How much should I pay for a location?

[dnkies]

Hey Guys,

I've been researching the idea of putting up a tent location in my town and wanted to know what you all have had to pay the property/ business owner for that right?

Do you offer a monthly rent or give them a flat fee from each repair you perform?

I know many of you think tents are not the way to go, but take a look at Deco up in Canada....they seem to do pretty well and have also brought more customer awareness to their areas. I believe if you do it right and do it professionally, a tent location is a great idea. Please let me know what you guys think about a reasonable rent...

Thanks in advance,

Dan

[ministry4u]

I saw on another forum people were suggesting between $25-$50/day. Cheaper arrangements were being made for people wh had more frequency to a certain location.

[timclavin]

Hello everyone,

This is my first post as I am still researching this business.

I too feel that a stationary tent or kiosk is the best way to approach this business. It allows the customer to have a repair done without the hassle of making an appointment or waiting for someone. The one tent in my area, which is at a shopping mall parking lot, seems to get steady business everyday. I talked to one of the techs and he said he thought they paid $1300 a month for the location. That seems a little high to me.

Any comments about tents or kiosks would be appreciated.

Tim

[screenman]

$1300 would be expensive if you were only doing $2000 per month, put another 0 on the end and $1300 would be cheap.

[thechipdoctor]

I agree with screenman, I think it depends on the number of potential opportunities that you might get.

[Roo]

I saw on another forum people were suggesting between $25-$50/day. Cheaper arrangements were being made for people wh had more frequency to a certain location.

$25-$50 sounds ridicuolously high for a space in a parking lot that the owner is getting absolutely nothing for otherwise.

[ctmandu1]

I saw on another forum people were suggesting between $25-$50/day.

to me that would be good, i would be happy paying that.

[dnkies]

Hey Guys,

I picked up a car wash location (full service car wash) and the owner agreed to a $5 per sale fee. He said he had been offered a straight 20 cents per car that drove through his wash by another WSR business....BUT, they were one of the notorious high pressure sales outfits and he knew he would lose customers because of their tactics. He stated that he is happy with my low pressure and quality workmanship approach AND more importantly, his customers that have used my services have given me excellent reviews and told him they are glad to have me there.

I have thought about the 20 cents per car fee and I think I am probably landing about 1 in 25 cars that go through the car wash.... which equals $5 for every 25 cars for the owner (the same as 20 cents per car). This also means although the owner is getting the same amount of money to have me at his wash, his customers are happier because I don't have to sell the repairs as aggressively as one of those high pressure outfits. I think the high pressure guys are coached to sell sell sell no matter how the potential customer feels...because they have to cover their costs for the day.

The owner of the wash told me it just isn't worth losing customers to him because if he makes $25 off the high pressure guys, that means of those 125 cars that came through his wash, he might have lost 20-30 customers because they wont come back because they wont want to deal with the high pressure tactics....That really made me feel good because I think that if you stick to a low key and low pressure approach, everyone benefits...and I feel like it gives our profession and better image all the way around.

[glassyeyed]

Well just like in all things it depends on individual local areas , are they saturated with vendors of all kinds all hustling for these spaces , the potential for success at a given local whether proven or speculatively ......yada yada and so on but Ive had 50$ a week spaces , 10 a day spaces and free ones with varying success from each.
I try to approach with say a week or 2 trial with a percentage pay back so to get a working chance to judge the potentiality of a spot .... kinda get the lay of the land if you will generally it doesnt take any longer than that to get a decent scope ............. its a gamble as all of it is but eh! nothin ventured nothin gained .

[ctmandu1]

I was talking to a mall and they want $700 a month but also do advertising for you with press release. Worked out to be 15% of gross from what the guy there makes. So I am on the list to go in if he ever closes shop. So $700+ sounds like a lot but if it is only 15% of gross then not to bad. And he isn't there every day and has or had about 30 locations I was told threw Calif. Oregon and wash.