How do I check which detailing packages actually make money for the studio?
Take each package and work out the labour hours, products used and sales count over a recent stretch of weeks. Compare the money brought in with the time and materials spent. Packages that sell often but take long, or use costly products, may earn less than they seem to.
Start with the menu and the sales records. List each package, how many were sold in a recent period, and how they were priced. Then ask how long each one takes in practice, not in theory. Ask the detailers to time a few jobs, or compare start and finish times in the booking records, because the quoted time is often shorter than the real one.
Next, count the materials. Ceramic coatings, polishes, pads and chemicals add up, and so does any waste. Ask how product use is tracked, and whether the owner reorders by feel or by records. Add the labour, including who does the job: an owner who works alone may not charge for their own time.
Then compare. For each package, set the sales against labour and materials, and look at extras that ride along, such as discounts and free add-ons. Ask your accountant to help you build this view and compare it with the books. Do not rely on a verbal estimate. Finally, check demand: which packages draw repeat customers and which are loss-leaders that bring people in? Ask what the owner would drop, what they would raise, and why, and compare those answers with the figures you built yourself.
Key takeaways
- Time several jobs of each package rather than relying on quoted times.
- Track products used per package and include the labour of whoever does the work.
- Ask which packages bring repeat customers and which are only bait.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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