You have been told that increased car count is all that matters, but it’s not true. Increased car count – from the right customer – to get a higher RO average – loyalty and referrals – is all that matters.
As you have already seen, the needs, wants and desires of the Coupon Customer and the Prime Customer are completely different. What you have been using up till now is, most likely, advertising that can’t do anything but, by its very nature, attract coupon customers.
Is it any surprise that even though car counts may be up, your profits are still about the same and your attitudes in the shop are still poor.
Increased car counts, mean increased labor cost, which is the highest expense in any business. Increased car counts without any accompanying increase in profits won’t solve your problem – it will just prolong it – making you feel a little better because you are busy – until you see the bottom line. High Profit Prime Customers are the only solution.
Yes, it cost a little more to attract the Prime Customer on the front end, but on the back end you will usually find that it is the cheapest form of advertising, bringing in the best customers, with a better return on investment than you’ve ever had.
But you know what? It’s very hard to get anyone to try it. Fear keeps them stuck doing the same old thing, even though they hate it. If you don’t take the chance and make the change, you will never grow.
Five, 10, 20 years from now you will still be wondering why you can never get ahead and you will hate your business, your attitude will start driving away the few Prime Customers you have left and you will go into retirement burned out, with nothing, because selling your business is impossible – the income is so low, you can only get a couple hundred thousand for the building, or no one wants to buy it at all.
I know this for a fact. 95% of the time shop owners turn our program down because they are afraid to pay just a few more pennies per card, to get a better program.
They just don’t believe there is anything that could really make a difference.”It’s just another post card program.”
Sam Walton Did It. Stick with this one too please…
…with Wal-Mart and Sam’s Club. Sam cut prices and made billions through high volume, low profit selling. And, he has put many major department stores out of business doing it.
Wal-Mart makes less money on more sales. Department stores make more money on less sales. The high volume, low price era is here. Who is going to go back to the old way and pay 20% to 40% more for the same product at a big department store?