Home
>
Small Business
>
Truck Detailing Shop Business Case Study

Truck Detailing Shop Business Case Study

As an entrepreneur you can learn a lot by following the real life case studies of other entrepreneurs. Often the text books in school leave out the beginning details and the juicy part of how it all comes together and is created out of nothing but a thought. I have an interesting case study for you and it explains how my company got into the truck detailing business. This is a funny story.

We had a franchisee in Colorado who had a contract to wash for several Used Truck Dealers and cleaned all the trucks for sale. He owned one of our Fleet Truck Washing Franchises; www.truckwashguy.com . The truck sales company offered us work to detail trucks because his detailers could not keep up the volume. Trucking and used truck sales in 98 was up 22% and up 23% in 99. The companies servicing these companies had labor problems, which we have figured out already. In this market we must compete like barracudas for good labor. We took the business offered and immediately were able to improve quality and handle their overflow. Soon we were detailing and washing everything. Similar Stories have happened in Nashville, and OH with our expanding tuck washing services in those markets. We started a full-service refurbishing center charging $1,000.00 to de-identify, re-stripe and detail Semi trailers and we started detailing trucks for $500.00 each. Soon we had 2-3 per day and trailers too. First month the business did $23,000.00 at the Truck Detail Shop. Second month same thing.

http://www.truckwashguy.com/testmarket.shtml

http://www.truckwashguy.com/truckdet ail.shtml

http://www.truckwashguy.com/dealerships.shtml

Then we had to figure out how to keep margins up with the mobile truck washing, with no shop, no lease , no building. But our margins were under 30%. Totally frustrated and trying to convert labor to commission instead of salary or hourly helped, but it was not good enough. Our franchisees brought in a Manager of a Detail Shop in another area for 8 years and we got it u-p to 35%. We did not have time to perfect our prototype before a few nationwide companies asked us to do all their offices. So we began other offices before we had our prototype is perfected.

It is a good business, but we are not satisfied and we must push forward until we perfect it. Our customers are driving us forward and we need to franchise just to keep up with the new business. We need to work on this business it is not ready yet. So we will offer it to current team members who understand that and hopefully we can make this work. Meanwhile there is tons of work out there and we do not want to miss our share of it. In OH we detailed ALL the trucks for the Penske Challenge 2000. They requested us by name. We were ready in January 2001 to franchise this and roll out the First Truck Detailing franchise ever created. Our biggest problem then was there is no way to know what this business will do in different areas, due labor differences, going price in that market, and Independent competition. We only know there is work for our team. We will not sell a franchise until we fill confident that it is a good business. Every trucking company, independent trucker, trailer leasing company would be our customer. Paint frames, polish tanks, buff, wax, interior detailing of trucks. We had to please our customer so we started this company. It has been a challenge to us; we are working through this.

Sometimes it is the trial and tribulations along the way, which makes the victory so sweet when it is achieved. For our team it is about winning. But in franchising, everyone must win. So far in this potential franchise system The Customer is Winning, WashGuy.com wins by using this service as a chance to strengthen our market dominance in the trucking industry. Now all we must do is make sure the franchisee can win. If and when we do that we will be ready to go for it.

It is a damn good thing we did not franchise in 2001, because the used truck market fell to pieces and we were down to 1-2 details per used truck dealer in Denver per week. Some weeks nothing, so we closed the shop. Trucking is back up to speed but with high fuel prices used trucks are not as hot a new ones. One thing this case study shows is that even if you have the world by the balls you still must deal in reality and be ready for a market sector to fall out. We were smart to have waited and luckily we did. In franchising having 10 or 12 franchisees all brand new out there and have the market change on you could wind you up in lawsuits and failed franchisees.

Examples of markets changing recently are some of the fast food type franchises with fattening foods when everyone changed to low carb diets. Krispy Kreme got creamed, Schlotski's deli filed bankruptsy and all the fast food franchise took a hit for a couple of intense quarters as the Atkins Diet and South Beach Diet books rocked the best seller list.

I do not care how smart you are, what business degree you have or where your family name came from. You must pay attention to the market sector, economic factors and above all watch the details; even in the detailing business. Think on this. I hope you have enjoyed today's real life case study.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs

Villa Park executive chauffeured services .. Lockport Chicago limo O’Hare

In The News:

If not properly managed, Windows Defender Application Control, a security feature with Windows, could be a potential security vulnerability.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

FlashBot Arm, a semi-humanoid robot, acts more like a human than traditional robots, and you may see it working at a restaurant, healthcare center or hotel.

There are multiple ways to find your missing Android phone after it goes missing. One method involves using a smartwatch to ping your phone.

The NeuroOne OneRF Ablation System is a new device with FDA-cleared technology designed for both diagnosing and treating neurological disorders in one procedure.

The CyberGuy provides tips to protect yourself from criminals who use various methods to make unauthorized transactions using your account information.

New drone technology maps land and water with stunning accuracy, giving researchers and conservationists a new way to understand our planet.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

X hit with massive data breach with 200 million records leaked, including emails. Tech expert Kurt “CyberGuy" Knutsson offers seven tips to help protect yourself.

Atlas robot by Boston Dynamics amazes tech expert Kurt “CyberGuy" Knutsson with its breakdancing moves.

Tech expert Kurt “CyberGuy" Knutsson talks about how Google kept Android SafetyCore details quiet until it scanned users' photos.

Hydrogen trucks debut in Georgia, sparking debates on costs and green freight gains. Kurt “CyberGuy" Knutsson comments on this promising chapter in green logistics evolution.

Tech expert Kurt “CyberGuy" Knutsson says ChatGPT learns from chats, but you should avoid sharing sensitive information to protect your privacy.

Beyond Aero's BYA-1: Hydrogen-electric jet with zero emissions, reduced costs, 2030 launch. Kurt “CyberGuy" Knutsson discusses a potential game changer in the evolution of air travel.

Kurt "CyberGuy" Knutsson explains how you can creatively repurpose your old unused Android devices, which are full of potential and hidden value.

Mech the super-humanoid robot can lift up to 132 pounds and is designed to tackle stressful and repetitive tasks that often lead to workplace injuries.

Double-clicking is something we all do, often without giving it a second thought. But it could be giving hackers permission to do something dangerous.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Kurt the CyberGuy offers some of his easy expert tips to free up storage space on your Android if your device is running short on storage.

You can reset your internet router remotely if you're not home when your power goes out. Kurt "CyberGuy" Knutsson explains how this can be done.

The EO Canopy is a self-sustaining, solar-powered camping platform designed to provide all the comforts of home while completely off the grid.

Experts say hackers who used to focus on Windows operating systems are increasingly targeting Apple IDs as part of a new phishing campaign.

Unitree, a Chinese robotics company that developed a backflipping robot, has now introduced a humanoid robot capable of doing a side flip.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

According to the FBI, cybercriminals are sending extortion letters, threatening to release victims' sensitive information unless a ransom is paid.

Truck Detailing Shop Business Case Study

Small Business