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  1. #1

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    Source 1: Car dealers. Focus on independent, luxury dealers.



    I see a lot of techs make this marketing mistake: they run in groups to the largest dealers in town, eventually undercutting until there’s virtually no profit to be had. They’re attracted by the volume that a large dealer that can offer, but later find little loyalty when the GM changes his mind or is even replaced. And there’s hardly any referrals to be had. The service department wants the customer to pay them for your work.



    Another mistake: pitching the “value” lots. These are $2k – $10k cars with lots of miles and lots of dents, scratches, odors, stains, etc. Unless you’re new and need the practice, skip these dealers. They pay less per car despite the extra hours you put into them.



    The sweet spot is this: independent, luxury dealers that carry late model cars in the $15k – $40k range.



    Why independent luxury dealers?



    • Easier work. Late model, high value cars usually have less severe dents, scratches, stains, etc.
    • Better pay. Independents usually make up for their lack of volume with up to 20% more pay per job.
    • Get paid on the spot. Almost all big dealers make you wait 30, 60, 90 days.
    • More referrals. Because they have no service department, they refer out dents, touch up, detailing–and lots of it–to their 100s of customers. And their buddies–who own dealerships, auctions, transport companies–too!


    How to find them?



    Craigslist! Search for cars for sale by dealer in the $20k – $50k range and you’ll discover them all. Call or stop by. Emphasize that you’re reliable, not that you’re cheap, and do a demo. Check in once a month. The day will come when their “main guy” doesn’t come through and you’ll get his call! Prove that you’re reliable and you’ll have his business…and his referrals.



    Source 2: Service shops. Independently owned. Servicing luxury brands.





    Reconditioners overlook service shops because they don’t serve up the “do-it-now” business that car dealers can offer. But if you make it worthwhile to their business, a service shop can be worth $1000s in high paying business…with no competition.



    Like the dealers we discussed above, you want to seek out independently owned shops servicing high value cars (Audi, BMW, Porsche, Mercedes).



    Why independent luxury shops?



    • No “corporate” red tape.. Midas, Firestone, etc. usually don’t encourage formal referral arangements, and certainly won’t allow you to advertise at the cashier’s counter.
    • Customers who spend. Their customers bought their cars partly as status symbols so they’re more likely to pay for optional services like detailing, PDR, or leather repair.
    • “Fresher” cars. Usually, high end cars live easier lives: fewer dents, fewer stains, and fresher paint…which all means less work for you!


    How to get the business.



    Send them work, and let them know it’s coming. Have your customers mention your name for a discount or a small bonus service. Do a few demo jobs for them…especially the owner’s car.



    Once you earn their trust, you can profit in two ways. Set up a deal where you work on their customers’ cars at their shop while they’re being repaired. They get a 25% cut of retail prices. Or they simply hand over your card and personally recommend you to the customer.



    One tip: post a stack of small flyers with photos of your work. Business cards get ignored. But something visually attention grabbing will start a conversation with the cashier, and many times lead to an appointment!

    Marketing 101: Think of yourself as a farmer.



    You’ve got 5 crops:


    • Reconditioners
    • Body shops
    • Suppliers
    • Dealers
    • Repair shops


    Give them the adequate amount of water, each month, and they’ll yield profits. It helps to write them all down, write what they’re worth to you in sales, and water them appropriately.



    The latest from my blog for pro reconditioners:

    Tips for mining $1000s from luxury dealers and luxury repair shops.
    Robert Keppel

    Applied Colors

    "Profit More"

  2. #2
    Excellence Auto Gallery
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    May 2010
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    Good pointers...especially the repair shops.



    P.S - Your blog has some good stuff for detailers. I liked the blog about posting to CL...time to change up my ads!
    Abbotsford Auto Detailing in Abbotsford, BC, Canada

  3. #3

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    Yes, on some points, but on others, not realisitc, all one has to do is put the ego away, think true demographic`s of the potential clients out there.



    Not enough of the "luxury" cars or dealership to support the thousands of "those who detail" or "operate a stand alone detailing operation" to make a business out of it.



    On this site and others, "the brag thread" are for the most part, just "ego feeding".



    How many ever, really, on a regular basis do a Ferrari, a Buggati, a Bentley, and Aston Martin?



    Their total sales each year would not support more than 50 detailers, in the whole country, an ability to make their house payments.



    Just look at the numbers of new vehicles sold each year in the USA, look at the number of used vehicles sold each year, look at the number of vehicles produced, just in North America each year, just look at the number of vehicles which are traded in vs the number that are sold by their owners each year.



    Take all the "luxury" vehicles, sold in the USA each year, what a few thousand, and how it is possible to for , let`s say, 20,000 plus independant detailers, and add in the number of established and acknowledged car wash operations that promote and sell details with marketing budgets, can an "independant detailer" make a living?



    So, this is just something to be considered.



    Any one who is passionate about detailing wants to do the luxury cars, the big buck work.For one to such is very fulfilling, it fills their passion for the work.



    Really simple when one takes the time to look at the true demographics of what is out there for customers.



    The "mom and pop", who have limited amounts of money to spend, have to make a choice, new brakes, new tires, fix the a/c, etc so if they wish to have their vehicle "cleaned/detailed", they will usually price shop.



