Money talks

gigondaz said:
Generosity is not Flexibility

Ok, if you really need the business badly, and start giving small discounts or other small "freebies", it might appear harmless. But in the long term, this thing will come back to haunt you. Later, he'll want that same "package", and he might mention your generosity to his friends who want the same. Once you start getting into the habit of small discounts and giving freebies...the consumers will hold back and wait patiently for that "moment" again. And they'll squeeze you again...because they know you're easy to squeeze.

I think you make some very good points in your post, it's very informative !



That said, I hear this particular line again and again (on this forum in partiuclar), and I just don't 100% agree with it. Just because there was a "deal" at one point doesn't mean that a customer expects that 100% of the time. Think brick-and-motar retail, does EVERYONE wait until Black Friday or Boxing Day to purchase their electronics, such as in-car GPS receivers and DVD players ? Even those who line up for hours and hours before the store opens on those sale days will still buy things at their regular price if they want them at a different time. It would be like a detailer getting an extra tip from a regular client just before Christmas, and then expecting that tip on every visit there-after.



Are there some people who really are like that ? Yes, of course. But I honestly think the majority of folks aren't hardwired like that.



Another option would be to ALWAYS have a "special" running. Mark all your prices up higher than you normally would charge, then offer a small discount, and rotate it every few months, giving them impression that you've got a "deal" going on, when in reality, you're charging what you'd normally charge anyways. It's all in the marketing.
 
I'm not a pro and for work it's more B2B than B2C.



If price is a concern for customers and you're 'out of their league', maybe if they get to 'try' you then they'll be more inclined to use you on a more regular basis.



A couple random options that I could think of:

1) discount services during 'slow' times where you might not mind the extra work at a discounted rate while possibly building up longer term clients.

2) For one-step or multi-step polishing, tell them that you'll do a test panel for free. Maybe they'll be stuck HAVING to get the rest of the car done since they can't have 'one good panel'....hahaha. Or a more serious derivation is to do a test spot on the car to show them the difference.

3) Offer a new customer discount, coupon, or guarantee that can only be used for new customers.

4) Charge a full rate with a guarantee. (guarantee could be a discount, full refund, discount on supplies, etc.)



Take a lot of cues from product companies that sell B2C and if you're worth it....you're worth it. If people don't want to pay it you're not (at least in that location).



I own a B2B business where the market is quite different but there are some similarities. However, I am a stupidly active shopper that buys all kinds of things that I don't need but like to play with (it's just me and i bought a pc, a griots and soon a flex in a matter of a month). I don't mind paying pros to work on my stuff too, but I get really pissed off if I'm paying pro-level rates for amateur-level work. Remember that there are a lot of hacks out there that try to charge your rates...it's hard for most consumers to know the difference and you're going to have to prove it first.



I don't know the detailing business that well, but I'd imagine that it's more important to build up a client list rather than doing 'new details' all the time. Focus on getting clients first. Kick the cheap *** clients who constantly pester about price to the side and tell them to go elsewhere.



Hope that helps someone out there. Happy holidays ;)
 
gigondaz said:
Quoting prices on the phone for detailing a car is extremely RISKY. Once quoted, it's very difficult to re-quote another price.

When you finally see the actual car....OMG! lots of crappy problems, you either hv to swallow it and proceed, or reject the car which means your scheduled day is gone. If you're lucky, the customer would be willing to fork out more. All depends on the type of customer you service.



In a nutshell, JC's area of concern depends on:



1. Your nature of business. Do you service everyone, or only high-end clientele/cars? If you hv to do "normal" cars belonging to non-enthusiasts who knows crap-all about detailing, then you obviously have lots of explanation to do to justify your price.

That's why, I avoid these bread and butter customers.



How do you operate?

If you own a shop, is it a "normal" shop or a high-end looking outfit? This is one of the main determinants of how high you can price your services. If you are a regular mobile detailer or you do it at home, then most non-enthusiasts might not be willing to pay too much unless they are your regular customers and accustomed to your great work.



