Seekings some business advice... (long)

[imported_Ivan Rajic]

I've spent the past couple weeks doing a little website and business rejuvenation. I've added some color to my website, as well as revamped services, info page, etc. You can see my website through my avatar/profile and I gladly welcome any comments and constructive criticisms.



Now onto the main point of this post. For the past year now I've been trying to somehow provide services to those seeking to spend $150-200 on one-step + light interior details. The demand in Chicago is HUGE for this kind of service and I feel that I can do a good job providing it. I also feel that through my well built reputation I can make it a pretty profitable service for my business. This is where the issue arises for me...



I have been working hard for the past 4 years on providing the best detailing services at appropriate (higher than normal) prices. I've been fortunate enough to almost always have clients who know what they want, know what I do and know what it will cost, before I say anything. I have always done great work, exceeded their expectations and never had a single complaint. Through all this I've made a great name for myself as a high end detailer here in Chicago and nationwide and wish to keep it that way.



Onto the issue... as some of you may have already guessed by simply reading the above, I'm having trouble connecting a lower quality $150 1-step detail with my current lineup of high end detailing services, as well as my business name. I do not like the idea of lowering my prices as I feel they're already at the low-mid level in comparison to others providing the same quality of services. I also don't like the idea of telling a client that it'll be $300 for a 1-step polishing service, then after they say their budget is $200 I tell them I can do "this and that" for $200. I feel that it wouldn't play well on my name and reputation as a quality detailer, even if I'd be providing a good quality service and not doing anything detrimental to the paint/vehicle.



All that said, the way I decided to tackle this is by constructing a service named along the lines of "Express Detail", then simply stating that the polishing will by done by an AIO and explaining it as a step up from wash/clay/seal but less than a proper wash/clay/polish/seal. I feel this way I can provide an "economy" service while retaining all my current services and still keeping up the quality of work I've always done.



The reason behind this change... I am looking to turn detailing into a full-time venture very soon. Since there's a huge demand for the $150 details, I figure there's nothing wrong with supplying that demand with much better than average work for the same prices, and being a more profitable business.



I'm open to any advice on how to approach this change as well as comments on what I'm thinking of doing about the service. As always any advice is greatly welcomed and appreciated.



Thanks in advance.

 

[MarcHarris]

Ivan, I think you're on the right track. We're looking to do something similar, and its exactly like you thought of; an "express" service. There's no use in not getting a piece of the pie that people want to pay you for.



Starting high-end and working down isn't something new. When VW brought back Bugatti, they decided to come out with the crazy car we now know is the Veyron, and though they're losing money on each on built and sold, but they're going to open it up to a "low end" $200-400k car in the future. Lamborghini has done the same with having a Countach, then Diablo, then Murci, but opening the game to their "low end" Gallardo that doesn't have the famous scissor doors. The worry is always watering down your brand and image, but if done right, there's room for all of it.

To avoid losing on your reputation, just make sure you have minimum standards for every service. I look at it as the most basic thing to offer is a wash and quick detail - something I'd expect to charge more for people who don't have cars previously detailed by us. Returning clients may be offered a similar service at a lower price as their car will clean off easier (and therefor quicker), without having to worry about ruining the mitts or towels that were used on them.



At the end of the day, most people won't be interested in a $50 car wash, though returning clients could certainly be interested in a $25 or $30 car wash. I look at a minimum requirement for this type of work as quality microfiber drying towels and wash mitts, and that standard won't change. I personally believe if you're going to lower prices on anything (the amount of money you want to make per hour that is), it should be for those that have already spent several hundred dollars with your business, not those looking for something cheap. So if your AIO polish makes you just as much money per hour, I don't see how this service could be "cheap" in comparison to your other services.

 

[nushine31223]

Ivan, I think you're on the right track. We're looking to do something similar, and its exactly like you thought of; an "express" service. There's no use in not getting a piece of the pie that people want to pay you for.



Starting high-end and working down isn't something new. When VW brought back Bugatti, they decided to come out with the crazy car we now know is the Veyron, and though they're losing money on each on built and sold, but they're going to open it up to a "low end" $200-400k car in the future. Lamborghini has done the same with having a Countach, then Diablo, then Murci, but opening the game to their "low end" Gallardo that doesn't have the famous scissor doors. The worry is always watering down your brand and image, but if done right, there's room for all of it.

