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The carwash business is great when the sun is shining, but when the
weather's bad, you do maintenance, clean the shop or even close.
I don't have to do that anymore. I recently added a new product line under a
familiar name in my market. It relates directly to every one of my existing
customers at the Ultra Shine Auto Wash in Shelby Township, MI.
I put an accessory franchise under my roof. In the beginning, I looked into yogurt, pizza, even video rental. Like most operators, I was looking for
impulse items -- things the customer would pick up while waiting.
But there was something missing in those things. It seemed like if I was going
to add business, I could do better by focusing on what my customers have in
common -- cars.
I dug deeper and researched oil changes and other auto-related businesses
until I narrowed it in my mind to the perfect fit -- auto glass replacement and
auto accessories.
In the Beginning
I first looked into adding an accessories business around 1993. I knew a
couple of franchise owners and I'd visited their locations.
When I saw the diversity of the product line -- auto glass repair and
replacement, auto security systems, cellular phones and the latest in car and
truck accessories -- something clicked. I could see my customers wanting those
products and getting them from me.
Roughly 35 percent of my customers sit in my showroom for at least 15 minutes
while they wait for full-service detailing in my six-bay garage.
Sure, I have floor mats and air fresheners, but why not sunroofs, running
boards and luggage racks, too? Why not vehicle security systems and cellular
phones?
With these products, I could do more business with the same customers, and I
would have a reason to stay open on a rainy day.
The carwash's best months are from December to March; the accessory and glass business is strong from April to December. With the wash, accessories and glass replacement under one roof, the seasons are covered.
One-Stop Convenience
I opened the accessories and glass business in March of last year. Aside from
my initial franchise fee, royalty and additional payroll, I incurred no new
costs. The wash covered what it always covered, and my glass, accessory,
security and cellular business became a viable source of profit.
I wash about 90,000 cars annually. Every one of them is now a potential
accessory or auto glass sale.
With the help of my sales manager, Paul Kanneth, I approach each waiting
customer with a products and services brochure, pointing out what we can add to
that customer's car.
A natural lead-in is auto glass. When I spot a chipped or cracked windshield
going through my wash I ask the customer directly if they want it taken care
of. I quote the job while the customer waits, and I contact the insurance
company to assist with the claim.
It's hard for customers to refuse a windshield replacement that happens that
painlessly. We can usually take care of the problem immediately because we have
the space to stock a reasonable amount of glass, we're open longer hours than
most glass shops, and we have one-stop convenience.
Typical of my experience has been the customer who comes in for a wash
Wednesday, has his windshield replaced Thursday and orders nerf bars to be
installed on their truck Friday.
Taking the Cake
I average close to $50,000 a month in auto glass and accessory sales, which
has significantly raised my dollar-per-car average. Like many full-service
washes, I averaged between $8 and $9 a car. Today, I am closer to $17 a car.
Much of this increase is due to an aggressive cross-selling approach and the
sheer number of cars I see every day. I reach the 65 percent who just go
through the tunnel by listing the new products and services at the bottom of
each wash receipt, and I've held contests that require filling out entry blanks
for drawings.
Customers going through the wash received mini-clipboards and were asked to
fill in their name, address and phone number to be entered in a drawing for a
free accessory product. After drawing a winner, I direct-mailed the other
entrants with future special offers.
The marketing opportunities with wash traffic alone are tremendous. Whether
customers are just in the tunnel for two minutes or in our showroom for 10, we
have their attention and they are interested in knowing more.
There are many advantages to adding a glass and accessory business to an
existing full-service carwash, not the least of which is better cash flow.
Most people can get into this business by utilizing existing space available
(showroom, bays) and dramatically increase overall revenue without adding
overhead. After a year in the business, I expect to ultimately average $75,000
in sales a month.
My best product so far has been glass, and those customers have a tendency to
return for other items.
The typical windshield customer doesn't have a lot of time and doesn't know
where to go, so they show up at my place for a wash and I can help them solve a
problem. People come back for that kind of service.
Ken Prange owns Ultra Shine Auto Wash, Shelby Township, MI. |