How to pay employees?? Really no idea on this

[RMarkJr]

Ok, so I am a new business, I am not mobile. I am thinking about getting a mobile unit and letting someone else run it for jobs for me.

My question is how to do you pay someone that you employ?

My thoughts are .. if you do it hourly then what if there isnt many cars to do, be hard to keep someone around wouldnt it? If, hourly what typical is an hourly rate (yes I know it varies by place) min wage ..more than that? I mean each job is going to be a different cost, so if I have a 100 job that should take no more than two hours to do and say I do 10 an hour then he would get 20 and I would get 80. Maybe that seems low?

also if it is a percentage per car again what percent? Say they do a 250 job.. what do they keep out of that?

Should there be any type of bonus per car ... or I was thinking a bonus if they get a 5 star review to keep them trying hard.

soo why am I trying to hire someone to do mobile and me not do it? Well there are several reasons why. I would stay at the shop while I have a team covering the rest of town. Kind of an expansion. With the goal of hiring at least a few people to be mobile. I would probably go with here and there... but issues with overheating and my damn stomach almost make me unreliable driving to places or being there long.

I am not sure what the right way to pay someone would be for this ... percentage of each job? Hourly while on job .. which they could drag it out, so there's that.

What do you all think or do in this situation that have employees? Unfortunately this isnt one of those things I can call around to other detail shops and ask as a customer lol.

Thanks for the help!

[custmsprty]

Mobile set ups are not exspensive so why would anyone want to work for percentages or hourly wages when they can work for themselves and keep all the money. Once they figure the gig out they will just go out on their own and go after all the clients they brought in for you off the sweat of their brows, it's what I would do. Sorry, but it's the truth.

You'll need really good insurance too, as they are your employees and you are responsible for them.

If I were you I would focus on how I could drive more business to my shop and expand that. It's a controlled environment where you can over see the quality of your work.

This is a great success story recently posted by another member:

https://www.autogeekonline.net/forum...lion-year.html

[RMarkJr]

Mobile set ups are not exspensive so why would anyone want to work for percentages or hourly wages when they can work for themselves and keep all the money. Once they figure the gig out they will just go out on their own and go after all the clients they brought in for you off the sweat of their brows, it's what I would do. Sorry, but it's the truth.

You'll need really good insurance too, as they are your employees and you are responsible for them.

If I were you I would focus on how I could drive more business to my shop and expand that. It's a controlled environment where you can over see the quality of your work.

This is a great success story recently posted by another member:

https://www.autogeekonline.net/forum...lion-year.html

Thanks for the reply. I actually said to someone if they have all the stuff then they are probably doing it themselves. However not everyone has a van or truck with everything needed.. that can easily add up to thoughsands of dollars. Also there are plenty of places that have mobile services that arent just the owners doing it ... so somehow they have it figured out. I will check that link as well

[jsgntulok]

As I read your original post, all sorts of "red flags" went up in my mind. You say you are new in the business. Do you have an accountant? If not, I suggest you consider getting one. When you take on employees, you incur all manner of accounting/tax issues: tax withholding, employer taxes, quarterly reporting of tax withholding, annual issuance and reporting of W-2s, to name a few. Have you considered all this? Since you are new to this business and still building clientele, I agree with custmsprty, concentrate on building up business at your current shop.

[RMarkJr]

As I read your original post, all sorts of "red flags" went up in my mind. You say you are new in the business. Do you have an accountant? If not, I suggest you consider getting one. When you take on employees, you incur all manner of accounting/tax issues: tax withholding, employer taxes, quarterly reporting of tax withholding, annual issuance and reporting of W-2s, to name a few. Have you considered all this? Since you are new to this business and still building clientele, I agree with custmsprty, concentrate on building up business at your current shop.

Funny you should mention that ... my Girlfriend actually does accounting work, so I have that covered.

I know the business is new .. but I feel like I could get more business if I was mobile. I figure it would not only get more business but get me out there more and thus grow it more. Thats what I am thinking.

