Last week I had an eye opening experience. A group of
friends and I chartered a boat and went sail fishing off the Florida Keys. Six
guys on a boat, four of which, including me, were sail fishing “rookies”. By
noon, all four rookies had each caught and released a 6 to 7 foot sailfish
ranging from 35 to 75 pounds. You would have thought that we were the most
excited people on the water, but we weren’t. While I stood on the bridge
watching the crew, all my attention was on the first mate. Here’s a guy who had
been sail fishing since he was six years old and probably caught and released
over a thousand fish in his life. But as he stood there, passionately giving a
play-by-play of how the fish spit out the first bait we threw at it but took
the second, I hollered down jokingly, “You act like it’s the first fish you’ve
ever caught.” The kid just held up his hands which were still shaking with
adrenaline, shrugged, and said “I always get this fired-up sail fishing.” A
better first mate and future captain, you couldn’t hope to find anywhere. What
struck me, and why I’m writing about the experience, was that at the same time
this first mate is giving us the time of our life and earning our loyalty for
any future trips, the captain’s attitude towards the first mate was doing the
opposite.
Wednesday, January 5, 2011
Monday, October 18, 2010
Innovate or Die - Interview with Terrance Elder of Triple Play Car Wash in Attleboro, Massachusetts.
“Innovation distinguishes between a leader and a
follower” Steve Jobs, CEO Apple, Inc.
Triple Play Car Wash in Attleboro, MA is one of the most
impressive car wash facilities I’ve ever seen. Opened nearly three years ago by
Terrance Elder, this 3.2 acre property is home to a 157-foot express-exterior
tunnel, touch-less in-bay automatic, 7-MPD Exxon-Mobil gas station, 6-Bay
Detailing Center, 3-Bay Valvoline Instant Oil-Change, and a 4,500 Sq. Ft.
On-The-Run C-Store with a drive-thru Dunkin Donuts and Jay’s Deli. Under
Terrance’s vision, leadership, and hard work, his overall business has experienced
year-to-year growth of 20% with the oil-change business alone posting a 58%
gain. And just as he’s positioned to relax and reap the rewards of his efforts,
Terrance is doing the opposite. Over the coming weeks, Triple Play is applying
everything it has learned so far to create an innovative new cross marketing
system that leverages technology to build loyalty and drive revenue. Having
already done the heavy lifting, Terrance agreed to share some of his insights
to bring an already successful car wash to the next level. Below are some
excerpts from our conversation.
Tuesday, September 7, 2010
Swimming Upstream - Finding full-serve success by going against the grain
By: Anthony Analetto
Originally Published in AutoLaundry Magazine
Interview with Tim Jones, Owner of Champion Car Wash in Nashville, Tennessee
“If a man
does not keep pace with his companions, perhaps it is because he hears a
different drummer.”
Henry David
Thoreau
Elimination of labor has been the battle cry of
nearly every carwash operator I know for as long as I can remember. This
passion has inspired equipment innovation and made automated kiosks a prevalent
feature at many locations. Our industry has created self-serve carwashes and
24-hour unmanned in-bay automatics. Most new tunnel washes opening are either
express-exterior or flex-serves, designed to minimize labor. And the
traditional full-serve carwash, with its substantial labor requirement, has
fallen from grace for most new investors. Now let’s meet Tim Jones, the owner
of Champion Car Wash in Nashville, Tennessee.
Labels:
Build Buy & Grow Your Business
Location:
5605 Hiatus Rd, Tamarac, FL 33321, USA
Thursday, August 12, 2010
Supply Chain - Defending your carwash business against what can go wrong
By: Anthony Analetto
Originally Published in AutoLaundry Magazine
“Things may come to those who wait ... but only the things left by those who hustle.” Abraham Lincoln
So you’ve already organized your back room. Emergency
replacement parts are carefully inventoried. You have a clean workbench stocked
with all the tools, fittings, and supplies required for quick repair. Employees
are trained to know exactly what to do in the event of a failure with
documented procedures. Maintenance procedures are performed accurately and on
schedule. You ask yourself, “am I fully prepared to maximize the uptime of my
business?” Not always. It’s not uncommon for carwash owners to find themselves
scrambling for qualified trade services during a catastrophe. Under the gun to
reopen, many are forced to pay premium prices for subpar work.
