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Who Is Your Best Customer?

Posted by Bud Abraham 
Who Is Your Best Customer?
November 02, 2003 01:23AM
<HTML>Want to pass on to you detailers looking to increase business some marketing help.

If you want to participate answer this question by telling me in detail who your best customer is? Give me their profession; the car (s) they drive; where they live, etc.

With that information I will help you get more business.

Regards
Bud Abraham</HTML>



buda
Re: Who Is Your Best Customer?
November 02, 2003 01:47AM
<HTML>ok, well I dont have any customers yet , but this is what I have worked out from the information that I have for starting up.

Target customer is an official/manager, aged 45-54 years old, with an income of $50000. (approx 27000). 10% of this group are prime detail customers, which is 2700 customers. This customer base is well aware of what a detail is , and are "detail educated" customers. The sub prime group is the next 10-15%, or 3510 to 3645 customers,these customers are aware of detailing but need more education. The remaining 80- 85 % of this figure are typically unfamiliar with the term detailing and are unlikely to purchase this service. So my potential customer base is 6345

Demographic profile of customer
45-54 years old, income of $50000 2 + cars in household
Behavior-based profile
30% are likely to detail once a year, which gives a figure of 810 out of the prime group of 2700.

Now I am intrested in finding out the best way to reach these customers, as my local newspaper here runs a monopoly, so they can charge what they like with a minimum 6 week run, I dont want to do this because I will be advertising to approx 120000 people who dont use detailing. I cant afford the TV or radio slot, and again I will be advertising to a lot of people who wont use my services . So any help you can give will be appreciated.
I have been considering a direct mail campaign , but have no idea where to start.

Jim.</HTML>
Re: Who Is Your Best Customer?
November 02, 2003 02:41AM
<HTML>My target customer is middle to upper middle-class falling in the age range of 34-56 years old. Fortunately, I live in the area where these poeple are all around me. I aim more towards the Princeton, West Windsor, Lawrenceville and Hamilton people of New Jersey.

9 out of 10 of my customers are self-employeed. Their occupations are trucking, publishing, security, investing, etc. Some of my customers are retired luitenants on the police force, Princeton University professors, state workers, etc.

They have an average of 3 vehicles within their family and drive cars usually no older than 3 years old.

So I'd say my best customer is the wealthy business owner driving a brand new Cadillac or Mercedes.</HTML>



Take care,

Brian
Precision Auto & Marine

Learn to detail boats! Visit www.detailtheboat.com
Re: Who Is Your Best Customer?
November 02, 2003 03:43AM
<HTML>My ideal customers are upper-middle to upper income professionals/self-employed or upper management. It is important to them to maintain the appearance of their cars because they take great pride in owning these types of vehicles...Jags, Benz, BMW, Audi, Ferrari, etc. Or, they use their car in their profession (sales, P.R., etc) and are very concerned about their image so they want their car not only clean at all times, but like new or as close to it as possible. Once I get these people as a customer, I want to get them on a maintenance schedule so they come to me on a regular basis for ongoing care.

Now these clients may have mini-vans or SUV's that their spouses drive, but they want them kept up because they don't want to be charged when they trade them in and they don't want their wives driving a messy car.

When I open my shop later this month, I will be quartered in with a service center that services these types of cars. The cars will come to me from service for a quick wash and I can review for detail & t/u work. It seems like it should be a slam dunk to get them to leave the car in for an extra day or to book an appointment, but I know it's never as easy as it seems, so how do I sell them on my service? Keep in mind that these people are probably detail-conscious if not having a detailer that already does their cars.

