Weed-Smoking "Detailer"

Hey,



I looked at a location today for sale- my wife saw one of the "detailers" cleaning out a crack pipe in the parking lot!!!! The place did not have one car there and it is on a st. with a 23k + traffic count. Three guys sat in a closed room and never came out. XXX rated ads were stapled to a wall and the equipment was in worse shape than the previous comments. I'm not sure if I should collect rent, or just shut it down and redo the place. It's 3800 sq. feet, has 3 oil separators, 2 bays that are 3 car lengths long and on a very busy street.



I have big ideas on my biz plan, but can't get going until next summer. Price is way below value due to owner's troubles.



Are you open to moving? I will need a working partner, not a manager. I will need someone with a management background, not detailing. The training is all set up as well as the high end chem. dispense systems.



When you think about paying that 35k for the guy's biz, think how much rent that would pay in another shop????



Rob
 
WCD, I see what you are saying, but even at $35,000 it isn't worth it to me. I just don't see that happening with the type of business he has. By the way, that business that you described is exactly like the one that I am talking about. Cheap clients, cheaper work, no professionalism, assorted ads in the business, dirty peanut sponges, etc.



Where are you located by the way? Just out of curiosity.
 
I am truly befuddled. Why would you want that shop, at any price?



Start your own (for a lot less than $45,000!) and create your own image and reputation.



My shop is worth 4 times that amount, but, we do things a little differently :)



JB
 
In Dayton, Ohio.



Jimmy,



If paying rent, exactly. 45k is about 1 yr. of rent in most places, or more. You don't ever want to buy bad business, or bad public perception. Create your own with your way of doing business.



My situation is that the building is for sale- not the biz. I'm going to sit across the st. today and see if any cars get washed. I am most likely calling off the inspector since I will keep $400 in my pocket and not pay for an inspection that I won't buy. Also, what if I am the building owner and the renter gest busted for selling dope out of the building? Am I liable? Could the Feds take possession of the building? I can't put myself in that position with the current "detailer".



Rob
 
Wow, that's quite the ways out of where I am WCD. I'm here in Ottawa, Ontario. I probably wouldn't have a problem moving for work, but I need to finish school first (international business major with options of going into corporate law later, got a little more than a semester left).



As for the situation that you are in right now, I can completely relate to you. The thing that we have in common is that the clientel that these businesses are attracting isn't autopian style business, it's more of the quick wash, so even if they do or do not get business, as in my situation, it's really irrelevant, as when the businesses are opened under new ownership the current clients would not want to upgrade their ten dollar purchases to 200 dollar details.



For me, as if said many times before, is having enough clients to pay for rent, hell even if I don't make a profit and just float by, I'd be happy with that for the first few months as long as business picks up later on. How much is the building you planning on purchasing cost? Pictures etc?
 
I talked with the city today and they suspect the same thing. If I buy, I think they will leverage their gov. acts and ask for permits and other business related documentation- when they don't show, they get kicked out. I also told them that if they call OSHA, they will leave right away- they have no documentation of anything and OSHA would be handing out fines so fast they would probably just walk away.



PM me, or email me and I will send you pictures. I am not savvy enough to put them here. Because of the low initial cost for the building, a partner should be able to do 2k per week easily. I also thought of putting in a touchless in one of the bays for an exterior only option.



Rob
 
In purchasing most businesses. (what I did for a few years(buy and sell biz)) the most accurate way to figure out what a biz is worth is to take the annual sales and multiply them by 3. Then that is what the cost is to buy the "assets" of the biz. Never take over a biz in whole. You will have no way of knowing what is out there, even if you check out D&B or Exp biz credit.
 
GTFreddy said:
Oh and another thing, I was thinking of having someone with me to do tints, alarms, rust-proofing and such, do any professional detailers here incorporate that into their businesses?
Click to expand...



I am currently employed at a local auto glass repair/replacement shop. I sublet tint to a guy that comes to our shop to take care of it. It's really a hassle trying to line up with him since he isn't an employee of our shop. He just comes when there's work for him to do. I can understand that, but when we have a warranty job, he wants it scheduled when he has other work. That's not a problem because I keep him covered up in the summer time, BUT in the winter months, trying to get a warranty issue taken care of (ie bubbles, etc.) is like pulling teeth. Granted, the guy I use lives a pretty good click away, but still... Again, since he is not an employee....trying to set appointments is ridiculous. I have to take the call from the customer with the times that he/she can bring the car and leave it, then call the tint guy (and hope I dont get voicemail, which would lead to even ANOTHER phone call once I get a reply from him), and get everything ok'd and then call the customer back....All that time spent for a small cut. Also, from what I've noticed around the Atlanta area....a lot of tint guys have drug problems and most all are unreliable. My $.02
 
joshtpa said:
In purchasing most businesses. (what I did for a few years(buy and sell biz)) the most accurate way to figure out what a biz is worth is to take the annual sales and multiply them by 3. Then that is what the cost is to buy the "assets" of the biz. Never take over a biz in whole. You will have no way of knowing what is out there, even if you check out D&B or Exp biz credit.
Click to expand...



So if a detail business that produces $500,000 in revenue per year(consistantly), could be worth $1.5 Million if it were being sold? Considering that it has very little tangible assets. I could never find a realtor to sell my business for anything close to that. I could be retired by now.:D
 
A lot of buisnesses do use the triple net as stated earlier, I believe. There is one shop you guys can buy in Bowling Green, KY. It's asking 39k. Location is in a shopping mall and has four bays. Currently, there is no water reclaim set up so you can leverage with that. They did not keep good records so even the asking price is shaky. Thus, you might get in for very little- comes with equipment and an office area. Not sure of the rent, but remember thinking it was very affordable.



Still looking for a partner/manager to open a shop with. I have the financials to buy the property, the business plan, but not the time nor do I live in Ohio permanately. It's not that easy I am finding- most "detailers" that have shops are not that professional and I would not let them do business with me. I would go after a business major (someone that knows how to manage and run a business) vs. a detailer who wants to be a partner.



BizBuySell - The Internet's Largest Business for Sale Marketplace is a good site for finding shops and car washes for sale, or property for lease. After talking with many in the field, location is driving me to change tactics a bit. I found a great building (2 bays and 3 cars deep) on a st. with 23k cars per day, but not in a good neighborhood. I was told that these places, even with the traffic count, are risky. I think I would rather find a beat up car wash or building in a good neighborhood and get it up to a standard that fits the area.



Remember, price is not set in stone. Most people price things with room to move down.



Rob
 
I was in the restaurant biz for a while, and I'm not sure exactly how a detailing business would work but the standard "formula" for a price on a restaurant is monthly gross X 5. So if a restaurant is doing 600,000 a year *gross* it is worth roughly $250,000. Out of that 600k a year, you *should* take home 150,000 profit, if your costs stay in check.



So using this formula, say that pot head is making 50k a year gross.



50K/12 = 4170 (rounded)



4170 X 5 = $20,850.



I would pay no more than 21,000 for that place if it were a restaurant. Now for a detail shop I would imagine the numbers to be quite similar, you want to keep food costs for a restaurant at 25-30% ,rent below 10% annual sales, payroll, etc, etc...



For a detail shop, supply cost should probably be a little better than 25%, rent should definitely stay below 10% of annual sales.



The more I think about , the more this formula may apply perfectly to a detail shop.



Hope this helps!



Jim
 
Someone who openly uses an illicit drug, especially at his place of business only has bad connections. Save yourself the hassle and look elsewhere.



I'm sure his business is a "fence" and you don't want to inherit his clientel.
 
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