Income Generator = Dealer Lot Washe$

[David Fermani]

Income Generator: Dealer Lot Washes



Yes, I know......$1-$3 to wash a car is totally crazy, but let’s look at the big picture. It literally is a cinch to wash these cars. Here's why: You don't have to clean wheels, they don't have to be dried (providing you use spot free/DI/RO water), they only have dust on them, AND there's a ton of cars to do continuously.

If you're already servicing dealerships, this is a great way to generate dependable additional income on a regular basis. Dealerships need to keep their cars (new and used) looking good and their porters are usually not equipped to handle this kind of work. 2-3 guys can easily wash 500 in a day, so that means up to $1500 of additional income for 1 day of work. Multiply that by 5 days and that's $7500/week. And that can also mean nearly $400,000 of income per year. Not too shabby just to wash a bunch of cars!



**Process of washing: Pre-spray loose dirt from vehicle >> Hand wash body >> Rinse (2 soapers / 1 rinser)





Now, try reviewing the cost associated with this expenditure and it’s even more appealing. (I’d be willing to bet that total expenses would be less than %50% on average:



*Labor 35% ~ $140K

*Water (usually free if you can tap into the dealer’s supply)

*Chemicals: 55 Gallon drums of car wash soap @ $300 per

*Tools: Power-washer/Trailer/Hose/Storage Tank - ~$5000

*Towels/Wash Mitts: ~$350

*Insurance





Alternative wash method: Waterless wash

Option 1 = Have large container (25-30 gallon) of solution & additional 25-30 container of dirt extraction water. Wipe entire vehicle down with large towel removing dirt >> 2 people dry vehicle

Option 2 = Same as Option 1, but rinse with spot free/DI/RO water. 2 people wash >> 1 person rinse





**Selling points of YOU doing the dealer washes:

*Better tools, processes and products will keep their cars looking better, longer

*You’ll be able to maintain & monitor existing cars that were detailed as well as identifying potential candidates for additional services

*Rinseless Eco Friendly Methods that can dramatically reduce ground wetness in freezing temps and chemical footprint. Safer lot for customers, employees & general public. Can be utilized in colder temps to avoid potential freezing/slipperiness.







Thoughts / Comments / Questions / Opinions are welcome.

 

[Jean-Claude]

Great post David. Though, don't forget the cost of the resin for DI. Depending on the mineral content, it could be substantial or marginal.



I have given thought to starting a business that specialized in lot washes. I can't motivate myself at the moment though. Come to GA and let's get one rolling!

 

[David Fermani]

Interesting video:

 

[rwright]

Thanks David. I was curious because as you know the small used car dealer just opened by my house. I would like to do a tank with rinseless or waterless because of the info you listed at the end. I know the new car dealers have a couple clean up people but it could work out to save them by contracting my service. I would have to do some research to see how many cars they have, how many in the clean up crew, how much water they use (if they even know), how much they spend in chemicals and equipment, and so on. I don't want to take away any jobs but my service could save them a lot of money and allow their clean up crew to focus on other tasks. The good thing is that I don't have to stick with just these 3 lots. Like you mentioned, they could provide 1 day of service and there are plenty of dealers within an hour of me. The cool thing is that we don't have water reclamation laws yet so I wouldn't have to deal with that, not that there would be much with rinseless or waterless.



I could order plenty of mitts, towels, and a couple drums of chemical and be set. I need to hammer out the math but I'm certain I could profit enough to hire a couple people. I've been thinking about this for a while, just need to take a step forward.

 

[Ron Ketcham]

No, No, No, No!

Let me repeat that, No, No, No, No!

Sounds good on paper, until there is a management change at a dealership, until there is a change in the weather pattern that continues for more than a week, until the city decides that there is a "run off" concern, etc, etc.

I could go on and on, about what we termed for years as the "mobile scratch" boys.

Not worth it if one is looking to build a true, long term, profitable business.

Sorry guys, No, No, No, No!

 

[C. Charles Hahn]

This is definitely a line of business worth exploring, and one that I'm considering if I go the route of having a shop and marketing coating installation and/or reconditioning to dealers. Offering lot washes is a good way to get a foot in the door and establish a relationship to open up additional lines of business, I would think. Not to mention a profit center that can fund expansion in other areas of the business if done right.