2. How's your business performance?

If you're doing well, you don't need to act desperate and start slashing your prices. Your feet are well planted on the ground.

If things are not going well, and you're desperate for business, then you'll have to accept all kinds of jobs as long as it helps to put food on the table. In this case, price haggling will be frustrating.



My style is:



No price-discussions on the phone.

We're not selling oranges by the streetside:tongue:

I always meet personally with customer. Ask to see the car first.

Point out the problem areas and explain the steps to "fix" them.

Go on to explain the extensive labour involved. It's like home renovation.

Explain other competitors' prices - as a ballpark/guideline



Give customers a price range. eg: from 350-3000.

Don't go straight to the final price.

I tell the customer, it's like renovating his home.

How EXTENSIVE does he wanna do it??

What does he want it to look like?

How much time does he have?

Does he wanna camouflage the problems, or does he want to ADDRESS the problems? It's a totally different process and price.

Suggest a practical and sensible process.

....And then give him/her a FIRM price.



Do the job to impress.

If the customer cannot meet my budget, I would rather not do his car. Why??? If you try all kinds of shortcuts in order to meet his budget, the results might not impress him, and you'll never know what he'll say about you to his friends. Words will go around....trust me. Ever heard of horror stories about tuners who mess up other people's cars, resprayers who did a "bad job" etc?? Hey, you don't know the full story. How much were these guys paid in the 1st place? But it doesn't matter anymore cos the bad rumours are already flying around about "that guy".

You slogged like crap on that car, get paid a pittance, and you are not even impressed yourself...merely passable:cry1:



Generosity is not Flexibility

Ok, if you really need the business badly, and start giving small discounts or other small "freebies", it might appear harmless. But in the long term, this thing will come back to haunt you. Later, he'll want that same "package", and he might mention your generosity to his friends who want the same. Once you start getting into the habit of small discounts and giving freebies...the consumers will hold back and wait patiently for that "moment" again. And they'll squeeze you again...because they know you're easy to squeeze.



The notice in the zoo always say "Don't Feed The Monkeys".



My standard approach is: I can certainly give you a discount...only when you bring in a 2nd car. The work involved is just too extensive, and I can't go below this level. Be firm. You're the pro. It's your business to make money.



I have used this approach on many potential customers who make inquiries, and they return weeks or months later to me requesting for ANOTHER round of detailing cos their "generous" detailer (cheap job) couldn't give them what they want, or created new problems. I switch on the metal halides, point the new problems to them, explain that I hv even more work to do now.....and then, I unsheath my "ultra sharp pricing knife":happy:



Once their problems are solved, and the car looks stunning, they become my loyal customers and will never haggle price with me ever again.

Lesson learned...the expensive way.



You have some of the best things to say when you reply to post. This has got to be one of the best things I have read in a while! Thank you for posting here on Autopia.
 
I don't believe in discounting services to retail customers, as they certainly get every bit they pay for. I know in my case and in J.C.'s case we have loaner cars, this should be enough, and if they really can't afford the detail you're selling, they will pick apart the detail more than anyone. Price shoppers, who can't afford a quality detail are the ones who say "hey, that dent wasn't there", or find any minor imperfection, and ask why it wouldn't come out.
 
JohnKleven said:
I don't believe in discounting services to retail customers, as they certainly get every bit they pay for. I know in my case and in J.C.'s case we have loaner cars, this should be enough, and if they really can't afford the detail you're selling, they will pick apart the detail more than anyone. Price shoppers, who can't afford a quality detail are the ones who say "hey, that dent wasn't there", or find any minor imperfection, and ask why it wouldn't come out.



Spot on, John:happy:

Those who can't afford it, and don't know what professional detailing is, are usually the ones who nit-pick and give you grief....for very little money. Frustrating work.



Some women shoppers lament that the sales assistants in upmarket designer clothes boutiques don't give them professional service and attention.



