Candy Coated Silver Lining

[Waxman]

There are benefits to every negative circumstance!

In an economic 'downturn' many business ramp up service and begin offering customers a better value for the $$.

Case in point; my bank branch has really stepped up their in-office marketing efforts. Clever displays, good deals on home equity loans and even little dishes of hard candy out by the teller kiosks. I'm noticing improved service and value at many businesses.

 

[pitzerwm]

Opportunity always comes wrapped in a problem

 

[rph9168]

No question about it. Operators need to take a hard look at what they are doing to see if it can be done better in favor of the customer. I was talking to a successful operator I know today about the very same thing. We agreed that some operators have chosen to cut corners on services, quality or chemicals in order to save money and at the same time complain about the downturn in business. Now is the time for improving the way we do things rather than cutting back on things the customers want the most. Don't give them a reason to go to a competitor. Make it harder for the competitor to keep their customers rather than get yours.

 

[mac]

This is sooo true. One of my customers that has nine locations was calling and badgering me to lower soap and service costs because of the slower economy. When I asked him what HE was going to do to attract more business, I was met with silence. Heaven forbid he should have a "sale".

 

[rph9168]

I am wondering that in addition to improving operations and marketing efforts that it is time that operators look at their pricing. I am sure many of you have heard the old saying "I knew I was selling at cost but I thought volume would take me over the top". In addition to the astronomical increase in gas, I received a real sticker shock when I when grocery shopping with my wife this weekend. Milk -almost $4 a gallon, eggs - $2 a dozen, soft drinks - on sale for $1.25 for a two liter bottle, ground beef - $2.50 a pound. Wow. Almost makes the increase in chemicals, service and equipment seem cheap.

I have been around the car wash business for almost 30 years. When I started a full service wash was $2.99 and they still called self serves the "quarter" wash. I know it has been said many times before but our industry's pricing has not kept up with inflation. It may seem like a bad idea to many of you but this might be a good time to increase pricing at your wash. Consumers have reluctantly accepted the fact that things are more expensive these days. Many operators were operating on thin margins before the sh*# hit the fan lately and now are struggling to survive.

So in addition to working to improve your operation I would suggest that you consider an increase in your pricing or possibly declaring yourself as a non-profit organization and get a tax break. Several operators I have talked to lately I know have had this thought but were afraid to try it. I think the timing might be right to give it a try.

 

[MEP001]

rph, you must not have been grocery shopping in a long time. Milk has been around $4 a gallon for a lot of years.

 

[rph9168]

I am not really a grocery shopper but my wife tells me milk was 2 for $6 at our Kroger just last year, 2 liters of brand name soft drinks were $1 each just a few weeks ago and eggs were less than $1.50 the first of the year. Gas in our area was aroung $2.70 a gallon around the first of the year and now over $3.50 a gallon. Seems like some pretty drastic price increases in a short period of time.