Extra Services Mean Extra Income
Develop a winning marketing strategy

By Marty Heck

Many customers will easily spend $20 at a carwash if they feel they are getting enough bang for their buck.

If the basic wash is a location's meat and potatoes, extra service sales are the gravy. Well-trained employees can sell packages priced at 50 percent or more above basic wash costs, and much of what customers order--including fragrance, undercarriage cleaning and spray waxes and polishes--generates high margins.

Consider the following when looking at a location's extra-service sales programs:

1. Set up proper packages.

For wash owners striving to get consumers to purchase services over and above the basic wash, the first and most obvious step is choosing services consumers will buy. There are the basics--wax and polish and many more including fragrance, wheel cleaning, undercarriage blast and rust inhibitor.

In some cases, the deciding factor may be weather. In the Northeast or Midwest, undercarriage washes or rust inhibitors can ease consumers' worries about salt and corrosion. In other cases it may be impact, such as using tri-color foam polishes to wow customers.

For Norm Porges and his son, Evan, simplicity and convenience were among the driving forces when they opened Prime Shine Express Carwash in Modesto, CA, an express exterior-only wash in the full-serve bastion of California.

"We have subscribed to the less-is-more philosophy," Evan Porges says.

The company's washes offer just a handful of packages--one with undercarriage wash, one with wax and polish and one with both--and nothing a la carte. So far, the mix has been an effective one, with the company recently opening its sixth location.

For Doug Rieck of Manahawkin Magic Wash, Manahawkin, NJ, the process began with a look at labor.

"My first two packages have push-button services for a moderate cost--no additional labor," Rieck says. "The next step up is the Magic Package, which has added labor."

At Magic Wash, a full-serve location, the first two packages beyond basic full-serve (and exterior) wash offerings add a mix of foams and polishes, and underbody wash and fragrance. The top package adds services such as tire dressing and wheel cleaning that require extra labor, along with triple-coat foam.

2. Consider names/titles

There are several schools of thought on naming packages. They include:

• The superlative/precious-metals model
• The descriptive model
• The branding model.

After some discussion when reviewing menus several years ago, Magic Wash decided on the first. Packages at the wash, beyond the basic offering, are titled Royal, Supreme and Best (or Magic).

"About four years ago, when introducing the triple-coat foam, we renamed all the packages," Rieck says. "After much discussion, we came up with these."

Some marketing experts suggest a direct link to the services. Some locations offer a Protection option, often including an undercarriage wash and/or a rust inhibitor, a Shine package that offers waxes and/or clear coat polishes and a Protect & Shine which, appropriately, offers something from both categories. Others may play off the brand of wax or polish being offered.

Prime Shine Express uses a combination of the models. The package next up from the basic exterior is called the Over and Under, a wash with an undercarriage blast. Next is the Ultra Gold Prime Shine, so named because of its gold foam polish. Last is the Works which includes all of the above services.

While there is a lot to be said for careful marketing of locations, simple still sells. For example, many in-bays at gas stations stick with a Good, Better, Best model and find it successful.

3. Set the right prices.

The first step in price setting in ensuring that costs are covered. Conventional wisdom suggests that the basic wash price should at least cover the cost of doing business. Prices at other washes in the area also have to be taken into account.

When deciding on prices for his wash, Magic Wash's Rieck surveys dozens of locations in a 75-mile radius to see what competitors are charging. He then factors in labor and other costs before deciding.

At this time, the wash offers a $9.89 basic full-serve (recently up from $9.49), along with an $11.99 Royal, a $13.99 Supreme and a $16.99 Best.

When the Porges opened Prime Shine, a conveyor exterior was a unique offering for the area, so pricing was decided upon as much by intuition as anything else. Ten years ago, the basic exterior started at $3.95.

"We liked the ring," Porges says. The basic express wash has since jumped to $4.50. Other package prices include the Over & Under for $5.95, the $6.95 Ultra Gold Prime Shine and the $7.95 Works.

4. Don't forget high-end customers

Never underestimate a customer's willingness to spend. America has a love affair with cars, and many won't bat an eyelash at dropping more than $20 at a carwash--providing they feel that they are getting enough bang for their buck.

