(Add to Favorites | View All Articles | Resource Directory)
|
|
|
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/truckdetail.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
MORE RESOURCES: News provided by Yahoo! News and Google News Small Business Administration 's lending points to optimism Small biz loan demand up, Federal Reserve says - CNNMoney Small business lags on computer security Video: Are small business credit cards worth it? Oh baby! Small biz scores huge Angry Birds deal - CNN Summit Holds Promise for Area Small Businesses Wilmington council considers small biz help along with ballpark - WWAY NewsChannel 3 Business calendar |
|
|
|
RELATED ARTICLES
Pressure Washing Business and Post Fire Cleanups Many have not experienced a fire up close. One year about 15 years ago I almost lost my house as did our neighbors to a wild fire. Is starting a house-cleaning business as easy as "They" say? Are you tired yet of all the books out there telling you how easy it is to start a house cleaning business? I'm not inferring that all their information is bad, but let's be honest about how "easy" it really is.There's a dirty little secret hanging over the cleaning trade that nobody talks about, but every professional cleaner runs into. The most important part of your introduction - your first words "What do you do?" It just might be one of the most asked questions there is, at least here in America.Are you prepared to answer this question and make a positive impression for your business at various networking (and social) events you attend?How about this one. The Key to Small Business Growth? Buyer Alignment Unfortunately for all buyers, each selling organization and their individual sales professionals are unique and often require immense amounts of energy to build a relationship with. This keeps buyers guessing, which in turn keeps the sales organization guessing. "If You Build It, They Will Come" and ten other deadly marketing mistakes Increase your profit potential by identifying - and avoiding - these 11 marketing mistakes.MONSTROUS Marketing Mistake Number 1: Sinking a Fortune Into an Unproven ProductIs your business idea built on market research or a hunch?Entrepreneurs often fall in love with their products or services before they determine if there's a real market, and they throw fistfuls of money into the venture. 11 Things Small Business Owners Can Learn From Rudolph The Red-Nosed Reindeer 1. Everyone Makes A Difference - Despite not letting him play in their games, the other reindeer came to understand Rudolph's importance. Employee Monitoring - Business Risks For Employers And How To Avoid Them E-mail and Internet use are integral parts of the typical worker's daily routine. Because of its speed and overall convenience, e-mail has replaced the interoffice memorandum as the preferred method of communication. Pressure Washing at Golf Courses There are many potential niches for pressure washing companies that often go unchecked. Some are quite lucrative and are worth investigation if you own a pressure washing business. How To Get Slightly Famous in Print Early in my career, I wrote an article for a small business magazine about self-publishing as a marketing tool for businesses. Because I specialize in helping businesses get into print, the article only took a few hours to write. Outsourcing your PR may be more affordable than you think Small businesses need Public Relations, possibly more than large corporations, to put them on the map. If you consider that time is money, however, you may find that handling your own public relations is a daunting task and not necessarily worth the monetary savings. What does business success look like? When you hear the word "success" does it bring on visions of fame and fortune for your business? Have you clarified and articulated what that success will look like for your business and how you'll know when you've achieved it?What's the definition of success for your business? Most small businesses are selling their time and expertise to deliver a service to their clients. So the question I want you to reflect upon is this? "What does success look like?"Now before you start answering with responses like, "I'll do $X Million in sales this year. Tips on Setting Up Your Small Business Bank Account One of the first things you will need to set up is a bank account. We recommend a large bank because:They have locations everywhereThey have longer hoursThey will probably buy out your local community bank anywayIf you are an owner/operator of a small business, you will appreciate having a Debit or ATM card for your business. Boston Suburban areas a good choice to run a business BioTechs even with the latest news had shed over 1000 jobs two years ago, as it was reported by The Financial Times, WSJ, and Bloomberg that only 17 of the nearly 1300 BioTech firms were actually profitable. In 2002 the number of jobs were in the 30,000 range in Biotech. Business Owner--Educate Thyself! Remember the training programs, seminars, and workshops you had to attend when you were on the corporate side of the table? You were expected to complete course after course for professional development and skill enhancement. Well, where do you get your training now that you are on your own? Do you learn from your clients? Are they the best teachers? What about your competitors?Here are six ways to educate yourself and keep your professional edge: Learn from your clients. Internships: Good for Everyone Many job applicants want a job but often do not have the prerequisite experience, experience that they can only have by getting a job. Managers who take the chance and hire them may have to spend considerable time and effort training them, only to find the new recruits unsuitable or unhappy with the jobs and looking for employment elsewhere. Hire a Virtual Assistant for those tasks you don't have time for Are you a home or small business owner and you're Webmaster, receptionist, and assistant all in one, but you've found that there isn't enough time in the day to complete all of these administrative tasks? A "Virtual Assistant" could be your answer.In today's tough economical times it's hard to think of hiring someone else to assist you, but it may be more cost effective than you think. Starting An E-Commerce Business: Baby Steps Starting your own e-commerce business can be quite the adventure. There is nothing wrong with falling head over heels in love with your ideas and plans and becoming overly excited, but always remember, feet first. Wichita Kansas is a Great Place to Run a Business We love Wichita because it has great all round weather except during ice storms and the once in a while Tornado threat, which could carry away you best workers to meet Dorothy. 225 sunny days a year snow about 5 days a year. Do You Need Accounting Software for Your Small Business? If you're anything like me then you dislike with a vengeance doing your accounts and taxes.So how can you make this process easier, less painful and cut your accountancy fees?Well buying an accounting software package is one way. Taking the mystery out of Small Business Software The start of a new year is a time for a clean start. Resolutions are made, you clear your files of last year's paperwork, and you swear you are going to start the year off keeping your financial house in order.
|
| Home | Site Map | Privacy Statement | More Articles |
| © 2006 |