Tips for soliciting an off-site gas station partnership

[Bubbles Galore]

I have a gas station four doors down from me that would be ideal for selling washes to my new Razor. I have 2 separate questions:

• Does anyone have any suggestions for preparing a proposal as far as terms and conditions and things I'm obviously not even thinking about in these early stages?
• I am currently using a Hamilton ACW 4 as my entry system. Is there value in upgrading that to use a POS system or would a new autocashier be a more prudent move if a partnership like this is to move forward?

I'm not sure if this is even worth pursuing, but I do know that there are others that have tried this either with or without success. Thanks!

 

[buda]

John

Don't complicated it. The owner will do it if there is a financial benefit for him, maybe. If it is too much trouble he won't do it, even if there is a financial reward.

You would have to give him say $1.00 a car for every wash that came from his gas station.

Or, you could make an appointment to see him and sit down and point out that your business could help his and his business could help you.

Does he have any interest in a cooperation. If yes, then ask his opinion of what might be the basis of a cooperation?

That is a good way to start, let him tell you what he'd want.

Bud ABraham
DETAIL PLUS SYSTEMS

 

[Bubbles Galore]

Hi Bud,

Thanks for the response. One thing I did forget to mention is that it is a corporate chain, so that will change my approach. Any suggestions?

 

[buda]

It might but the manager will tell you what he can do.

 

[Bubbles Galore]

Thanks for the feedback Bud, I think it might be prudent to try to get the name of the district manager as well.

 

[zepher]

The Corporate chains usually have strict guidelines to follow. I would talk with the store manager first but you may have to go through the district manager or even the corporate office. Definitely have a nice presentation put together for when you talk to the store manager. I would put together some information on your business and how this partnership can benefit his or her store. You should leave a nice folder with all of the information you discussed and be sure to follow up with him or her a few days down the road. You might also include a free wash or two so that he or she can see your car wash in action.

 

[Bubbles Galore]

I'm just curious what kind of pull the store manager would have if any with such a large corporation. I agree about the free washes, but there might be a better opportunity to show the presentation to the district manager. Either way, good tips, appreciate it.

 

[buda]

John before going past the manager talk with him. He just might be willing to pass our $1.00 off coupons to his gas customers if you pass out something for his facility. Simple as that.

If you go to headquarters they will give you the corporate "BS" just keep it simple.

If he says he does not have the authority to do anything then call the corporate offices of the oil company and find out who takes care of merchandising for the stations.

Regards
Bud Abraham

 

[Bubbles Galore]

Quick update, I spoke with the head of corporate partnerships at their headquarters last week. They seemed to be very interested in working with us and even offered to help push our detailing business as well through some specials and promotions. I have a teleconference with them next week and hope to learn a bit more about where our next steps should be. I'm pretty pumped since this could really help bolster our automatic volumes as well as expose us to a whole new customer base.

 

[rph9168]

They will probably be counting on you to present some ideas. From my experience be ready to explain in as much detail as possible on how you would like to structure the program and make sure it makes sense for both you and the store. This could be a great opportunity or they could just be interested to see what a program might look like.

 

[Bubbles Galore]

They will probably be counting on you to present some ideas. From my experience be ready to explain in as much detail as possible on how you would like to structure the program and make sure it makes sense for both you and the store. This could be a great opportunity or they could just be interested to see what a program might look like.

Any recommendations or experience in this type of thing? I'm hoping to make some good headway with our conversation coming up this week. I don't currently have any fleet capabilities with my ACW, but am willing to make the investment once we have an agreement in place.

I'm not convinced that Hamilton has the best fleet program/software, but I'm not sure what will interface well with an ACW 4...

 

[rph9168]

I have found that there needs to be something in it for them that is highly desirable which means increased traffic at the store and profit. Some type of cross marketing like a discount on a fountain drink or coffee with a receipt from your wash and a discount at your wash for a wash they sell at the store. You will probably have to also kick in some incentive for each wash they sell as well. You should also include some sales training for their people and recommendations for signage at each location. If possible you might want to offer several different marketing options for them to consider.

Be sure to include some type of evaluation on how well the program is working. For instance the number of washes they sell and their profit along with any increase in beverage sales at the store. C-store companies are always evaluating their marketing efforts. By recommending one it will show you are a professional and helps them better understand the program goals. Make sure to put your presentation down on paper and get a copy of it to them before the meeting so you can focus the discussion on the proposal.

 

[Bubbles Galore]

Thanks for the ideas, I am putting some thoughts down on paper and will flesh them out prior to our teleconference.

Thanks, I will update as we move forward.

 

[Fatboy769]

John, any updates? I like this idea, and may have an opportunity to do something similiar.


Scott

 

[dewey9876]

yes also interested.

 

[Earl Weiss]

Two ideas, but your auto Cashier has to be able to accept some sort of secure coupon redeemable for a wash.
1. You sell them washes at a discount. They can offer the wash at a discounted price to people who make a minumum purchase. (Say fillup - 5 Gallons minimum.) They can markup their cost to make something on each deal or use it to simply boost their gas sales. (If a wash is never redeemed you made the $ without any associated cost.)

2. They sell the the washes and you have them pay for whatever is redeemed periodicaly. That way they get to keep the "Walk Off" revenue for tickets not redeemed.

 

[robert roman]

There are several issues that you will encounter in developing a cross-selling agreement with a gas station and convenience store company.

Most gas/c-store players like WAWA, Sheetz, Racetrac, QuikTrip, etc, are not willing to share their customers with an independent carwash operator. If you found someone interested, consider yourself lucky.

Gallon-per-wash rates vary from 75 to 150, the average is about 60. In other words, on average, you might expect to sell one carwash for every 60 gallons of gas sold. To achieve this, you need a tie-in at the pumps and store counter and the POS would need the ability to accept wash codes at the entry of the wash.

Since it is the gas/c-store collecting the money, you will need an audit system and you will wait to get paid, less refunds, etc.

Since you are not located on the gas property, four doors down, is actually quite a far distance in terms of convenience. Because of this, I would consider cutting the anticipated gas/wash rate in half.

To get traction with gas/wash combo, more store owners are moving to offer a liberal discount on the price of gasoline with a carwash purchase at the pumps. This may further complicate your deal making.

Since the wash is off gas/c-store property, be prepared to offer a higher level of customer service. Like the gas/c-store, customers are going to expect that an attendant will be present to address any their concerns, problems (damage claims) or issues.

Also, you may want to consider that the gas/c-store owner will probably not want to ante up the expense for the gas tie-in.

 

[bigleo48]

I also wouldn't get your hopes up too high. They have a image to uphold and they will be polite and even encouraging. But I would be surprised if they agree to anything.

But you never know...your professionalism and enthusiasm may very well sway them in your direction. Worth a shot without much risk.

Big

 

[dewey9876]

Any updates? What was the response from Gas Stations?

 

[Bubbles Galore]

According to what I was told, Speedway as a whole is dissolving their car wash partnerships. I am now trying to work with my local Meijer store to tie in with their gas station. I haven't had much luck up to this point and any remaining gas stations are a ways away.