Selling Services at your Self Serve

[Jeff_L]

I was approached the other day by a gentleman who owns a local carpet cleaning company. Not only does he do houses and commercial work, but he also does car interiors. He proposed letting him use my lot to promote his work and offer his services to car wash customers at my Self Serve location. He threw out some options like a rental fee or a % of his business for use of my space.

I don't have a ton of space and wouldn't have a way to count the business he does do for my cameras don't reach out to where I'd have him set up in the front of the lot. I was thinking of letting him use my least used bay, that way he wouldn't be taking up space in the lot and I would be able to count the business by reviewing the cameras for the bay.

Let's assume there are ground rules set such as not being able to solicit the car wash customers, everything is kept clean and orderly, etc.. Also, any permits and liability are provided by his business. Would any of you enter into such an engagement? If so, what would you feel appropriate pricing would be? Of course the "right price" is whatever it's worth to me, but just curious on the thoughts of others. I was thinking $20 day to rent the bay plus 10% of his gross revenue.

Do any of you think this would take away from my car wash or prevent customers from coming in for fear of seeing an ad hoc business set up?

 

[pitzerwm]

You would want to verify that he is licensed, insured (have him add you to his policy) and bonded, and you create a contract that spells out every possible problem and you have an immediate exit clause, at least for the first 90 days in case he is a fruitcake.

 

[Waxman]

I'm against any business related to car cleaning that I am not in control of. Too many things can go wrong even when I am in control.

 

[Jeff_L]

Bill - I agree with you, sounds like I better contact my attorney for this arrangement.

Waxman - I see where you are coming from and agree that I like to control everything. Which is why I don't have a partner in the business. However, what this other business is offering is complimentary to what I offer. Also, it's an unattended wash (except for all the cameras), so having someone there more often is intriguing.

 

[pitzerwm]

I don't know that I would waste time with an attorney. Just think it through, create the contract then take it to an attorney to see if there is something really wrong. Most attorneys, write vague stuff so they will have a job down the road dealing with the vagueness.

I doubt if I would mess with a percentage of his gross. IMO a good way to create problems. Pick a number that will compensate you for the loss of the bay. You want him to succeed. You can use your cameras to see what he is doing. Give yourself room to raise the fee if you can see that he is making a killing.

But, in the end if he is doing good he is more likely to protect you and himself.