From late spring until mid-November, I will offer mobile service 2-3 days per week, maybe more if I can get my shop to be self-sufficient.</HTML>
Re: Who Is Your Best Customer?
November 02, 2003 06:00AM
<HTML>it is possible I missunderstood your writing Bud. I think what you asked was "who my best customer is?" I have one. Actually, I have two. The first (really second on the scale for some reasons and first on the scale for others) is Pam. She drives a used Lexus and was my first customer here in Florida. She has always paid me more than I charge and has sent me friends cars int he past. However, she is also my trianer (gym) and recently we started trading. She is real estate agent and a builder. Financially I get the best end of the deal but emotionally she seems to. I do her car on Mondays (and her husbands also) and she has said many times how she loves Mondays.
The second one (see note above) is Eddie. He owns a restaurant here in town and I do his Vet on Tuesdays, his BMW Wed, his wifes Porsche and the family Saquoia later in the week. Our relationship is one wherein I tell him what needs to be done, he does it and asks me "how much do I owe you?" Then he reaches into his pocket and hands me the cash. He is very flexible with his time and understands when things go wrong. It seems all of my customers are that way.
The customers I have that are regulars have one things in comon, they all work for themselves.
I never really noticed that until just then.</HTML>
Re: Who Is Your Best Customer?
November 02, 2003 06:44AM
<HTML>Guys:

Sorry for misunderstanding, only Phil got what I was saying. What I want to know is "who is your best customer?" A person, an individual. Not a market segment, but your very, very best customer. Not customers or catagories, but your very best #1 customer.

Regards
Bud A</HTML>



buda
Re: Who Is Your Best Customer?
November 02, 2003 08:40AM
<HTML>Bud:

My best customer is named Mike. He is 45 years old and pretty wealthy. He owns his own trucking company here in Hamilton, New Jersey. He also lives in Hamilton, New Jersey in the upper class part of town. His cars are a 1997 Ferrari 355 Spyder (which has won "Best of Show" for his category at the Concours d'Elegance Ferrari car show in Reading, PA. He also drives a 2003 Cadillac CTS and a 1995 Chevy Conversion van, fully loaded.

When I first met his (which is in my bio on my website) he had a 1996 Lamborghini Countach, a 1985 Ferrari Quattrovalvore (sp?) and a 1996 Cadillac Seville. He is my number one customer and keeps me busy just with his referrals.

This man was my first customer and is probably my biggest supporter. Without him, I don't know how far in business I would've gotten by now. He wants to invest in my business with a large amount of money as a partnership, but thats for another discussion since it involves many legal procedures--corporation, partnershp, etc.

Unfortunately, I lost my second best customer on Friday due to a heart attack. It's been a sad weekend for me since this man was a great man and another strong supporter of mine. He will be truly missed.

For those of you not familiar with Hamilton/Trenton NJ, it was George Washington's victory trail. We have sign's saying "George Washington's Victory Trail" all over town. Plus, our town was on the news for the past two years during the anthrax attacks.</HTML>



Take care,

Brian
Precision Auto & Marine

Learn to detail boats! Visit www.detailtheboat.com
Re: Who Is Your Best Customer?
November 02, 2003 10:45AM
<HTML>The working man!

I have several of these but wish for more.

2 of them are becoming really good friends of mine. they said their offical job title is "truck driver". But you wouldnt know it by their trucks.

One has an '02 4runner. its black with drk grey bumpers, and a grey interior. I recieved it in near show condition.

The other is a '01 Tacoma with a camper. It's silver with grey interior. Also in great conditon.

They were previously detailing customers of a competior down the road. Unfourtunatly this place did a poor job. They left wax all over the place. And even backed the tacoma into a cops 4runner. the driver/employee had no license, and got 3 tickets.

I gained their patronage by ensuring, explaining and demoing my expertise gained through this site and personal experience.

They are around 35-40 yrs old. Very nice, and serious about paint protection. all about the paint sealant. they like their panels dressed. and lots of shine on the tires.

I charge $75 for my mini-detail. and they go for it every time.

But they tip for a total of $100 each time. It shows they care, and are willing to pay for it.

