Is your pricing competitive?

This might be the toughest decision an auto detailer makes. Price yourself low and you’ll be busy…but will you make money? Set your prices high, and you’ll make a healthy profit on each car, but just how many cars will you service?

We asked 47 detailers for quotes.

Review responses in this table.

Businesses we found on Google and Yelp in major cities across the USA were sent this email:

Subject:
“Full detail Saturn 4 door”

Body:
I’m selling my car and need a quote on getting my car detailed inside
and out but not the engine.

The interior is a little gross from my kids and the paint is scuffed
up a bit in some spots. What do you think this would cost and how
long would it take?

Erica

The email included these pictures:

Average quote: $215

Highest quote received: $399.
Lowest: $100.

Average time of service: 4.1 hours.

Longest estimate: 7 hours.
Shortest: 2 hours.

Average response time: 86 minutes

Longest time to respond: 10 hours.
Shortest: 10 minutes.

56% of shops didn’t respond at all.

This was alarming. We were expecting roughly a 25% non-response rate. Good news for the “good shops”: half your competitors are lazy.

What it means to you: 2 lessons.

Price matters: don’t be the high bid, and don’t be the low bid.
Imagine yourself as Erica. Your car might be worth $5000. A bid of $399 is not appropriate relative to the value of her car. But with an average quote of $215, $100 is suspiciously low. And she would be right to question that quote: it can’t possibly be a thorough service. She’s going to choose the bids near the middle, read online reviews, and probably call 2 shops before you finalizes an appointment. A few times a year, check in on your competitors’ pricing to be sure you’re where the customers are: the “middle” of the market.

Respond to every email within 3 hours: no exceptions.
Let’s face it…a lot of emails are tire kickers. When I ran Ace Car Reconditioning, only 20-30% of them became customers. But not responding is unacceptable. And responding late–anything past 3 hours–says to the customer “you’re not important to us.” Think of the last time you needed a plumber, electrician, or accountant. Did you hire the late responder? Be sure that all emails reach your cell phone. Check every 2 hours. Every email gets a response, every time.

Robert Keppel
President
Applied colors

The latest trend sweeping the nation are daily deal sites such as Groupon, Dealfind and Living Social. The premise of these websites is to offer a daily “deal” at a heavily discounted price to a rabid fan base of subscribers for a price to local businesses. In essence, the site allows consumers to purchase “coupons” that will enable them to receive heavily discounted prices and has become incredibly popular as of late and helped to drive a lot of traffic to local businesses. However, there are a few major considerations to take into account before offering up your services on one of these sites.

Know your costs.

Do your homework before running a "social coupon" deal.

Simply offering a deal without knowing exactly how much each coupon is going to cost you can hurt you BIG TIME. For example, a local detailer in my city offered up a coupon for a full detail + engine shampoo that they normally charge $184 for a discounted price of $35. 399 of the coupon were sold (399 x $35 = $13965) minus the cut the website takes (usually 50%) which would leave the detailer with $6982.50 or $17.50 per job. At my shop a proper full detail starts at about 4 hours average time per car. At 4 hours the shop would essentially be getting paid approximately $4.38 an hour assuming they are doing what the “deal” actually promised. Not exactly what I would consider much of a “deal” for that business owner considering minimum wage here is $10.25 + employment costs + overhead. KNOW YOUR COSTS before you negotiate any deal you might choose to offer.

Examine the fine print.

There is a lot more to offering a deal on one of these sites than simply the deal itself. You need to carefully consider what percentage of the sales go to the website as a commission first and foremost (Groupon is usually 50% for example). The term within which the deal can be used is equally important. You certainly wouldn’t want to burden yourself with a load of heavily discounted deals during your busiest season would you? Lastly, how and when you are paid should be understood when signing the deal. Sites will usually spread payment for all the deals sold over several payments up to 2 months from the time of the initial sale. Make sure you understand the ins and outs of all the terms of the deal BEFORE you commit to doing anything.

Consider the consequences.