If you can pull out what I like to refer to as a
supply-chain contact book right this second, stop reading and go wash some
cars. Otherwise, let’s take a look.
Create Your
Supply-Chain Contact Book
What can go wrong, will go wrong. The job here is to make a
list of every possible contractor you may ever need to perform service on your property.
Start with the basics - a plumber, and an electrician. Next is having a primary
and secondary waste water management company, and if they don’t also provide a
drain cleaning service, you must have a supplier for that as well. That’s where
most carwash operators stop. My recommendation, however, is to keep going. If,
for example, you operate automated attendants, search for a local vending
machine repair company. Although some aspects of these complicated machines
will require service from the manufacturer, many breakdowns result from bill
collectors and other problems common to all vending machines, which can often
be fixed faster and cheaper by a local service tech.
Also locate service companies for all major support
equipment including Air Compressors and HVAC equipment. Make sure they are
certified to work on your brand of equipment with same day access to
replacement parts. Murphy’s Law states that when the pump on one compressor
fails, the motor on your backup will too. Being able to call one company and be
back online in a matter of hours can add thousands of dollars to the bottom
line.
Last, don’t assume anything. Every equipment vendor and
service company offers a different array of services. Most, for example, have
emergency welding and fabrication capabilities, but this isn’t a hard and fast
rule. Confirm the services available before you have a problem and find
contractors as appropriate.
Commercial, Licensed,
Insured, and Recommended
Short of time in an emergency, the statement from a friend
“I know a guy” can seem like a blessing. Unfortunately, carwashes are typically
too complicated for the average plumber or electrician you’ll encounter through
these referrals. Whenever possible, look for trades-people with specific
carwash experience. Electricians must not only be skilled in commercial wiring
and three-phase power, they must have experience in control voltage, not only
low voltage controls. Additionally, the average plumber won’t have the
necessary skills, fittings, and supplies on hand to service your equipment. I
can recall countless stories of improperly insulated pipes bursting. And pipes
always seem to leak over expensive computer controls making it imperative that
you annually confirm that all contracted vendors are licensed and insured.
Speaking of insurance, does your provider require you to use contractors from
an approved vendor list? Some do. Trying to get reimbursed on a $30,000 claim
isn’t the time to find out that the contractors you used aren’t covered, so
conduct your due diligence now.
Negotiate Hourly
Labor Rates
How much a repair will cost should never be a surprise. Before
approving a vendor to work on your property you must negotiate an hourly labor
rate for work performed both during, and outside regular hours. It’s also a
good idea to establish payment terms that ideally afford you some time to
submit any insurance claims.
Know Your Local Laws
There are two key areas of local law that a carwash owner
must be aware of before approving a vendor. The first and most critical
involves the handling of waste water. At minimum, these companies must be
licensed for grease, oil, and commercial waste. I’ve also heard of requirements
for EPA approval and in some municipalities you’ll want to confirm your carry
through liability. If for example, the hauling truck has an accident and leaks
sewage, you may be responsible for any damages. A scary thought that
necessitates your understanding of the insurance requirement of any vendor you
contract for these services. Another area of concern involves noise
restrictions on before and after-hour work performed on your property. Although
the contractors you select should be aware of these regulations and properly
insured, you owe it to the success of your business to know your local laws.
Know Your Local
Supply
Many emergency carwash repair parts can be sourced at a
local industrial supply store. Others have to come from either the manufacturer
or a third party vendor specializing in carwash parts. Never let yourself be
caught waiting a day for a replacement part to arrive that forces you to close
your doors. Solenoids, cylinders, bearings, hydraulic components, and certain
pumps, are just a few examples of parts you may not be able to source locally
that can be affordably kept on your shelves in case of an emergency.