 

[RenuAuto]

David, I feel, as a profit center for real businesses, you have touched on a place that many people on this board won't recognize as a REAL profit center for their business. I'm at my shop doing the glamour work on the high end stuff, but guess what, once, every two weeks, I do a weekly wash on a dealer that I service for. It provides $60 for me, twice a week, and usually takes me under an hour to do each time.



That's about $500 a month in income that helps pay my shop rent, is easy to train, and is a foot in the door for other services... and this is for ONE dealership.



The income potential is huge for business trying to make it in this industry. I personally rinse with R.O. spotless water, and dry. I used to dry with microfibers, but I would have to use about five LARGE microfiber towels per 30 cars. I recently tried that silly "Absorber" towel that's available at every Wal-Mart/AutoZone in the world and that has sped me up even MORE. It take one SINGLE Absorber to do 30 cars easily, and sped my up immensely. I'll have to research this method shown on the video above because it seems like it's even faster than my current method. I know it goes against the paint correction, 30-hour-per-car methodology that this board has taught me over the past five year (that I respect immensely), but for a business that has to pay the bills, this is a real profit center.



I feel lucky to have people like yourself on this board to show this other side of the industry that often doesn't get portrayed.

 

[safetyman2010]

No, No, No, No!

Let me repeat that, No, No, No, No!

Sounds good on paper, until there is a management change at a dealership, until there is a change in the weather pattern that continues for more than a week, until the city decides that there is a "run off" concern, etc, etc.

I could go on and on, about what we termed for years as the "mobile scratch" boys.

Not worth it if one is looking to build a true, long term, profitable business.

Sorry guys, No, No, No, No!

Market here is saturated with guys doing this work for literally next to nothing. I've had a few dealers ask me if I would do it for them because the guys doing it now are garbage but the numbers just don't work due to the labour costs

 

[rwright]

The guy in the video said they use pure water, no chemicals. I wanted to add a rinseless or waterless to help "dissolve" the grime and lubricate the panels while drying. Do you think this is a waste?

 

[David Fermani]

I'll give an optimistic reply to this.....:whistle1:

Sounds good on paper, until there is a management change at a dealership

But that potential goes without saying if you do any kind of work with a dealer. Being successful is about building long term relationships. The higher up your relationships go, the more solid the foundation of your long term success. Also, the more ties/business lines you have with a dealer, the better. This is just another line of service that goes hand in hand with detailing.

until there is a change in the weather pattern that continues for more than a week

Expected and inevitable. Regardless, weather means dirty cars and that means dealers will want their cars cleaned.

until the city decides that there is a "run off" concern, etc, etc.

And that's where the Alternative Wash Methods can and will be incorporated. The ones that offer this will be ahead of the curve.

I could go on and on, about what we termed for years as the "mobile scratch" boys.

Please keep going. If you focus on producing quality (products/processes) instead of dry scrubbing cars down with a dirty broom you could change that?

Not worth it if one is looking to build a true, long term, profitable business.

Keep in mind what I said in my original post where this

If you're already servicing dealerships, this is a great way to generate dependable additional income on a regular basis.

meaning that this probably may not be the best way to start building a relationship with a dealer. It's something that can be added in addition to detailing. It also supports your passion to recondition and care for your work a well as their investments.

 

[C. Charles Hahn]

meaning that this probably may not be the best way to start building a relationship with a dealer.

OK.... why not? Or rather, what WOULD be the best way to start building a relationship with a dealer?

 

[rustytruck]

I would rather put hot pokers in my eyes than run around washing $1 cars. Best of luck to you.

 

[Ron Ketcham]

To do a "volume" lot, meaning 100 or more vehicles and make money, you have to do a vehicle in 3 to 5 minutes, that means low priced laborers, quick, down and dirty process, cheap chemicals, etc, no time to be careful.

All the Sales Manager wants to see if clean of dirt, etc, he doesn't inspect every vehicle.

However, when the Service Manager(who has to deal with the new or used car buyers complaints has his people's time and costs accellerate and affect his "profit center", or the sales people start to complain about what the potential customer has to say, that is the game changer.

