Okay, you have a mobile car wash business and you want to increase your revenue generation by adding some car dealer lot wash contracts. That makes sense because car dealers have a lot of cars and they need to be cleaned in order to sell them; nobody wants to buy a dirty car, right? Sure, your next question is what price can you charge and still make money. Not long ago, a successful car wash entrepreneur asked me about this;
“I noticed in one of your posts [articles] He suggested $ .85 for twice a week. Wow, can you do for that without having the contract to itemize as well? “
He was referring, of course, to the synergy gained by detailing for car dealerships and also by maintaining wash contracts as a combined service, which is the favored strategy for mobile car retailers and mobile car wash companies. But what if you only had the batch washing contract and not the detailed contract? Does it still make any sense?
Well yeah, in fact, we had a lot of accounts that were only wash accounts between 65- $ .85 per car, where we didn’t have the itemized contract for the car dealership yet. For example, at the Sacramento Auto Mall, all the car parks are located on the street that looks like a giant circle, and we would have crews going in different directions on that street, and we would never give up. By the time we were done with one side of the street, it was time to start over, they just looked every day all day.
Some of the other dealers wanted us to leave the lot at 10AM so they could sell cars, which makes winter difficult due to icing when you put water on cars in many areas.
Detailed contracts for car dealerships are great when the economy is good, but you need to understand that car dealers are very slow to pay and you don’t want to become a bank where you serve them and they are paying you. three months. That just costs you a lot of cash flow and all that labor until you get your money.
Remember that in a service business “cash flow” is king, everything else is just talking. It is better that you go find something else to wash instead of letting some company stop you on payments and accounts receivable. And remember that God made dirt on the first day, and that takes over, so you should be able to find something to wash other than just car lots.
It seems that the mobile car wash entrepreneur agrees and is also thinking here. We used to think of car lots as a hectic job, keeping our teams busy and thus making money, but it wasn’t our best profit center. Consider all of this.