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Originating in Southern California, USA, detailing has spread across the USA and beyond and has established itself as more than a passing fad. Today, there are more than 50,000 detailers in operation across the USA and are cleaning up with average annual sales of $100,000.Detailing does not include body work, painting, mechanical repair or upholstery work. It involves bringing the car to its maximum appearance potential through waxing and polishing the exterior paint, chrome, and wheels and thoroughly cleaning the seats and upholstery. Some detailers offer rust-proofing and undercoating services in addition to paint sealant and interior sealant applications. And some even provide vinyl or convertible top repairs, although many detailers have found that it’s more profitable to hand this work over to other tradesmen. This little known but vital part of the huge automobile aftermarket is a “sleeper” that can be incredibly profitable. On a volume basis, detailers “prep” new and trade-in used cars for dealers. But the highest profits per car come from performing high-quality, cosmetic maintenance on automobiles owned by proud private parties. Most auto detailers are craftsmen, not businessmen. Few promote their service aggressively; many are in out-of-the-way locations such as alley garages and parking lots. Not many realize the true profit potential. Even under these circumstances, average gross profits in this loosely-knit industry are $150,000, with pretax net profits in the $95,000 range. This represents an average of 37 to 41 percent of total sales. These lucrative margins result from low operating expenses for shoestring operations. |
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