Business Advice About Joining Mechanic Shop With My Detailing Shop Question

**304detail** · 01-21-2020, 07:17 PM

Hey guys random question about advice joining a growing mechanic shop. (Sorry for the long read lol)

Ive ran a detailing business for a few years from my home over the last few years with good results, I also have monthly cars and coffee events that’s a big hit with locals.. I do this in my spare time off from my office job in the evenings and weekends. I have been getting busy and would love to grow into my own shop but open shops are slim pickings where I live and are very overpriced, I know getting a shop is the next step I need so that I can do fleet, rv, bigger vehicle detailing, more ceramic coatings, and getting into ppf.

I have a friend that works at a shop that has recently grown into a 12,000sqft from a 3,000sqft shop in 2 years with great success. They only offer Mechanic services at the moment but are interested in adding detailing services and also body shop services later down the road since they have a temperature paint booth room and a ton more space . The owner just reached out to me and said he has heard I’m the best detailing around and knows I am trying to grow into a shop, I extended the offer of possibly doing a partnership or giving him a percentage of each detail since he asked me if I wanted to help each other’s business and to let him know. So we are meeting up later this week to talk over things.

Do you have any advice as to what kind of deal I should be looking to make and what to avoid? Have you heard of a mechanic shop that has a detailing side? I understand he could literally hire anyone off the street but it’s obvious that’s not what he wants to do since he contacted me. It would be life changing for me if I could get the space because it would allow me to leave my office job of 7 years and offer this full time. I’m just sure if I should offer a percentage of sales there, pay a monthly rate, or what he’s going to offer so figured I would ask here! He obviously has a packed shop already so that will help with more details as well but I really want him to make a deal with me so that I can do this .

I ideally would only need 1 Bay or possibly 2 tops.

**JWilliams.RadiantDetail** · 01-21-2020, 07:44 PM

Sorry I can't comment on the advice about a deal. I've never seen a setup like that, but it makes sense. A shop full of cars is a lot of potential business. Since he grew so much bigger I'm assuming he's going to have a ton of business. It sounds like he'll have space he's not using, so renting some to you could make sense for both of you. Maybe he'll lease you space like they do for barbers in a barbershop. I'd think he'd want than over a percentage because even if the percentage could be higher for a lot of months. Your business amount's unknown to him and monthly rent's a guaranteed amount for him. But maybe he doesn't think like that. My only suggestion is make sure you think things threw, as much as you want this. Don't take a deal where you'll end up having to bust your butt to be able to live after you pay him. Maybe offer a percentage, but if it's not at least a certain amount by the end of the month. You'll pay him X dollars to make it work out for him.

If you're good and have a ton of business a percentage could end up adding up to a lot. I would check around that area to see what it would cost to lease a small shop, and check a few shops just to inquire about how much they would charge you for X amount of square feet. Even if they don't have any space or aren't looking to do it. Body shops would be a good place to start. You also need to ask him if you'll have access to a floor drain and if there are any sort of water restrictions for business in the area. I know in So Cal having a shop, to detail getting all the permits if you want to have hoses and drains and stuff would be almost impossible. Good luck on this adventure I hope it works out for you!

**A-train** · 01-21-2020, 09:09 PM

I would be stay away from a percentage. That could end up screwing you in the end. I would seek to find a rate that you feel is reasonable and rent the space outright.

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**Dan Tran** · 01-22-2020, 06:50 AM

Originally Posted by A-train

I would be stay away from a percentage. That could end up screwing you in the end. I would seek to find a rate that you feel is reasonable and rent the space outright.

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I strongly agree to stay away from percentage. It’s best to pay for your own space or at least sublet space from him at a minimum.

TRUST ME! Even if you gave him 30% (as an example). Do $3000 of work and that’s already $900.

I ceased the idea LITERALLY last night to team up with a PPF guy with whom I did work for last year. He wanted 50% of all my sales for doing nothing. NO THANK YOU!!!

I’d rather send 50% of my sales into advertisement should I need to—it’s better to invest 100% into yourself.

The amount of money you would pay someone by percentage will equate to your own lease in the long run.

I totally get it. There is a lot of potential with ceramic coating and PPF installs. But do it right.