Summary
The solution is simple. Get recommendations and locate the
best talent before you have a problem. Negotiate an hourly labor rate, and
establish payment terms with both a primary and secondary supplier. Lastly,
request proof of insurance for every supplier and get an updated copy every
year. Hiring service contractors in the midst of a crisis is like fighting with
your hands tied behind your back. Don’t let it happen to you.
Labels:
Improve Operations
Location:
5605 Hiatus Rd, Tamarac, FL 33321, USA
Wednesday, July 7, 2010
Steps to Planning a Remodel - Remaining competitive in an increasingly competitive world
By: Anthony Analetto
Originally Published in AutoLaundry Magazine
“The best we can do is size up the chances, calculate the risks involved, estimate our ability to deal with them, and then make our plans with confidence.” Henry Ford
I’m writing from the 2010 ICA Car Care World Expo where
we’re breaking down the booth and packing up the trucks to go home. This year I
had the good fortune to be invited by the ICA
to present a session titled “Maximize your Property’s Profit Potential - Keys
to a Remodel”. Having made similar presentations in years past, something about
this year was different. The needs were different. The questions were
different. The expectations were different. And what I learned is that more
operators are looking to a remodel not only to produce a better product, but to
reinvent their brand. To scream out to customers that what they do is different.
Labels:
Build Buy & Grow Your Business
Location:
5605 Hiatus Rd, Tamarac, FL 33321, USA
Thursday, May 6, 2010
Surviving a 4-Year Downturn - Operating in the Black
by Anthony Analetto
Originally Published in AutoLaundry Magazine
Originally Published in AutoLaundry Magazine
Interview with Mike Black of Valet Car Wash in Guelph Ontario
If
Mike Black’s name sounds familiar, it should. As a past president of the
International Carwash Association and Canadian Carwash Association, Mike has
been actively working to help other carwash operators improve their businesses
for as long as I can remember. Finding himself at the hopeful end of a four-year
weather related downturn, Mike has managed to navigate Valet Car Wash through
this difficult period to post record numbers in the last several months. Valet CarWash, with two flex-serve locations both offering aftercare services, unlimited
self-serve wash bays, and express-exterior tunnels, is a prime example of
everything that is right about professional car washing today. They’re
beautiful locations, and what Mike has done to build and retain his business
during the downturn is insightful and inspirational.
I
want to extend my deepest appreciation to Mike for taking a few minutes to share
his ideas on surviving a prolonged downturn for this article. Regardless of
what type of wash you’re running or your current weather or market conditions,
you’ll find some lessons on operating in the black from Mike’s experience.
Below are some excerpts from our conversation.
Analetto: During a
prolonged slow down due to weather or some other reason outside of your
control, what’s the single most important recommendation you have for operators
to survive?
Mike Black, Owner of
Valet Car Wash in Guelph Ontario : As you know, along with most washes in
the Northeast, we have gone through 4 years of hell. Now, having just posted
our second highest monthly car count in 19 years at one of our locations, I
feel like we’re waking up from a bad dream. So far, for the first few months of
the New Year, we’ve had the highest car counts in our history. Having washed a
few cars, I feel more comfortable talking about how to not only survive a
slowdown that’s outside of your control, but how to actually come out of it stronger,
and with a larger share of your market. But before I get into all of that, my
first recommendation is probably what you’d expect – you’ve got to cut every
expense that makes sense.
The
other day however, when a colleague called to ask how much I was paying for a
drum of drying agent, I realized that there’s a lot of room for interpretation
on “what makes sense” when talking about cost control. I don’t know exactly
what I pay for drying agent and it’s honestly not my primary interest. I have
my equipment dialed in to deliver a consistent wash, have long term
relationships established with detergent suppliers, and know to the cent how
much it costs me to wash a car at each service level. There’s only so much time
in a day. When your business is off, putting forth a lot of effort to shave
pennies on variable expenses like detergent doesn’t make much sense. You’re
simply not washing enough cars. Personally, I’d recommend first getting control
of your labor expense. Each night I get an email with a detailed summary
showing my hourly labor cost per car. I adjust my operation accordingly and couldn’t
run my business without this information. After that it’s important to see if
you can acquire better financing from private lenders. Once that part of the
business is in order – spend every ounce of energy coming up with ways to get
people on your property to get a car wash.
