Shops in Shops?

M

MirrorDetailing

New member
I tend to think of my business as not the same as most other professional detailing companies. Most get business from private clients or wholesale jobs. Some I know, get a majority of their business from Performance Automotive shops. Places that have huge client list, getting upwards of $50,000-100,000 builds. Which after each major build, the car generally needs to be cleaned. Or the owner, since is someone who is a car nut after dropping that amount of cash, likes to have their vehicle detailed or gets it detailed or even does it themselves.



My question is, what do people think about subleasing space from a shop that has to much space? That way they have a physical area to work out of and a shop that has a lot of foot traffic and rapport from past, present and future customers? How does this work for you?



Like I said earlier, a lot of my business comes from performance shops. Which at the same time in an area, most shops are competition to one another. Well in my case, two of my clients are competition. As they deal in the same market. Each has approached me about getting a shop either right beside theirs or subleasing space. So would it be smarter to sublease with the larger shop and then just go mobile for the other shop? I dont want to have a shop and then people still I am mobile from working with the other shop.



So really...has anyone ever done or tried this and if so, how did it work out?



-Mike
 
Mike, if you're already handling all of their business and no one else is getting it, why add expenses by having a shop? Mobile = much lower overhead. Add in that by staying mobile you're not "picking sides", you can keep both accounts.



If you can't handle their volume, it may make sense.
 
Accumulator said:
IIRC, my pal Joe Christian (username ebpcivicsi ) had, or even still *has*, that sort of arrangement. Link to his business' site: Word of Mouth Detailing : Professional Auto Detailing and Clear Bra Installation in the Memphis TN Area
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I will send him a PM and get his take.



Jean-Claude said:
Mike, if you're already handling all of their business and no one else is getting it, why add expenses by having a shop? Mobile = much lower overhead. Add in that by staying mobile you're not "picking sides", you can keep both accounts.



If you can't handle their volume, it may make sense.
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Well, the shop I am subleasing would actually bring me more business. I have one shop that loves me doing cars for them but at the same time they have no space for me to work. So when I am there, its a conveniance for them getting details, but at the same time an inconvenience as I am taking up space that they dont already have to spare. So having a shop near them, they will be able to send me their cars at a moments notice to get done. Then the shop that I would be subleasing, is needing cars done on a constant basis. As its a performance shop, audio shop and now window tinting. So they are wanting to offer everything.



So really I use that as a physical location five days a week and then one day a week when the other shop needs me, drive 45 minutes to them to do it at theirs. Plus I am looking into getting dealership work and 2000sq/ft for around $800 a month in a great location...is somewhat of a hard offer to pass up on without weighing all the options.



Thats why I am hoping someone has tried this before and it either worked or it did not.
 
MachNU said:
I will send [ebpcivicsi] a PM and get his take..
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He's often too busy to be on the boards these days, so you might want to email/phone him. He's a great guy, soI wouldn't worry about whether he'll mind you asking.
 
Mike, your posts are a bit confusing to read, I think this is why you don't have many responses.



Anyways, so the story is like this if I read it correctly. You have lots of work from 2 separate businesses (who are referring you retail clients). You are mobile right now, but would like shop space. One of the businesses is offering to "rent" you one of their bays, and you're trying to decide if it's worth it or not.



You say the rent will be $800 a month ? Does that include heat and electricity ? Do you get 24/7 access to the bay ? How does insurance work, will you fall under their general liability (I'm thinking more if something you did damages their building, not the customer car itself) ? Water access ? Depending on the answers to these questions, I think the deal sounds pretty good.



One of your biggest concerns is that both businesses want you right beside THEM, correct ? Bottom line is, you need to decide which location is better for YOU and YOUR business. You can't cater to both of them perfectly, so you need to pick and choose.
 
Accumulator said:
He's often too busy to be on the boards these days, so you might want to email/phone him. He's a great guy, soI wouldn't worry about whether he'll mind you asking.
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Alright, I will shot him an email.



