Detailing for Car Dealerships: How to Price, Propose and Deliver From Your Shop
Detailing for car dealerships means reconditioning used inventory and prepping cars for delivery at a volume price, with set turnaround times and monthly invoicing. Before you quote, price the work from your floor per bay hour, check that the hours fit your schedule and that your cash can wait 30 days to get paid. This guide shows the math, a one-page proposal, a simple SLA and how to start with a pilot.
- Price dealer work from the floor per bay hour: cost per bay hour ÷ (1 − fees), never below it.
- Example: 2.5-hour reconditioning with $25 in products has a floor of $186.86 and a 10%-margin price of about $206.
- Check capacity (Example: 20 cars × 2.5 h = 50 h, 31% of 160 h) and cash: 30-day invoices need a month of the contract in reserve.
- Keep any single customer under a ceiling you set (Example: 30% of monthly revenue).
- Start with a 3- to 5-car pilot, deliver a full report, then present a one-page proposal with an SLA.
Who buys detailing among dealers and fleets
Business customers bring volume and regularity. In return, they ask for turnaround times, a consistent standard and reports, and they pay later. Each type values something different:
| Customer | What they buy | What they value |
|---|---|---|
| New-car dealership | Used inventory reconditioning, showroom and delivery prep | Fast turnaround, records by stock number or VIN |
| Used-car dealer | Prep for listing photos and delivery | A predictable cost per car |
| Company with a fleet | Scheduled washes and interior cleaning | A fixed schedule, reports and one monthly invoice |
The person who decides is usually the used-car manager, the service manager, the fleet manager or purchasing. Find out who it is before your first visit.
The cars come to your shop
This guide is about a fixed-location shop. Dealer vehicles come to your bay and are serviced there, with your approved water and wastewater system in place. Do not accept a contract that requires washing on the dealer's lot or on a public road: the wash water would have no approved route to the sanitary sewer, and runoff to storm drains can violate the Clean Water Act and local ordinances.
Decide who moves the cars. If the dealer drops them off, the turnaround clock starts when the car arrives with the key and no personal items inside. If your team picks them up on public roads, insurance and driver records become part of the deal (see the legal section below).
Pricing dealer work from the floor per bay hour
Dealers almost always ask for a volume price. Your reference is the floor per bay hour: the price that covers products, your labor rate and the fixed cost of every hour the car occupies the bay, with no margin.
Cost per bay hour = products + (labor rate + fixed cost per hour) × time. Floor = cost ÷ (1 − fees). B2B price = cost × (1 + B2B margin) ÷ (1 − fees).
Example: labor rate $25/hour, fixed cost per hour $37.50 ($6,000 ÷ 160 productive hours), 3% card fees, used-car reconditioning with $25 in products and a 2.5-hour standard time.
| Item | Calculation | Result |
|---|---|---|
| Cost per bay hour | 25 + (25 + 37.50) × 2.5 | $181.25 |
| Floor (no margin) | 181.25 ÷ 0.97 | $186.86 |
| B2B price, 10% margin | 181.25 × 1.10 ÷ 0.97 | $205.54 → $206 |
| Menu price, 20% margin | 181.25 × 1.20 ÷ 0.97 | $224.23 |
| Contribution per bay hour at $206 | (206 × 0.97 − 25 − 62.50) ÷ 2.5 | $44.93/h |
The B2B price sits between the floor and the menu price, with a written rule, and it still covers the $37.50 fixed cost per hour. How to compute contribution per bay hour for your whole menu is in our guide on how to run a detailing shop.
Capacity, cash flow and concentration
A contract that looks good on price can still hurt the shop. Run three checks before you accept.
Capacity. Example: 20 cars a month × 2.5 hours = 50 bay hours, or 31% of 160 productive hours. Ask: do those hours fit without pushing out one-time customers with higher contribution per hour? Does the turnaround the dealer wants fit your blocks?
