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Working with a car dealership?

TechGuy

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I had a car dealership contact me about giving them free car washes to provide to their customers with each purchase of a new car. I don't really like the idea of handing over card for a hundred free washes (possibly being lost/stolen/misused by employees), but it seems like a good opportunity to get some new customers. I did a search, but couldn't find other discussions here of working with car dealerships. Any tips or ideas? Thanks!
 

BBE

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Sell them to them at a large discount. They don't want you to just flat out give them a few hundred washes for free do they? And then have them decide how many they want, and pre pay and buy at one time. We've been burned before on not requiring a place to pre pay for washes. First and last time :)
 

washnvac

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What are they giving you?? Keep the value of your product high. They need some skin in the game, at least to cover your overhead expenses.
 

I.B. Washincars

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You've got to charge them something. If not, only the staff and their families will have clean cars. Even then, I don't see them making much effort to see that customers get them. The car business has a bad reputation because they earned and deserve it. Someone in my family has worked in more than one dealership and finally just totally left the auto business altogether because of things they would demand that she do. Frankly, I think they will lie, even if the truth is funnier.

In a nutshell, I would just tell them I'm not interested. I think you are better off not dealing with them at all.
 

gearhead

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We sell them wash club membership cards with 1 wash on it. They have the choice to purchase: 30% off bottom 2 wash packages, 32.5% middle and 35% top. 75 club cards minimum. On average about 48% are redeemed. And out of those, 2 to 4 continue to be ongoing club members on each batch of 75.
Car dealerships will try with all they have to beat you down to near nothing. Cant blame them. Everyone that walks on to their lot does the same thing.
 

MudMoney

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I do this,easy to spot new vehicals due to temp stickers when they come into wash.I hand out wash tokens at least 4 washes most of the time its more,their eyes light up and are very appreciative. BTW my wash is attended .
 

Whale of a Wash

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Sounds like a car dealership- give us free washes and we will charge $110 to work on your car. Hand them out to people at your wash, and have control of the give away. They will get all the credit for the freebies, meaning the customer will thank them and not you.
 

robert roman

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Most “new” car dealers try hard to keep their customers for life.

So, if the dealership reached out to you, this implies the owner is unable or unwilling to have the required carwash capacity in-house.

For example, the dealership may not offer a free wash to each customer who comes in for service.

If so, the offer of free washes to new car buyers is most likely a promotional tactic and the relationship between you and the dealer may not be long lasting.

Also, the market range for a new car dealership might be as large as a 50-mile radius whereas carwash might be a maximum of 10-miles.

So, how many new car buyers will be out of range?

To avoid subsidizing the dealership’s selling expenses, I would sell the dealership pre-paid cards at 40 percent discount using my smart phone.

This makes redeeming cards easy, the owner can deal the cards to whomever and you get the cash up front (no net 30 days).
 

Waxman

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Offer a discount on bulk (20 or more?) deluxe wash only (or whatever you call your top pkg).

only give away washes to your best customers. For me, that's seldom been a dealership.
 

Earl Weiss

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Trying to get my head around the concept. I sell something for 10's of thousands of dollars and in order to instill good will in my customers I try to get another business to give me something for free to give my customer. Luv it!
 

Washmee

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Trying to get my head around the concept. I sell something for 10's of thousands of dollars and in order to instill good will in my customers I try to get another business to give me something for free to give my customer. Luv it!
Their doing us a favor Earl, so we owe it to them to give our product to their customers for free. In their minds if they didn't sell cars, we wouldn't have any customers at all.:rolleyes:
 

Earl Weiss

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OK, got an idea. Dealers should give Car Washes a coupon for a free car so everyon who washes their use car can get a coupon then go to the dealer and get the free car. The dealer can make $ off service work.
 

robert roman

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Carwash operators have more to gain than lose by having a good relationship with a new car dealership.

Dealers are franchisees with considerable ties to community.

New car dealers sell an average of 726 vehicles a year (including online sales). People with new cars tend to wash them frequently.

New car dealers write an average of 50 repair orders a day or 14,140 vehicles annually.

New car dealers are opened an average of 56 hours a week and 46 percent have weekend hours.

Conversely, dealers stand to gain by having a good relationship with carwash owner.

For example, a mature or seasoned carwash tends to have a higher customer loyalty rate and lower customer attraction rate.

These means a small portion of customers is responsible for generating a large portion of total sales volume.

Loyal is the type of consumers that are most desirable to new car dealers.

Consequently, there are possible ways a carwash owner and new car dealer can have a mutually beneficial relationship.
 

Washmee

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You make a lot of good points Robert. Unfortunately most car dealers are too short sighted to see the benefits of establishing a relationship with their local car wash. Several dealers near my home installed cheap drive through equipment packages and have been advertising free car washes for life if you buy a new car. Several of them have now changed the offer to the first 60 days of ownership. I guess they figured out that it does actually cost something beyond the cost of the original equipment purchase to wash a car.
 

Dcalhoun

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I say go for it. We give 2 local school districts free wash passes for driver's ed students every semester despite paying huge sums for the schools via property taxes. If I can get a customer to wash at my place, I have a much better shot at making them long term customers because we have a great product. The cost of one wash seems a small price to pay for a customer. Look at it from your perspective, not the car dealership's. The customer has enough respect for the dealership to make a major purchase from them, they will more likely trust the association of the dealership with your car wash.
 

robert roman

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“Several of them have now changed the offer to the first 60 days of ownership.”

Carwash for life usually means customer receives a free wash after coming in for service or on Saturday-only.

What probably happened is the free carwash offer became so popular the in-bay couldn’t keep up. For example, new car dealers that have a carwash unit wash about 27,000 vehicles annually.

Another issue may be the new car dealer views car washing as cost center rather than profit center.

Dealers have costs of pre-delivery inspection, reconditioning pre-owned, maintaining the appearance of showroom vehicles and cleaning cars from the body shop. For example, the average cost just to clean the inventory lot is about $8,000 a year.

So, if the dealer bought cheap equipment, the sales person probably sold out cheap to get a sale. Contarily most new cars dealers are not cheapskates.

For example, consider the number of new car dealers that have installed complete systems from Broadway and Autec. These systems aren’t $50K clones.

Also I have worked with new car dealers that spent millions to buy and operate an existing carwash and dealers that spent millions to develop a carwash on the dealership property.

The relationship between new car dealers and automatic car washing is only going to become stronger as the need to keep their customers for life becomes stronger.

“Unfortunately most car dealers are too short sighted to see the benefits of establishing a relationship with their local car wash.”

Arguably, the same can be said for certain carwash operators.

It’s like building a new wash, the goal and objective is to find the site location most suitable for carwash.
 

Earl Weiss

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robert roman; What probably happened is the free carwash offer became so popular the in-bay couldn’t keep up. For example said:
This is a local dealer.

http://www.bredemannluxury.com/bredemann-vip-car-wash.htm

Not an IBA - An NS Tunnel. Purportedly washes over 100K annualy which includes free washes for life and vehicles they service.

Many dealers in Chicagoland have Tunnels now to serve the free wash customers.
 

Louey

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The Acura dealer in Fort Myers is building a new dealership. When it's finished, I'll be able to take my new MDX there for a free wash anytime I want. Only drawback for me will be if there is a long wait. If it is quick, the local washes that I use now will be losing my money.
 
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