I’m
a boater. When people ask me about surviving a long downturn in business I tell
them to imagine they’re out on the water and the boat springs a leak. You most
likely won’t have the tools or material to stop the leak. The best you can do
is slow down the water rushing in enough so that the bilge pump can keep up
with it. As long as you can do that, you’ll stay afloat.
Analetto: You mentioned
looking for sources of refinancing. Where should an operator looking for this
type of lending start?
Mike Black: First, understand
that there are people out there who’d be happy to invest in your carwash. There
are two sides to everything, and a recession is no different. On the one hand,
money is tight, hard to get from traditional lenders, and operators are
struggling under debt payments. On the
other hand, because of the low interest rates on invested money, there is tons
of private money out there looking for a secure place to invest with a decent
return. I'm talking about private individuals, charities, trust funds, estate
money, and the like. These people can't survive with a 1% return from
conventional investments. If you look, you’ll find some that are more than
happy to take your property as security with a 7 - 9% return on their money. Interest
rates may be slightly higher, but in many cases terms are longer, they are not
looking for much of a principal return, providing you extra flexibility to stay
afloat. By using contacts such as lawyers, accountants, real-estate agents, and
even customers - you can find these people. We replaced two of our bank loans
with private money last year. That move saved us over $200,000 a year in
payments and eliminated the tedious reports and projections that the banks needed.
To
be completely honest, I started keeping an eye out for alternative financing years
ago when we had just opened two washes. I kept a list of potential lenders. I’d
think of a person or different financial avenue and follow up. One financing
opportunity I found was with a local credit union. With a little work, you will
discover that a carwash can be a very attractive proposition for the right
lender.
Analetto: What marketing activities were most effective in driving
traffic to your car washes during the 4-year slowdown?
Mike Black: There’s really no
magic bullet. You have to do lots of small stuff and keep figuring out new ways
to get people onto your property. I remember stapling 1,000 business cards with
a coupon code for a free express wash to copies of our wash menu. Driving to every
realtor office I could find, I’d walk in, ask how many agents worked in the
office, and leave a free wash for each of them.
A
carwash is dominated by fixed costs, meaning that, to a point, it costs me the
same amount of money whether I wash cars or not. Giving away free washes
certainly has a downside, but it helped me keep the floor wet, and worked to
continuously build our customer base. Now that the weather has changed, other
operators I talk to are having decent months, while we’re breaking records! I
attribute our current situation to all the work we did when business was off.
Analetto: Would you
mind sharing some of the other advertising activities that worked well to get
people on your property?
Mike Black: Especially now that
the recession is in full swing, it’s important to realize that it’s not only
the carwash industry that’s getting hurt – everyone is looking to hold onto
their customer base. It’s important to search for advertising opportunities.
One example I remember was with the newspapers. Running regular ads was
expensive, and whenever we did run an ad, more often than not it would rain. Then,
one local newspaper started holding auctions. Local businesses could auction a
product or service for free. The newspaper kept the proceeds, and gave the
business the full retail value of the auction in advertising credits. We
auctioned 11 unlimited wash passes with a retail value of $4,000. Customers
learned about our unlimited wash pass program from the auction, it cost us very
little, we got 11 new customers, and a $4,000 budget to drive traffic with
advertising in the paper. Everybody wins. Now we’re doing this with several
other newspapers. Some of the local radio stations have also started a similar
program where every Wednesday they have an online sale of gift certificates at
50% off. We donate a $100 gift certificate, get visibility from the auction,
and $100 in free advertising on top of it. Basically, the rules have changed. There
are a lot of other companies in the same boat – struggling to stay afloat.