—

My $0.02

**304detail** · 01-22-2020, 11:09 AM

Thanks fellas for your input, that definitely helps a ton! I am going to think about really good forsure before hand, we meet tomorrow.

**SpudSudsSoFlo** · 01-22-2020, 02:51 PM

Do you currently offer more mainstream type of work? Not hack work, but more economical services geared towards the everyday consumer that just wants a clean interior and shiny paint in 30 minutes? You may gain a good amount of clientele interested in that.

Edit: 1st post

**CarolinasFinestDetailing** · 01-22-2020, 02:54 PM

No percentage. What you want is a lease agreement to sub lease space from him. Ensure everything is laid out as to what his responsibilities are to cover and yours. Keep is business. Remember, you have to cover your butt if you plan to leave your office job.

But to entice him, maybe take care of his personal vehicle and maybe his wifes. That way he sees your work first hand and can point to it and say "Look how clean my own vehicle is because of him."

Now let`s look at long term, say a year or two. Mechanic shops are loud and noisy and often.....dirty. What is in place to keep your workspace clean and nice? You want a nice image to portray to your clients. This is something to lay out in the lease maybe as well.

Will you be able to have signage outside and in the lobby?

Maybe you can offer washes and/or express details for his clients. So they get the mechanical done then you do your thing. But keep your billing separate. Or if he combines, maybe charge him X amount and the client pays Y amount. This gives him a little something. But you will want iron clad pricing laid out and pre-determined. Ensure this is all in writing.

Hope this helps.

**304detail** · 01-23-2020, 10:37 AM

Thanks again, that is a huge help. I will start with the no percentage thing and what you guys recommended and go from there. I will probably let him speak about it first to see where he is at with it! Its a performance shop so the clients are more towards the car enthusiast high end type of client. That is pure genius to offer washes and/or express details for his clients keeping billing separate...etc I do not have to worry about water run off but not sure if there are inside drains but I will ask that today, also I would be able to have signage but not sure about the lobby thing yet.

**UncleDavy** · 01-25-2020, 09:28 AM

Definitely stay away from a percentage and go with a rental agreement. Rent is a fixed cost that will eventually change over time but it is fixed during a certain time frame. You can ease the burden of that fixed cost by increasing the volume of work through the shop. A percentage takes money out of the business and it fluctuates with your income. The more you make, the more he makes.

**PM5C** · 01-25-2020, 12:08 PM

Originally Posted by 304detail

Hey guys random question about advice joining a growing mechanic shop. (Sorry for the long read lol)

Ive ran a detailing business for a few years from my home over the last few years with good results, I also have monthly cars and coffee events that’s a big hit with locals.. I do this in my spare time off from my office job in the evenings and weekends. I have been getting busy and would love to grow into my own shop but open shops are slim pickings where I live and are very overpriced, I know getting a shop is the next step I need so that I can do fleet, rv, bigger vehicle detailing, more ceramic coatings, and getting into ppf.

I have a friend that works at a shop that has recently grown into a 12,000sqft from a 3,000sqft shop in 2 years with great success. They only offer Mechanic services at the moment but are interested in adding detailing services and also body shop services later down the road since they have a temperature paint booth room and a ton more space . The owner just reached out to me and said he has heard I’m the best detailing around and knows I am trying to grow into a shop, I extended the offer of possibly doing a partnership or giving him a percentage of each detail since he asked me if I wanted to help each other’s business and to let him know. So we are meeting up later this week to talk over things.

Do you have any advice as to what kind of deal I should be looking to make and what to avoid? Have you heard of a mechanic shop that has a detailing side? I understand he could literally hire anyone off the street but it’s obvious that’s not what he wants to do since he contacted me. It would be life changing for me if I could get the space because it would allow me to leave my office job of 7 years and offer this full time. I’m just sure if I should offer a percentage of sales there, pay a monthly rate, or what he’s going to offer so figured I would ask here! He obviously has a packed shop already so that will help with more details as well but I really want him to make a deal with me so that I can do this .

I ideally would only need 1 Bay or possibly 2 tops.

Just get everything in writing. Don't let friendship get in the way. You can find all the legal resources online, if needed, like a sublease agreement. Good luck.

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