Remember the good old days when all the automakers used to offer 0% financing on cars? Customers got used to those offers and it was extremely difficult for the automakers to break that expectation once it became obvious it was an unsustainable way of doing business. The same may be true if you use a discount or coupon to get people in the door. If the deal is too good, they may expect it all the time because they expect full value for the lower price. Selling too many of these deals can also strain your ability to handle the workload while still maintaining the level of quality and customer service you pride yourself on offering. Lastly, loyal and long-term customers may be offended that you now offer massive discounts that they have not been offered in the past. Take a look at both the potential short and long-term gains and losses before you decide whether this form of marketing is a good idea. Also take a look at how that strategy works with your long-term strategies.

These deal sites have been getting a lot of press but that doesn’t mean it’s right for your business. If you are considering incorporating one of these deals into your marketing strategy, it may be helpful to talk to other businesses that have used it to get insights into what worked and what didn’t.

Author:  Scott Perkin
Owner:  Scotty’s Shine Shop in London, Ontario.

Websites are possibly the perfect marketing tool for reconditioners.  First,  you offer a niche service that their customers won’t necessarily ask a friend about for a referral.  Second, your job is VISUAL, and a website gives you opportunity to offer visual proof that you are, indeed, the expert you claim to be.  And finally, detailing is not exactly cheap.  Carwashes are cheap, and people rarely research them online.  But for what they’re paying a detailer…people want the DETAILS.  And though I’ve MAJOR ACCEPTANCE among detailers in the last 3 years, that website is NECESSARY, I keep seeing the same 3 mistakes that really kill an otherwise good effort.

1.  Title must contain the SERVICES you provide and the CITY where your business is located.

There are hundreds of millions of websites on the Internet and many of them are competing against you every time a customer uses a search engine to look for ‘car  detailer’. What the customer sees in these search results is the title of your business website. This title is your first contact with potential customers who, according to this study, spend less than 15 seconds on average, browsing an entire page filled with dozens upon dozens of links before making a decision. With less than a few seconds of attention, your website title must immediately let potential customers know that your business is in or near their city and that you provide the services they are seeking.

2.  Not enough info about you, the owner. 

It doesn’t take a study to know that people relate to people. Your website may be filled with wonderful information, but if you don’t personalize your information with photos of you and your staff, your potential customers might move on to another site that does.  Create an “About Us” or “About Me” page that answers:  How long have you been in business?  How did you get into the business?  Have you won any awards?  What do you like most about your job?  What do you do when you’re not detailing?  Give your customers a little peek “behind the curtain.”  Yes, they want to like your work, but THEY ALSO WANT TO LIKE YOU.

3.  No specials or coupons.

A special or coupon can be that final little push that takes people down from “the fence”:  those customers that just can’t commit to actually booking an appointment. You don’t have to offer a Groupon-like 50% discount to give your visitor a little “nudge” either.  15 – 20% off, offering a free service (like a premium wax upgrade), offering a seasonal service at a discount (interior only detailing in the winter @ 15% off), or combining services (engine deal with premium wax) at a combined discount can work.  Expiration doesn’t have to be frequent.  You can change up your specials and coupons by the season.  So many automotive businesses do this very well:  tire service, brake service, oil/lube centers, transmission shops, etc.  You see their specials in the paper, on their street signs, and on their flyers…because they WORK.  But reconditioners, as a group, can improve on the tactic of strategic discounting. 

You can make these fixes…in an afternoon.

Take the time to gather and email pictures and bios of you and your employees to your web designer. Have him rewrite your title to: “[City] Auto Detailing by [Company Name]. Once a season, find a special that’s PERSUASIVE without being DESPERATE. These tweaks can make a tangible difference in the phone calls and emails your site generates.

One of the most difficult lessons of the detailing business is that you’re better of turning some jobs away. It’s a skill you learn in the transition from busy to profitable. Here’s 3 memorable examples.

1. Wholesale car auction:

Some detailing jobs are doomed.

I received a call from the manager of a local auction requesting that we begin reconditioning wholesale cars for them ASAP as they had heard good things about us from a mutual business contact. I met with the manager and from the get go it was obvious we were on a completely different page about pricing and turnaround time. He claimed he had 100 cars a month for us but these cars were in poor condition. He requested our best effort but understood the cars wouldn’t get the treatment that our retail customers received. His budget and expectations did not intersect. Add to that a 30-60 day wait for payment, and this was a big fish I tossed back into the sea.