We’ve
been able to run cross-promotions with other local retailers where we offer
coupons to each other’s customers. One of the local oil change centers has
driven so many people to us that we’re now giving a free car wash with every
oil change. The other thing that’s big is bartering services. If you need your place
to look good, but can’t afford landscaping, try giving a local landscaper free
passes that he can give to his customers. You’ll pick up more business from
their customers, and your site will look more inviting to draw in more traffic.
Also,
don’t underestimate the huge upside of offering fleet accounts. Whether it’s
Joe’s Plumbing, or Mary’s Catering, we go out and bang on the door of any
business with a truck that comes onto our property. Once they sign up, they get
a free upgrade to the next wash package, a fleet card programmed only for the
wash they select, and convenient monthly billing. Small businesses understand
the value of keeping their cars clean but need to control cost. By being able
to deliver a tremendous value, we get a regular customer that’s connected to
the community and loyal for life.
Analetto: Wow – you just
threw out example after example of marketing
promotions to drive traffic, is there one common thread that ties everything
together?
Mike Black: Yes. You have to build
value. We did a package called the “Econoclean” which gave an $8 discount on
interior services on Tuesdays, Wednesdays, and Thursdays. Normally $28 for an
interior super clean with an express wash, the discount made this package only
$20 which has been a magic number. These normally slow days are now some of our
busiest. People stop in and ask “Don’t you have some special promotion today?”
Everyone is looking for something. When you deliver a great value they talk
about it.
We’ve
had similar success with our “Kruz Klean - Unlimited Family Wash Pass”. Rather
than try to control the pass to a single vehicle, we let customers register two
cars for our middle package at $29.99 for the month. Kruz Klean has become a
brand within the brand with its own logo and sticker. When the customer puts
their card into the automated attendant it gives them a special menu with
significant discounts. And now I’m going to other retailers and asking them to
give my Kruz Klean customers exclusive discounts. The customer gets a
tremendous value, and I get to sleep easier knowing that the revenue from the
pass now pays the mortgage at one of my properties whether I open or not.
Analetto: You’ve told
me before that you never changed your hours or closed early during the last 4
years that were slow. Can you tell us how you managed to do that?
Mike Black: At the end of the day
it comes down to the customer service. At Valet, rain days are “practice” days
when we do our training, maintenance, and preparation for the next “game day”.
Except Christmas day and on the occasional brutal snow storm when we’ll close
an hour early to get employees home safely, we never shut down. We were so slow
at times over the last 4 years that we had to create training programs just to
keep busy – but we’re in a better position now because of it.
Today’s
customer is often tired and in a bad mood. If he can leave your site feeling
like a winner, with respect, having received a great value – that’s the Holy
Grail. When you deliver that level of customer service, you’re not competing
for a carwash, you’re competing for the $10 that customer has in his pocket to
spend on feeling good that day. We may be educated in carwashing, but the slow
times are a chance to read, learn, and train in customer service. You’ve got to
train in the downtime to educate yourself and your employees to be ready for
the next “game day”.
Analetto: You’ve
talked a lot about getting people on your property. What have you been doing to
get more revenue from them while they’re there?
Mike Black: The real question is
what haven’t we done. For us, vended drinking water has been a great seller. We
installed a free standing, self serve, RO water filling station with an ozone
rinse for the cap & bottle, put out a great big sign on the road that we
refill 5 gallon jugs, and customers pull right up. It’s convenient for parents
who can back in and fill the jugs while the kids stay in the car watching TV.
And when a local business stops in to fill 10 jugs at a time, we’re out there
asking if they use our car wash, free coupon in hand.
Windshield
wiper blades are another great add-on. We offer free installation and when a
customer buys blades we make a big production out of it. The attendant pulls
out a tape measure to double check sizing, puts a towel down on the hood, lifts
the wiper arm and places another towel on the cowling. By the time we’re done,
the next customer in line is asking us to replace his blades too!
