm small and I don't think anyone is going to come after money that isn't there.
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I surely hope that you were not advising someone to under-insure themselves and in the case of a major screw up just close up shop and leave the customer high and dry. People wonder why the detailing industry has such a bad rap.



Terrible, terrible advice. :nono
 
325iSBimmer said:
My question is what do you figure it costs (just supplies such as pads, wax, polish, glass celaner, dash protectant etc... not rent and equipment costs being factored in) to do your average Honda Civic $150 Full detail job.
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Andre,



You could figure about 10% of the total price of $150 for your cost of supplies. That would be about $15 for all of the cleaners, polishes, waxes and protectants necessary to detail an average Honda Civic.
 
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