Wholesale rate

March 31, 2005

I have got two dealerships interested in sending details to me, but of course don't want to pay much. So I was just wondering how much you discount wholesale work and if they want the same quality detail or less.

Thanks

carwasher · March 31, 2005

Making money doing dealer work is based on volume. The theory is that you can make your money by charging less, but doing more cars. It can work, but your pricing is important and there needs to be an understanding that the dealer needs to send you lots of work. If you offer the discount and they only send you a few cars a week than there is no benefit.

How to set pricing:

1. Do a cost analysis. Figure out exactly how much it costs you to do a detail. One way to do this is add all your expenses, including your base salary, for a period of time. Shoould be a minimum of 6 months. Divide this number by the number of vehicles you detailed during this time. This will get you the cost of detailing a vehicle.

You cannot do cost analysis by thinking about one vehicle. It is easy to say that it took 5 hours @ $10 an hour for labor and chemicals cost ten bucks so the detail cost $60. You need to factor everthing in like the cost of doing no cars on a snowy day, insurance, utilities,advertisement, etc.

This gives you a good base so you know how much it actually costs you to do a vehicle.

2. Get a idea how many cars the dealer is going to give you.

3. Time to walk the fine line. Add enough profit to your cost to make a living. If the dealer doesnt like the price - DONT DO THEIR WORK.

Just got off the phone with my main competitor. He did dealer cars for $110 each and he did a ton of them. He bought a 3 car hauler to pick them up. He is broke and going out of business today. His problem is that he was too cheap and even with the volume he couldnt make it.

I only take $20 off our retail price. They get the same great job as a retail customer. One dealer gives me over 20 cars a week and doesnt mind paying because his cars look good and they are done on time. If you can back up your work then you are worth more. Dont get in a price war with other shops. That just hurts everyone.

This is simplified a little but I hope it helps

tint bandit · April 4, 2005

I do the same about 20.00 0ff retail..My dealers understand that xtra dirty has a 25.00 add on thou for carpet dyeing and xtra blackout paint..also they drop off and we work them in with the retail...never turn down retail for this is great advertising and word of mouth is cheap!PS all the detailing products are going up due to gas prices so you must compensate for this :thumb