Do dealer contracts make a mobile detailing business steadier?

Dealer work is attractive because it repeats. A dealership that sends cars every week fills the van without advertising. But steady volume is not the same as steady profit, so start by reading the agreements. Look at how long each lasts, how either side can end it, what prices are fixed, and who decides what the job requires.

Then look at the relationship behind the paper. Who at the dealership approves the work? If that person moves on, will the arrangement survive? Ask the seller how past changes of manager played out, and whether any dealer has stopped using the business. Check the money. Compare dealer prices with retail prices for the same work, how quickly dealers pay, and whether chemicals, time and travel make some jobs less profitable than they look. Ask how much of the total revenue depends on the largest dealer, and whether payment ever arrives late or in dispute. Finally, ask whether the contracts can be assigned to a buyer, and whether any dealer has asked for lower prices lately. Ask to speak with at least one dealer contact. Your lawyer can read those terms, and your accountant can help you see how much of the income is genuinely recurring.

Key takeaways

• Read how long each dealer agreement lasts and how either side can end it.
• Compare dealer margins and payment speed with retail jobs.
• Ask how much income rests on the largest dealer and one contact.