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Gasoline Prices and the
Impact on Mobile Grooming:
A Rational Analysis of Cost per Pet
By John Stockman,
Wag'n Tails
Mobile Conversions
Copyright 2007 John Stockman All rights reserved
Published here with permission of the author
There’s a lot being said about
how gas prices are damaging the bottom line in
mobile pet grooming these days. They are, of
course, having an effect but just how
significant is it? To answer that question, we
decided to take a closer look at the situation.
Our goal is to provide an understandable
analysis of just how big the impact is on mobile
grooming today compared to a year ago.
To do this study, we used some recent mobile
grooming survey results from PetGroomer.com to
set our parameters on average distances driven
per day and the price per pet being charged. We
are using Onan’s data on generator fuel
consumption with measured electrical demands
using our normal Wag’n Tails components like air
conditioners, high velocity dryers, lights,
central vacuum systems, etc.
Remember that since we are going to figure the
generator fuel consumption separately, the van
MPG numbers are for the van only without
consideration of the generator. Whenever there
is a question, we’ll stay on the conservative
side to be safe.
Finally, we’re using the highest national
average fuel price listed so far this year
($3.227) which was on 5/24/07 in order to be
conservative as we promised above. This is from
the American Automobile Association’s (AAA)
website entitled “Fuel Gauge Report” at this
URL:
www.fuelgaugereport.com. Check it out for
average gas and diesel fuel prices in your local
area and a lot more.
Now for some numbers. Almost ¾ of groomers
surveyed report they drive 50 miles or less per
day so to again be conservative, we’ll use the
highest end of the range and go with 50 miles.
We’ll figure 6 dogs per day and $60 per groom
with 1 hour per groom and 12 MPG for the van.
Our principal source for the van MPG is
www.autobytel.com which lists the E350
extended van with the 5.4 liter V-8 at 15 MPG
city and 19 MPG highway. With the extra weight
of the conversion and 50 gallons of water, we
will remain conservative and go with 12 MPG.
Also there will be 2 separate calculations on
generator fuel usage. One calculation will be
with the air conditioner on for the hotter
states and one with it off for us northerners.
You can also use the “A/C On” calculation for
reviewing summer months and the other
calculation for looking at winter months.
Regardless of the analysis here, conserving fuel
is always a good idea. Be sure you’re routing
yourself efficiently. Look closely at your
scheduling too. Will a client let you move them
to another day or time to keep your travel
distance as tight as it can be? Oh and by the
way, how heavy is your right foot? Easy starts
and stops over time add up to better fuel
economy.
Ok, enough of that. What do the numbers look
like? Is it as horribly depressing as the hype
says it is? Is the world coming to an end like
the evening news tells us every night? Should I
sell my van and run for the hills? Not just yet!
Read on…
|
Gas
price per gallon-Today |
$3.227 |
|
|
|
Gas
price per gallon-Year ago |
$2.852 |
|
|
|
Miles
driven per day |
50 |
12500 |
Annually |
|
Dogs
groomed per day |
6 |
|
|
|
Miles
driven per dog |
7.1429 |
|
|
|
Van
MPG |
12 |
|
|
|
Price
per groom |
$60 |
|
|
|
|
|
|
|
|
|
|
A/C
On |
A/C
Off |
|
Van
Fuel Per Dog (Gallons) |
|
0.60 |
0.60 |
|
Generator Gallons/Hr--A/C On |
|
0.82 |
N/A |
|
Generator Gallons/Hr--A/C Off |
|
N/A |
0.70 |
|
Fuel
consumed per dog (Gallons) |
|
1.42 |
1.30 |
|
|
|
|
|
|
|
|
|
|
|
Fuel
cost per dog-Today |
|
$4.57 |
$4.18 |
|
Fuel
cost per dog-Year ago |
|
$4.04 |
$3.69 |
|
Difference |
|
$0.53 |
$0.49 |
|
|
|
|
|
|
Fuel
cost % groom price-Today |
|
7.61% |
6.97% |
|
Fuel
cost % groom price-Year ago |
|
6.73% |
6.16% |
|
Difference |
|
0.88% |
0.81% |
So what does all this mean?
