Need help with business location.

E

Eastcoastdetail

New member
Can you guys help me decide on what location my business should be on?



Building 1 - rent is 800 a month, close to main road (its on a off street, 2 buildings away from a taco bell), its close to wal-mart (in fact, i could see the back part of wal-mart from the back of the shop), 1 mile from nearest dealership (hyundai), loc has 4 small dealerships, close to busy road, close to kohls, walgreens, cvs, etc. 1 bay garage out back, can fit 5 cars, 1100 SF, no waiting area (i have to build or have someone build me a little desk), has bathroom.



Building 2 - rent is 1500 month, directly located on main road, located across subway, 1/2 mile from subaru, 1/2 mile from chevy/ cadillac, close to a supermarket or grocery, close to the mall. 2 bay garage. Can fit 6 cars. has 500 SF office/waiting area/reception area/ with bathroom.



Now, the hard question, which one do i choose? Does the 700 dollars a month justify the shop being on the main road? Of course, i can pay both shops' rent for a year up front but i want to make sure i can make money too. What do you guys think?



Now,
 
What is your clientele ? Do most of your customers today find you because they "saw" your shop / mobile rig / you working in someone's driveway ? Or did they find you through some other means (Yellow Pages, internet, radio, flyers, etc.) ?



The answer will determine which route you should go with. Shop sizes are very similar, one has a customer area and one does not. You can make a pretty cheap customer area, say ~$2000 will get you pretty far. The fact that the first shop is close to a WalMart is nice too, people can walk and do their shopping while they wait for their car to be completed....



If it were my choice, and I didn't need space for a 6th car, I'd go for option #1.
 
My plan was to use the extra space for window tinting/ paint protection film. Even if i pay someone by commission, i'd still be making money. Prices range from 60 dollars to 170 for a full size suv. That means that even if the cut was 45 to 45 percent, 10 percent supplies or etc, i'd still be making money for a car or suv that i didn't even touch.



Im leaning towards option 2 because it is right on the main road. Good visibility. Its close to "dealership row." That means that if i work with them down the line, it wouldn't be a hassle getting cars in and out of my shop.
 
Be careful trying to pay someone by commission and trying to drum up window tint / paint protection film business. I've seen and heard of many detailers trying to do this, only to have it fail. Either you do it "in house" by hiring a real employee for that purpose, or you farm it out completely and someone else simply rents a bay from you and runs their own business out of it.



If you detail business caters a good portion to wholesale traffic (dealerships), then yes, option #2 might also make more sense to you. But I wouldn't take it on "hoping" to get some dealership work, I'd have the dealership work lined up beforehand.
 
I'm thinking the other way around. First check with the dealerships to see if they will give you enough business to keep you busy. if that is the case then you don't need the exposure, otherwise i think main street is worth the extra $$$...plus i think the waiting area is classy.
 
I'd try to make enough money from the dealer cars to pay all bills and profit from the retail customers. #2 hands down is the best solution! #1 does no good if people have to search. What about signage? Check with your city and see what you can get from that #2 location. What about putting on detail clinics? Sell supplies? Gift kits? I'd use that space to drive income from various angles, not just detailing- you did mention tinting (very profitable) and so is ws repair by the way.

I would be on that so fast--- I have to pay 3500 per month here for the same thing and that's a deal...owner was getting 4k per month!



Do your research. Maybe the city has a traffic count nearby- watch the flow. When is it heavier? What about a drop off package? Drop car off, you shuttle customer to work with a quality cup of coffee and paper? Pamper them so there is no where else they'd rather be!

Rob
 
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