 

[David Fermani]

OK.... why not? Or rather, what WOULD be the best way to start building a relationship with a dealer?

Everything revolves around your base service and that's detailing used cars. From there you can pursue new car preps, body shop clean ups, service department upsells, warranty paint repair and finally lot washing. And depending on the dealer and how and if they farm out certain things, you could also do PDR, interior trim repair & light body repairs. The more of a 1 stop shop you give your client, the more unlikely it will be for them to seek out your replacement. And because you're doing alot of business with a specific dealer, you can also give them a multi-line competitive price to make it more difficult for competitors to enter.

 

[Scottwax]

Market here is saturated with guys doing this work for literally next to nothing. I've had a few dealers ask me if I would do it for them because the guys doing it now are garbage but the numbers just don't work due to the labour costs

Same here. Just no money in it. The tote the note lots here don't pay squat (one called and wanted full details for $50, said that's the going rate), nor are they good about paying promptly. The new car dealers have their own people.

 

[IHA Mark]

I work one summer for a guy that had a business doing this. He had around 15 weekly and bi-weekly accounts, including hostess trucks which he got paid really good for. He would net about 1k-2k per week after expenses per week. He was a scratch n swirl specialist that would work for the lowest price, but made good money at it. There is money in that business, but you have dedicate yourself to it and be prepared for cutthroat competition.

 

[Bert]

Income Generator: Dealer Lot Washes



2-3 guys can easily wash 500 in a day, so that means up to $1500 of additional income for 1 day of work. Multiply that by 5 days and that's $7500/week. And that can also mean nearly $400,000 of income per year. Not too shabby just to wash a bunch of cars!



**Process of washing: Pre-spray loose dirt from vehicle >> Hand wash body >> Rinse (2 soapers / 1 rinser)



.

If a team of 2-3 were to simply rinse and wipe like the video attached, I could see doing 300-500 or more cars in a day but do you really think it is possible to rinse, wash, rinse and dry? I would think the washing would slow things down and not allow you to move at that speed.

 

[David Fermani]

Same here. Just no money in it. The tote the note lots here don't pay squat (one called and wanted full details for $50, said that's the going rate), nor are they good about paying promptly. The new car dealers have their own people.

Unless a dealer has atleast 100 cars ,I'd avoid them all together. As far as the new car dealers.....Does their actual employees do the lot washes or do they have external vendors?

If a team of 2-3 were to simply rinse and wipe like the video attached, I could see doing 300-500 or more cars in a day but do you really think it is possible to rinse, wash, rinse and dry? I would think the washing would slow things down and not allow you to move at that speed.

And that's where something like ONR could come into place to save alot of time I think:

Large towel soaked in solution (2 people) >> wipe down/over panel >> spot free rinse (1 person) >>done.



Remember, these cars aren't that dirty. Just surface dirt from sitting on he lot. No scrubbing or major cleaning happening really.

 

[Jpostal]

Last year I operated a mobile pressure washing company alongside my detailing business and I can assure you that nobody is generating 400K washing cars. Having spent a fair bit of time on a fleet washing forum I would say that you would be lucky to get $1 per car. The equipment you need to efficiently do this work will set you back 10K or more and the quality labour you can afford if you want to make any kind of money is going to be unreliable at best.



I'm not saying there is not money to be made, but it is most definitely not as easy as it sounds. (Just like doing a proper detail is not as easy as it sounds). I offered commercial truck washing and that was OK money but it is HARD work and a nightmare collecting $.



If you are considering this I strongly recommend you join a fleetwash forum before you spend any money on the idea...I learnt that the hard way.

 

[Bert]

And that's where something like ONR could come into place to save alot of time I think:

Large towel soaked in solution (2 people) >> wipe down/over panel >> spot free rinse (1 person) >>done.



Remember, these cars aren't that dirty. Just surface dirt from sitting on he lot. No scrubbing or major cleaning happening really.

That might work. I wonder how many towels you would need, ie how many cars you could do before it was too dirty to keep using? To make your solution soaked towel go further, it may make sense to have your rinse person pre spray them to knock off as much as possible before hand, have the two ONR soaked towel guys go over the car while the rinse guy is prerinsing the next car, then when the two ONR guys move to the next car, have the rinse guy rinse the ONR off.