Well, I wouldn’t throw in the towel on mobile
grooming just yet. What it all boils down to in
this example: your fuel costs have risen around
fifty cents per dog! That equates to $60 per
month or about 1 extra pet per month. And
remember we’ve included driving to the
appointment and running the generator for a full
hour.
But wait! Fifty cents a dog is a lot of money!
Yes it is but look at the total as a percentage
of your groom fee. In the worst case scenario
above, it’s increased from 6.73% of the total
groom fee to 7.61%. That’s less than a nine
tenths of one percent jump in a year.
We aren’t trying to play down the impact of the
recent spike in gasoline prices. We suffer right
along with you when we gas up our vehicles too.
Our point is simply this: When you take a
rational look behind all the hype, it’s not as
bad as it seems.
There are answers beyond conserving gas too. One
very important consideration is this one: When
was the last time you took a long, hard look at
your pricing? When was your last increase?
Remember one thing-you’re great at what you do
and you’re worth every penny!
Also take the same detailed review of your
routing and scheduling. You can probably make
that all back and then some by tightening up
your routes and schedule.
We need to keep our wits about us and we all
need to look for other inefficient areas that
can be corrected in our businesses also. That’s
always a good practice, not just when fuel
prices rise.
Our hope is this analysis has helped you look at
this matter a little differently than you did
before you read it.
If you want to see the same analysis above but
for your local area, just call us and we’ll
email you a completely interactive spreadsheet
that allows exactly that.
You just put your own numbers in for all the
variables. It’s easy to use and all you need to
do is type in what you want to change and it
will do all the calculations for you. Just call
us or send an email to
john@wagntails.com with your email address
and we’ll send it right to you. Oh, and since
gas prices are so high we’ll send it to you for
free.
The Do's &
Don'ts of Mobile Grooming
by Terry Minix, Vice President, CEO
Custom Commercial Vehicles
© Terry Minix, J.T. Custom Works, Inc. All Rights
Reserved
Published here with the permission of the author.
If you are interested in going mobile, the following information should be
somewhat of a guideline to help assure that your investment is a
profitable one.
One very important point that should be considered when choosing a conversion
company is that they are a "factory authorized mobile grooming
company." This means representatives of Ford, Chrysler & GM
have been to the company, and have inspected and approved the conversion and
workmanship of said company. This assures the end user that both the OEM
(Original Equipment Manufacturer) such as Ford, Chrysler and GM will stand
behind both the conversion and the vehicle.
There have been a lot of conversion companies in the past go out of business
and Ford, Chrysler and GM are ultimately responsible for those conversions.
Therefore back in 1992 the industry went through a lot of changes, and this is
the way the factory monitors what is being done to their vans. A reputable
company should not have a problem with meeting the OEM's standards.
One of the most important things to be concerned about with a Mobile
Groomer is "Down Time." A good way to find out just how much Down Time
you might experience with a particular conversion company is to contact
customers of these conversion companies. Email is less disruptive to the current
groomers and they can respond to questions at their convenience, as not to
disturb their work schedule. No matter what conversion companies might say
there will always be a certain percentage of equipment failure resulting in Down
Time.
If the company truly cares for your business they will send you replacement
parts overnight and deal with vendors and repair shops themselves. Some
conversion companies require you to have written authorization before repairs
can take place. This can be an absolute disaster for the Mobile Groomer. Again
check with conversion companies to see how each handle this situation. Again
most responsible manufactures have a policy that will allow the customer to
choose who, and where they would like to have repairs made to their vehicle.
You should also be aware of the quality of the conversion. The van conversion
industry is known for cosmetically making things look good, and then cutting
corners on materials, equipment and workmanship. Again emailing existing Mobile
Groomers will reveal if a company uses inferior materials, equipment and
maintains poor workmanship.
One other point that you should make absolutely sure of is that the company
you are buying your conversion from is the manufacturer, and not just a
middleman / sales representative. This keeps you from having to go through
several different channels for warranty or repair work. Go straight to the
manufacturer for your conversion.
Mobile grooming can be a very profitable business " IF " the right
Groomer, has the right mobile grooming conversion for their needs.
