Dealership Account Woes

Tex Star Detail

Tex Star Detail

Formerly TexasTB
I think I'm posting in the right section. It's been a while since I've sat and read through the forum, actually since it was still named Detail City. A bit ago.

Anyways, I want to touch on the subject of Dealership Accounts, giving my insight, good and bad. I guess I am writing this with a bad taste in my mouth, but want to give the ups and downs to those looking to start a business, or ones that are running one who want to expand into dealerships.

I will give a little run down on my past 5 years, contracted by a dealership. Back when I started my business in 06, I struggled at the beginning. I did a lot of testing, researching, product buying and testing, and overall getting better. I started charging a little more, getting better, and attracting "less dirty" vehicles, for lack of better words. In short, I got pretty good at "Real" detailing and truly enjoyed it.

Fast forward to 2008, I get a call from a Dodge Dealership, used car portion. I pick up the work and start immediately. It took a few weeks to get used to "not detailing them the right way". Don't get me wrong, I did a damn good job on them, but it wasn't my style. I worked through it and the work started to pick up. Hired a couple guys (forgot to mention that I am mobile), workers came and went, salesmen came and went, managers came and went, but I stayed...just getting busier. Fast forward to 2011 and I had to cut my prices a little, which I was ok with since the quantity was there. Roughly 85-125 a month.

There were other people that came on the lot to do interior repairs/carpet dying and another who did paint touch up. The interior guy got canned early 2011 due to not doing the work and still charging, so the dealership went through several people before I stopped seeing any interior guy come on the lot. He decided to to try detailing and picked up a dealer down the road. Rumor was he was going to push me out of detailing where I was at...wasn't too worried. The paint guy always talked about him to me...blah blah blah.

Fast forward again to 2012, the paint guy starts detailing now, but we talk and he respects where I'm at and vise versa. I hire a guy, train him, and I can actually leave him alone for the day. Anyways, I start dying carpets, no charge.....Doing headlight restorations, I used to charge 30 a car, but started doing them free. Dropped my price 5 more bucks. I even had keys to the place, came in before anyone was there to get a head start on the day and normally finish the day at dark when I couldn't see anymore.

The paint guy approached my worker and offered more $. We know where this goes. Next week, the used car manager says he is going to start using the "paint" guy for detail work. Bam...after 5 years I'm out because the guy under cut my price a few bucks. No notice.

So after being there 5 years, 5-6 days a week, on location, 12-15 hours a day during the summer and even in freezing temps, I got the shaft.

Enough of that, I see the thread turned into a rant.:redface:
At dealerships, no matter how "in" you are and know the place in and out. They don't care. They want the cheapest price and the best quality. I'm not saying I won't do dealerships anymore, I just won't put all my eggs in one basket again. I gave up vacations, family time, weekends and a lot of burned bridges. Now that I did all that, I am looking for work, back at square one trying to reestablish my client list.

If anyone is thinking about doing dealerships, you will definitely have to cut your price over retail work, work long hours depending on the dealership size, probably work whatever day they are open on the weekends, and give up some free time.
The quantity was always there, and if you play your cards right, you can make a lot of money. Just don't dedicate your FULL TIME to one dealership. If I go back to dealers, I will take on several smaller ones so I have something to fall back on.

If anyone has anything else to add to this long-winded thread about dealerships contracts, post away. Please only those who have DONE or DO dealership work give advice.

:autopia:
 
Having worked for a shop that was sub contracted for "special" Mercedes clients I can understand. We were delivered the picky multiple top of the line buyer units after body work. It worked out good on both ends. The client was always happy and kept extra work flow coming. Dealership got great praise.

During the buyout there was some bad blood between new and previous owner of the company I worked for. Previous owner called and cut ties. Once I was removed from the company I thought this would be an easy account to get back. The contact new I was doing the work. While this was not about cost it just shows how a personal relationship can kill an account. I just did the work wasn't involved in the bad blood.

It was a good account. Almost always black but that was fine.
 
Tex Star I wondered what had happened to you...long time no see.
What you have offered is a great lesson to aspiring detailers that have not been out in the cold cruel world of car dealers. They will indeed cut off their nose for the sake of a few bucks. Sorry that it happened to you but your candor may help others that are considering such a move.
 
I will thank you for taking the time to vent that on here

I'm a small business owner, currently mobile / part time, very shortly making the jump to full time with a shop & offering mobile service.

I had my own suspicions regarding dealership work but your story really drives the point home. I wont stay away from all dealer work but no putting my eggs in one basket like you said.

sorry to hear about your story but thanks for sharing it so hopefully other like minded people dont end up in the same position.
 
