Hurricane Katrina/Gas Prices affecting business?

C. Charles Hahn

C. Charles Hahn

CCH Auto Appearance, LLC
I'm just wondering if any of the full/part-time pros have noticed any difference in people making/cancelling appointments for detailing since the hurricane hit. With the higher gas prices, I have had a couple people call me to say that they couldn't afford to have their cars detailed right now; they'd rather have gas in the tank than wax on the paint. On the other hand, I've had a few other calls from people with SUVs who are selling them since they can't afford the gas bills, and want me to prep them for sale.



So, I guess for me it has been a good and bad thing. It's bad because I've lost a few customers from it, but at the same time it's good since I can charge more and get higher profits from detailing SUVs and large vehicles. Since I work weekends only, I'll take what I can get when it comes to that.



Anyone else noticing any trends as a result of this?
 
Take a look at our gas prices in Belgium : 1.5 € for 1 litre of 98oct... That's about 1.8 Dollar for a litre of fuel...
 
Yeah, but we're not in Belgium and our budgets are set up for gas in the $2 arena. Gas at $3+ is a budget buster and something has to give. So far I have been unaffected but I have noticed a few customers pulling out the "cars" to use now in place of the SUV's. Looks like I'll be getting some cars ready for the winter and that works for me.:)
 
Wally said:
Take a look at our gas prices in Belgium : 1.5 € for 1 litre of 98oct... That's about 1.8 Dollar for a litre of fuel...
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OTOH, Belgium isn't even as large as Maryland (42/50 in size) with twice the population. You aren't forced to travel 150 - 300+ km (round trip) just to find work that will support a family. Then, you aren't forced to pay EU0.90 / liter for 87 octane. If you need premium (91 oct), it's more like .99 EU/l. You better not need 94 or higher, as that is available (in the mid-section of the country, at least) in very limited quanitities at about 2.10 eu/l. And all of this is with daily commutes that would take you from Mons to Liege (I know people who have to go even farther, with >600 KM daily round trip. For these people it used to be more practical to live where they had very low housing costs and pay for the transportation costs instead of moving. Now, they can't afford the transportation costs and really can't afford the housing to move closer to work...



I don't mean to come off too harsh, but there is so little in common between European and American economies (from how/where people work to the ways the governments finance themselves) that a direct comparison just isn't possible at all....



Put it this way, if you spent 1.5 EU/l today, and tomorrow you spent 2 EU/l (with no option of public transportation), you'd choke, wouldn't you?
 
I detail part time and i have not seen a direct effect on buisness. However, I think gas prices will begin to hurt consumer's pocket books pretty soon and more income is going to have to be budgeted for gas. Just like SpoiledMan said were not budgeted for $3 a gallon. But everyone is just going to have to suck it up and move on, no matter how much we complain about the price isn't going to go down. The only thing that is gonna bring down the price is a decrease in demand. So if u can use public transportation(to work/school), do it; you'll save some serious $$$$
 
I have had a few customers cancel, but detailing boats is booming. The only problem I have had is with customers boats located about 100 miles from my location. I now have to charge extra for fuel and only have lost one customer. The rest of my customers do not have a problem with the extra charge and have offer me storage for supplies so I do not have to bring my trailer with me and that saves on gas. If gas prices keep going up, I may have to raise my prices just a little. What are the rest of you professional detailers dealing with high gas prices?
 
Most of my business is reasonably close, so the price of gas is more of an irritation than a bottom line killer.
 
ive had a few of customers with tahoes, suberbans, hummers etc cancelling on there suv's due to not driving them currantly, also my gas rose .10 cents in 6 hours here in tn.
 
axnff said:
OTOH, Belgium isn't even as large as Maryland (42/50 in size) with twice the population. You aren't forced to travel 150 - 300+ km (round trip) just to find work that will support a family. Then, you aren't forced to pay EU0.90 / liter for 87 octane. If you need premium (91 oct), it's more like .99 EU/l. You better not need 94 or higher, as that is available (in the mid-section of the country, at least) in very limited quanitities at about 2.10 eu/l. And all of this is with daily commutes that would take you from Mons to Liege (I know people who have to go even farther, with >600 KM daily round trip. For these people it used to be more practical to live where they had very low housing costs and pay for the transportation costs instead of moving. Now, they can't afford the transportation costs and really can't afford the housing to move closer to work...