To avoid losing on your reputation, just make sure you have minimum standards for every service. I look at it as the most basic thing to offer is a wash and quick detail - something I'd expect to charge more for people who don't have cars previously detailed by us. Returning clients may be offered a similar service at a lower price as their car will clean off easier (and therefor quicker), without having to worry about ruining the mitts or towels that were used on them.



At the end of the day, most people won't be interested in a $50 car wash, though returning clients could certainly be interested in a $25 or $30 car wash. I look at a minimum requirement for this type of work as quality microfiber drying towels and wash mitts, and that standard won't change. I personally believe if you're going to lower prices on anything (the amount of money you want to make per hour that is), it should be for those that have already spent several hundred dollars with your business, not those looking for something cheap. So if your AIO polish makes you just as much money per hour, I don't see how this service could be "cheap" in comparison to your other services.

totally agree, in one sense you almost want to provide a service for everybody and since i know your in the heart of the city you will never have a problem reaching tht. however where i am out of (30 mi south of you) i almost have to run two seperate businesses (so it seams) meaning you want to(and have the passion) do the high end corrections but also there is always moms with minivans that say "just make it shiny" in tht case the one step AIO is a inginious idea, if and only if you can make it very clear that in your website as well as in face to face conversation to the customer what they are getting and why the price is what it is. if you can succeed in eluding to that point then that specific package will keep you running to the bank as well as a new breed of happy clients.

(sorry if i rambled on)



-Nick

 

[imported_Ivan Rajic]

Ivan, I think you're on the right track. We're looking to do something similar, and its exactly like you thought of; an "express" service. There's no use in not getting a piece of the pie that people want to pay you for.



Starting high-end and working down isn't something new. When VW brought back Bugatti, they decided to come out with the crazy car we now know is the Veyron, and though they're losing money on each on built and sold, but they're going to open it up to a "low end" $200-400k car in the future. Lamborghini has done the same with having a Countach, then Diablo, then Murci, but opening the game to their "low end" Gallardo that doesn't have the famous scissor doors. The worry is always watering down your brand and image, but if done right, there's room for all of it.

To avoid losing on your reputation, just make sure you have minimum standards for every service. I look at it as the most basic thing to offer is a wash and quick detail - something I'd expect to charge more for people who don't have cars previously detailed by us. Returning clients may be offered a similar service at a lower price as their car will clean off easier (and therefor quicker), without having to worry about ruining the mitts or towels that were used on them.



At the end of the day, most people won't be interested in a $50 car wash, though returning clients could certainly be interested in a $25 or $30 car wash. I look at a minimum requirement for this type of work as quality microfiber drying towels and wash mitts, and that standard won't change. I personally believe if you're going to lower prices on anything (the amount of money you want to make per hour that is), it should be for those that have already spent several hundred dollars with your business, not those looking for something cheap. So if your AIO polish makes you just as much money per hour, I don't see how this service could be "cheap" in comparison to your other services.

Matt great reply. As for the AIO, as I've decides to use it, it won't be cheap in comparison. The reason I had trouble with it at first is because the AIO/Express detail would basically be a "watered down" 1-step I offer currently. Meaning my issue was how to market and introduce the "watered down" 1-step as something of good quality. I believe I solved that (not that it took much thinking haha) by using it as I plan, between wash/clay/wax and a proper 1-step polish detail (wash,clay,polish,seal).



I am just seeking any input, such as yours, to get an idea of what some experiened guys here think of the decision. Thanks again for a thorough reply.

 

[Jpostal]

I really dont't see the problem adding a one step to your menu, especially if you plan to go full time with detailing. After assesing the customers needs and budget you can recommend a package and explain the advantages/disadvantages of the recommended package.



I look at it like this...if you go to a high end steak house you have the option of a $60 fillet mignon or a $40 NY strip, they are both a good steak but not everyone wants to spend $60 on a steak. If you go with the NY strip you know you are not getting the best of the best, but you are getting an excellent steak at a more affordable price.



The site looks great by the way.

 

[imported_Ivan Rajic]

totally agree, in one sense you almost want to provide a service for everybody and since i know your in the heart of the city you will never have a problem reaching tht. however where i am out of (30 mi south of you) i almost have to run two seperate businesses (so it seams) meaning you want to(and have the passion) do the high end corrections but also there is always moms with minivans that say "just make it shiny" in tht case the one step AIO is a inginious idea, if and only if you can make it very clear that in your website as well as in face to face conversation to the customer what they are getting and why the price is what it is. if you can succeed in eluding to that point then that specific package will keep you running to the bank as well as a new breed of happy clients.