-Tyler
protouchhawaii.com</HTML>
Re: Who Is Your Best Customer?
November 02, 2003 11:38PM
<HTML>i got some real big whales for customers but what is your purpose BUD of knowing this?</HTML>
Re: Who Is Your Best Customer?
November 03, 2003 07:59AM
<HTML>Bud, Though, like Franco, I question your purpose and do not understand how such a busy person has time to do such research and analysis at no charge I have decided to give it a shot anyway and see what you have to say. Getting on with your question........ I really had to contemplate what you may consider a "best" customer. I have many best customers for various different reasons but have to narrow things down to two particularly "super" customers. We all live and work in the Central North Carolina area. 1) Male,Robert, married, age 45, Regional Manager for one of US largest insurance and investment companies, He drives a loaded 2003 Chevrolet Suburban (primary reason..fanatical Va. Tech football fan who drives to every football game within reason and is a tailgating nut) and his wife drives a 2002 BMW convertible. They live in a nearby upscale neighborhood (1/2-1 million $ homes). I do a very basic detail on his each Thursday at his office ($60.00) and hers every other Tuesday at their home($45.00). Both cars are garage kept and they have no children so they are easy to maintain. I do a total detail to include paint sealant, etc on each vehicle twice a year. I should point out that I do nine other vehicles from his office about every other week...all owned by younger employees...mostly single and 6 out of 9 are "black" suvs sad smiley((( but the $$$$$ are good smiling smiley)). Robert has given me 26 positive referrals over past years. 2) Male, Steve ,single, age 28, head computor graphics designer for one of the worlds best known video game design companies, He drives a 1994 Jeep Wrangler(his beach car), 2003 M5 BMW(daily driver), and also has a gorgeous custom motorcycle he had built in California and shipped here in 2002(rides maybe once every 10 days and only if weather is perfect)). He lives in an upscale apartment complex where he has a garage in which he keeps the motorcycle and parks the BMW at night. The jeep is kept in a seperate covered parking slot. I do a basic detail on the BMW weekly($45.00) at his office, the Jeep every other week($50.00) and the motorcycle ($30.00 to dust off) once a month at his home. Steve also has a total detail done on all three vehicles on a semi-annual basis. I also do a basic detail on 5 other vehicles from this same office every other week. The owner/President (Ferrari or Porsche), Vice Pres. ( Porsche) , animation director(Dodge Viper), Accountant (BMW), and another graphic designer (Rover). Steve has been responsible for a majority of the referrals from his office and several other friends as well. I might add that both Robert and Steve were customers developed from going to what were obviously affluent office buildings, knocking on doors, explaining to secretary/receptionist who I am and what I do and ask to speak to someone of importance/influence. I do this on rainy days, well dressed( in Roberts instance actually suit and tie because I realized that was the only way in) and with a big smile. Once I am in the important persons office I make a short presentation, set initial appointments and leave them with brochures to pass on to others. Too many detailers I have met do only the cars of the secretaries, etc because they are afraid of talking to "the Boss". Unlike some, I do not consider Robert or Steve as a friend but rather good aquantinances and business associates. I realize that in some areas I may have seemed rather vague but that is simply for my and my businesses protection which I am sure most who read this will understand. Again Bud, Thank you for your assistance and I will be looking forward to your response. Ron</HTML>
Re: Who Is Your Best Customer?
November 03, 2003 01:41PM
<HTML>Joe, age 54/VP of Coke a Cola/ Porsche Turbo/ Mercedes 500SL/ Mercedes 430/ where are you going with this Bud/ interested. Gary</HTML>
Re: Who Is Your Best Customer?
November 04, 2003 01:33AM
<HTML>Gentlemen:

Thank you all for your responses. If I may be somewhat presumptuous, I would like to give you a lesson in marketing 101.

Someone asked me why am I taking the time to do this, since I must be so busy. The reason is my concern for the detailing business and its need for detailers like you to be successful. Right now you are the industry and what you do and do not do is affecting your future and the future of the detailing industry.

Certainly my future and the future of my company is predicated on what the industry does today and into the future. If I can be of some help in bettering the industry then I will benefit personally and so too will my company.

That said, I can continue.

