The most important factor to success or failure of a detailing
business is merchandising. Unfortunately, detailers don't know the
definition of the word, let alone how to implement a merchandising
program for their business.
Defined simply, Merchandising is: "These activities involved
in the promotion of a product or service". In order to develop
a program requires a thorough knowledge and understanding of all
these activities.
Before you can organize the activities needed to merchandise the
detailing service you must understand what it is you are selling!
What a stupid statement! We're selling detailing! Aren't we?
If you are selling detailing what does that mean? Remember, 80%
of the motoring public doesn't know what the detailing service is;
have never been to a detail shop; and therefore see no value for
the service as a part of regular vehicle maintenance.
Please take the time to think about this. Your ability to deal with
this lack of consumer awareness will determine your success or failure
in the business.
Selling Leisure Time
What you are really selling are several things, the most important
of which is LEISURE TIME.
Think about it! Who buys the detailing services? The rich? Sure!
But not just because they have money. It is because they value their
leisure time and can afford to protect it.
There are also many people in the middle and upper middle class
that will use the detailing service because they want to do something
else with their leisure time. Hunting; fishing; watch a football
game, etc. This is more important to them than saving a few dollars
detailing their own vehicle.
With more active senior citizens, yuppies, and double-income families
the leisure industry is growing by leaps and bounds and this means
that any service dedicated to increasing leisure time has a great
future.
What Else Are You Selling?
Besides leisure time you are selling GOOD FEELINGS.
You know, "the ride with pride in a clean car" syndrome
or "America's love affair with the automobile."
The detail shop that does not promote these points in their merchandising
efforts is missing a very critical selling factor.
What About Protecting Your Investment?
This has been a favorite selling slogan for the automatic car wash
industry for years. If it is true, there has to be a "supreme
truth" in the detail business because you are literally protecting
your investment by periodic exterior and interior detailing.
Considering all the environmental factors that work to destroy the
paint finish from the first day it is driven on the street, it is
critical that a car be waxed at least every six months, or more
in severe climates.
The interior should also be cleaned and shampooed at least every
six months, more often depending on the soil conditions. This regular
cleaning will maintain the showroom condition of the vehicle, thereby
maintaining its value.
While you may be selling other intangible aspects, than those mentioned,
it should be evident you are not just selling detailing. If you
can understand this fact you will have a great deal of success in
the business.
What About Selling Detailing?
"What you say makes sense, but let's be realistic, we are still
in the detail business and we are selling detail services, what
about that?"
Now we are getting somewhere. We've established the ground rules
for merchandising the services so it will be easy to sell.
The Services
Auto detailing has traditionally included these
main services:
Exterior Washing
Wheel Cleaning
Engine Cleaning
Vinyl Top & Convertible Cleaning
Wheel Cleaning
Tar Removal
Trunk Clean & Shampoo
Carpet Shampoo
Upholstery Shampoo
Exterior Buff & Wax
And, most shops offer a set price for providing all the services
"a complete detail."
Additionally, some shops will offer extra services including:
1-Pin Stripping
2-Body Side Molding
3-Door Edge Guard
4-Window Tinting
5-Windshield Repair
6-Gold Plating
7-Vinyl Top Repair or Dying
8-Upholstery Repair
9-Carpet Dyeing
10-Paint Touch Up
11-Paintless Dent Repair
12-Accessories
The success you have in selling these services relates directly
to how you present them to the consumer.
Menu Marketing
Years ago the car washing industry discovered the restaurant-style
menu marketing was the best approach to use in selling extra services
in their business.
Taking a page out of a "Chinese Menu", they developed
combinations, or packages that made the buying decisions easier
for the motorist.
Borrowing this successful page, we have applies this same approach
to the professional detail business. Studying the buying habits
of detail customers across the nation it appears they tend to initially
purchase one of three services:
Exterior Detail
Interior/Exterior Detail
Complete Detail (including engine and trunk)
My experience has shown that where a customer comes into your center,
they will be thinking in terms of having the exterior waxed or both
the interior and exterior done.
Some with more knowledge of the business will know that the complete
includes engine and trunk.
Therefore we have found the best approach is to present your packages
and services on a menu. On the front side of the menu list your
Package Specials - (see sample menu.)
On the back group services a la carte by Exterior; Interior; Extra
Services (see sample menu). The packages we recommend are:
a) Wash & Wax
b) Complete Exterior Detail
c) Complete Interior/Exterior Detail
d) Complete Detail
e) Protection Package
This will cover over 90% of the customers that come into your center.
The last package incorporates with the Complete Detail Service these
additional services:
1 year Guaranteed Paint Sealant
1 year Guaranteed Fabric Protectant
Leather Conditioning
This is called PROTECTION PLUS, capitalizing on our store name DETAIL
PLUS.
In addition to handout menus it is good to have these packages signs
in the waiting room
The Hard Sell
To successfully sell the detail packages is the difficult part of
the program. Requiring a combination of good signing; proper handout
materials and most important, well-trained, knowledgeable sales
personnel.
You are only kidding yourself if you think you'll be successful
without a person well-versed and trained to sell these packages
and services.
Remember over 80% of your potential customers don't even know what
the services are or why they need them.
In future articles I will discuss some very specific sales techniques
that can be use to sell the services.
Pricing
In most cases detailers are literally shooting in the dark on pricing.
If you are a professional business person and operate your detail
business like a business, then the traditional bucket and sponge
shop is not your competition. Why?
They generally cater to the wholesale market charging anywhere from
$60 - $75 dollars per car for a complete detail. And haven't a clue
how to deal with the retail customer.
Some have raise this price, maybe to a $100.00 for a retail customer
or whatever they think the customer will pay.
The responsible approach to pricing detail services is based on
knowing your operating expenses; cost of sales; your salary, benefits
(vacation, health insurance; retirements; profit) and dividing that
total by operating hours and come up with an hourly rate. Then multiply
the hours to do the work to get price. In many cases the hourly
rate may be less than the market will pay. That's great for you.
Charge more if you can, but never charge less than your hourly rate.
Keep in mind, if the customer doesn't really know the service how
can they determine the value?
In short, pricing is not as an important a consideration in the
motorist's buying decision as is VALUE. If you can justify to the
customer why they need the service and that you know what you are
doing, they will buy it at any reasonable price.
To prove this we have on several occasions lowered prices with no
change in business.
For example, reducing the price of a complete detail from $170.00
to $150.00 had no effect on business. Or an exterior detail from
$99.95 to $79.95. This is peanuts to the consumer who buys detail.
The lack of any measurable change in business reflects that when
the motorist does not see a perceived value in a service it is not
worth anything at any price until you justify the value.
Conclusion
Hopefully this article has raised substantially more questions that
is has answered. If is has, then you are on your way.
You now "know what you don't know about merchandising your
detail business".
This makes it possible for you to ask question and learn what there
is to know. In future articles we will discuss more specific aspects
of marketing, selling and pricing.
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