Valuing a Detailing Business?

[DeepReflections]

Just thought I would update this post. I sold my business for multiple six figures.
Why
It was 2 times my gross revenue and was jumped on in an instant because of the loyalty and quality of the delivered product.
I had an incredible customer base of high end customers in Silicon Valley that were very, very happy with my/our work.
Why
I managed to create an incredible website with SEO that brought in the best of the best. I had a stream of business that was simply constant and very high end. I have no idea who the clown was that constantly badgered me here over my website and tips I gave, but in the end, it was those tips that brought in that pipeline.
I was so busy I simply got burnt out.
More than anything we had an atmosphere in my shop of caring for each other and teamwork. We all jumped in to finish a car, or found issues that needed to be fixed before the customer showed up. No ego's, no drama just pride in delivery. We bent over backwards to make a customer happy and at times went way over and above what they were willing to pay for. That created an incredibly loyal customer base that in turn was willing to pay premium prices.
I moved more to Ceramics(Ceramic Pro Kamikaze, and Feynlab) and had a 9 week backup of $1500 - $7000 detailing jobs because my SEO concepts, and let's face it reputation was creating more business than I could handle. I partnered with a clear bra/wrap company and he jumped all over the opportunity to buy my business and expand it as he was present on a daily basis to see what was coming in.
Bottom line never, ever think that what you built was valueless.

[UncleDavy]

Just thought I would update this post. I sold my business for multiple six figures.
Why
It was 2 times my gross revenue and was jumped on in an instant because of the loyalty and quality of the delivered product.
I had an incredible customer base of high end customers in Silicon Valley that were very, very happy with my/our work.
Why
I managed to create an incredible website with SEO that brought in the best of the best. I had a stream of business that was simply constant and very high end. I have no idea who the clown was that constantly badgered me here over my website and tips I gave, but in the end, it was those tips that brought in that pipeline.
I was so busy I simply got burnt out.
More than anything we had an atmosphere in my shop of caring for each other and teamwork. We all jumped in to finish a car, or found issues that needed to be fixed before the customer showed up. No ego's, no drama just pride in delivery. We bent over backwards to make a customer happy and at times went way over and above what they were willing to pay for. That created an incredibly loyal customer base that in turn was willing to pay premium prices.
I moved more to Ceramics(Ceramic Pro Kamikaze, and Feynlab) and had a 9 week backup of $1500 - $7000 detailing jobs because my SEO concepts, and let's face it reputation was creating more business than I could handle. I partnered with a clear bra/wrap company and he jumped all over the opportunity to buy my business and expand it as he was present on a daily basis to see what was coming in.
Bottom line never, ever think that what you built was valueless.

I am glad that it ended well for you Steve. Not only did you sell your business but it sounds like your legacy of quality and care will be carried out by the new owners as well. Enjoy your leisure or your next adventure.

[sudsmobile]

That was me. And I've built a six figure business in less than a year running a two man mobile crew, so call me a clown all you want but your way isn't the only way to do things.

[DeepReflections]

That was me. And I've built a six figure business in less than a year running a two man mobile crew, so call me a clown all you want but your way isn't the only way to do things.

Never said my way was the only way, your monster ego interpreted it that way. I made some suggestions that worked for me that was just trying to help others out. You made it a personal vendetta for some odd reason that your ego could not handle someone actually posting ideas that were successful. Proven by the fact that you had to post the above comment. You could not resist trying to out do me, which I personally don't buy for a second, as I know many, many mobile detailers that can't even come close to your claim, in one of the most expensive areas in the US.
So why don't you tell the rest of the people here how you happen to be so successful rather than trash people that are willing to post up ideas that might help them.
Let's here how you did it!!!
I am no longer going to respond to this post, but I suspect 100% of everyone in it is interested in what worked for you since you claim to be so successful.

[DeepReflections]

I am glad that it ended well for you Steve. Not only did you sell your business but it sounds like your legacy of quality and care will be carried out by the new owners as well. Enjoy your leisure or your next adventure.

Thanks!!! Appreciate the sentiment. Hope everyone here becomes very successful and values what you built.
So I am done here as Deep Reflections, and off to a new adventure. Funny thing I am getting quite a demand in Southern California for Ceramics that I am not sure I want to pursue. Had my very first customer, who moved from Silicon Valley to Orange County ask me to do his car as he could not find anyone else that did his cars as well as I did. That led to others in the neighborhood and his/their friends contacting me to do their cars. I already have an 8 week backup. I am going to do some for something to do, as I really don't need the money.
I also have a world renowned restorer in Norcal talking to me about doing his cars. Funny how things pop up.

[gregpack]

Congratulations on your sale! I'm in the automated car wash business so my situation is different from most of you. There was an old business talk show by a guy named Bruce Williams I used to listen to. Many people would call about buying a small business and when numbers were discussed and the amount of time involved, Bruce would tell them "you're buying a job". It seems to me a lot of small detailing businesses are in that predicament, which will limit the amount of money someone will pay for it. However, if people ever want their business to gain significant value over the value of the assets their best chance is to implement systems in place that will allow a business to succeed in their absence. This involves hiring and training employees to do the grunt work. There is a book worth reading called the "E-Myth" by Michael Gerber that addressees the challenges of operating and then selling a small business.

[sudsmobile]

Never said my way was the only way, your monster ego interpreted it that way. I made some suggestions that worked for me that was just trying to help others out. You made it a personal vendetta for some odd reason that your ego could not handle someone actually posting ideas that were successful. Proven by the fact that you had to post the above comment. You could not resist trying to out do me, which I personally don't buy for a second, as I know many, many mobile detailers that can't even come close to your claim, in one of the most expensive areas in the US.
So why don't you tell the rest of the people here how you happen to be so successful rather than trash people that are willing to post up ideas that might help them.
Let's here how you did it!!!
I am no longer going to respond to this post, but I suspect 100% of everyone in it is interested in what worked for you since you claim to be so successful.