So You're
Thinking of Adding a Second Mobile Unit
by Dina
Perry, Wag'n Tails Mobile Grooming
Conversions
© 2001 Dina Perry
- Wag'n Tails Mobile Conversions All Rights
Reserved
Published here with the permission of the author.
This is a sure sign of
success. Usually the statement is made to me when you are so busy you can’t
see straight. You’ve taken every client you can and have fired all the ones
you don’t want. What to do? First, if you’re that busy make sure your prices
are high enough. Raise your price and sit back and select your clients. Choose
customers who are scheduled every 4 weeks or less. Get rid of the biters! Now life is good.
This is the point a lot of
you are at after a few years, some in a few months, and the new clients are
still calling. If you seriously want to start a fleet, or just a second van you
need to remember just how hard good groomers are to find. Why did you go out on
your own? Money, freedom, security? This is what you will need to provide to a
qualified groomer to find and keep them. If your prices are low, they can’t
make a great income. So check that out first. You can easily give a mobile
groomer 60%, of the grooming charge, if
you have a service charge you keep along with your 40% of the grooming charge.
This could never be done in a salon. Think about it. The groomer makes 60%, at
least 10% more than a salon, and hopefully the price is a good 10 to 20 percent
higher in the mobile for grooming. After all, in a mobile the pet gets one on
one service. The very best should cost more than the assembly line. Make sure
you give a groomer benefits if they need them. Most HMO’s cost around $100.00
to $150.00 a month for a single person under 35. It’s well worth the cost and
will help keep good people. Be flexible on days and hours. Remember that’s one
of the reasons you aren’t working for someone else. Do make sure they
understand appointments are made and never canceled. Nothing loses a client
faster then a cancellation.
Lynn Edwards, a client of
ours from New York State had great idea. She had been in business less than a
year and she was swamped. She said at least half of her clients were
B&B’s. Goldens, Shelties, Yorkies, labs, and etc. She could teach a person
to B&B (Brush and Bath) in a few weeks. If they quit and she had two payments
it would only take a short time to find and train a new Bather. Good Thinking
Lynn! If you have a groomer out there and they quit. Ouch!! It could take months
to find someone qualified.
The best idea for multiple
units is to have your first unit paid for or to know the person you hire is not
going to leave. Many of my clients are now family businesses. The money is
great, the job a breeze with only the best clients on the books, and your spouse
or mate is looking at you with envy in their eyes. A daughter or son is thinking
this looks pretty good to them. These people don’t leave without notice.
A young man from California
once called inquiring about a new van to replace his aging one. He told me he
worked very hard for five weeks and
took the sixth one off. He always had time for the “honey do” list his wife
had saved for him, or a 10 day vacation. This young man had thought out his
life. He had found the best of the job, flexibility and freedom. Smart guy.
If you don’t have a person
you know well to fill a second van than maybe the best bet is to pay off your
first one and then get the second. Cori, a young client from Michigan told me
she was 3 payments ahead. I was extremely proud of her. Make double payments and
in no time you can have a second van. If the groomer quits and it takes a few
months to fill the spot with the right person. No sweat, you can make one
payment very easily.
When writing this I am
assuming the person reading it is not able to invest $50,000.00 into a new van
in cash. If that were the case, the suggestions would be quite different. A
fleet of mobiles is a very profitable enterprise when well run . I will write an
article for you soon about how to pay your employee.
Stand by.
To summarize:
-
Make sure you are charging
enough to provide you and a groomer with a good profit.
-
Think about the B&B'er van.
-
Pay off
your first van by making double payments,
then you can breathe easy with only one
payment.
-
Look for people you know and
trust to fit into your business.
-
Pay them well, find out what
they expect from the job, and provide it.
And a 2nd article from Wag'n
Tails.
Batteries & Inverters
Article by
Wag'n Tails Mobile
Conversions
© 2006 Wag'n Tails Mobile Conversions All Rights
Reserved
Published here with the permission of the author.
Here is an
informative article on a topic that garners a lot of
attention from mobile groomers. Read this article and
you will learn a great deal more. This article is
published in Adobe PDF format and you will need the free
Adobe Reader available at
http://www.adobe.com/reader to view it.
Click here to view
Batteries & Inverters.
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