PC&D MAGAZINE
Upselling Extras Increases Tunnel Profits
From Volume 20, Issue 9 - September 1996
Detailing
Baby boomers, women and the 'grays' may cause surge in maintenance detailing market.
by: Vibert L. Kesler
 
 Related Information
  Time Warp is Essential for Upsell Services
  Service Booklet Reinforces Customer Trust

The economics of upsell extras such as express detailing for the tunnel carwash operator are important -- so important they may mean future survival.

All too often, carwash operators compete for business with the wash price. Price cutting leads to profit erosion. Ultimately, profit erosion leads to demise.

Go for a new piece of pie! It's more profitable. Robbing Peter to pay Paul is a fight over the same piece of pie. Marketing upsell extras is a new piece of pie. The consumer is ready for -- even demanding -- new services. Consumers want a convenient, professional, reasonably priced service they trust.

Who are these new customers who will fuel upsell services?

* Boomers: The baby boom generation just turned 50. Boomers have driven the American economy in various ways. For instance, they eat out much more than their parents. They demand convenient, reasonably-priced restaurants with a good menu. The Olive Garden, TGIF, Red Lobster and similar restaurants are the result. The carwash industry is about to go through the same change cycle of shifting upmarket.

* Women: Today, the majority of new cars are purchased by women, or men influenced by women. A 1994 survey showed that women were the actual purchasers of approximately 47 percent of all automobiles sold. Add to that the husbands, boyfriends and brothers who are influenced by women, and some claim the female influence is more in the 70 percent to 80 percent range.

The female influence is increasing in the maintenance aftermarket.

Many women do not wax their own cars. They are too busy with their careers, their children or both. The need (and opportunity) for consumer-friendly upsell services to the female market is staggering.

* Grays: As people become older, they are more inclined to hire someone to perform car appearance services. Increased life expectancy and concentration of retirement communities influence the gray upsell market segment. In a few short years, boomers will swell the ranks of the grays. Upsell services to the grays will continue to surge for a long time.

* Neglecters: How many cars are purchased, used and sold and never protected with polish? While I know of no public opinion poll or market research on this question, my gut tells me a high percentage -- maybe a majority -- of first-owner cars are never polished. Add to this category leased cars -- neglecters. A solid marketing program can reach the neglecters.

The key -- the essential long-term key -- to servicing these upsell market consumers is credibility -- not sales technique. Credibility is more than a fancy building, a posh waiting room or matching uniforms. Credibility comes from providing the customer with honest information communicated effectively. Communicating honest information effectively is the description of an effective upsell marketing program.

The five rules for an effective upsell marketing program are:

* Inform the customer by giving him or her something tangible they can see, feel, touch, open and examine.

* Increase customer understanding and trust by letting them participate.

* Sell by recommendation rather than self-promotion.

* Identify your service with quality control.

* Reinforce the consumer's decision after the service has been delivered.

As a carwash owner/operator your real profit is in a well-informed, satisfied customer base returning on a regular basis for a carwash and upsell extras.

There is an old business adage that goes: "It's easier to make a buck than save a buck." Controlling costs is important. Making a profit is more important. While you can make carwash tunnels more efficient, upgrade the equipment and, perhaps, find gentler products and means to remove dirt, the future profit will come from upsell extras.

Express service packages can make a big difference for your business today, tomorrow and every day to come. In short, upselling tumbles down -- to the bottom line.

Vibert L. Kesler is president of Motorcar Valet Inc., Salt Lake City, UT.

PC&D COMMUNITY

Bulletin Boards

View and post messages in our industry bulletin boards:
» Carwash Bulletin Board
» Damage Control Bulletin Board
» Detail Bulletin Board

Ask the Experts

Using a panel of experienced, dedicated and passionate experts in a wide variety of car care specialties, PC&D is able to help its readers find answers to everyday questions, as well as more unusual ones.

Simply use the links below to direct your question toward the appropriate expert(s), and PC&D will send it on to a member of its Advisory Board or an expert in the subject's field.

Ask all the experts
Ask the carwash expert
Ask the detail expert
Ask the lube expert

Contact the Editor

PC&D's Editor in Chief, Kate Carr, welcomes ideas, comments and suggestions for making the magazine the best it can be for its readers. If you're interested in submitting an article or want to suggest a topic, please contact Kate at (518) 779 - 1667, kcarr@carwash.com.

The magazine accepts articles from a variety of consultants and industry experts. We favor a "how-to" approach that helps readers solve problems or improve business. Pieces promoting manufacturing companies or their products are not appropriate.

Article submissions typically contain 750 to 1,500 words. If accepted for publication, articles will be edited for style, clarity and length.

PC&D RESOURCES
 

GVMG

(c) 2010 EBSCO Industries, Inc. All rights reserved.
Grand View Media Group is a subsidiary of EBSCO Industries, Inc.

Privacy Policy

FEATURED PRODUCT