[Calendyr]

If your shop is running well, and you want to add a mobile unit, I think you should be the one doing the mobile work. You could hire helpers to do the jobs if there are too many but I would definatelly not give a mobile rig to someone I don't know and have him go to my clients. It is true that it can cost thousands for a van and all the equipment, but someone resourceful could do without it and simply use a car with minimum equipment and undercut you with your clients. I would never take that risk. As for pay, I don't hire people for detailing but if I did, I would very likelly start them off at minimum wage and tell them they would get pay increase as they get better and can do more work in less time. For most business, salary should be about 25% of what the employe generates in revenue. The rest will cover expenses like products, gas, insurrances, and leave you with some profit. If your expenses are super low, you could consider paying a larger share of the profit. It all depends and it's a case by case situation.

What are you charging now at your fixed location? How much are you paying your employees there?

[RMarkJr]

If your shop is running well, and you want to add a mobile unit, I think you should be the one doing the mobile work. You could hire helpers to do the jobs if there are too many but I would definatelly not give a mobile rig to someone I don't know and have him go to my clients. It is true that it can cost thousands for a van and all the equipment, but someone resourceful could do without it and simply use a car with minimum equipment and undercut you with your clients. I would never take that risk. As for pay, I don't hire people for detailing but if I did, I would very likelly start them off at minimum wage and tell them they would get pay increase as they get better and can do more work in less time. For most business, salary should be about 25% of what the employe generates in revenue. The rest will cover expenses like products, gas, insurrances, and leave you with some profit. If your expenses are super low, you could consider paying a larger share of the profit. It all depends and it's a case by case situation.

What are you charging now at your fixed location? How much are you paying your employees there?

ya thats true.. now I see that you mention you hire helpers? How to you go about that? do they get a set amount or byt he hour? are considered an employee and are avail when you need them?

also the Business is very very new. I have had so far three total customers within the last two weeks. The first one I waayy undercut myself for a very dirty interior with a spilled shake all over the console. I took it because I didnt have anything else to do and wanted to see if I could get it clean, that was for 100.. The next one I had was a few days ago. That one was a truck. I did a full detail inside and out which included paint decontamination, compound, polish, and sealant. took about 10 hours to do and charged 500 for that one.

as I was finishing up the truck a guy came by and dropped off a pilot for interior only which was really bad, dark stains everywhere. I did that for 250 .. which probably should have been 300.

annnd thats all so far .. I mean I get calls but I dont get a lot of set appointments as of now. I am hoping that the work I do snowballs into more. The guy with the truck I think is going to have me do his wifes car. inside and out ... inside isnt too bad and outside just needs a polish. I quoted 350 ..150 for the interior and 200 for the decontamination, polish, and sealant.

annnd its only me at the shop doing this.

The tough part is that I dont have enough right now to hire someone to be here all the time obviously. But I feel like if I could get out there to them I might be able to get more work. However I do only have a 2015 Honda Accord EXL...and getting a van or truck isnt really an option right now

I thought about seeing if there was any way to get what I needed to at least do the interior of a car loading into my accord ... which I need my steamer(vapor chief 100 refill) and vacuum (6hp). Which means I would need to get a generator. I did my first rinseless wash today on my car and it wasnt too bad .. thought about maybe premixing a rinesless wash and doing the wash on location that way ... I just wouldnt be compounding or polishing on location more than likely .. but again that all depends if I can get it all in my car.


I had a call today and he said location matters... Another call about a week ago that said didn't want to go that far.. Which is the next city over like 15 minutes away.

Also being just me I don't have a pick up and drop off service. I'm not sure how that would work. If I pick it up and work on it for 10 hours doing everything... Well I'm pretty sure they aren't working That long and I'm out of a car until I drop it back off.

[sportsfan]

ya thats true.. now I see that you mention you hire helpers? How to you go about that? do they get a set amount or byt he hour? are considered an employee and are avail when you need them?

also the Business is very very new. I have had so far three total customers within the last two weeks. The first one I waayy undercut myself for a very dirty interior with a spilled shake all over the console. I took it because I didnt have anything else to do and wanted to see if I could get it clean, that was for 100.. The next one I had was a few days ago. That one was a truck. I did a full detail inside and out which included paint decontamination, compound, polish, and sealant. took about 10 hours to do and charged 500 for that one.

as I was finishing up the truck a guy came by and dropped off a pilot for interior only which was really bad, dark stains everywhere. I did that for 250 .. which probably should have been 300.

annnd thats all so far .. I mean I get calls but I dont get a lot of set appointments as of now. I am hoping that the work I do snowballs into more. The guy with the truck I think is going to have me do his wifes car. inside and out ... inside isnt too bad and outside just needs a polish. I quoted 350 ..150 for the interior and 200 for the decontamination, polish, and sealant.

annnd its only me at the shop doing this.

