6 Ways to Improve Lobby Sales
Set up a plan and stock items that appeal to customers

By Marty Heck

Full-service carwash customers are a captive audience. They may be spending 30 minutes or more waiting for their car to be ready, so why not give them something to do? Plus, it's especially helpful when that something can generate more revenue for the business.

A well-thought out lobby sales program can add more than a dollar per car in revenue, which adds up to tens or even hundreds of thousands of dollars in extra income depending on wash volume. Moreover, high margins on many lobby items mean much of the revenue is profit.

It takes planning, but it's not too difficult to build a strong lobby sales program. Experienced operators say there are several things one can do.

Set marketing goals

One of the first steps for any concerted lobby sales effort is setting goals for the wash.

Harvey Miller, a consultant and wash operator based in Laguna Beach, CA, says that roughly a dollar per car in lobby sales is as good a place to start as any for a full-serve wash operator.

Clark Porter, of Great American Car Wash, Severna Park, MD, says his company's goal right from the start was to hit $2 per car in lobby sales. Porter and his partner, Richard Hug, are about three-quarters of the way toward that goal. The wash offers impulse items from 99 cent sodas all the way through car phones that retail for around $100. All contribute to the lobby sales average.

"Occupy your space with things that are profitable," he says. "Everything in our lobby is marked up 100 percent."

He says that while Great American does its best to sell lobby items, it doesn't push them at the expense of its bread-and-butter business--carwash services. To that end, cashiers and other lobby employees don't attempt to hit customers with a hard sell on lobby items. "We ask them to focus on our gift certificates," Porter says. "That works real well for us."

Miller says his washes, which include impulse items as well as an espresso bar, consistently better that mark. But he notes that the value of lobby sales isn't always necessarily in the bottom line. He says a nice, well-designed lobby is something that every wash should have.

"I think it's necessary for any full-service wash to have this," Miller says. "It's not only an additional profit center, but it gives the customer something to do."

With wash customers at the wash for perhaps 30 minutes or more, depending on volume and whether the wash offers express detail services, a pleasurable diversion is a requirement.

Choose the right products

Porter says stocking a lobby begins with determining which products customers will be interested in buying. Local demographics and customer preferences are all part of the decision--and not all products are right for all washes.

"We have some gift items," he says. "What we've found that works is local pottery--dishes, plates and bowls. The nice thing about them is the mentally disabled make them, and we have a sign that says so."

Some customers are apt to buy them, he says, because part of the proceeds go back to the craftspeople.

Miller, too, has had success at his washes with simple gift items like custom coffee mugs, which retail for $5 to $10.

In addition to local or other gift items that draw interest, there are some staple items that are proven profit boosters.

"Greeting cards are by far the number-one seller--if they are properly displayed," Miller says. "Number two is auto accessories impulse items--good items, not junk. Auto accessories really go well."

Miller says operators should make sure they have an assortment of cards, preferably from several different manufacturers. They should be laid out neatly and orderly, with headers such as "Birthday," "Father," and "Mother" directing customers straight to the cards they need. He's seen customers walk out with a handful of cards, netting operators double-digit revenue in lobby sales for those customers. "You're making as much on the cards as they paid for the wash," he says.

Porter says Great American is a believer in greeting cards. "The biggest thing in our lobby is greeting cards," he says. "We started with two displays in 1994...and now we're the second largest seller of Recycled Greetings on the East Coast." The wash sells several hundred cards per month, netting a profit of more than a dollar per card.

The wash also has a fairly strong automotive accessories program. Though space has dropped from four displays to two, the wash still offers a full range of Little Tree air fresheners along with windshield wipers and seasonal items such as windshield washer fluid.

These two basic groups, cards and accessories, are good enough, Miller says, that some of the nation's wash chains are concentrating on these items. They sell well and local vendors do most --if not all--of the inventory and restocking.

"Many of the consolidators have thrown out everything but greetings cards because they don't have to supply them, vendors will fill the racks," he says.

Vendors will also do most of the work with automotive accessories. Less labor for the wash owner makes the products easy to sell and profitable as suppliers bear much of the labor costs.

Consider food and beverages

Display cases for bottled water and other beverages don't have to take up a lot of counter space.

Food is another key element of lobbies. Candy and gum are successful staples for many operators, as are drinks.

"Fountain drinks go very well," Miller says. There are systems where the cashiers sell the cups and customers fill them, or an employee can fill orders from behind the counter.

For those who don't want the commitment to equipment, he suggests contacting one of the soft drink giants for a display case for soda bottles and cans and bottled water.

Porter says Great American offers chips, cookies, ice cream and soda in the lobby. Soft drink cans bought for about 35 cents are sold in coolers for 99 cents. In the summer, coolers are filled with ice and soda and placed outside the doors so customers can grab them on their way into the lobby. Can/bottle profits may not be as high as fountain drinks, but they present little or no cleaning problems for employees.