WAS said:
Mike, your posts are a bit confusing to read, I think this is why you don't have many responses.



Anyways, so the story is like this if I read it correctly. You have lots of work from 2 separate businesses (who are referring you retail clients). You are mobile right now, but would like shop space. One of the businesses is offering to "rent" you one of their bays, and you're trying to decide if it's worth it or not.



You say the rent will be $800 a month ? Does that include heat and electricity ? Do you get 24/7 access to the bay ? How does insurance work, will you fall under their general liability (I'm thinking more if something you did damages their building, not the customer car itself) ? Water access ? Depending on the answers to these questions, I think the deal sounds pretty good.



One of your biggest concerns is that both businesses want you right beside THEM, correct ? Bottom line is, you need to decide which location is better for YOU and YOUR business. You can't cater to both of them perfectly, so you need to pick and choose.
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More or less you are correct. One shop wants me to rent one of the spaces next-door to him, where the other wants me to rent out 2000-3000 sq/ft for $850 a month.



Water and electric are included. Insurance though, I would just be upping my current insurance to cover the additional space and area. Water access is in a rather nice area. I will show in a picture at the bottom. The only downside to the place is its in a older industrial park. But is only a mile and a half from a major interstate hwy and right off a local hwy.



Good thing is, not only would I have the foot traffic from the performance shop, but there is also a Custom Shop that does Ferrari/Lamborghini Kit cars in the same location that is wanting my services, then there is also a Window Tinting business that is setting shop up their as well.



Now for how the place is set up....



Standing at the very large drive in door which is large enough to get even boats through. The performance shop and kit car shop store extra cars in there that are not being worked on. This back area is about 8000 sq/ft and 2000 sq/ft of offices in the front.



794144980_photobucket_41094_.jpg




Just inside the door on the right is the area I would be mostly using. Compressed air lines are already ran and feed at the ceiling and there are plenty of power sources.



794144980_photobucket_41095_.jpg




The area right here, the stairs would lead to the office I would use. The bottom area is a break room and two very large Men/Womens bathroom.



794144980_photobucket_41096_.jpg




This back door leads to a covered offloading area where the water is. So there would be shade at all times and easy in and out access to water and back into my area.



794144980_photobucket_41097_.jpg




Did not walk all the way down there for the picture, but this gives you an idea of what the outside area to wash the cars would look like.



794144980_photobucket_41099_.jpg




Then this is a picture of the front of the building to where the front drive in door is, parking and the street.



794144980_photobucket_41102_.jpg


794144980_photobucket_41101_.jpg




All this for $850 a month. I decided if I go through with this I would stay mobile to the one shop that would not bring their cars here. But that would only be 3-4 days a month.
 
MachNU said:
IMy question is, what do people think about subleasing space from a shop that has to much space? That way they have a physical area to work out of and a shop that has a lot of foot traffic and rapport from past, present and future customers? How does this work for you?



So really...has anyone ever done or tried this and if so, how did it work out?
Click to expand...



I got my start by leasing space within an adjoinging high end indoor DIY car wash. I would get tons of traffic from the wash customers all the time. I feel that anytime you can cross-market yourself with another successful business it raises the bar to your future. I say go with it. One thing though......make sure you get a lease agreement with an option for as many years possible. The last thing you want happening is your landlord not renewing your agreement and decides on entering into the detail business trying to steal your clients. People are scumbags.
 
Well, with the information that you've provided, I'd have to say that that's a good space, and the rent seems fairly affordable, especially considering it'll be your first fixed location. If your other business client is only worth 3 to 4 days of work per month, then I'd agree, go mobile for them as long as you have the time to do it. You may find that you grow enough that you won't have time to go mobile for them, then you need to make a business decision, either charge them more or arrange that they drop off. But of course that's something to think about later on.



If you're looking for personal opinions, I'd say go for it.
 
all that for 850/mnth....DO IT!!!! thats crazy cheap. I am looking to do that with another shop in the future as well! "in house" detailer, and also be able to advertise it as my own "detail shop" where I can bring in my own cars! $ figure, unknown. Potential income goes way up though!
 