Let me dissect this piece by piece.

You don't have any kind of vendetta against me, it's me with the "vendetta", yet you came back six months later to brag about your sale and call me a clown. I have news for you, that's a exactly what a vendetta is.

As for what you THINK, well you're wrong. And I live in one of the most expensive areas in the US. How did I become successful? I've posted about it many, many times. Here you go.

First, I'm not undercapitalized like most businesses started on a shoestring budget. Second, when I started this business, I looked like a successful business. Shirts, wrapped trailer, nice clean late model Tahoe pulling it, business cards, credit card processing, custom phone number, beautiful website with tons of pictures and the ability to book online. People often mistakenly think we're a chain because we look professional compared to what they're used to seeing from mobile guys. Third, we've never missed an appointment in almost a year. We never been more than 5 minutes late without calling or texting, despite having 5 or 6 jobs on some days. We've never traded one job for a better one and screwed our customer. Very common here. Fourth, for the first six months we didn't say "no." If you called, we came. We took every job on every car. If a customer wanted to give me money, I took it. I don't think I'm too good for anything. Fifth, we show up, we do a great job, we're friendly, well groomed and personable. Sixth, our pricing is fair. We provide what I'm assuming people think is a great value for their dollar.

When my business pulls up to the curb of your house, we look like we're there to make money.

Do you believe me? I really couldn't care less what you believe. You're obviously a petty little man that holds perceived make believe grudges for months just to come back on here and brag about your "success." I'll gladly break open my books for you if you'd like. You know how much of this business is a "cash" business. I average $4500/month on Square. That's CC processing ONLY. I also end up taking about $1000-1500/month in checks. In the first 8 months of this year, I've averaged just over $8k a month in sales. I did $9200 in May. I also did $6500 only in July because I was by myself half the month and it was very hot.

The reason mobile detailers don't make that much money is because their average ticket is like $50. They don't ask for the sale. The don't upsell. They don't understand that this business is sales, not car washing. My average ticket is creeping around $170. Last month, I had a unusual number of "small" jobs. My average ticket in August was still $148 spread over 55 jobs. I'm the king of showing up and turning a $50 job into $150. Hey, you know, we should probably get a nice coat of wax on this. Have you thought about cleaning up those headlights? Here, check out my site look at these headlights I did yesterday. Oh, I bet we could get this interior looking new again with a little work. People don't know what they need, you need to tell them what's going to make them happy.

The bottom line is, the money is there. You have to do several things to get it. You have to make the phone ring. You have to take the jobs from the customers that call you. You have to be flexible and willing to work when the customer wants the job done, not when it suits you. Perfect example, I did two jobs by myself on Saturday. Easiest jobs ever. I made $330 in 4+ hours. I was "done" for the day. About 3:30, a guy called and my son answered it. He wanted his boat washed and it had to be done TODAY because he was going fishing first thing Sunday morning. Even though I was done, we went and knocked that job out. More money and happy customer, that's why we're in business. Sunday, a guy called me and wanted his Aston Martin (picture posted on this site yesterday) detailed for a show. He told me the guy across the street would do his 1975 Corvette Stingray (wash & wax) too. I went and got water and off I went. Did both jobs, made $300 and booked the Stingray guy for a full one step on his wife's Honda Accord and booked the Aston Martin guy for a full detail on his Jag for Thursday morning. People mention wanting other work done, I don't leave without additional bookings. I pulled out the polisher and hit the trunk lid of that Accord, the guy's wife was sold. She said set it up with my husband whenever you want to do it.

Like I said, the bottom line is, the money is there. Is every detailer, mobile or otherwise going to be able to get it? Doubtful. I can sell. I've always been able to sell. If you can't sell in this business, you're going to starve. If you can't sell in any sales business, you're going to starve. Period.

[sudsmobile]

Congratulations on your sale! I'm in the automated car wash business so my situation is different from most of you. There was an old business talk show by a guy named Bruce Williams I used to listen to. Many people would call about buying a small business and when numbers were discussed and the amount of time involved, Bruce would tell them "you're buying a job". It seems to me a lot of small detailing businesses are in that predicament, which will limit the amount of money someone will pay for it. However, if people ever want their business to gain significant value over the value of the assets their best chance is to implement systems in place that will allow a business to succeed in their absence. This involves hiring and training employees to do the grunt work. There is a book worth reading called the "E-Myth" by Michael Gerber that addressees the challenges of operating and selling a small business that is worth reading if you want your business to have marketable value when you get ready to move to other things.

That's a good point. Most people don't want to buy a job, they want to buy a business that just makes money with it structure already in place. When I'm out of this business, which is probably five years or less, I'm going to bring a young go getter in for the last year at minimum wage. I'm going to sell him the job as eventually being his own boss with a business that is already in place to make a great living for a young guy. I'm going to show him the ropes and take him around with me every day. Introduce him to all my customers, regular or new, as the guy that will eventually be the man doing their jobs. I'm going to give him every opportunity to succeed by showing him how to do the jobs right, how to interact with customers, how to do all the day to day stuff to ensure he's always ready to go and make money. Then when I'm out, I'm out. I'll hand him the keys to the trailer and say "Have a nice life, my friend" and just give him the business.

I don't need the money. I never started this for the money. I started this for my son. He does it but he doesn't love it. He wants to work at a desk like every other overprivileged kid his age that was born with a silver spoon in their mouth.