Working Together
February 22, 2022
7 minute ReadBY SHERYL S. JACKSON
Everyone knows that websites, discount coupons in publications or direct mail, social media, and signage can be used to attract customers, but have you looked at other local businesses as a way to cross promote both companies? Team work makes the dream work, right? That idea can hold true if you expand your team to include other companies’ teams as well, as long as the partnership is mutually beneficial and you’ve done your research.
“The great thing about marketing a car wash is that anyone with a car is a potential customer, even the local doughnut shop customer,” said Trevor Gile, who operates Motorcars Consulting and owns Rainforest Car Wash along with his brother, Matt. “A local coffee and doughnut shop gives a free basic car wash coupons to customers who purchased a dozen doughnuts, and we hand out free doughnuts to our car wash customers.”
Automobile Dealerships with Car Washes:Competitor or Potential Partner?
As automobile dealerships look for ways to differentiate their business from other dealerships – to offer customers a better experience in the service department and to retain customer loyalty beyond warranty periods – they have delved into offering automatic car washes, building them on-site and, also, partnering with local car washes.
“I am seeing a growing trend of dealerships of all sizes throughout North America purchase an automated car wash to be able to offer that service more efficiently,” said Tom Settle, Vice President of Dealer Automotive Operations at Mark VII Equipment. “In some cases, motor malls – areas with several automotive dealerships in a concentrated area – will have a full tunnel wash that handles customers from all dealerships.”
Most dealership car washes are not consumer-facing – they are primarily for use by dealership customers who have had services performed or who are taking delivery of their new car. “A dealer might offer an incentive such as a free car wash for life at the dealership’s wash, but they are really not competing with the local car washes,” Settle said. “There are some dealerships that may not have started out with the mindset to build a car wash business, but because of their location, the business grows organically.” These situations, however, are not the norm, he said.
It is less common for an automotive dealership to have a car wash with a retail model because there are complexities a dealership owner must understand, said Vic Keller, CEO of AUTEC Car Wash Systems. “However, dealers that have successfully integrated a retail wash into their business, recognize the opportunity to capture additional revenue from the public while providing a great service and experience for their customers,” he said.
Trevor and Matt Gile, who operate Motorcars Consulting and own Rainforest Car Wash, have experienced owning dealerships as well as consumer-facing car washes. Now, they focus on running a car wash business and consulting with dealerships that are considering installation of car washes.
Matt Gile agrees that most dealership washes are not competition because they are generally stuck behind the dealership’s main building with no visibility or easy access from the main road. “Less than 10% of dealers have retail car washes but more are buying automated washes to be able to handle all service customer cars,” he said.
But, not all dealerships are looking to buy. Some would rather partner with a local car wash. “If a dealership is hand washing cars, a local wash can offer to handle all washes for service customers through the use of a coupon or code,” Settle said. “While the dealership is sending customers to the car wash, the car wash owner can offer to park some of the dealership’s cars on its property with signage for the dealer.”
Christopher Perez, General Manager of Top Shelf Car Wash, approached a local dealership with the opportunity to purchase half-price car washes to hand to service customers upon check out. “The dealer appreciated the flexibility that subcontracting the exterior wash to me gave him,” Perez said. “Customers can get the wash immediately after their service or use the coupon when it is more convenient, and the dealer is not tying up space and employees for car washes.”
There are opportunities for automatic car washes to partner with local dealerships, too, said Keller. “Many dealerships do a high volume of quick services such as oil changes, which can jam up the dealer’s wash, and offering these customers a free car wash builds customer satisfaction and loyalty,” he said.
Offering these customers a free code to a quality car wash close by where they can go on their own time can be a great option. “Utilizing codes rather than coupons means the dealer only pays on redeemed codes, which most pay stations can easily accept,” he said. “The car wash gains new customers and the dealership provides a great free service for their customers – a win-win.”
“The key to success in partnering with other businesses to cross-market is to find like-minded people who are interested in growing their business and offer products or services that make sense for your customers,” Matt Giles said. “We have found the most success with mom-and-pop local shops rather than larger companies.”
In addition to referring customers to each other, the Giles have created a welcome packet for new residents of apartment and condominium complexes in their service area. The packet includes coupons for free doughnuts, a free car wash and a quote for insurance.
Approaching people who you know and do business with yourself is a good way to identify marketing partners. “The barbershop I use is a combination barbershop and speakeasy, so we partnered with them for a Father’s Day promotion that included a haircut, cocktail and car wash,” Matt Giles said. “We also partner with local schools by offering fundraising opportunities for them to receive a portion of their sales of car wash tickets – a great way to reach new customers.”
Although he partners with other businesses and organizations less than he did several years ago, Matt Cardon, Owner of Car Wash Express, focused on non-profit organization partnerships his first years in business. Every month, they would partner with a different organization by promoting that organization on the car wash’s social media and offering a portion of the proceeds to them during that time. The partner organization would promote the fundraising effort in its own social media, encourage followers to share the posts and run articles in any newsletters it had for members. “This required a lot of coordination so I had one employee designated to organize and run the program,” he said. “Now, we select charities to support throughout the year, but it is not every week of every month.”
Cardon also partners with a local auto dealership in a win-win situation that generates new customers for the car wash and improves the dealership’s productivity in its service area. “The dealer had been offering a free car wash to service customers and had two people handwashing the cars,” Cardon said. “I met with the owner and explained that if he purchased car wash tickets for my business, which is very close to the dealership, I would take care of his customers and he would have two more employees to work in other areas.” [Note: See sidebar for more about car washes and dealerships.]
The challenge is helping the other business owner see the benefit of partnering with the car wash. According to Cardon, businesses that might make sense as partners for a car wash include auto dealerships, non-profit community organizations, tire shops, fast oil change centers, local mechanic and restaurants among others.
Marketing through each other’s social media outlets is an effective way of reaching beyond your own customers, but geo-fencing can also take marketing to another level, Trevor said. “Not only can we target people in our area, but we can target the customer in the local coffee shop with an ad for a discounted car wash,” he said. Analyzing geo-fencing data to see what local businesses your customers come from – based on results of targeted ads – can also help you identify local businesses that might prove to be good cross-marketing partners.In any partnership, the car wash owner must ensure that the other business’s customers receive top-notch service, which requires a well-trained, engaged and satisfied staff. “The biggest asset for any business is employees, so we team up with other businesses to provide employee recognition rewards,” Cardon said. For example, if we’ve partnered with a local restaurant or movie theatre, the other business will offer Car Wash Express employees free tickets or meals in exchange for free car wash coupons for their own employees for a job well done. “This is a great way for each of us to reward employees for a job well done, and it often results in each business gaining new customers long term.”
Car wash owners who want to set up cross-marketing partnerships with other businesses need to make it personal. “Take time to do your homework about the businesses so you understand what they do and who their customers are, then meet in person with them,” Cardon said. “Introduce yourself and your business, then explain how you can work together to help each business reach potential new customers.”