That is CRAZY cheap. Having a fixed location will make it easier to attract new customers also as they will walk in to see the work that you are doing.



John
 
One "problem" I see is the water supply and the lack of indoor drains to do your washing/cleaning inside. You may need to check local codes and state regulations about washwater runoff IF you plan to do it outside. It would be a shame to start setting up things, only to be shut down because you cannot comply with codes or regulations as they apply to commercial business.



Also, the lighting might need to checked out. Are you going to supply your own lighting, like halogen stands, or are you going to be using something more elaborate?



There are no car lifts to be seen, despite it being a warehouse converted to a car shop. Will you be using are jacks and jackstands, if needed?



What about ventilation? Will your dust from polishing interfer with their work? Will their work/dust interfer with your ability to keep the cars clean while YOU work on them?
 
WAS said:
Well, with the information that you've provided, I'd have to say that that's a good space, and the rent seems fairly affordable, especially considering it'll be your first fixed location. If your other business client is only worth 3 to 4 days of work per month, then I'd agree, go mobile for them as long as you have the time to do it. You may find that you grow enough that you won't have time to go mobile for them, then you need to make a business decision, either charge them more or arrange that they drop off. But of course that's something to think about later on.



If you're looking for personal opinions, I'd say go for it.
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Pretty much what I am considering.



toyotaguy said:
all that for 850/mnth....DO IT!!!! thats crazy cheap. I am looking to do that with another shop in the future as well! "in house" detailer, and also be able to advertise it as my own "detail shop" where I can bring in my own cars! $ figure, unknown. Potential income goes way up though!
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That and their is a big honda dealership just over a mile away that I am could try and sublet work from.



JohnKleven said:
That is CRAZY cheap. Having a fixed location will make it easier to attract new customers also as they will walk in to see the work that you are doing.



John
Click to expand...



Kinda my thought. I already have a large customer base and going to a fixed location only makes it easier for them as some of them prefer to bring it to me rather than me come to them.



Lonnie said:
One "problem" I see is the water supply and the lack of indoor drains to do your washing/cleaning inside. You may need to check local codes and state regulations about washwater runoff IF you plan to do it outside. It would be a shame to start setting up things, only to be shut down because you cannot comply with codes or regulations as they apply to commercial business.



Also, the lighting might need to checked out. Are you going to supply your own lighting, like halogen stands, or are you going to be using something more elaborate?



There are no car lifts to be seen, despite it being a warehouse converted to a car shop. Will you be using are jacks and jackstands, if needed?



What about ventilation? Will your dust from polishing interfer with their work? Will their work/dust interfer with your ability to keep the cars clean while YOU work on them?
Click to expand...



Water supply is under the shaded area in the back. Water codes I am fine in. Since its an industrial area and its GA the codes are not that bad. I have never had a problem before in that area as I use to do work for a body shop that is in another area of the industrial park.



Yeah, I already plan on replacing some of the overhead lighting with more Halogen style fixtures. Rest of the lights will be my current work lights that I use for mobile when I need them.



Thats because this area is only their storage area. The wall where the cars are parked, on the other side of it is 3000 sq/ft with 5 lifts and a **** load of shop tools. So if I do get a customer that wants the wheels taken off and suspension areas cleaned, I will just move the car to the othe side of the building or get a jack.



Ventilation is fine. It has a industrial fan to pull area out, plus it is an heated and ac'ed building. Also the only dust made would be me. As I stated eariler, I would be the only person working in here, unless their are cars getting tinted.
 
you should look into a curtain setup in there to keep your area clean while working on the car. kinda like hospital curtains on rollers...



OR, build a paint correction room! that would be awesome! Oh man, the ideas running through my head...I want a shop!
 
In college I worked for a buddy's detail shop that was inside his friend's performance shop (both businesses were just starting out) and it worked out great. Like it has been said before, dual businesses with like-minded clients helps with filling the appointment books.
 
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