Once again mulling over putting in a detail shop.

[bigleo48]

All,

As some of you might know, I have a carwash in a big box location in Ontario Canada (see www.wallywash.ca). The wash is comprised of a Touchless auto, 8 ss bays, 2 pet washes, vacs, atm, vending,etc. It does quite well.

So I have a spot next to my ss bays that is already approved for a detail shop. So once again I'm thinking of putting one up, but I need to get a better pictures of the work required and financials. We did do some detailing one summer to test the waters and I would consider it a success. In not too much time and advertising, it started getting busy. But then again, everything on this property does well. I strongly believe the need is there as we have an aging population in the area and the IBA does the outside, but many cannot or will not do their inside.

First, my location is in a town of about 30k pop. There are a couple of small detail shops, but all never succeed as stand alone businesses. I have a great location next to Wal-Mart super-center, home depot, etc in a very busy big box development that is almost full. It draws on a 40 mile radius.

So I think I'd put up a steel building (30'x40') and setup equip for less than $80K and start out with some basic express services. Have some kind of deal where for $60, we vac, wipe, windows and prep and run the car thru the auto. Hand wax, ozone, extractor shampoo, steam clean, polish lenses as extras.

So what's stopping me? Well, dealing with more staff for starters and wondering if the additional revenue is worth the hassle. So its gotta be well worth it.

Has anyone used their other carwash revenues to calculate detailing revenues? So for round number sake, if a wash did $500k/yr gross, how much could one expect from a detailing business. $150k/yr once established?

Thanks in advance...Big

 

[Waxman]

If you base the detail shop gross on $500k carwash gross, then your $150k seems attainable to me.

It's alot of management, running a detail shop. Maintaining consistent quality is challenging if you aren't on-site during 75-90% of regular business hours. The carwash alone pulls me away from my detail shop enough to make it a challenge at times. Customers for detailing demand high quality workmanship; not just a quickie service, but a thorough, careful detailing and cleaning of the vehicle. They want to be pampered and catered to.

I think you should focus more on a job that includes a polish/wax and a complete interior cleaning as your signature service (priced at $150-200), rather than a $60 carwash, vac and windows (which I get $40 for, btw).

If I were building a new shop in a big box 'mall' of sorts, I'd buy a used Broadway polisher (about $14k on carwashconsignent.com) and polish cars with it. You seem to be into advanced machinery and a polish machine could make you alot of money. You would pay for the polish machine very quickly if your location is as good as you say. http://carwashconsignment.com/wiki/CWC/Broadway

If I were you, I would include a decent 'working manager's' salary in your financials and put cameras in the detail shop, which you would no doubt do anyway. Biggest expenses with a detail shop are payroll and its associated costs, chems and utilities. The tools are; air compressor, air d/a, scrubber, rotary buffer, extractor, steamer, tornadors, typhoon guns, wet vacs, janitors carts, tire shine dispenser tank.

What having a detail shop does is make your site more complete. It goes hand in hand with your other service offerings, more than a fast lube or even laundry mat. It will make your site really great, as long as you can keep the customers happy.

 

[rph9168]

It should be noted that Waxman went from having a successful detail business to adding a car wash. You would be adding a detail shop to a successful car wash. It is a much different animal. As has been pointed out that unless you are willing to supervise this additional business yourself or add a decent wage into your plans for a quality manager you may be underestimating the task. I would avoid the Broadway polisher approach but that is my personal opinion that others may disagree with.

 

[mjc3333]

Having both car washes and a detail shop, the car wash makes more money and is much less problematic when it comes to customers wants and needs and labor issues. If I had to do it over again I would not start a detail business in my area.

With that said, yes, in your area you may very well be able to make a go at detailing.

Waxman is correct, you want to zero in on "complete details" for $150-$200. Ultimately, this is where you will make the most money with the least labor (# of employees). However, it is also the most demanding.

If you tried to do the "small" stuff, quick interiors, quick hand waxes, you really need a high volume site to pay for the labor / management(more employees). If you had an express exterior that was pumping out 600 + cars a day, you would have the customer base for these "little" extras at your site. Most SS customers will not use the detailing service, again your site may be different. The IBA can only wash so many cars a day with one bay, maybe a max of 175 + on a good day. This would be where you would get the most "quick" details from.

Just remember one thing, if the detail shop employees are not detailing, you are losing money. It is exactly like a factory.

 

[jfmoran]

"So what's stopping me? Well, dealing with more staff for starters and wondering if the additional revenue is worth the hassle. So its gotta be well worth it."


First you gotta answer this question: What does well worth it mean to you?

Detailing is very labor intensive and very management intensive, think "Adult Babysitter."

All of your the profit centers you currently have do not require intensive labor and/or intensive labor management. My advice would be to try and add additional non-labor profit-centers or build the building you're talking about and lease it out to a detail business on a performance based lease. Keep the lease term short and have standards of business performance incorporated in the lease. Let someone else test the waters while you collect the rent check and evaluate the validity of the business. You could always take it back at the end of the lease term or terminate the lease if the tenant does not meet your standards.

 

[Waxman]

While it may seem easier to lease a space to a detailer or detail shop, I'd avoid that mainly because you have less control this way.

You already have the land and the carwash. What is wrong with adding more space? If detailing doesn't work out, you have a nice sized space for other ideas; laundry, tanning, c -store, fast food, etc.

A decent working manager who receives a performance based incentive could do really well for you. You would handle personnel, ordering, marketing and deposits/reconciling cash.

It is a service business that is payroll-heavy, yes, but it's not super complicated. It's about professionalism, standards and value.

 

[bigleo48]

Some very good advice guys...thanks!

I'm sure everyone can sense my reluctance. Its my way of being diligent.

Big