Analetto: So what’s
next? What are you doing now to be better prepared for the next slowdown?
Mike Black: The most important
thing I’m doing is building ways to communicate directly with my customers.
You’ve got to embrace the new stuff. You’ve got to get onto Facebook and the other
social networking sites. I don’t do this myself, my employees do! My job is
just to make sure it gets done. We also recently signed up for a text marketing service. Customers subscribe by sending a
text message to a number we advertise to receive special discounts. Once we get
the database built up, we can send a promo to every subscriber’s phone in a
matter of seconds. Now when it’s pouring rain, I can send out a text message
with a code for a free set of our discount wiper blades with an interior
detail. Once on my property I might be able to upgrade their wiper blades to
our premium brand or possibly offer additional detailing services. Most
important is that I’ll have an opportunity to make that customer feel good
about getting their car detailed on an otherwise wet and dreary day.
Conditions
like weather and economy are outside of our control. What you have to remember
is that everything you do during a downturn can put you in a better position
when things improve. Over the last four years, it seemed at times like we
weren’t getting anywhere. Now it’s obvious that everything we did prepared us
to take advantage of the change in weather we’re getting now. As difficult as
these times are, a good operator will come out more successful at the end
because of what he does during the downturn.
Labels:
Risk Management
Location:
5605 Hiatus Rd, Tamarac, FL 33321, USA
Thursday, April 8, 2010
If it’s for free, it’s for me - Increasing your average ticket
By: Anthony Analetto
Originally Published in AutoLaundry Magazine
In just a few weeks, thousands of car wash operators will converge in
Speaking with colleagues, I’ve found that most of them seem
to think that finding ways to hunker down and reduce variable expenses like
labor will be the only thing on people’s minds this year, in Las Vegas . Coming in a close second, many
operators are certain that overcoming financing woes is going to steal the
show. Personally, I’m looking for ways to solve my biggest challenge – how to
raise my dollar per car average from my existing customers. Specifically, I’m
looking for ideas in two areas. First, I want to find the best practices in
menu layout, package design, and price differentials to raise ticket averages.
Second, I hope to discuss customer loyalty program ideas with managers that
have had success using them to keep their patrons coming back. I may be wrong,
but seeing as the show is in Las Vegas
again, I’m putting my money on those two topics to dominate informal
discussion. Let’s take a look.
Delivering Value – Wash
Package Design & Promotion
Always a critical number, with the growing percentage of
operators having already reduced labor at the wash via automation or format
change, the one number on everyone’s mind is the average dollar per car.
There’s plenty of debate already going on about the viability of low price
points in our industry. For my purposes, I’ll steer clear of the actual dollar
amounts and focus on an art form that needs more open discussion. In a
nutshell, we’ll be evaluating the optimal price differentials between wash
packages, and which services delivered enough value to current customers for
them to jump to the next higher package. Basically, how can you elevate your
dollar per car average?
My next question, recognizing that car washing is not a
commodity, is to discuss the most effective ways to use signage and wording to
show customers that the incremental value exceeds the additional price paid.
It’s a sensitive subject. Mastering it often becomes a competitive advantage of
a business in their market. Now ask yourself, if you consistently produced a
higher dollar average per car than a similar wash down the street, would you
want to talk about it with your competitor? That’s the beauty of the ICA show. Once a year you
have an opportunity to get together with other operators from all over the
country. Also, there’s a firm rule in every business that you must deliver a
consistent product and customer experience to be successful. Randomly changing
your wash menu to try different pricing and service models will merely alienate
your existing customers. With trial and error not being a viable option, my
recommendation is, sharpen your pencils and head out to the trade show with the
questions you have. Here’s a list of the things I’m bringing to this year’s
expo.
