Compete on Value, Not Price
Far too many detailers think they have to compete on price, when the best customers want value.
For a detail business owner, their relationship with a customer doesn't end with the sale. Every purchase of your service is a separate transaction between an individual customer and you, or your employee.
The successful detail business owner should start by building what is called a "Competitive Comparison Grid." Here, you evaluate your services and compare them with those of all your competitors in the market. Keep in mind, it is not only what you sell, but just as important, how you sell that counts. Customers are always looking for something new, whether they say it or not. But what will bring them back is your follow-through, service, and response to their needs and wants.
A Competitive Comparison Grid will help you internally evaluate what it is that you do best in comparison with your competitors. Use the relationship you build with your customers to define and build your grid. How, and on what, do you compare? Start by defining what it is you provide as a value detailer vs. a price detailer. Of course value detailers don't compare price alone, right? They define themselves not only by the service they offer and the follow-through.
Service is value! Remember value is always one notch above its price point. Service is whatever your customers think it is and expect of you. Therefore you must know your customers well, very well, and a comparison grid is an excellent way to evaluate how you are meeting and exceeding customer expectations.
Institute a Customer Service Index
Identify the types of service you should be giving and rate each type in terms of the needs of your customers be they dealers, fleets or consumers. Ask yourself; "On what do I want my detail business to be judged? Our knowledge and customer service? Our opportunity to serve the customer? Do we take pride in our personal appearance and that of our business?" You can formulate the comparison questions to fit your own brand.
Adopt a Customer Satisfaction Verification Program
Value detailers take the time to make a follow-up call to customers to ask if their expectations were met or exceeded by the value and delivery of the detail service. When I owned and operated detail centers we sent every customer, the day after their service, a personalized letter, signed by me, asking them if they were satisfied with the service and how we could do better. Do you or your staff call customers or send letters to see if they are satisfied?
You can use email too instead of a call to follow up. This allows customers to respond at their convenience which helps build your relationship with them.
Sell Your Strengths
Never create an awareness among your customers that you have competitors. Rather than competing on price when a customer may press you to compare with a price detailer, you may say, "Our detail service is high-quality, not dealer quality." Or, "We guarantee a complete refund of your money or a redo of the work if your vehicle wasn't done to your full satisfaction." Note that nothing was said about the competitor's detail, service, or price. Doing so only encourages comparisons with another detail company and its services. Never defend price, Define Value!
Build a Frequent Shopper Program
When times get tough, don't lower price just to get the business. Instead, give customers "equivalency points" to use to purchase detail services on other cars they own or on their car at a future time. Several businesses I know of "award" customers with points to purchase merchandise at regular retail prices at special intervals. Or, purchase ten washes and get one free. Businesses can award any type of "bonus points" to the customer after either a certain number of purchases of specified services. Rewards for new customer referrals also work well.
The challenge for all of you to avoid is battling with your competitors over price and service alone. Draw a correlation with what the hotel industry calls the �Amenity Wars." A study revealed that 73 percent of travelers who responded said it was not the amenities in a hotel that mattered. It was the service level, the staff's responsiveness to their needs, that was most important.
You can only give your customers a service that is equal to or better than that of your competitor. The rest is up to your team. The premium customer knows that and wants something more from you. That something more is value-added service.
Stop comparing your detail services on price alone. Use the information you gather on what your customers want. Then build your Competitive Comparison Grid and you'll understand who is in command to win the war.
