Break Even Point

[mpasc249]

Hey guys,

I have searched and searched but haven't come up with a good answer for myself.

I am looking to start up a mobile business In the Pittsburgh area, part time. I have a decent business plan outlined and have moved onto the fixed/variable costs. My goal right now is getting a Break Even Point set to figure definite prices for each service, but seems like my BEP is low. My fixed costs aren’t too hard for me to develop, but I am having trouble developing the variables. I have searched online and haven’t come up with any solutions. Being a start up, I am not sure how to estimate my variables each month without guessing.

A few questions I have:

1. How would I estimate my product usage each month to find my break even point.

2. How to estimate mileage costs, time, and fuel.

Also, I have been reading to shoot for 3 – 4 times my BEP for my hourly rate. Is this accurate?

Thanks again.


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[Cruzscarwash]

there are so many variables that you might not get a helpful answer.

mileage is dependent on the area you service, your local fuel prices and the MX on the vehicle you are using

product usage is also a curb ball, are you using full strength product or are you diluting, are you using one product for multiple tasks or one product for one task. are you doing 5 cars or 50 cars? we don't know and so far you don't either

hourly rate is either what you feel is a good value for your time or what your market can handle some can handle much more then others but that's dependent on your area

[mpasc249]

there are so many variables that you might not get a helpful answer.

mileage is dependent on the area you service, your local fuel prices and the MX on the vehicle you are using

product usage is also a curb ball, are you using full strength product or are you diluting, are you using one product for multiple tasks or one product for one task. are you doing 5 cars or 50 cars? we don't know and so far you don't either

hourly rate is either what you feel is a good value for your time or what your market can handle some can handle much more then others but that's dependent on your area

I appreciate the response.

I guess what I need to think about is my current worth hourly. In the beginning I would love to get 5-10 cars a week to get my feet wet. Mainly I am trying to operate with simple services that aren't too complex. The area I am trying to capture is about a 40 mile radius with various income levels, higher incomes in the immediate area. I just think personally I'll get a better grasp on them once I jump into it the first couple months.


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[WorldMattyBlue]

Take a look at your own detail supplies and get some rough ideas on how many uses a product has had and how much is left. A rough idea is better than no idea. Budget on the aggressive side to be safe.

[Mike@ShineStruck]

Truthfully, I wouldn't worry about break even point
Just figure out what you would like to make an hr per service you plan to offer.

It kind of sucks in Pittsburgh in a way
As sometimes it seems like other detailers do 1 and 2 step polish for nothing when compared to the typical prices throughout the states on this board

You're going to be competing with a bunch of shops that use DK price system

[GSKR]

How will you get 10 cars a week partime with the lousy weather there.you need to gross 1500.00 a month and take home 1200.00 for it to be even worth your time maybe.If you like detailing go for it,if your not able to deal with cancellations weather getting dark at 4:30 or other scenarios you maybe better off working indoors somewhere other than detailing.just telling you the truth not bashing on your idea good luck.

[Mike@ShineStruck]

Yeah, I'm not expecting much more clients this time a year, except for maybe HLR
This week was prob last week for decent mobile detail weather

[AutowerxDetailing]

http://www.autogeekonline.net/forum/...e-chart-6.html

A while back I made an Excel worksheet that helps you estimate how much time you will spend and how much product you'll use for each service you provide. I used it when I was revising my service menu to help calculate how to price each service.

For the product usage estimates: If you want it to be hyper accurate you'll have to mark on your bottles each time you use them until they are empty and then divide the cost of the bottle by how many times used to get a figure to plop into the "product cost" table. It is currently populated with rough estimates for product costs and several example services.

The most current version is found in the link provided above. Scroll down the page a bit. I also checked my Dropbox just now to make sure the link is still active.

[ShineDoc]

For product cost, weigh the bottle when it arrives, then after each use. This is the most accurate.