Good-better-great-great-ultimate:
I see this pricing model more often these days. At an
express-exterior it often plays out with a $5-$7-$9-$9-$12 structure. The
actual prices would obviously vary by market. I’ve also seen it with only four
packages, but the concept remains straight forward. You have a value priced
offering to attract customers. You have two packages at an equal price in the
middle that offer a distinct extra service such as tire dressing or triple foam
conditioner. Finally, you have a top package that offers the combination of
those services plus two extra services such as an underbody wash and a total
body protectant. With the pricing scenario above, each of the middle packages,
extra services have a $2 value. Buy them together and you have a combined
incremental value of $4, or $11 for the wash. The ultimate package in this case
provides an underbody wash bringing the perceived value to $12. That last extra
service in the top package, total body protectant in this example, is promoted
as a free bonus. My questions are; Where to best put each extra service” and “Which
one of those that are offered on the ultimate package as a free bonus
demonstrates the greatest value to push customers to the top”? Is it total body protectant, tire shine, triple foam, or something else?
Less is more:
It’s not uncommon for a car wash to have up to 6 progressive
wash packages with a la carte services to boot, but the trend toward simplified
menus means making some careful choices about what you offer. I’m hoping to
gain some insight from operators who have been able to use them to their
advantage. There are operators who’ve been extremely successful over the years by
offering only a single exterior wash option. On the in-bay automatic side of
the business, it’s very common to see a three package, good-better-best,
scenario. But what’s new is that these limited menus seem to be gaining
popularity at express-exterior and flex-serve sites. One interesting menu that
I’ve recently seen at an in-bay automatic promotes $5-$7-$8 services. Another
runs with $5-$7-$9. I’m curious about whether anyone has tried these, or
similar pricing models at a conveyorized wash. Which one has the highest dollar
per car average? Are customers more likely to buy the $8 service with a $1
price disparity resulting in a higher average than a $2 disparity to the $9 top
package? Inquiring minds want to know.
If it’s for free, it’s for me:
Free Vacuums! Buy four get one more! Free with a fill-up!
Free incentives are certainly not foreign to the car wash industry. But with
more operators taking advantage of the growing effectiveness of direct coupon
offers to an increasingly frugal customer to drive traffic, what are the best
offers to promote? Are washes seeing better results offering a coupon for a
free service such as total body protectant, or a discounted wash package?
How effective is it to offer free services or guarantees on the top wash
package to make the buying decision easier? Is anyone giving a free 48 hour
guarantee only on the top wash to take away the concern of making the extra
investment? If you give a free wash after 10, how about making the top wash
count double – meaning the customer gets a free wash after 5? Coming up with
ideas is easy. Executing, testing, and evaluating them is a challenge. At this
year’s ICA
show, I hope to come back with some tested ideas to leverage the power of the
word ‘free’ in raising my dollar per car average.
The perfect VIP:
Loyalty programs and their endless combinations of
incentives are another hot topic I expect to discuss. The trick is offering the
right combination of perks to keep customers engaged and coming back as well as
providing you with incremental profits. Wash
discounts, gift card discounts, and extended clean car guarantees are the norm.
How can you really stand out from the competition? New technology has given us
the ability to manage monthly subscriptions using radio frequency
identification (RFID) tags and point-based loyalty programs tied into direct
email and text messaging with clients, but do these products deliver results?
This is exciting ground and one of the areas I expect many operators exploring
this year in Las Vegas .
Summary
Times are tight but the opportunities are huge. If you don’t
make it out to the ICA Trade Show this year, make sure you plan to attend one
of the regional shows and make sure to contact your network of colleagues after
the show to see what you missed. For those of you who don’t make it to Las Vegas but are dying
to try various pricing models at your wash, I’ve been playing with a new idea
that appears to be working. At a nearby location that offers a Whacky Wednesday
promotion, they’ve experimented with offering a completely different menu with
daily specials on that day, using varying combinations of extra services and
price disparities to test ideas. It gives them an opportunity to evaluate
signage and wash packages designed to increase their average dollar per car
without disrupting their regular business. In these difficult times, having the
ability to incorporate lessons learned to raise your average ticket without
disrupting your business is absolutely priceless.
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