Hey, these sales people can identify their kind of customers at a glance. Their priority is to first service their kind of customers/target market.
 
JCastro, Dfazekas, WAS and grandmaster Barry...thanks for your kind words:razz:



When facing a new potential customer, I avoid talking about the price first., or their "mental gate" would start closing. Keep that gate open by talking about the work needed to address his/her issues.



Explain that proper external and interior professional detailing involves lots of labour, steps, and time.



I show them this:

PC300616.jpg


These A4 printouts pertain to the steps done on a similar vehicle.

It helps the customer REALISE the extensiveness of the professional job.



A closer view of one of the presentation sheets.

This one was for an AMG G-Wagen.

PC300617.jpg




I explain to them that it's not a typical low-budget polish and wax job.

Photos will be taken along the way, and these will be printed out on A4 colour for him to keep.



At this stage, most of my potential customers will ask "Wow! You mean you're gonna give me a printout like that??". Yes..of course! We are fully committed to your car, and will only be breaking for lunch from 12-12.45 noon. You can drop by anytime, and you'll see our 4 metal halides switched on while x no. of people are constantly working on your vehicle. Sir, on the next morning, we will apply another layer of xxx on your car, and this will be recorded on video as well (with date and time featured). I will show you the videos when your car is ready.



At that stage, most genuine customers will hand over the keys.......convinced and sold!:drool:



The above scenario happens regularly, and also happened between me and a black E90 BMW owner last 2 days. Paint was shockingly swirled, and loads of dye transfer on leather seats. He claimed that my price was outrageous.



Today, when he collected the car...he was shocked!!!!and he has paid a small deposit for 2 other cars comin' to me next week!

PC300634.jpg




Dye transfer after some cleaning work (work in progress)

PC300613.jpg




Finished!

PC300614.jpg




On my way home, braving the tremendous New Year eve humongous traffic jam, I had an outrageous smile on my face!! Great job done and a delirious customer.

Happy New Year guys and gals!
 
gigondaz said:
"Wow! You mean you're gonna give me a printout like that??"........and this will be recorded on video as well (with date and time featured)



I've been toying with the idea of doing the picture/video thing for a while now.

After reading this I'll be looking into it more. When you show them the video:

is it a video of the whole detail or just certain steps? I've thought about putting together

time lapsed ones of the entire detail that I could give to customers when I'm done.
 
JohnKleven said:
I know in my case and in J.C.'s case we have loaner cars, this should be enough

That alone is worth ~$60 a day when you figure average rental car rates, taxes and insurance. If I had enough volume, I'd LOVE to have loaner vehicles.
 
Oh yea, a few reasons, in order of importance, why people choose to purchase from a business: Confidence, quality, service, price. Notice price is fourth. If you do a good job building people's confidence in your service, offer good quality and service, price is much less of a factor.
 
dfazekas said:
I've been toying with the idea of doing the picture/video thing for a while now.

After reading this I'll be looking into it more. When you show them the video:

is it a video of the whole detail or just certain steps? I've thought about putting together

time lapsed ones of the entire detail that I could give to customers when I'm done.



Video Clips.

My videos are all in separate clips (using my digital camera).

1 clip for each stage - burned into CD and given to customer.



Photos

1-2 photos on each stage.

All photos compiled into a Powerpoint file which I slowly do while I'm in the shop. Printed out in colour and given to car owner.



Presentation Steps:

1. Cover up the car.

Don't show them the car first, or they'll be busy oggling and won't pay attention to your presentation.



2. Customer arrives.

I'll show him/her the "stage-by-stage" clips on my shop's PC.

They'll be impressed to see their car covered up.

Then, I'll unveil the car.



3. Q&A.



4. Present CD and hardcopy of the Powerpoint'ed photos to them. At this point, most of my customers would be making appointments to send in other cars, or will make referrals to their friends.



Grab a cold beer and chill!!!:drool:
 
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