MARKETING is bring what you have to sell to the marketplace. But of course you have to know what you are selling and who will buy it.

You might say, "I am selling detailing service!!" But is that all you are really selling? Was it hamburgers and french fries that Ray Kroc was sellling at his MacDonald's outlets? No Ray Kroc was selling convenience and that is what made MacDonald's so successful was a recognition of what they were really selling.

For example, the guy who drives a fancy luxury car is not really buying detailing services as much as he is protection of his time and/or "good feeling" and ego gratification.

The person with the Toyota Camry on lease is buying a protection of their investment.

The person who is selling their car is not buying detailing they are buying "greater value for the car."

So until you know who your target customers are you really can't run ads because you will not know where to run them (media) nor what to say to them.

That is why advertising does not work for a lot of detailers and a lot of small business people like you. They start advertising before doing their marketing homework. Without marketing you do not know who to sell to; where they are; how to reach them; what to say.

All this said, I go back then to the original question. Who is your best customer???

Most of you were able to clearly tell who they were and why. First major step in marketing identifying your target market.

My next question to you all!!! WOULDN'T YOU LIKE TO HAVE ALL YOUR CUSTOMERS JUST LIKE THE BEST CUSTOMER YOU IDENTIFIED FOR ME?

Of course you would. And that is marketing again. If this person you identified for me is your best customer then your marketing and ultimately your advertising efforts should be directed at this type of customer first and foremost.

Find out where more people like this best customer are. What they drive; what they do for a living; why they would buy your service. What you need to say to them to get them to come in to your shop or call for your service.

Bottomline, the best way to find these customers is by direct mail. Do you know you can call a mailing service listed in the Yellow Pages and they can sell you mailing lists by: the car they drive; profession; income; neighborhood, etc. Then all you have to do is write a very nice personal letter to these people and send it out hand addressed with a postage stamp and wait for the business to come in. IF you have properly identified your best customer.

Does any of this make sense? If you have any questions ask me here or contact me directly. Glad to help.

Regards
Bud Abraham</HTML>



buda
Re: Who Is Your Best Customer?
November 04, 2003 01:52AM
<HTML>Bud:

Tha was a great lesson! Now where is Marekting 102? :-)

Ok, here's my question: Since I want only customers like my best "Mike" and the guy whose car I did today, should I open a fixed location on a public street where anyone can stop by or find another larger public garage and keep like it is now, by appointment only? I was planning on growing bigger next year and doing only mobile for boats. I know money is money but I wouldn't feel like detailing 1990 Toyota Tercels and the like all day. I like the high-end luxury cars.

Don't get me wrong, I love the challenge in making the old and faded look beautiful and love detailing (which is really an art and skill) but I love the green a little more.</HTML>



Take care,

Brian
Precision Auto & Marine

Learn to detail boats! Visit www.detailtheboat.com
Re: Who Is Your Best Customer?
November 04, 2003 04:42AM
<HTML>For the record, Bud and I have spent much time on the phone in the last week or so and one thing that really jumps out at me is his unselfish spending of time. Once you get him onto a subject about detailing, you'd better have your notebook handy. I learned during one of our chats about his true passion for this industry. For me any passion I have leads to an un-godly amount of study.
It seems that we (Bud and myself) have a similar outlook about how to get what we want in life....by helping others. Paradox? Maybe, but it does work.
In one week Bud has earned my business for life. (How he won that business is covered here in another post) I would assume he knows a thing or two about marketing.

Bud, thank you for the class (meant both ways)

Where do I sign up for next semester?</HTML>
Re: Who Is Your Best Customer?
November 04, 2003 07:11AM
<HTML>Brian:

I am not certain what you are saying or asking. You seem to have said several things so you need to clarify for me.

You certainly do not have to be fixed location to target market to your best customers. You can do it mobile, I would suspect. Why not?

If you want to detail only Ferarris; Lambroghgini; Aston Martin; Porche, etc. that is easy go after the owners of these cars. Send them a high quality mailing piece with why they should allow you to do their cars.