Express detailing services have been a profitable addition to many tunnels, but there are ways to maximize income along similar lines without dedicating labor and space to 20- to 30-minute express waxes and interior cleanings.

Last summer, Rieck experimented with an Exterior Supreme package put together by supplier Blue Coral. For $23.95--nearly $7 more per car than his top wash package--Rieck offered customers a chance to add Rain-X on the windshield, Black Magic on the tires and a spray polish buffed in as the cars were towel-dried.

Profits were substantial and overall the extra services were worth the trouble, he adds; it's simply a matter of managing the extra labor and extra time.

5. Make the most of a la carte services

There is no rule that says all extra services have to be built into packages. Wheel deals, windshield water repellents and other services are important and profitable add-ons for many wash operators.

"Our most popular sell-up is Wheel Bright," Rieck says, which the wash offers for an additional $2.50.

The trick, however, is managing these extra services on busy days. Wheel cleanings and tire dressings can sell themselves, but they can also slow down the line. Occasionally Rieck has had to ask service writers to pull back from suggesting these services if the labor on hand is already pushed to its limits.

Prime Shine, on the other hand, sticks to what it can offer in the tunnel with equipment. There are no wheel deals or other extras. However, the company does offer a full range of do-it-yourself wheel, tire and other products in vending machines.

6. Market with signage

Customers can't spend money on extra services if they don't know what they are. Menu signs should be clearly visible to customers as they approach the entrance to the wash. The signs should spell out the package title, the price and the benefits of the extra services included in the more expensive options. Some also post the savings of the package, or what it would have cost for the customer to purchase the options separately.

7. Use specials to bring in new customers

Both Magic Wash and Prime Shine Express occasionally use some form of couponing or other special to draw customers to additional services. Offering coupons only on higher-priced packages gives customers an introduction to them, and never the basic wash.

Prime Shine managers track the number of washes sold with extra services. If the numbers on the higher-level washes dip below about a third of washes sold, managers take action and offer daily specials.

Porges adds that while the company doesn't do much newspaper or mail couponing, it does aggressively coupon in-house. "I try to put something in our customers' hands every time they come through the wash," he says.

He often partners with other local businesses, offering two deals on the same coupon. He believes adding another offer from a different business helps boost the value of the coupon and prompts customers to keep them longer. Deals have included local discounts on pizza, bowling and coffee, among others.

"We're willing to share the space as long as they give a benefit," he adds.

Traditional coupons are just a small part of Rieck's marketing program. "We rarely run coupon specials, and when we do it's always on a package to attract people up to them," he says.

For the most part, though, he's ditched his coupons in favor of a frequent-washer program that offers larger discounts--up to $3--to regular customers.

8. Put on a good show

While extra services do bring in tangible additional revenue, they also add intangible benefits to a location. Tri-color foam, scented soaps and waxes and other special services improve a customer's experience at the location.

9. Teach employees to upsell

Nothing ventured, nothing gained. Every employee should at least ask customers if they're interested in an upgrade or a daily special. More-sophisticated marketing efforts can bring larger income gains.

Rieck, for example, credits industry consultant Steve Gaudreau, of Power Inc., with helping to bring the Magic Wash sales program up to snuff. His service writers are trained to talk to the customers and address the car's specific needs.

"One of the most important things I've learned is you really have to look at the customer's car and see how you can meet his needs," he says.

At Magic Wash, employees are trained to check for brake dust and other trouble spots.

10. Reward outstanding salespeople

It's not enough to simply remind employees to upsell customers to higher-level packages or additional a la carte service. If operators want the lessons to stick, they have to offer incentives.

At Prime Shine, the commissions are currently informal. Managers reward employees with pizzas or movie passes when the washes exceed their sales goals. Recently, though, the company has added a new location with a quick lube, so Porges is thinking of formalizing a commission plan for both wash and lube employees.

At Magic Wash, service writers are part of a carefully designed commission plan and are rewarded based on how much they exceed the weekly average sales per car.

Commissions start at 4 percent and go as high as 12 percent. Moreover, he says, the program offers an incentive for non-commission employees such as vac attendants to learn the ins and outs of sales and move up to a better position.

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