4 Ways I increased per-car profits $40.

[602rwtq]

You put in a lot of work to fill your calendar with new detailing appointments.



But have you put much effort into making as much as possible with each appointment?



If you could improve profits 10 – 20%, and in many cases not spend extra money, would you be willing to shuffle your service menu?



Here’s 4 tactics I used to increase per-car profits at my Beaverton, OR detail shop.



Method 1: Separate and upsell services from your complete detail.



How many restaurants give you an appetizer, beverage, entrée, and dessert for one price? Almost none. It’s no secret that restaurants lose money on entrees and make money on all the other stuff.



Take a look at your complete detail package. What’s essential, and what would the customer accept as optional?



Here’s steps you can remove from your detailing process and sell as optional services, as well as a price I’ve found customers willing to pay for them:



• Engine detail ($25)

• Longer-lasting paint sealant ($40)

• Leather conditioning ($25)

• Wheel wax ($25)

• Wetsanding and polishing of deep clear coat scratches ($20 – $40)

• Pet hair removal ($25 – $80)



Method 2: Stretch your price boundaries if needed.



First, don’t offer flat rate pricing because someone always loses. If the car is a “cherry,� the customer is overpaying. When the car is a “dog,� you’re selling your work short.



Price your detail packages to have a range of $80 from the low end to the top end (ie, $200 – $280 for a car, inside and out). Customers will try to “pin you down� on a final price over the phone, but I found an $80 “fudge factor� makes them comfortable enough to book an appointment and discover the final price when you meet later.



However…there will always be the occasional “nuclear bomb.� These have dog hair, food stains, mold, paint in the carpets, flaked paint, fire damage, mice, and more.



In my first 2 years in business, I stuck to my pricing menu and charged these “bombs� my max dollar amount. We lost money putting 12+ man hours into these. Very stupid.



Later, I didn’t hesitate to ask $100, $200, or $300 more for “bomb� cars and was delighted with how understanding most customers were about offering exceptional pricing for exceptional jobs.



Method 3: Create an “ultimate� package that groups all your special services, at a discount.



Bundles are appealing to your customers because:



• They get a lot…for less. Their desires to consume, and save, are satisfied simultaneously.

• Bundles make the buying decision simple. Many customers don’t want to put in the effort to differentiate a paste wax vs a paint sealant, or a light detail from a deep cleaning…so they may just choose your “ultimate� offering.



Your “bundle� might look like this:



• Your basic detail.

• Plus your most expensive sealant.

• Plus wheel wax.

• Plus leather reconditioning.

• Plus glass repellant.

• Plus engine detail.

• Plus fabric sealant.



Bought individually, this might cost $385. But as a bundle…$285.



Can you imagine a lot of your customers saying “yes� to that?



And better, just a 25% “yes� rate on the bundle could raise your average “ticket� 15% or more!



Method 4: Offer something more than detailing.



You can do so much more to make your customers’ cars beautiful. Here are some examples of profitable services and the prices you can charge:



1. Paint touch up. Recolor rock chips and small scratches for $40 – $80.

2. Glass chip repair. About $45.

3. Leather dye. Recolor worn seats for about $125.

4. Wheel scuff repair. Grind, sand, and repaint alloy wheels for about $150 each.

5. Headlight reconditioning. Wetsand and polish cloudy lenses for $60 – $80 a pair.

6. Ozone odor removal. Eliminate smoke, mold, and mildew odors with an ozone generator for $50 – $100.



About a third of customers who booked details opted for these “add on� services because they found it convenient to get the whole car freshened up in one appointment. You can buy “add on� systems from many companies online, and learn to use them at home, with DVD training.



The original article from my blog



Comments? What are ways you`ve improved your per-car profits?

[Nth Degree]

Outstanding points. I have been toying with changing my prices as well in a similar manner. Particularly important for those working by themselves where hours matter.

[justin30513]

Very well put thread.

Thanks for these tips.

[Envious Eric]

only thing I dont like is the bundle...now you are basically doing more for the same as a lower package...you dont get a deal at a restaurant (as pointed out) for ordering an app, entree, dessert

[Nth Degree]

only thing I dont like is the bundle...now you are basically doing more for the same as a lower package...you dont get a deal at a restaurant (as pointed out) for ordering an app, entree, dessert

It is a pretty common practice in most industries to bundle things. If it is structured right you can make it work. The key is to create packages that make sense, increase your sales and providing a discount for the consumer at the same time. Example: Wash/Seal package is $150. Clay/decon is $50 add on. Many customers will think price first and choose to forego the decon. A Wash/Clay/Seal package for $180 is an easier upsell than the $50 add on. If you can`t demonstrate the value @ $30 how can you justify the $50?



Of course that is a simple example. Car makers have the right idea in this area. "You want the sunroof? That only comes with the LX trim package." The customer may not have been looking to choose those options but they are included with that package.



As long as your packages make sense and you aren`t just piling on useless stuff to fluff it up it is fine.



Another practical example: If I do a full correction on a vehicle, I`m not sending it out with a low end spray wax for an LSP. A good sealant is included and the work is priced accordingly. Multiple coats of boutique wax on a show car? I`m not willing to use a cheap dressing on the trim.



Whether the customer knows it or not (I do everything by quote at this point) they are getting a pre-determined package.

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[togwt]

I guess the newbie above is trying to shine some light on the subject


`


Excellent tread with usable ideas for the professional detailer - Kudos

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