RTexasF said:
Tex Star I wondered what had happened to you...long time no see.
What you have offered is a great lesson to aspiring detailers that have not been out in the cold cruel world of car dealers. They will indeed cut off their nose for the sake of a few bucks. Sorry that it happened to you but your candor may help others that are considering such a move.
Click to expand...


Yessir, it has been a while. The reason for that was the dealership kept me busy. I actually got rid of most of my chemical supply as I never used it anymore.

I just want to be up front a say that I am not asking for sympathy from anyone. I feel it was part my fault for being back at the bottom looking for work as I put all my eggs in one basket. I felt that I was "in" and I wold be fine after all those years with them...guess I got comfortable.

It was a lesson learned and it will never happen again. Like I said before, I would still do dealerships, just not devote several days a week to one. Maybe have several small ones so if I get dropped at one, I have others to fall back on. I have a lot to relearn about real detailing..haha. Sad huh. I haven't ran my polisher in over a year.....not even. What new polishes there are these days.
Guess I better start asking for samples. Hahaha. I currently have my me arena SIP, 85RD, Meg's polishes, and that's about it. I've been using low end chemicals for dealers to keep costs down. Gotta get back on the ball and out of this rut.:redface:
 
Gurge said:
I will thank you for taking the time to vent that on here

I'm a small business owner, currently mobile / part time, very shortly making the jump to full time with a shop & offering mobile service.

I had my own suspicions regarding dealership work but your story really drives the point home. I wont stay away from all dealer work but no putting my eggs in one basket like you said.

sorry to hear about your story but thanks for sharing it so hopefully other like minded people dont end up in the same position.
Click to expand...


I wouldn't say don't do dealership work, but work with the intention that you can be let go with no warning at anytime....so don't bank on a full time gig. I was lucky to get the time in that I did, it just wore me down and I started to hate what I was doing. Hated cleaning my own cars....slacked off a bit. Just tread lightly
 
I stopped doing any dealer work except when they have one that needs to be fixed or the client will not take delivery. It happens more than you would think, then they pay double my reg. price. That's what I charge for correcting the work of other's
Good luck to you!
 
Thanks. Also to add, most dealerships that I have contacted/worked for had a 30 day pay cycle. So a check once a month is what most will do. I have had a few that did weekly, but it was rare.
 
Tex Star Detail said:
Thanks. Also to add, most dealerships that I have contacted/worked for had a 30 day pay cycle. So a check once a month is what most will do. I have had a few that did weekly, but it was rare.
Click to expand...

Good point. Middle
Of the months and end is typical. Regardless of when work is finished.
Plan accordingly.
 
Tex Star Detail said:
I wouldn't say don't do dealership work, but work with the intention that you can be let go with no warning at anytime....so don't bank on a full time gig. I was lucky to get the time in that I did, it just wore me down and I started to hate what I was doing. Hated cleaning my own cars....slacked off a bit. Just tread lightly
Click to expand...
Maybe this is really a blessing in deguise and a time for you to reflect on what kind of detailing work will make you happy and not be so tiring . No job is worth being unhappy IMO!
 
I know exactly what you mean. I got so aggravated trying to do business and maintain relationships with car dealers that I said screw it all together. Sadly where I live, the market for true high end detailing is non existent, and relying on dealerships rarely pays off unless you can knock out several cars a day, everyday. There will always be someone out there looking to knock you out of a job, and the dealers like that because it keeps costs low. I finally had enough of it after working myself to death for next to nothing for years and went back to doing body work. I don't miss it..
 
In today's business world the only thing that matters is the bottom line. You were averaging 100 cars a month at the dealer that canned you and the competition (who got your price from the employee he hired away) under cut you by $5 a car (savings to dealership $500 a month, $6000 a year). That is the reality and the reason you need to diversify in today's market. No business can survive with just one key customer because you are always $5 away from losing the account. The cycle reaches a breaking point when after so many cuts in price by new service providers stealing the contract the last one cannot afford to do the job for the price bid. Then at that point you will have an opportunity to get the work back. Stay cordial maintain contact it may come back to you. Remember this your customer did nothing you don't do every day and that is price shop. You buy your supplies from the guy with the lowest price, if you buy on-line you check for the lowest price. That is the way it is.
 
Tex Star Detail said:
I think I'm posting in the right section. It's been a while since I've sat and read through the forum, actually since it was still named Detail City. A bit ago.

Anyways, I want to touch on the subject of Dealership Accounts, giving my insight, good and bad. I guess I am writing this with a bad taste in my mouth, but want to give the ups and downs to those looking to start a business, or ones that are running one who want to expand into dealerships.

