Starting an Auto Detailing Business
People love their cars. Even those of us who tend to neglect our vehicles for months on end (while trash builds up on the floor and a layer of dust slowly accumulates on the instrument panel) can appreciate the difference a thorough cleaning can make. Personally, I just feel as though my life is more organized when my vehicle is spotless inside and out. Simply put, there aren’t many people out there who honestly don’t care what their vehicle looks like.
And that’s great news for a budding auto detailing entrepreneur like yourself. With little more than a few hundred dollars in supplies and a rented garage or car bay, you are in business. Heck, you could even set up a mobile rig to service your customers at their location. The possibilities are only limited by your imagination.
In a nutshell, auto detailing consists of a thorough inside/outside cleaning of your customer’s vehicle. Using sponges, shammys, cloths, brushes, toothbrushes, toothpicks, carpet cleaners, vacuums, and buffer machines, your job is to restore the customer’s car back to factory condition (or at least as close as humanly possible). Depending upon the package the customer selects, it could include anything from a simple wash and basic interior cleaning, to an all inclusive service that might include exterior wash, wax, and a very detailed interior cleaning that includes steam cleaning the upholstery and carpet, applying special vinyl/leather products to rejuvenate the interior, and applying a high-gloss wax to the exterior finish – afterwards, buffing it to a mirror finish.
Qualifications
This is a business where you are either going to have to have a fair amount of experience yourself, or be able to hire someone with that experience. Auto detailing is an art and, though it may seem straightforward, you can easily damage your customer’s car by using improper methods. Of course, the biggest concern is damage to the exterior finish of the car. At a minimum, you should at least know how to apply wax and buff the exterior finish properly. If you have no experience doing this, it’s very easy to make costly mistakes. You certainly don’t want to be responsible for a new paint job. As far as interior cleaning goes, it’s pretty straightforward and really doesn’t require much skill. The hardest task would be knowing how to operate a carpet cleaning machine so that you don’t ruin the upholstery or carpet.
If you’re thinking about getting into the car detailing business, you should try to get some real-world experience by working in the trade for a while. Alternatively, if you have the money, hire skilled workers.
Business structure
The majority of auto detailing businesses run their operations from a permanent location (for example, a rented garage/car bay). However, more recently, the number of mobile auto detailing operations has increased dramatically. Here are the two types:
Permanent location
If you intend to set up a permanent auto detailing business, your biggest challenge is going to be finding a suitable location and negotiating favorable lease terms. Keep in mind that, as with any commercial endeavor, you are committing yourself for a number of years.
The ideal location is going to be a “garage” style building with large overhead doors. It should have the capacity to house two or three cars at a time, plenty of electrical outlets, multiple water taps, good floor drainage, good heating/air conditioning, and adequate lighting. As an alternative, you might be able to find warehouse units in some industrial plazas that would also be suitable. Make sure your landlord knows exactly what kind of business you will be running.
Needless to say, after signing a substantial lease, renovating the unit to suit your needs (including a reception area for your customers), you’ll be looking at a fairly hefty investment.
By having a permanent location, you’ll look more professional, you will attract business off the street, you will be able to start branding your name, you’ll be able to handle more capacity, and you’ll be able to perform the work indoors (as opposed to a mobile operation).
One last point about having a permanent location is that you will most certainly be hiring employees in order to serve your customers properly. This can bring on a whole new set of challenges in itself.
Mobile Operation
Although a mobile operation requires a significant investment in equipment, it is still much simpler to set up than a permanent location. In fact, most mobile operations are run by a single person. So, not only do you not have to deal with employees, there is no need to sign a lease or make any long term commitments.
As a mobile operator, you will be taking your entire operation to your customer’s location. That location could be their home or work. Essentially, you will be entirely self-sufficient – although you may use a water supply if one is available. Otherwise, you will be bringing your own water supply – usually contained within a plastic tank.
There is lots of flexibility when it comes to mobile auto detailing. Some people don’t carry their own water or source of electricity and depend on the customer having an outside faucet and electrical outlet nearby. These people can travel relatively light, with the heaviest items being a pressure washer, carpet cleaner, vacuum, and such. The limitation is that they are not truly mobile, and therefore are essentially limited to the customer’s driveway.
A truly mobile operation will be entirely self-contained. They carry their own water supply and generator to power their equipment. Obviously, you’re going to need a larger vehicle, or trailer, if you plan to structure your business like this. The advantage to having an entirely self-contained operation is that you can perform your job pretty much anywhere. Some entrepreneurs even target office workers by arranging to clean their car in the parking lot while they work. A word of caution: not everyone is going to be receptive to this type of work being done on their property. Property managers may take a dim view of this type of activity. One of the biggest concerns is going to be where the wastewater goes. Never fear, however, there are companies that make specialized water capture equipment to make sure every last bit of wastewater is recovered. It’s like driving your car on top of a portable swimming pool.
The job itself is identical to the garage style permanent location. The only difference is where you get your water and electricity.
Advertising
If you’re running a permanent auto detailing business, your advertising dollars will likely be spent in yellow page ads, radio spots, road signage, and newspaper display ads.
As a mobile operator, you’re likely running on a smaller budget and will be forced to be a little more creative. Take out newspaper classified ads, post your business card in and around office buildings, and try to promote your business whenever possible by word of mouth. You may even want to try a small residential flyer campaign to see what kind of results you get.
Challenges
Besides the relatively large financial investment and lease agreement, a permanent location auto detailing business also demands a higher level of managerial experience because of employees and a higher level of general business experience due to the complexity of daily operations.
From an employer standpoint, it can be challenging when first starting out, and you may find yourself with a high staff turnover. However, things should settle down once you find the right people.
You may also be faced with the challenge of knowing when the auto detailer stops and the body repair person begins. In this type of work, you might be able to take out a slight blemish in the finish, but you won’t be able to help them with things like deep scratches and minor dents. As the owner, it’s up to you to know where to draw the line and to communicate properly with the customer.
When it comes to mobile auto detailing, one of the biggest challenges is going to be the weather. At best, your operation is going to be seasonal – and even then many of your jobs may be canceled or ended prematurely due to inclement weather.
Other considerations include the fact that many municipalities and private property owners will not allow you to conduct your business on their premises. This can limit your options to strictly residential “car in driveway” jobs.
How much can you make?
There’s a fairly wide range when it comes to what you can charge for a job in the auto detailing business. Depending on what the customer wants, you could charge $40 for a basic wash and interior cleaning, to several hundred dollars for an all-inclusive executive treatment. As an owner/operator, you should be able to make at least $30 per hour and up (depending on your experience).
Insurance
Don’t even think about running an auto detailing business without proper liability insurance. All it takes is one mistake and you’re on the hook for thousands of dollars for a new paint job. Additionally, liability insurance also protects you in the event that someone is injured due to your negligence. You should be taking out a minimum policy of $2 million – some operators take out as much as $5 million. Expect to pay around $1000 per year, minimum.
Lastly, make sure that your employees are covered under workers compensation insurance.
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