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

bathroom cleaning service Lincolnshire ..

In The News:

The Omoway Omo X features a modular design, obstacle detection and emergency braking, and can drive itself to charging stations, signaling the future of smart urban mobility.

PillTrek, a tiny wireless smart capsule created by Caltech, provides real-time gut health data by detecting electrolytes, metabolites, glucose, hormones, pH levels and temperature.

Learn to spot fake bank text messages with five warning signs of Chase phishing scams, including suspicious links and urgent deadlines designed to steal your account information.

Robot coyotes built on motorized cars reaching 20 mph are being deployed at military airfields as an innovative solution to wildlife threats to aircraft safety.

Explore Google Drive's strengths and weaknesses as a backup solution, including its encryption security, privacy concerns and comparison to dedicated backup tools.

As environmental challenges grow, underwater habitats gain momentum with DEEP's Vanguard, supporting short missions and Sentinel designed for 28-day stays at depth.

The new Urban Eyes safety vest features dual cameras, reflective panels and a wireless remote to deter harassers and provide peace of mind for outdoor workouts.

The $200 billion data broker industry tracks your personal details across websites, posing privacy risks that can be mitigated through data removal services.

UCC Holding has teamed up with COBOD to create desert-inspired, 3D-printed schools in Qatar, featuring dune-like wavy walls impossible with conventional construction.

Darkling beetles equipped with microchip backpacks can be guided through disaster areas using electrical signals, offering a biological solution for search and rescue.

Scammers use number porting to take control of outdated landlines still connected to financial accounts, bypassing two-factor authentication to steal funds while avoiding detection.

Twitter co-founder Jack Dorsey developed Bitchat, a privacy-focused messaging app that works offline via Bluetooth without requiring email, phone numbers or personal data.

Google is making a push to ensure its AI, Gemini, is tightly integrated with Android systems by granting it access to core apps like WhatsApp, Messages, and Phone.

A new green energy system is set to change how we capture clean power, and it all starts with the ocean. French startup Seaturns has designed technology that taps into the natural motion of the sea.

Cybersecurity researchers are warning that hackers have started exploiting flaws in chatbots to carry out AI phishing attacks.

Google has just made it easier than ever to regain control of your inbox with Gmail's new Manage Subscriptions tool.

Despite the benefits, residential power saver programs come with several potential drawbacks and concerns that have been raised by both customers and experts.

The Blackdot AI tattoo machine is quiet. It's steady. And according to early users, it hurts a lot less.

Attackers have started to exploit the very signals that users assume will keep them safe when it comes to add-ons to improve productivity or entertainment.

Located on Cerro Pachón in Chile, the world's most powerful digital camera is set to transform how we see the universe.

The innovative DQ Tower stands 28 feet tall with 420 square feet of living space, featuring floor-to-ceiling windows and premium amenities in a prefabricated design.

A new mmWave imaging system allows warehouse robots to scan and create 3D models of objects inside sealed containers, potentially revolutionizing shipping processes.

Family fraud endangers seniors when relatives exploit their trust, but removing personal data online and monitoring identity can prevent financial harm to aging parents.

A study analyzing 500,000 customer service interactions shows chatbots struggle with complex issues while human agents excel at matching customer communication styles.

Aigen's Element robot uses solar power and AI to provide farmers with a sustainable alternative to herbicides, working efficiently in cotton and soy fields.

Truck Detailing Shop Business Case Study

Small Business