    Most in North America, and not addressing at this time, the rest of the world do not share the "passion" for such as those who are here on Autopia.



    Hope I didn`t burst any balloons, but what I posted is based on decades of being on both sides of this fence.



    To close, it is wonderful and exciting that there are so many who have the drive and passion to make a car`s finish and interior, etc, be as close to perfect as can be done.



    The true customer is not the person who owns a luxury car or exotic, it is the same folks who go to Pep Boys, to Car-X, to Jiffy Lube for the care of their vehicle and sorry to say the majority of "detailers" just don`t realize that or "how to communicate" with those owners.



    Reality, not the same for the 17,000,000 or so new car owners each year or the, what is it now, 100 millions vehicles on the road in the USA.

    Grumpy

  4. #4

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    Good post Ron. I have to say I agree with you on all accounts. Which is the main reason I decided to do paint correction/restoration on the side instead of trying to do for a living. I have the problem of "over doing" every car I work on which is not a good when it pays your bills. I would rather have fewer customers and be selective about what I work on instead of cleaning 100 Toyota Camrys a week.

  5. #5

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    Quote Originally Posted by Ron Ketcham
    Yes, on some points, but on others, not realisitc, all one has to do is put the ego away, think true demographic`s of the potential clients out there.



    Not enough of the "luxury" cars or dealership to support the thousands of "those who detail" or "operate a stand alone detailing operation" to make a business out of it.



    On this site and others, "the brag thread" are for the most part, just "ego feeding".



    How many ever, really, on a regular basis do a Ferrari, a Buggati, a Bentley, and Aston Martin?



    Their total sales each year would not support more than 50 detailers, in the whole country, an ability to make their house payments.



    Just look at the numbers of new vehicles sold each year in the USA, look at the number of used vehicles sold each year, look at the number of vehicles produced, just in North America each year, just look at the number of vehicles which are traded in vs the number that are sold by their owners each year.



    Take all the "luxury" vehicles, sold in the USA each year, what a few thousand, and how it is possible to for , let`s say, 20,000 plus independant detailers, and add in the number of established and acknowledged car wash operations that promote and sell details with marketing budgets, can an "independant detailer" make a living?



    So, this is just something to be considered.



    Any one who is passionate about detailing wants to do the luxury cars, the big buck work.For one to such is very fulfilling, it fills their passion for the work.



    Really simple when one takes the time to look at the true demographics of what is out there for customers.



    The "mom and pop", who have limited amounts of money to spend, have to make a choice, new brakes, new tires, fix the a/c, etc so if they wish to have their vehicle "cleaned/detailed", they will usually price shop.



    Most in North America, and not addressing at this time, the rest of the world do not share the "passion" for such as those who are here on Autopia.



    Hope I didn`t burst any balloons, but what I posted is based on decades of being on both sides of this fence.



    To close, it is wonderful and exciting that there are so many who have the drive and passion to make a car`s finish and interior, etc, be as close to perfect as can be done.



    The true customer is not the person who owns a luxury car or exotic, it is the same folks who go to Pep Boys, to Car-X, to Jiffy Lube for the care of their vehicle and sorry to say the majority of "detailers" just don`t realize that or "how to communicate" with those owners.



    Reality, not the same for the 17,000,000 or so new car owners each year or the, what is it now, 100 millions vehicles on the road in the USA.

    Grumpy




    Interesting post and accurate in my case at least. Do we do some extremely high end cars? Absolutely. Are they my best customers? Absolutely not. I derive probably 90% of my day to day business from everyday people driving average cars and they will spend the money to keep their cars looking great because they can`t afford to replace them every couple of years. I have found over 19 years the average "luxury" or "exotic" owner doesn`t spend squat on their cars because they never get that dirty so as a result - the average job we do on exotics are small, low profit jobs that I don`t even want to do.

  6. #6

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    Quote Originally Posted by Ron Ketcham
    ....Not enough of the "luxury" cars or dealership to support the thousands of "those who detail" or "operate a stand alone detailing operation" to make a business out of it.



    On this site and others, "the brag thread" are for the most part, just "ego feeding".



    How many ever, really, on a regular basis do a Ferrari, a Buggati, a Bentley, and Aston Martin?...


    While I agree with your statement, I disagree that it implies that 602rwtq`s suggestions are unrealistic.



    Note that he said:
    Quote Originally Posted by 602rwtq
    .....The sweet spot is this: independent, luxury dealers that carry late model cars in the $15k – $40k range....


    When was the last time you saw a $40k Bugatti? These aren`t Ferrari, Bugatti, Bentley and Aston Martin dealers. These are the dealers who handle lightly used Cadillacs, Lincolns, Lexus, Infinitys, Audis, Hondas, Toyotas, etc.







    pc

  7. #7

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    Those dealers who sell in this price range are like ANY dealer - used or new - they do not pay. Ask me how I know





    Ron is right on.





    Quote Originally Posted by the other pc
    While I agree with your statement, I disagree that it implies that 602rwtq`s suggestions are unrealistic.



    Note that he said:



    When was the last time you saw a $40k Bugatti? These aren`t Ferrari, Bugatti, Bentley and Aston Martin dealers. These are the dealers who handle lightly used Cadillacs, Lincolns, Lexus, Infinitys, Audis, Hondas, Toyotas, etc.







    pc

 

 

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