(sorry if i rambled on)



-Nick

Makes perfect sense. I love rambling as you can tell so no problem at all haha

 

[Envious Eric]

i already have an express business name registered and am waiting on the rain to stop here to launch it, as well as get some other things lined up (supplies, employees, etc)



I am in the same boat, I offer higher end services and have built my name around that. I dropped the AIO package from my services because it doesnt provide the end result I am always after when I do paint correction. Sure it looks good, but its not a true polish IMO.



my new business is going to offer washing, wash/wex, interior work and AIO step. Thats the only machining a car will get...no dedicated polishing or compounding...basically the stuff I dont like to do as the dramatic change just isnt there for ME (not self gratifying)

 

[imported_Ivan Rajic]

i already have an express business name registered and am waiting on the rain to stop here to launch it, as well as get some other things lined up (supplies, employees, etc)



I am in the same boat, I offer higher end services and have built my name around that. I dropped the AIO package from my services because it doesnt provide the end result I am always after when I do paint correction. Sure it looks good, but its not a true polish IMO.



my new business is going to offer washing, wash/wex, interior work and AIO step. Thats the only machining a car will get...no dedicated polishing or compounding...basically the stuff I dont like to do as the dramatic change just isnt there for ME (not self gratifying)

I had the same plan and even started a new business... new name, services, etc. The issue is that you need to start from scratch, and just because you offer the service, clients won't simply line up to buy it. You need to build a good reputation again, etc. The main reason I have decided to offer an economy AIO service through my LUSTR/high quality business is that when I advertise a business, I don't want to loose out on those clients who'll want full corrections for $400-500+ by simply offering lower end services. To be honest, I don't know which way is better as I haven't experienced either. I have simply decided that it might work out better if I keep everything as is and throw in a new service just to supply to another market.



That said, I do still have the other business set up and ready to go and I will probably keep marketing that to the clients that I know will 100% seek out those services and will refer other, like-minded clients. This way I can make a really good separation of services and cater to both demands in my area. I'm hoping this will happen within a year, or maybe this summer, but at the moment I'm simply going to offer an "express" service within my current business and hope for the best.



I think Nick hit the nail on the head in that the deciding factor for the success of this service will be the proper marketing and explanation of it and how it fits within my current services. Making the client understand the difference between it and a proper 1-step polishing detail AFTER discussing the client's wants and needs will be the key in this situation.

 

[Envious Eric]

yeah i see your angle on it.



my angle is that i dont want to be doing that type of work. i would rather do 4 or 5 400-500 correction jobs a week rather than 10 AIO jobs @ 200. sure you get more people telling more people, but when people see envious detailing work done, i want them to see correction jobs, not wash and waxes! so ill have the second business owned by me and operated by someone else so i can make money off them working WHILE i do a correction job.



at least thats my thinking and plan for it

 

[brwill2005]

I have three interior/exterior packages of various levels of scope and pricing. The "cheapest" package definitely lags behind the more expensive packages, in purchase frequency, not including my maintenance plan customers. I market it as a package designed for newer cars or cars that are frequently detailed (2 times or more a year). Usually, when I explain that the basic package is a "hand wax" and does not include any polishing, they opt for one of the other, more expensive packages that include polishing of the paint. My point is that, the type of person who will purchase auto detailing services is usually not looking for a "basic" detail. Most want their car cleaned, polished, and protected to a reasonably high level and are willing to pay a premium for it.

 

[imported_Ivan Rajic]

I have three interior/exterior packages of various levels of scope and pricing. The "cheapest" package definitely lags behind the more expensive packages, in purchase frequency, not including my maintenance plan customers. I market it as a package designed for newer cars or cars that are frequently detailed (2 times or more a year). Usually, when I explain that the basic package is a "hand wax" and does not include any polishing, they opt for one of the other, more expensive packages that include polishing of the paint. My point is that, the type of person who will purchase auto detailing services is usually not looking for a "basic" detail. Most want their car cleaned, polished, and protected to a reasonably high level and are willing to pay a premium for it.

I can definitely see your point. I am simply trying to earn money that people would otherwise be wasting at a local wash place for horrible services that'll leave holograms, take off a lot of paint with rotary buffers, and grease up everything inside out. I think the new service can/will be successful because I will still keep doing my Pre-Detail Inspections, where I show people test sections of different polishing steps (usually 2 steps). Now I can do the AIO, 1-step, 2-step, etc. and I'm sure many people who are on a budget will see the difference the AIO makes and go with it, instead of going to someone else. Similarly, if I get a call from someone who I can tell doesn't want to spend much, the AIO becomes a very good "refresh" detail service to offer as it'll make a very good difference for only $150-200ish, as opposed to a more involved 1-step polish for $100-200 more.



