Chemical Expense as a % of Gross Detail Sales

[Waxman]

What is your chemical expense for detailing as a %age of gross sales???

I'm checking prices lately, due to rising costs of seemingly everything.

Thanks!

 

[buda]

CHEMICAL and SUPPLY COSTS

On the operating proforma we give to customers we use 5% as a percentage of gross sales for both chemicals and supplies.

Also, you can use $8 to $10 for chemicals for a complete detail as a guide.

Regards
Buda

 

[smokun]

Balance Your Analysis

It's wise to temper your assessment with the offsetting impact of time-savings.

For example, when surface clay came into the industry, it was costly, but it saved a huge amount of time in the detailing process. So, in fact, it provided savings in the most costly component of the business; labor.

When analyzing cost, be sure to develop a standard overhead for supplies. That means creating an average for light, average, and heavy bundles that includes items often overlooked in a cost analysis, such as laundry overhead, replacement of consumables such as glass cleaner, solvent, detail brushes, etc. Yes, it can be carried to extremes, which is why averaging makes sense. Spoilage and understanding the "life" of various products that seemingly wind up being wasted are also a consideration. Mixing up a solution of shampoo, when not properly gauged, often results in good product being discarded... instead of retained (if possible) also are part of the just-in-time discipline of a frugal detailing operation. Prudently reducing costs by gradually eliminating waste are the hallmark of J-I-T processing.

Probably more than you wanted to know, but nevertheless worthy of some scrutiny that ultimately saves on overall costs.

-Steve

 

[Waxman]

Thank you both! This is exactly the kind of information I am looking for.

I realize that operational efficiencies and waste reduction are key in lowering expenses.

I am attempting to do all of these.