The tough part is that I dont have enough right now to hire someone to be here all the time obviously. But I feel like if I could get out there to them I might be able to get more work. However I do only have a 2015 Honda Accord EXL...and getting a van or truck isnt really an option right now

I thought about seeing if there was any way to get what I needed to at least do the interior of a car loading into my accord ... which I need my steamer(vapor chief 100 refill) and vacuum (6hp). Which means I would need to get a generator. I did my first rinseless wash today on my car and it wasnt too bad .. thought about maybe premixing a rinesless wash and doing the wash on location that way ... I just wouldnt be compounding or polishing on location more than likely .. but again that all depends if I can get it all in my car.


I had a call today and he said location matters... Another call about a week ago that said didn't want to go that far.. Which is the next city over like 15 minutes away.

Also being just me I don't have a pick up and drop off service. I'm not sure how that would work. If I pick it up and work on it for 10 hours doing everything... Well I'm pretty sure they aren't working That long and I'm out of a car until I drop it back off.

I'm confused:
A. You just started a business.
B. You've had 3 customers total from the LAST 2 WEEKS!
C. And now you want start a new mobile unit business.
D. But you don't have a truck/van and you don't have the cash flow needed to buy one? So I'm assuming your going to use your personal vehicle?
E. Also, everyone tried to steered you away from hiring someone to do mobile because they could run off with your clients. But you said that they wouldn't because it would take thousands to set up a truck/van...although you currently don't have a truck/van to use.
F. Lastly, a question. Do you have at least two sets of everything? Considering that you will have a mobile truck and you will be at the shop.

Also, why are you so interested in hiring someone?? You don't have enough work. I noticed Calendyr's post picked your interest by using a "helper" instead of having a permanent employee.

I'm sorry if I came across as rude. It is not my intention. I tried to word things differently but I can see that I probably failed miserably. Again I'm sorry!

Maybe I'm missing something. But based on my quick summary above it doesn't make any sense to start a mobile unit or hire anyone for that matter. Everyone hit the nail on the head. Just concentrate on your current business venture grow. You are small business owner... you have to be super laser focus on your current business strategy.

I know working for your own is VERY SCARY and Overwhelming! But I feel like you should concentrate on your current "shop" strategy.

if after a few months this strategy is not working out then try the mobile side of it. Build yourself a good customer base and then set up a shop after you have a good customer base. Obviously you'll have customers that will not follow you to the shop and would prefer the convince of having someone come to them. Then you could hire someone to do those customers by having a mobile unit. Just a thought.

[Heisenberg]

Do you work a 9-5 or anything in addition to this or is it your primary source of income? You said you have a shop? If you've only had 3 customers in the last two weeks what has stopped you from just taking the mobile appointments and going to them anyway?

[RMarkJr]

Do you work a 9-5 or anything in addition to this or is it your primary source of income? You said you have a shop? If you've only had 3 customers in the last two weeks what has stopped you from just taking the mobile appointments and going to them anyway?

Right now I am on a leave till August 1st.

I guess whats stopped me is that I started off thinking I was going to do the shop for a bit and then grow into the mobile. However weeks of advertising isnt really paying off. So now I am thinking that mobile might make me a little more accessible and get more jobs.

Second part to that is that I really only have a honda accord right now. I am trying to decide if I have room for my rigid 4 gal vacuum and a generator needed. If I could get my steamer in there that would be great. I could get the rest of the chemicals and bottles in there easily.... but thats only if I want to do interiors only

If I was going to do the outside of the car then I would have no choice but to do a rinesless wash .. so now I would need to have two 5 gallon buckets of water to fit in the car with the other stuff... that might be pushing it for space.

just trying logistics out a little bit and thinking what I can do to get more business, either by me doing it or someone else doing it... if i could do it for a bit .. fine I`ll do that. Just something to get me out there more and to get known and more customers.