I don't mean to come off too harsh, but there is so little in common between European and American economies (from how/where people work to the ways the governments finance themselves) that a direct comparison just isn't possible at all....



Put it this way, if you spent 1.5 EU/l today, and tomorrow you spent 2 EU/l (with no option of public transportation), you'd choke, wouldn't you?
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Very well said! :clap:



My reaction to the rising gas prices was simple...I raised the prices of my detail packages.
 
1 Clean WS6 said:
My reaction to the rising gas prices was simple...I raised the prices of my detail packages.
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I have raised prices in my business as well. thats just good business if you plan on staying in business!
 
Intercooled said:
I have raised prices in my business as well. thats just good business if you plan on staying in business!
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Well, yes and no. If you're a mobile operation, you have to raise prices; but for folks who work out of shops/garages like I do, it would drive even more folks away (IMO). Based on what I've seen, people here are taking any "extra" money they have and sending it toward the Red Cross -- and most don't see detailing as a necessary expense, unfortunately.



All that means is that after this mess is over and gas prices (hopefully) go back down a bit, I'll have several VERY messy vehicles to work on. :scared:
 
I'm with Scott in that most all of my customers are within just a few minutes of home and scheduled so that I don't have to go very far from one to the next. It's costing me pennies more and not worth raising the prices just yet. I use an Integra to move me and my stuff around so it's pretty thrifty as far as gas goes.
 
Trucks to farmers has to raise there prices due to the cost of diesel so everything from detailing supplies to a loaf of bread will cost you more now. So you have to raise your prices too.

Worse thing is when people hear the word recession they don’t spend money they save it. I been self-employed for 18 years and I know the first thing to go or cut down on to save money is luxuries items like landscape maintenance, detailing, and vacations. The next thing you know is that you are looking for a job and it will happen all in about a week. So plan ahead grasshopper.
 
I've enough supplies to detail for about the next 2 years or so. I know what you mean about the prices of everything going up but at this point it just isn't necessary.
 
Actually, today, gas prices affected my business in a positive way. Detailed an Expidition so the owner can see it and get a car so he can lower his fuel costs. :)
 
Scottwax said:
Actually, today, gas prices affected my business in a positive way. Detailed an Expidition so the owner can see it and get a car so he can lower his fuel costs. :)
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I've spent the last two days, and also will be spending part of tomorrow detailing a Tahoe for a customer who is selling it. So far I have about 12 hours into the project, and thats JUST the interior, engine, and wheels/tires. The (black) paint comes tomorrow. This thing has seen some SERIOUS abuse.



I'm gonna make a mint-full for this!! :woohoo:
 
I've been feeling the pinch myself. Business has picked up, so I'm driving alot now, and therefore I'm burining alot of gas everyday (filling up just about every 48 hours). I also haul a trailer to add to the problem. The additional problem is also that I use the same vehicle for personal use and that will include taking my wife and picking her up from work 5 days a week.
 
People need to step it up. We are paying about $80 a month extra in fuel than from what we did a year ago.



$80= $2.66 dollars a day extra!!!!!! Heck cut back on coffee, have one less pop-tart in the moring!!



Business is good and $80 extra in fuel ($960 a year) really isn't that bad.
 
I've taken a different approach to the high gas prices.



I'm offering a free $10.00 gas card to my customers for any of my detail packages above $75.00.





People are reacting well thus far and consider this sort of a perk to having their car detailed.



Sure it's $10 off my profit, however, my business has not declined with the rising prices either. Plus, I have more people contacting me asking about my business.





In my book, the current "promotion" that I am offering, works great both ways. Especially on the customers end, were they are happy to have a clean vehicle and some gas in the tank. Happy Customers = repeat business and referrals.
 
Below Reality said:
I've taken a different approach to the high gas prices.



I'm offering a free $10.00 gas card to my customers for any of my detail packages above $75.00.





People are reacting well thus far and consider this sort of a perk to having their car detailed.



Sure it's $10 off my profit, however, my business has not declined with the rising prices either. Plus, I have more people contacting me asking about my business.





In my book, the current "promotion" that I am offering, works great both ways. Especially on the customers end, were they are happy to have a clean vehicle and some gas in the tank. Happy Customers = repeat business and referrals.
Click to expand...





That's a good idea.
 
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