Just found a shop! Please help me come up with a deal he can't refuse!

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PerfectFinish1

New member
Hmm I think I just came into a bit of good luck. I work for a credit consulting company, and was working late today. A new client came in, and he owns a small used car dealership on a major street about 10 minutes from my house. It's not the richest area, but it is in what would be considered the "used car mile" of dealerships.



I was talking to him a bit about how I occasionally go to auctions and resell cars, and about his lot. He has a decent sized lot (Didn't ask him the numbers but I would assume about 45 cars). I also mentioned that I was looking for a shop in the area, and he said there were some by him but they'd all be really expensive.



Here's the thing... he kind of mentioned that he got his rent down to only $400 a month for his entire lot... and that it has a 3-bay garage. Now I know he can't be using all of his bays... and I'm sure he'd let us rent out one or two for minimal cost. (Even if it ends up being $200 for 2 bays a month, that's still a steal!)



So... please help me come up with a way to approach him about this idea, I just turned 18 and am new at this whole renting property idea. Maybe I should offer to do detailing work for him in exchange for the garage space? I would need to make it clear, though, that every single car would not be possible to do a FULL detailing job on. I have his cell phone number and plan on calling him next week once I figure out exactly what I have to work with... and what I'm asking for in return.



Joe
 
Joe



What you can do is Charge him to detail his cars. Then offer to wash a set amount of cars per week in exchange for your rent.



Lot cars don't get to dirty.
 
Be careful.



He's not paying $400/month rent on his entire lot.



If it sounds too good to be true....it is.



Sorry to be negative but I see trouble brewing so just be careful.
 
I think he actually is. He was talking about how hard it is in the auto business, and said that he was really lucky to get a lot for $400 a month. He said his rent was originally $1200, and he kept telling the landlord that he was considering moving, and they kept dropping the price lol. Maybe it's smaller than I'm thinking, but I think the cost is about right. I'm going to go drive by it now just to see
 
joburnet said:
Be careful.



He's not paying $400/month rent on his entire lot.



If it sounds too good to be true....it is.



Sorry to be negative but I see trouble brewing so just be careful.
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Listen to this man. :o



Unless he's renting a parking space in NYC, I think somebody's spreading it on thick.
 
You really, really don't want to get involved detailing cars for tote the note lots. I cannot stress this enough. The cars are trashed and they want you to do them cheap. And I mean cheap. Going rate around here is $50-60 per vehicle.
 
Yes and no.

I work at a used lot of 20-40 cars. I charge for what it takes to return the vehicle to next to new. My boss likes having the cleanest cars around.



It is nothing for me to charge the company $100 to $200 to bring back the vehicle next to new. These are mostly from dealer auctions and from other dealers. They have already been cleaned but are not up to our standards.



My point is that some smaller dealers are more willing to pay, to get an edge.



PerfectFinish1 ask him if he wants the cleanest cars around and ask if he'll pay for it. It's common fact that he will make back two to three times the investment back.
 
Cool, thanks for the posts guys, keep them comming. Maybe it would be easier for me to just pay rent since it should be really cheap. Once he sees the quality of work I do on others cars, maybe he will make ME an offer to do work for him.



The thing is... if it means getting steady business while I try to grow a larger customer base through advertising and car shows... sadly, $60 a detail wouldn't be bad... that's over 300 a week, and for a poor high schooler it's not bad lol. Especially if you figure one lot car every weekday, and one full-paying customer car over the weekend.
 
salty said:


It is nothing for me to charge the company $100 to $200 to bring back the vehicle next to new.
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You don't have the illegal immigration problem we do. I don't want that market anyway, the auction cars are absolutely trashed.
 
I definatley know what you mean! i've detailed 4-5 auction cars so far... in fact, one of my marketing plans was to advertise at the local auto auction. I figure that when my name gets out that I can make a horrible condition car look like it belongs in a showroom, the amount of business would be very good. Not even that, as much as if these guys see what I do on the auction cars, they would trust me with their $50-70k cars that they show up to the auction driving.
 
PerfectFinish1 said:
Not even that, as much as if these guys see what I do on the auction cars, they would trust me with their $50-70k cars that they show up to the auction driving.
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What will happen is they will want to pay you the same amount and they will be super picky about their cars.



I'm not trying to discourage you, but I just want to give you a heads up on auction cars and those who sell them. You should know what you are getting into. If you are fine with those arrangements, then go for it.
 
While I am not nearly as experienced as Scottwax or others here, I did spend a summer as an assistant to a "detailer" at a lot exactly like you are describing. A low-end used car lot. The whole summer was auction cars, and they were horrible.



It was less like detailing and more like cleaning toilets, as you've probably experienced after doing 4-5.



AND, just like Scottwax says, the owner of the lot was super-picky about his crap cars.



AND, he wanted to pay $50-$60 for 5 hours of work on his crap cars.



Doing that kind of work for that kind of money everyday is not what I would want to be doing. Thankfully I was just helping out and not the actual "Detailer" at this lot, I got to leave after the summer was over.



Now, it's very possible that the owner of the lot that you are getting involved with is different and will expect to pay you what the job is worth and have realistic expectations, if that is the case, great.



Good luck with what every you decide.



~Oh and one more thing about the $60 adding up to $300 at the end of the week. As I have learned on these boards and with my super-small detailing business (weekend stuff) the lower price will attract a lower end customer. A higher price will give a perception of higher quality, and will attract higher quality cars, in better condition.



You could do 5 crap cars at 5 hours each at $60 and come out with $300.



OR



Do 3 cars in decent condition at 3-4 hours each at $100 and still come out with $300 and a lot less headache AND more satisfaction in your work.



If the $60 jobs are all that are available, though, I suppose it is better than nothing. Just some food for thought.



Good luck!



:xyxthumbs
 
Thanks again for the posts guys!



Scottwax - I know entirely what you mean about auction cars... I've purchased 5 lol. I attend a public car auction regularly, and know all about the horrible condition. This auction is big enough that I would be able to make a killing once my name gets out... it's just a matter of if people will be willing to pay what I'm looking for. And if they are, I'd love to detail their Benz, Lexuses, etc for the same cost... though I'm sure it would be significantly lower than the price to detail an auction car. At the same time, the auction house has it's regulars every week, and if I can over time get to be known as the detailing specialist, I don't think trying to find business would be a problem. All about what you're looking to get into I guess.



Bob S. - Now I see what it would be like to actually work off the rent money, haha. I guess I'm getting a bit ahead of myself since I did not even make the guy an offer yet. However, now I'm positive I should just make him a cash offer for the rent, and eventually he might want me to start doing work instead... and if so negotiate a deal that will be worth my time.
 
By the way, I am 19, so we are nearly the same age and I believe that I can relate to the excitement and passion that you seem to have for what you do.



I have learned a lot from these boards, reading, and some real world experience with some fast growing small businesses (nothing to do with detailing, but a business is a business). Right now I am in college working on a BS in Business Administration with a major in Finance and a minor in Entrepreneurship.



It is definitely a dream to own a shop or series of shops, but I understand it will be a lot of work and a bit of luck.



I didn't meen to ramble on, just wanted to let you know that we are similar in age.



Anywho, you seem very far ahead of most folks are age if you are already flipping cars for $$$. Like I said before, good luck .



(Search through some of the older threads about starting a detailing bus., there is some good info buried in the old discussions)
 
Just found a shop! Please help me come up with a deal he can't refuse!



Call Vinny Truoccolo 1-800-made-man ;)
 
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