I might not be explaining it properly, but my intention with this is to indirectly compete with some of the local shops that do crappy work by offering a similar service they do but doing it 10x better and safer for the paint.



At the moment I'm stuck at choosing a name for the new service that fits in with my current services!

 

[brwill2005]

Your right with your thinking in theory. I just wanted to mention that I did the same thing when I decided to offer my wash, light interior clean, and hand wax to compete with car washes offering "express details". It has just not been as popular as I figured it would be. The problem is that the prices charged by these types of places are so much lower simply because of their economies of scale. They can turn out 25 or more cars in an hour and charge $40 a piece.

 

[imported_Ivan Rajic]

Your right with your thinking in theory. I just wanted to mention that I did the same thing when I decided to offer my wash, light interior clean, and hand wax to compete with car washes offering "express details". It has just not been as popular as I figured it would be. The problem is that the prices charged by these types of places are so much lower simply because of their economies of scale. They can turn out 25 or more cars in an hour and charge $40 a piece.

Prices here are $100-125 for an exterior polish detail and some interior work. I would only be a bit more expensive but offer much higher quality overall so I feel people might like the service. Either way, I'm not hurting at all way one way or the other, just figured I'd try to offer something for the budget minded individuals while still doing quality work.

 

[gocubbies]

I am having kind of the same issues. I recently got laid off and figured i would turn my hobby into a buisness. Like it has been said here the big car washes offer so many different packages and can turn them out quick due to the fact they have a tunnel wash that will "wash" the vehicle in like 3 minutes compared to me spending 30-45 minutes just on the wash. Plus they have multiple people working on the cars to get them done faster. No way I can do a wash and wax in 20 minutes like alot of wash places advertise. Plus the fact that the undercarriage wash, rust inhibitor,and tri color "wax" that is applied through the tunnel wash i can not provide. Even though i believe those are a waste of time and a lie(just my opinion). So my biggest struggle is setting my prices and what to offer in each package to lure customers away so I can build a reputation and my buissness. But still need to make sure it is worth my time and expertise. Most people think to make a car "shiney" and looking darn near new again it takes only 20 minutes and should not cost anymore then $40. As most of you have seen some people just dont want to listen when things get explained to them. And my work spot in at home and sometimes dont alway have the garage to work in so this wonderful Illinois weather we have this time of the year really limits what i can do. There is good advise in this thread and if the OP dont mind i would like to "steal" some of the ideas given to him and some of what he is already doing.

 

[brwill2005]

That is why you must position your service properly and target the right people. Position your product as being much different from what a commercial car wash is offering; better quality, more personal service, more convenience etc. Do not try to us a "cheap price" as your selling point. Obviously there is no way you can compete with a car wash on price. Target those people who are passionate about their car's appearance, and are willing to pay a premium for quality, service, and convenience.

 

[rexrock]

That is why you must position your service properly and target the right people. Position your product as being much different from what a commercial car wash is offering; better quality, more personal service, more convenience etc. Do not try to us a "cheap price" as your selling point. Obviously there is no way you can compete with a car wash on price. Target those people who are passionate about their car's appearance, and are willing to pay a premium for quality, service, and convenience.

Exactly. Let the car washes handle anyone looking for something cheap. If you explain the difference between the AIO package compared to any paint correction package, they should know what they are getting. I added a AIO sevice last year and it has done well so far. The customer knows through referals and my website they are going to get something better than any car wash, even with just AIO. One of my customers once told me, "If 10% of your customers are not complaining about your prices, you are not charging enough."

 

[David Fermani]

I find nothing wrong with re-aligning your marketing strategy to bring in a broader relm of clients. I applaud you for doing this. I strongly feel people (like you especially) should offer an entry level service to get your customer initially in the door. From there you must focus on asking the right questions and being able to effectively consult your prospect on their options. This will not only impress them as your competition is most likely failing at doing this, but will give your clients more control with choosing a package/process that's right for them. Remember....upsell>>upsell>>upsell!!! How many of those 1 step clients would feel at ease knowing that you're willing to do maybe a 2 step on their horizontal surfaces and/or wax their wheels??