Intro

[ray6]

Introductions are in order-
My name is Ray and I, along with 4 others are forming a new company to supply dealers and independent contractors with supplies and materials for headlight restoration. I won't name the company or any contact information to stay within the forum rules. In any case we are still in the beta stage and won't be fully functional until next year.

However, I would like to share some of the information we have gathered over the last 18 months.

After extensive research and market analysis, we formed a business model to build our company. We see the market potential as virtually wide open at this time, with approx. 60 million vehicles classified as having degraded headlights. Not all of these are candidates for repair. AAA says 7 out of 10. We say 3 out of 10 are considered severe and a potential safety hazard.

The current market is what we call missionary, since many potential customers are unaware that headlights can be repaired, or what it would cost to replace them. In other words, you have to educate the customer first.

The procedure we have developed is very similar to what you already know and use with a few extra steps. On some repairs, steps are skipped depending on the condition of the headlight.

1. Clean and if required, mask. When we mask, we use poly on a roll over the entire front end. We secure it with magnets (or tape on plastic cars) then cut out holes for the headlight and then mask.

2. Test for stripper compatability (make sure the polycarbonate will work with the stripper. Most will, but not all.)

3. Chemically strip, or sand with 1 5/8, 2, or 3" disks depending on the headlight size and configuration. 600, 1200 and sometimes 1800 grit. We use a sanding butter to minimize fling but only if the stripper was used. If the polycarbonate compound doesn't like the stripper, it won't like the sanding butter. Otherwise we use water.

4. Clean up edges with hand sanding with each grit.

5. Lightly hand sand with 2000 to 3000 grit. This only takes a minute and provides good tooth for the UV/Hardcoat.

6. Clean with isopropyl alcohol wipe 2 or 3 times. Most important.

7. Apply UV/Hardcoat using supplied applicator or lint free wipe folded (trowel method.)

8. Wait 5 to 10 minutes to dry.

NOTES:
In cold weather, we preheat the ampoule of UV/Hardcoat. We also turn on headlights 1 or 2 minutes before applying to heat the headlight.

We have found it easier to apply UV/Hardcoat over a sanded but unpolished surface than to polish. It's quicker and less messy.

Reading the comments on this forum, we see much about the procedure but little about the business model. If anyone out there is interested in our business model or how to measure and improve your income, ask and I will post more.

Regards

Ray

[kenb81]

By all means post more

[Brent Deines]

Ray,

I can tell you for certain that the majority of people who fail to do well in either the windshield repair business or the headlight restoration business, do so because of a flawed business model rather than because of their inability to perform the repairs successfully.

If you are willing to share more information about your business model I'm sure many, many, headlight restoration forum members will benefit and be very appreciative of your generosity.

When Delta Kits started selling headlight restoration equipment last year we frankly underestimated the market for this service. We have not even begun a serious marketing campaign for Delta Kits headlight restoration products yet, and already the demand for high quality equipment and supplies is quite significant. The current headlight restoration market reminds me very much of the windshield repair market 15-20 years ago, when the average consumer did not even know such a service existed. I agree with you, the market is wide open.

It sounds like you are on the right track. The best of luck to you on your new venture.

[ray6]

Thanks, Brent for your kind words-
It seems that most HLR (headlight restorers) get hung up on the mechanical side of the equation. EG: Which is better, product A or B?

What they should be asking is which product gives them the biggest bang for the buck? This simply means which will give you the highest quality for the lowest investment?

The investment means both the cost of product (minor) and more importantly, your labor (major).

If you look at all the systems and products out there, probably any of them will give you some improvement, but at what cost?

Early on in our venture, we evaluated most major products on the market including some heavy hitters such as 3M and Permatex. As this market matures, there will be many more.

Basically, the good ones all do the same thing. Remove the damaged UV protection coating and replace it with a new protective coating. The other type does not replace the coating but polishes the lens to make it look good. How long this lasts is a function of headlight maintenance (customer waxing) and UV/acid rain exposure.