Cash flow. Average collection period = sum of (amount × days to collect) ÷ total revenue. Example: $10,280 collected at the time of service and $4,120 (20 × $206) collected in 30 days: (10,280 × 0 + 4,120 × 30) ÷ 14,400 = 123,600 ÷ 14,400 = 8.6 days. Before the contract it was close to zero, so you need cash on hand equal to about one month of the contract to get through the first cycle. Products, utilities and hours are paid today; the invoice is paid later.
Concentration. Set a ceiling on how much revenue one customer can represent. Example: a 30% ceiling; 4,120 ÷ 14,400 = 28.6%, close to it. A second contract of the same size with a different customer reduces risk better than doubling the volume with the first. Your monthly break-even target, with and without B2B work, is explained in our guide to the detailing shop break-even point.
The one-page dealer proposal
Keep it to one page. The buyer has to be able to justify it internally in a minute.
- Service: name, per the attached standard checklist.
- Estimated volume: vehicles per month.
- Turnaround: within a set number of business hours after the vehicle is received at the shop.
- Drop-off window: days and times.
- Vehicle transport: handled by the dealer or the shop, per the responsibilities section.
- Condition records: check-in and exit photos by stock number or VIN, sent through an agreed channel.
- Monthly report: vehicles serviced, dates, turnaround met, issues.
- Price: per vehicle; extra services only by written, approved quote.
- Payment: monthly invoice, due in an agreed number of days.
- Price adjustment: annual, in a set month, based on recalculated costs.
- Term and termination: term and notice period.
- Point of contact: name and phone on each side.
A simple SLA and the monthly report
An SLA is the measurable commitment you make. Write few items, and only the ones you control.
| Item | Commitment (Example) | How it is measured |
|---|---|---|
| Turnaround | 95% of vehicles within 24 business hours | Date and time in and out, by stock number or VIN |
| Standard | Service checklist 100% met at inspection | Signed checklist per vehicle |
| Records | Check-in and exit photos of every vehicle | Folder per vehicle |
| Corrections | A flaw reported within 48 hours is corrected at no charge | Issue log |
Write down the dealer's side too: cars dropped off in the agreed window, with the key, identification and no personal items. Send the monthly report the same day as the invoice, with three closing lines: total vehicles, percentage on time and the month's issues with the action taken.
Prospecting in 4 steps: start with a pilot
- List up to 20 dealers and fleets within a distance that works with your turnaround time.
- Find out who decides for each one and visit with a one-page sheet and real photos of your shop.
- Offer a short pilot of 3 to 5 cars at your B2B price.
- Deliver the pilot with a complete report, then present the one-page proposal.
Dealers are also one of the partners worth visiting around opening day, as described in our detailing shop grand opening plan.
Contracts, insurance and sales tax
- Have an attorney review any dealer contract before you sign, especially liability for damage, vehicle transport and termination.
- If your team drives customer cars on public roads, ask a licensed insurance agent about coverage for vehicles being driven (garagekeepers and auto liability) and check each driver's license and record. The coverage types are explained in our guide to garagekeepers insurance for detailing.
- Review your per-location limit: a dealer contract can put more cars on site at once.
- Invoicing businesses, sales tax on the service in your state and resale or exemption certificates some dealers provide: confirm with your CPA.
Dealer work fits best in a shop that already runs on measured times and written standards. For the full path from the start, see how to open a car detailing shop.
Frequently asked questions
How much should I charge a dealership for detailing?
Do dealerships pay detailers per car or monthly?
How do I get detailing contracts with car dealers?
Should I detail cars on the dealer's lot?
What insurance do I need to detail for dealerships?
What should a dealer detailing SLA include?
The Vectrol Academy editorial team turns the content of our e-books into free guides and double-checks every number before publishing. Figures are examples or references: adjust them to your city and confirm legal requirements with your city or county, state agencies and licensed professionals. How we write our guides.
Before committing to dealer volume, check vehicle flow against your bay dimensions and shop layout.