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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. |