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Old Biz New Idea

 
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suave247365

posts: 1

Mar 16, 2007 1:22 PM ET    Quote  Report Abuse
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I have a detail service in LA and I am trying to take my service to the next level. We have a lot of high profile clinents but i want to make service avalible to common people. So I came up with a service package that new car deailers can offer to ther client`s upoun the purches of a new  car or truck. the service will be a detail package for 24months at a unheard of price of 1299.00 that includes 24  complete details we come to you to do the service.My vision of this is not to short change my self but to create a large client base for up sale because were in the custom motoring also so i think it would benefit me in the long run to offer or service at a rate that is considerd a steel tell me what you think. all feed back is good feed back.
Raisecapital02

posts: 301

Mar 16, 2007 2:05 PM ET    Quote  Report Abuse
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I think idea makes since. My family owns a detail shop as well. You could sell your package as 90 day finance option or they could give a coupon of what they paid for the year to friend or family, so that your business can up sell them once they get there.
CraigL

posts: 9051

Mar 17, 2007 4:00 PM ET    Quote  Report Abuse
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If you could get the car financing to include this as an option, the customers would buy it at the time they had the money. Then, having already purchased the package, they`d likely take advantage of it. When they`re in the store, you have the opportunity to sell them up into other things.

Another possibility....could you somehow interest insurance companies? I`m thinking that detailing might come into the area of "preventative medicine?" Might be a stretch, but I live in the Midwest. We get lots of snow in the winter, then plenty of salt to melt it. The salt causes more rust, etc.

If I wash the car in the winter, removing salt, it helps prevent rust and stuff. Is there something like that, possibly, where a reduction in rates might be an added incentive?

My big concern is the idea of reducing profits in order to increase volume. It`s a normal business model, but look what happened in the computer industry. The profit margins for mail-order computers came down to such a fine line, the volume had to be massive. When computers saturated the market, many companies went out of business.

The way you wrote the above, it almost sounds as if you`re prepared to turn your whole business into a sort of "loss leader?" Wouldn`t that devalue the whole detailing system you use to differentiate yourself as a high-end clientele business?
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