2. “Here’s my budget. Do the best you can.”

I had a very sweet older woman stop in the shop and inquire about our services for her badly neglected Ford Focus. After having a look together at her car and suggesting either a full interior shampoo or full detail due to the amount of time it would require to properly detail the car she asserted that she didn’t want to spend any money and this was merely a “treat” for her car as she hadn’t cleaned it in 5 years. Looking at our services list she picked our cheapest service and exclaimed “I’ll take that one”. The service she was requesting included nowhere near the amount of time it would require to even give her interior a proper vacuum and wipe down let alone leaving time for the car wash + windows included. This scenario is a no win situation. You either do a great job and “eat” the significant extra time and effort free of charge or try and whip through the job within the time constraint of what she is willing to pay and try and make it presentable. I know from experience that never works because despite a customer’s assurance of “do the best you can for X dollars and I’ll be happy” they rarely are and were the #1 source of complaints for me early on at my business when we would try and do what the customer wanted. I will usually either offer the correct service and if they don’t want it or can afford it refer them to the local drive through car wash that will tackle jobs like that cheap and avoid the headaches for myself. Bottom line: two adults rarely agree on the concept of “best effort.”

3. “No experience necessary”:

I have at times been asked to do jobs that I really didn’t have the experience or training to properly handle. In these cases you “might” be able to turn out an acceptable result but most likely will spend an unacceptable amount of time for what you are being paid. Worse yet, you can damage your reputation by failing on an overly ambitious project. Customers will respect that you won’t tackle something you aren’t equipped or trained to handle and if the opportunity continues to present itself you can take the time to get training and proper equipment to ensure a satisfactory result. To illustrate this, we recently had to completely wet sand and polish a Maserati that had been improperly sanded by a body shop. The customer was furious and the body shop is now having their reputation tarnished all over the city every time that customer speaks of his experience with them. Lesson to be learned is don’t tackle jobs you shouldn’t be doing.

Declining a job opportunity is not a sign of weakness. Rather, it’s a continuation of an opportunity for an ongoing relationship. Use your refusal as a chance to describe what kind of work is a better fit, and be willing to make a reference to someone in your network who can fulfill their needs and return the referral in the future. Such a discussion might sound something like this, delivered via a phone call, e-mail or in a face-to-face meeting:

“I’m sorry, but it looks like this job won’t be a good fit for us at this time. Let me refer you to another vendor (or two) that is in a better position to handle this (or has more expertise) and would be able to help you out with it.”

There is a subtle art to delivering these words, especially in the midst of any critical negotiation with a new or long-term client. Be sincere, and remember that this will not be the last opportunity you will receive if your conversation goes well.

Author:  Scott Perkin
Owner:  Scotty’s Shine Shop in London, Ontario.

You damage paint, leave carpets wet, and blast the customer’s stereo…

These are stereotypes of reconditioners, and things customers ASSUME ABOUT YOU until you gain their trust.  But you can build REAL trust and credibility with prospects if you pay attention to a few details. Read on…

Building trust and credibility as a reconditioner.  3 Tips:

Uniforms convey professionalism and build trust in strangers.

1. Add RECOGNIZABLE images to your website and business card.

These include:

1.  International Detailing Association Logo
2.  NAPDRT Logo
3.  Local Chamber of Commerce Logo
4.  Autopia Logo
5.   Brands you use:  (think Meguiars)

Remember, that the goal is to appear TRUSTWORTHY at a GLANCE; nothing achieves this in an INSTANT like associating yourself with a trusted image.  something that is trusted.

2. Add your photo to your business card and website.

Every study confirms it:  photos build trust.  You’re asking a STRANGER to trust you with an appliance that sometimes exceeds $50,000 in value…wouldn’t YOU want to see YOUR face?  Women in particular are responsive to photos.  Nothing makes a personal connection quicker than a photo where you’re first discovered (website, business card, or brochure).  Get over your vanity and add a headshot to all of your marketing material.

3. Uniforms and signage.

Always, always wear a uniform the first time you meet a customer.  Could be a shirt.  Could be a hat.  Must be clean.  Must be tucked in.  When you walk toward their home, their office, or their driveway, you have to look like a PROFESSIONAL.