I will give a little run down on my past 5 years, contracted by a dealership. Back when I started my business in 06, I struggled at the beginning. I did a lot of testing, researching, product buying and testing, and overall getting better. I started charging a little more, getting better, and attracting "less dirty" vehicles, for lack of better words. In short, I got pretty good at "Real" detailing and truly enjoyed it.

Fast forward to 2008, I get a call from a Dodge Dealership, used car portion. I pick up the work and start immediately. It took a few weeks to get used to "not detailing them the right way". Don't get me wrong, I did a damn good job on them, but it wasn't my style. I worked through it and the work started to pick up. Hired a couple guys (forgot to mention that I am mobile), workers came and went, salesmen came and went, managers came and went, but I stayed...just getting busier. Fast forward to 2011 and I had to cut my prices a little, which I was ok with since the quantity was there. Roughly 85-125 a month.

There were other people that came on the lot to do interior repairs/carpet dying and another who did paint touch up. The interior guy got canned early 2011 due to not doing the work and still charging, so the dealership went through several people before I stopped seeing any interior guy come on the lot. He decided to to try detailing and picked up a dealer down the road. Rumor was he was going to push me out of detailing where I was at...wasn't too worried. The paint guy always talked about him to me...blah blah blah.

Fast forward again to 2012, the paint guy starts detailing now, but we talk and he respects where I'm at and vise versa. I hire a guy, train him, and I can actually leave him alone for the day. Anyways, I start dying carpets, no charge.....Doing headlight restorations, I used to charge 30 a car, but started doing them free. Dropped my price 5 more bucks. I even had keys to the place, came in before anyone was there to get a head start on the day and normally finish the day at dark when I couldn't see anymore.

The paint guy approached my worker and offered more $. We know where this goes. Next week, the used car manager says he is going to start using the "paint" guy for detail work. Bam...after 5 years I'm out because the guy under cut my price a few bucks. No notice.

So after being there 5 years, 5-6 days a week, on location, 12-15 hours a day during the summer and even in freezing temps, I got the shaft.

Enough of that, I see the thread turned into a rant.:redface:
At dealerships, no matter how "in" you are and know the place in and out. They don't care. They want the cheapest price and the best quality. I'm not saying I won't do dealerships anymore, I just won't put all my eggs in one basket again. I gave up vacations, family time, weekends and a lot of burned bridges. Now that I did all that, I am looking for work, back at square one trying to reestablish my client list.

If anyone is thinking about doing dealerships, you will definitely have to cut your price over retail work, work long hours depending on the dealership size, probably work whatever day they are open on the weekends, and give up some free time.
The quantity was always there, and if you play your cards right, you can make a lot of money. Just don't dedicate your FULL TIME to one dealership. If I go back to dealers, I will take on several smaller ones so I have something to fall back on.

If anyone has anything else to add to this long-winded thread about dealerships contracts, post away. Please only those who have DONE or DO dealership work give advice.

:autopia:
Click to expand...

Sadly, most of your gripes are fairly common practice when dealing with dealerships and wholesale accounts. One of the biggest problems are the detailers themselves seemingly always being willing to "play the game" and cut each others throats for a dollar. True story: I once sat with a bunch of car dealers and one of the used car managers and his assistant got on the topic of detailers and how badly they treated them. To them it was a game, how cheap can we get the work done and how long can we make a guy last until he realizes he isn't going to make any money doing what they give him. They sat laughing about how they would make the detailer "take one for the team" on the really dirty units and then pay them peanuts on everything else. Then on top of that run the guys 60-90 days before paying them. It really sucks that even if you absolutely kill yourself for these guys they will burn you over a dollar but that's the way it is and it's never going to change.
 
Thats true. I won't say that the dealer was bad. I mean, the previous managers were cool as hell, and the GM over multiple lots (Big names, Ford, Dodge) always requested me to do detail work on more expensive cars. I guess they didn't want the new car side porters touching some, ie Vipers, when they came in. They would buy me lunch all the time, shoot the breeze, drink a few beers, and so on. When the last manager passed away Dec. or 2011, it went south from there. To the point where I had to force myself to stay. The new manager sucked and only lasted 6 months. Complete douche. Then the other new manager was "OK", until he let me go...

But I agree, common practice at dealerships. Screw everyone but themselves, and only looking out for the bottom dollar.
 
working for dealers sucks but its a neccessary thing in the winter time here i have 4 used car lots that i do detailing work for but i schedule the days and hours me and employees are there
 
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