Drinks have a sales base not only with wash customers but also with the staff. "Employees are the biggest purchasers," Porter adds. "They may buy three or four a day."

There are even more opportunities for operators in food sales. Miller says he likes adding espresso bars to his lobbies. He patterns his menus after local coffee shops and also offers bagels, pastries, cookies and hot dogs. "I'm a firm believer," Miller says. "You may not make a lot of money but customers love the convenience."

Coffee bars can bring in strong revenues, perhaps $250 or more on a good day. "If I was building from the ground up today that's what I would put in my waiting room," Miller says.

Determine the price range

Impulse items are just that. Prices should be low enough that consumers feel comfortable spending the extra money beyond the cost of the wash.

"Unless you're in a high-end demographic area, when you go over $20 things just won't sell," Miller says. At Christmas time, operators may be able to do a little better, for the most part that's a good limit.

Porter, though, says his company is lucky enough to be in an area with strong demographics--about $75,000 in income per household. Great American has done well selling items up to the $20 price limit and beyond. "We have a sunglasses display, from $9.99 to $19.99," he says. "We can't keep them in stock."

The company also recently made the jump to cellular phone sales, with phones and accessories priced up to $99. At this level, he says, success is in the presentation. The display should be complete and professional--not a two-bit operation.

"If you're going to sell them, you need to carry a complete line," Porter says. "A partial line only makes part of the customers happy."

Decide on a layout

Cappuccino and different coffee blends appeal to a variety of customers.

To a certain extent, the size of a lobby will be determined by the size of the lot and the size of the building. It's easier to do more with...well, more. "The bigger the better," Miller says.

He recommends that a well thought out lobby with impulse items and perhaps a coffee bar be between 2000 and 2,500 square feet. On the other hand, a full convenience store lobby should be at least 3,500 or 4,000 square feet.

The right layout of products is as important as the size of the lobby. The right path from the lobby entrance to lobby exit should be fraught with sales opportunities.

"The first thing people see should be the greeting cards," Miller says. "You want the greeting cards first because they're a wonderful moneymaker. Then you want them to go to the drinks and the cashier just before they get to their vehicle."

Project a positive image

A large window into the tunnel equals customer entertainment in the lobby.

Once customers are interested and willing to pay, it's important to close the sale. The right atmosphere can do just that.

Miller insists on a finishing touch for washes selling gift items: gift wrap. A counter with six or seven styles of paper and an employee with scissors and tape 'wrap' up the lobby sale.

"Complementary gift wrapping is important," he says. "A guy can pick up a gift, get it wrapped, get a greeting card and be all set to go." The service appeals to those giving gifts to spouses, co-workers and anyone else.

Most of all, washes should project a positive, clean image. "Another important thing is keeping it clean, neat and organized," Porter says.

Great American has a large, open lobby with high ceilings and windows. It's bright and airy, making customers feel comfortable. Porter likes things spotless--such as the threshold of the restroom entrance.

"Attention to detail is one of the important things to the success of the business," he says.

Miller agrees that cleanliness is crucial. "If it's not an attractive looking area, if it's dusty and dirty and the greeting cards are out of place, it's not good," he says. "It is something that has to be maintained. It's very important."

Credit Cards--Don't Open Up Without Them

The power of plastic is entering every retail operation these days, and carwashes are no exception. Clark Porter of Great American Car Wash, Severna Park, MD, says credit cards play an important role in maximizing lobby sales. "We take them all.," Porter says. "Credit cards are 40 percent of our business. It's not like a check you have to chase around."

Use of credit cards continues to increase, and he believes it's important for businesses to maximize the sales generated by selecting the right cards.

For example, Porter says many operators shy away from American Express because of the higher base fees the company charges merchants. But add up additional fees to the base MasterCard costs and the cards may be just a dime or two apart per transaction. Most of all, American Express customers (many of them business professionals) really do spend more money when they can use their cards.

Survey says--consumers like cards!

Consumers are moving away from cash and toward both credit cards and debit cards, or at least that's what a survey by American Express suggests.

According to an American Express survey, Americans are increasingly comfortable using charge and credit cards for small, daily purchases. More than half of those surveyed (54 percent) said they believe it is acceptable to use cards for items under $20, compared with 45 percent in 1999.

Driving this trend may be an increased awareness of the convenient, money-management features credit cards can provide. "The way we use credit cards has changed dramatically in the last several years," says Glenda McNeal, vice president and general manager, New Industries, American Express. "Consumers no longer think about plastic as simply a way to extend their credit. Instead, cards are considered a convenient way to pay for daily necessities--from gasoline to groceries--and a great way to keep track of monthly expenses."

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