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Competing with unsophisticated detailers becomes
a bigger problem whenever the economy gets tight. The "hackers",
fly-by-night detailers, station-wagon warriors and pick-up truck bandits
will always be here. In my 35 years in this industry, I have heard
all kinds of ways to deal with them. Cries for certification; required
education. However most efforts fail, because it is very difficult
- if not impossible - to legislate economics.
Detailing is a straightforward, Iow-capital business
to launch. Many of the detailers who complain the loudest about "hacker"
competition started out the same way, eventually they got wise. As
tempting as it can be to run a questionable business, it is possible
to compete and be legitimate. Here are some ideas you can use to compete
with "hacker" detailers.
Marketing
Be glad the "hacker" detailers are in business.
If it were not for these "hackers" the motorist would have
nothing to compare your detail service to. The "hacker"
detailer can only do so much and take so much market share.
You must differentiate your detail business from
the "cheap guys."
Do you tell a good company story?
Do you utilize a professional presentation packet?
Do you take time to make an educational presentation
to your customers, or do your merely quote a price and move on?
You must be professional and seek customers who want
to do business with professionals.
Remember, it is not the customer's responsibility
to interpret the difference between one detail shop or another. The
customer probably does not know what kind of work you do, but they
can quickly see quality in how you present your company, the job and
yourself.
Differentiation is the key to all good marketing.
Take a moment and list all the ways you differ from
the fly-by-night detailers. Be specific.
Statements like: "We do good work" or "we
have good employees" is not unique, there has to become more.
Consider using these point
in your presentation:
· How long have you been in business?
· Your insurance coverage
· How long have your employees been with you?
· That you do drug testing
· Do you have status or certification with any manufacturers
or associations or suppliers?
· How many jobs have you done?
· Names of prominent, well known customers
· Are you a member of any association?
If you fail to demonstrate the difference between
you and "hackers", the customer will always pick the lowest
price.
Insurance and Customer Satisfaction
Realize it or not insurance is a huge issue with
customers. People read the papers; they know insurance costs are up.
Customers also are concerned about the risk of allowing strangers
to take their vehicle, but alone get in it. These are important consumer
issues.
Communicate to the customer that insurance is a prime
benefit of dealing with a professional company. Show the customer
your insurance certificates and coverage information, and explain
the risks of dealing with an uninsured detailer. Explain that while
your rates are rising, some detailers who claim to be insured don't
really have it. Also point out that other detailers may use ill-trained
employees who do wholesale work, but don't do quality retail work.
Emphasize the importance of liability insurance and
protecting property. Emphasize that you are a safe company, but that
should something happen, insurance protects their vehicle before,
during and after the detail. Ask your insurance agent to provide documentation
that demonstrates the potential troubles of dealing with an uninsured
detailer.
Another important piece of the insurance equation
is assuring the customer that you check your employees' backgrounds
to maintain the quality and stability of your workforce. Such precautions
address the motorist's concerns about who gets into their vehicle,
most people are willing to pay more for peace of mind.
Illegal Versus Legal Detailers
What about detailers who cheat, using illegal workers
by paying cash under the table.
These detailers may even approach your employees
and offer to pay them cash. Sometimes these detailers can take market
share from an honest detailers. So what do you do?
If you saw someone rob a bank, would you call the
police? Of course - so why not turn these competitors into the IRS?
If you are trying to operate a legal business, make sure everyone
else is playing by the same rules.
When turning in obvious offenders, be as specific
as possible with the details and document the claim to your regional
IRS criminal activity group. A few phone calls can identify whom to
contact. You will need facts, not broad or hearsay claims. The same
rules apply to people who are violating the law by not paying overtime.
What if the customer asks if you offer cash discounts?
If they are insinuating that you offer a cash discount to avoid taxes,
reply "yes" but emphasize that you are a legitimate business
that reports income and pays taxes.
Conclusion
There is no magic formula for dealing with fly-by-night
detailers, but operating a legitimate business is something to be
proud of. After all, don't you want to contribute to your community
by employing good people, supporting your government and being professional
to your customers?
Running a legitimate, first-class business is never
as hard as it appears. People prefer a professional, first-class detail
operation.
Just make sure that you clearly communicate what
you have to offer.
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