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Hey there, my husband just started doing detail for a guy who owns a shop. I feel like he is getting ripped off so i hope you can help. They call him an "independent contractor". he has a business licence, pays the guy garrage rent, buys all of his own chemicals and supplies, does all the and only makes 50% of the detail (between 50-75$ per car). It just seems like he is puting out an awful lot for the work he does. I just wanted some oppinions. Are we getting ripped or is this the going rate?
Seems like he is putting a lot into it to only get out 50% of each detail, but then again I am not in his situation. If I were, I would probably be on the lookout for something better for myself. Maybe he could look at doing it outside of the guy's shop (maybe mobile).
What r u charging per car? and how u doing a day?
you should always set your price so you are making 70% profit IE: you charge $100 - $30 for supplies,labor and rent your profit should be $70
If it's a 50/50 deal the other guy should be splitting all expenses 50/50, Your husband is losing money by paying rent and purchasing supplies and THEN splitting the money, if anything he should split 50/50 after deducting his expenses rent, chemicals and supplies...etc
Independent Contractor is used by small businesses to avoid paying Workmen Comp Insurance, and other benefits,they will issue a 1099 Misc at the end of the year for independent contractors.
When I had my shop I used to pay the guys $50.00 a car for used car clean-ups and they where considered independent contractors. I supplied a tools,materials and the shop and that was 10 years ago. Sooo I would say he's getting used.
I am bethanyb's husband, first off thanks for the replies. This is how it is for me. Every car I do I get 50%, the lowest car detail is $150, highest I have done so far is $225. They take 50% off of that instantly, so I get $75 to $110 roughly per car I detail. Usually takes me 8-10 hours to do a full detail on the car inside and out. At the end of the month they take out $100 for rent and $50 for chemicals. So basicaly they seem to be making more money from me working there then I do. I was just curious if this was how it normaly works or if they are screwing me. And if I am getting screwed what do you guys think would be a good percentage to get to make this a good deal.
your getting screwed bad... i worked for a custom paint/ restoration shop and i made 75% of all the details i did... i purchased my own tools/ materials and just used thier shop/customer base so a 200 dollar detail id make 150 and theyd make 50 for letting me use thier space
*edit* i dont do this anymore as i this was a couple years ago around 2003-2005 when i was in high school now im a police officer and just do it on my days off for friends family any old clients i had from that shop your best bet would probably be to go mobile
I'd say that you need to start looking for a new arrangement very quickly. If you were only paying the $150 for rent and chemicals, that would be one thing. For them to take 50% of every detail is rediculous.
If you can read this, thank a teacher. If you can read this in English, thank a soldier.
The going rate for detailers pay in this area of Indiana, that I have experienced, is between $7.50 - $15.00 an hour. The difference being between experience and responsibilities. Dealerships seem to be on the lower end of the scale. I am not aware of any shops that require their employees to pay rent or supplies fees. However, IMO your situation does seem to be a very reasonable amount for both. If you were to start your own business at a different location your overhead would be much greater. Perhaps you could re-negotiate your wages as you gain experience and business.
Hope this helps.
Dave
Extreme Clean ~ Extreme Shine
"Do not hire a man who does your work for money, but him who does it for love of it." - Thoreau
I am bethanyb's husband, first off thanks for the replies. This is how it is for me. Every car I do I get 50%, the lowest car detail is $150, highest I have done so far is $225. They take 50% off of that instantly, so I get $75 to $110 roughly per car I detail. Usually takes me 8-10 hours to do a full detail on the car inside and out. At the end of the month they take out $100 for rent and $50 for chemicals. So basicaly they seem to be making more money from me working there then I do. I was just curious if this was how it normaly works or if they are screwing me. And if I am getting screwed what do you guys think would be a good percentage to get to make this a good deal.
Don't worry so much about what he's making. You have to look at what your making. $75.00 for 8 hours of work is horrible. That's roughly $9. an hour.
First of all a $150.00 detail shouldn't take you any longer than 4 hours tops. I charge $50. per hour so I would spend 3 hours for $150.00.
He is providing a place to work and I'm assuming he provides the customers as well. That has value especially if your not good at drumming up business.
You still need to be making a minimum of $30. per hour to make it worth your time to do this. Otherwise your better off going to work for a dealership. I have seen guys make $20. per hour and get benefits as an employee.
From the sounds of it at 8 hours a full detail you are only walking away with $90 a day on the average...and paying taxes on that at the end of the year with a 1099....
I hate to say this but you are working for nothing to speak of....you could go mobile or work from your home if you have a garage and do better than that in a heart beat...chemicals and start-up costs, shop vac, electrical chords, towels, etc are not that much.
I see some great advice from the other members here ...I would do some soul searching if it where me.
I live in Oregon, the minimum wage here is $7.80 an hour. Here is the normal order for detailing a car I do from prep to finish. I wash the exterior and clean the engine, that usually take about an hour to an hour and a half. Then I have to remove tar, any overspray, paint the wheel wells, clay, sometimes cut and buff, and wax, all that takes from 2 to 3 hours, then I have to shampoo the carpets clean the seats and all the plastics and depending on the car that takes 3 to 4 hours. The shop I am in is considered the best in town with the highest standard for cleaning. So I have to be VERY thorough. I can get a reasonably clean car done in 6 hours, but I rarely get cars that are not really trashed. The owner and his wife take the easier cars.
I forgot the other question, about how many cars I get. We detail most of the cars for all the big car dealerships. We only do 9-10 cars for the everyday Joe each week. I can usually do 4-5 cars a week if I dont get the big trashed SUV.
umm...yeah...you need to find you a new employment situation. That is definately not working out that great from what you are saying. Even on your BEST week, you would only be making ~$500 BEFORE taxes. That's not so hot...
Troy Armstrong
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