Wheel Brush & Tire Shine Marketing Help

[DoubleEagle]

Need some help/feedback on a recent change we made. Sept 2012 we did away with hand scrubbing of the wheels and automated the process utilizing a PECO Tire/wheel brush. We are very pleased with the cleaning results but we may have screwed ourselves in the process based on revenue sales. We used to hand scrub the wheels and tires and machine apply tire shine for an additional $4.50. Based on the in-consistency of our employees and the time it took in the tunnel to accomplish this task, we decided to automate. When we automating the process we also included this feature into our two top washes. (The majority of our upsells came from adding the tires and wheels to our basic wash). We did this hoping to drive up of that portion of our basic wash customers to one of our top two washes (top two wash prices remained the same). Our middle wash is actually priced at the same level of what the customer paid for the basic with tires and wheels in the past. What we have found is we have lost that revenue of our upsell and our top washes have not improved to make up that difference. We know part of the issue is our winter has been terrible for volume here in the midwest (record breaking low snow totals). And we added new cashiers that are trying to sell the wash but not the added features. Feedback from returning customers is they don't always believe they get the tires and wheels because they don't see a body going around scrubbing the wheels. One thought is signage, we want to add a couple of electronic signs in our tunnel (one by the wheel scrubber and one in the prep area) displaying that they have purchased this feature and the one by the wheel brush to light up when the wheels are getting scrubbed.

The product we now provide them is better and faster than before. Has anybody else made similar changes with the hopes of some positive results only to see it failing. Any and all opinions are welcomed.

 

[MEP001]

Just a thought, but maybe you could have an employee hand-apply an extra wheel cleaner with a pressurized sprayer so they see that "body" they're used to.

 

[Earl Weiss]

AFAIAC the signage - flashing light show is at least as important as the quality of the service. In the past if triple foam colored wax worked but the sign was out we heard about it.

I also think the signage need is different if you the customer stays in the car versus if they are in a hallway watching.

I think much of the effect of fancy arches is lost on a customer who stays in the car. For that reason I go with signs that are near the driver window that flash when the service is applied.

 

[robert roman]

We hand scrub wheels, machine apply tire shine for $4.50. We automated and included into two top washes. Majority of up-sell came from wheels to base wash. Hoped to drive portion of base wash to top washes (same prices). Middle wash same price as basic with wheels in past. Found we lost up-sell and top washes have not improved to make up difference.

Let’s do the math. Avg. revenue equals price, i multiplied by sales mix, i.

Avg rev (base)

AR = (Best * 0.25) + (Better * 0.25) + (Good * 0.50)
AR = ($15 * 0.25) + ($10 * 0.25) + ($5 * 0.50)
AR = $8.75

Ave rev (add scrub wheels, assume 25% of good upgrade)

AR = ($15 * 0.25) + ($10 * 0.25) + ($5 * 0.25) + ($9.50 * 0.25)
AR = $9.88

Avg rev (after automating)

AR = ($15 * 0.25) + ($10 * 0.25) + ($5 * 0.50)
AR = $8.75

As shown above, you removed a value-added, assisted-service that provided incremental revenue, automated it and then embed it into the revenue model without adjusting price.

Customers voted with pocketbooks and improvement did not materialize. In fact, you went backwards in avg rev, alienated customers and negative return on investment (ROI) on capital improvement (automation expense).

Feedback from customers - Believe they don't get wheels because they don't see anybody going around scrubbing.

This is a form of buyer resistance often due to change, price, lack of trust, etc. At this point, you have several strategies to consider.

Stabilize – For example, as some suggest, you could tinker with gimmicks to convince customers to buy up. Disadvantage – if it does not work, you risk further alienating customers plus the negative ROI on improvements

Retrench - revert back to status quo – offer hand wheel scrub as up-sell. Disadvantage - negative ROI on improvements

Growth – use this opportunity to develop a plan (strategy and tactics) with objective of giving customers choice (selection) and achieving revenue sufficient to make automation ROI positive