The other thing we discovered is that most products are sold as one size fits all. One procedure, one set of solutions, one size of sanding disks, one sander, etc.

On the customer base side, we learned early on that headlight restoration varies tremendously based on the customer's expectations, headlight damage, configuration, size, willingness to pay, etc.


So at this point we were able to get an idea of what we wanted to offer. Basically, we want to supply materials, procedures and training so that HLRs could provide the bigest bang for the buck to most any customer at any quality level.

At the high end, you have retail. Your customers will pay well, but you better do an excellent job.

At the bottom of the list is the buy here, pay here lots. These customers want it all for very little.

Between the two are new and used auto dealers, auto detailers, government fleets, cab companies, business fleets, trucks, police and emergency vehicles, and on and on.

Our belief is that all these markets are valid markets, but require different levels of service and different pricing structures.

As far as our business model, we have invented an HLR we call Sparky, and no, I don't remember why we call him Sparky.

Anyway, Sparky works in Silicon Valley in California and only restores headlights. This is an expensive market due to the high cost of living. Sparky's fully burdened cost (wages, insurance, vehicle costs, benefits, etc.) is set at $85 per hour. This is par with most skilled mobile service employees. This may sound high to you, but if you factor in all the costs of running your business on a professional level, this rate is not unusual.

O.K., so since Sparky needs to generate $85 per hour, or whatever you set as your rate, the first concern is how much time is spent on generating revenue vs. dead time (travel time, gas, maintenance, breaks, errands, etc.)

This is where you need to do some soul searching. If Sparky spends most of his time at dealerships charging an average of $40 per restore but no travel time, but his brother gets 80 retail but must drive to the customer (or wait for the customer to stop by) and spend time educating the customer, who is making more?

The biggest mistake we see many HLRs make is overlooking their greatest expense: labor. Specifically, their labor. If you look at hand sanding vs. machine sanding, hand sanding would eliminate an investment of 100 to 300 dollars, but increase your labor by 20 minutes per job. This means you would pay for the sander with only 10 to 30 jobs. After that, your true income would increase about $25 per job forever.

I have to go to a meeting (with our lawyer, more non-productive time) so I will add to this later.

One tip: If you are going to use photos of before and after, buy or borrow a polarizing filter and take pix with and without it. I think you'll find a great improvement. Also, some dealers are wary of photos. They're too easy to manipulate. An example headlight (half done/half original) is more effective, but at some point you may need to do a headlight to convince them.

Regards,

Ray

[GlassStarz]

Every market is different and there is no one size fits all solution

Having a plan is important and yes the markets Ray touched on are pretty much as he presents it. But regardless of your plan or your system you have to have the ability to sell it

Presentation is all important. Many good systems and plans get sold into markets that have potential and yet the person fails.
You have to be able to survey your market and find what fits for you and learn to sell it.
Its really pretty simple

[ray6]

To continue, the present market is vast. Some markets are better than others, of course, but I find it difficult to not be busy if you are putting out the effort.

Although we don't do retail per se, we do direct retail customers to one of our dealers. We also never miss an opportunity to promote the service. Yesturday I stopped at Starbuck's for coffee and just as I was leaving a taxi drove up. His headlights were pretty bad. So, I just started a conversation about HLR and pointed to our company car (2000 Dodge Caravan). The headlights look like new but are original. He told me that he owned his cab, but he and others have a co-op repair facility. He gave me the name of the head mechanic and his business card which listed the lot address. This may or may not turn out, but it cost nothing more than 2 minutes of my time.

We also believe that many customers should come from referrals of jobs you've done. It's a novel subject and people talk about it especially when they learn how much replacement headlights cost.

Anyway, back to the business model. Once you know what you need to earn you should evaluate your business just as if you were the boss sitting in an office and you hired someone to do the work. You know the figures. If you do it as an add on, try to break it down into two sets of figures; headlight work and other. Splt dead time by the same percentage.

