Up-sell, Cross-sell
Auto Care Shop – Say a customer comes in for a tune up. You can offer to change their oil for a discount or perform air conditioning service or
transmission maintenance or fill their gas tank or provide a discount on a car wash.
As an example, Jiffy Lube: I went in for a $20 oil change (the decision to buy puts me in a “purchase state”). While they were changing my oil
the attendant informed me that my transmission oil had a “slight odor”, which indicated that I would soon need transmission maintenance. I
asked him how long it would take. He responded, “Only about 10 minutes”. Then I asked for the cost and he said, “ Normally it is $79, but since
you are getting your oil changed it is only $59.” I easily agreed.
Now I have to stop here so you absorb the impact of what I just said. After all advertising, marketing and other expenses to get me there in the
first place, they probably made 15% on my $20 oil change or $3. However, the transmission service was a pure gross profit item of 50% or
more. On the $60 purchase they made $30 or a 1000% increase in profit!!!
Here is a key distinction. I would not have brought my in car separately to get this additional service done - regardless of the advertising,
coupons or deals offered. I would have seen it no big deal and extremely inconvenience to come in just for that purpose.
Increase Frequency of Purchase
The recommended duration of an oil change typically is every 3,000 miles. Again, you have your organized, timely customers that are never
late – they probably even tend to be early. However, the true opportunity lies in the group that tends to focus on an oil change AFTER the
mileage has been reached. It then takes between one to four weeks before they finally come in for the service. What is it costing them if this
group averages an oil change every 3,500 miles? Almost 15% in revenue!
For example, the oil change service might send a reminder that said “Your service is due - $5.00 off if you come in before you reach 3,000
miles”. Alternatively, for the first mailing you may simply send the reminder without any incentive. Then once they are overdue for the oil
change, send a second notice that says, “We missed you for your 3,000 mile oil change. $5.00 Off!” I actually saw a postcard reminder that
had my name and the mileage I was due!
You can require them to bring in the postcard to redeem their discount. This enables you to measure the results. It is advisable to include 3-4
compelling reasons why they should purchase at the prescribed intervals. The oil change service might list engine longevity, stop and go
traffic, climate changes and so on.
Package Synergistic Products/Services
Offer “Up to X hours or Visits per Year” for a discounted price.
Oil Change