Are you loosing or making money? Do you have too much business (raise prices or get help) or not enough? (Lower prices or increase sales).

Are you serving the right market? Are your expenses too high?

Then, to go even further, pretend you are the customer. Do you look professional? Do I believe what you say? Do you address those negative thoughts I have as a customer but won't asK? Make your pitch to friends. Find out what they think.

For wholesale, what's in it for the dealer? Will it help him or sell cars? Will it eliminate a safety liability issue? Can it be done quickly and quietly out of view of potential buyers?

All of these statements are opinions and should be taken for what it's worth. But keep these thoughts in mind. The market is huge and growing. Some people are going to make alot of money while saving customers even more money and increasing night driving safety.

Some HLRs are very successful, while others are thinking of quitting. The difference between the two probably has all to do with selling and marketing and little to do with the method or products they use.

Regards,

Ray

[chips1144]

Ray, This is all interesting stuff Ray, you are making perfect sense to me, this is good reading and would work for many different business plans, you are explaining it very well.

[GlassStarz]

Im a little unsure where you are going with this we all agree that Headlight Repair is a missed market and it is just starting to take off.
The purpose of this board is to allow others to share ideas and info to help them become a success. We certainly want to here how others do it and you have some good techniques here
Maybe its just me no reading things correct but you seem to think you have somehow intvented the only right way to do buisness in this field and are some sort of mesiah yes a buisness goal is needed in any buisness and yes plan your work work your plan is all important but the facts are each market is different and needs to be worked diferently and regardless of the plan you need the ability to work it and SELL.
You have a plan and want to share thats great but the facts are a bunch of people are making a good living doing this and they have been sharing ideas and success here for a long time
Maybe im a little suspicios and dont get me wrong your input here is great but I have sat thru more than one Amway presentation and have to wonder at what point do you ask folks to buy a franchise?

[ray6]

No, I don't think I am a mesiah or even an expert in this field. In fact, I have only been involved in it for about 18 months. My actual expertise is in training and video production. One of our team is a chemist. Another is a marketing expert.

I was asked to share our business model with the group, which I did. I don't say it is the best, I say it is what we developed based on the research we did in our local area. It may help others, it may not.

The expertise of our group is in startups and research. You can take it or leave it. If it helps, fine. If not, ignore it.

As far as selling you something, at some point we will be selling materials and training/marketing aids. When this will happen has not been set, but most likely early next year. We want to make sure our products are the best available and will sell well.

As stated in my posts, I believe the materials are secondary and have little to do with being successful. The ideas I'm sharing are not based on anyone's product. They simply state how we are planning on doing business and how some of what we do may be of help to others.

[Brent Deines]

Maybe it's just because I sell tools, but I take exception to all of you who say they really don't matter. If that were true everyone would by the $15 auto supply kits and we would have been out of business a long time ago.

Ask any good mechanic if his tools matter, or a surgeon if his equipment matters, or a race car driver if his car matters.

Even the best of tools are of little use in the hands of someone who doesn't know how to use them, or worse yet, has low expectations of himself or his tools, but even the best technicians cannot perform to the best of their ability if they do not have the right tools to work with.

Some people are able to succeed in business using inferior tools, and it is possible to succeed with few marketing skills, but their chances are greatly improved if they have high quality tools and good marketing skills!

I'm one of those guys that was not the best salesman in the world, nor was I a marketing expert when I got started in the windshield repair business. I am however a pretty fair windshield repair technician who believes in using the best tools I can get my hands on, and that has helped me build one of the most successful windshield repair supply businesses in the industry.

Delta Kits is just getting started in the headlight restoration supply business, but based on our sales so far, and virtually no marketing, I would say that the quality of our headlight restoration products is going to help us to grow pretty quickly in this area as well.