Charge them very high prices. Talk about waxing door and engine jambs; taking wheels off and hand cleaning them. Using q - tips everywhere on the car. Using MINK Fur wash mitts, etc.

Make them think you are the finest and only qualified luxury car detailing in New Jersey. Most of these people will probably have friends and many will have boats.

This is target marketing.

Regards
bud abraham</HTML>



buda
Re: Who Is Your Best Customer?
November 04, 2003 07:16AM
<HTML>Phil:

Thank you very much for the very nice comments about our conversations. It was kind of you to take the time to thank me publicly although it was not necessary.

As you say, my phone line or email is always open to those in the detailing business who want and need advise. Although I do not always tell people what they want to hear.

As I said, anything you need just let me know, and that goes for any of you out there that need help in your detail business.

Would love to meet those of you in the Atlanta; Dallas or Seattle areas where one of the detailing magazines will be sponsoring an all day detailing seminar that I will be conducting. In Atlanta will have a good friend of mine who has been in the detail chemical business for years help me with that segment of the session.

Regards
Bud Abraham</HTML>



buda
Re: Who Is Your Best Customer?
November 04, 2003 07:52AM
<HTML>Bud:

Sorry for the misunderstanding. I meant that I only want to stay mobile for boat detailing and high-end dealerships only.

While being mobile for auto detailing is great, I'd like to finally have a fixed location doing high-end detailing and boat storage. People pay good money to store their boats in the winter and believe me, the main guy who does it now is horrible (for storage purposes that is.) Every spring I clean up his mess with these boats that come to me since they were shrink wrapped 2 weeks after detailing and they are filthier then ever.

Plus, the fixed location will give me room to expand for future uses. I've been thinking about this and realized lately there is more money to be made at a fixed location.

Thing is, I'd like it to be private and not public, like I said before. I don't want just anyone stopping by.

I know I should be writing this in a email but I can't receive emails for some reason. Only send.</HTML>



Take care,

Brian
Precision Auto & Marine

Learn to detail boats! Visit www.detailtheboat.com
Re: Who Is Your Best Customer?
November 04, 2003 01:57PM
<HTML>Not to take away from the marketing lesson, but I don't believe in the "Best customer" or "good customer concept. I had an old boss who would always justify doing little favors for sertain customers by saying "take care of them, their a good customer". I always thought to myself; "OK, so all the rest are bad customers?".

In my opinion, my best customer is the one I'm serving right now, or if I'm not serving one right now, then its the next job I'm about to take. (Now this really doesn't have much to do with Bud's "lesson" since his point is to target market rather using mass media)

However, there are no bad customers. Perhaps there are some customers that weren't qualified properly and can't have their particular needs met by your service, but that just means you that they probably shouldn't be a customer of yours. They need something that you simply don't offer.

I pretty much agree with all Bud has said, since it really is Marketing 101 and is covered in the first chapter of most decent text books. However I must disagree with direct mailing, as it has one of the highest failure rates of any targeted media campaign. How much junk mail or email do you throw away everyday without reading it? I can't count the number of emails that I've received from Bud that go straight to the recycle bin, unread. (He obviously doesn't know this "best customer" as well as he thinks).

Don't take this as an attack on Bud, in spirit, he's right on the money! Its just that direct mail may not be the ideal way to go.

Another concept in Marketing is "Hunting Zebras". Let's call this Marketing 301. Let's say everyone in the world are mammals, and everyone who owns a car is a horse. Everyone who one's a car and has a need that can be met by your detailing service is a Zebra. Is it more efficient for you to go hunting Mammals, Horses or Zebras? Zebras of course! So to hunt Zebras, you need to learn everything you can about Zebras; where do they eat, sleep, work? What is the best way to get their attention so you can pull the trigger? Direct mail? possibly. How about a phone call? Why not a demonstration to a heard of Zebras? Finding a heard of Zebras and "attacking" them all is much more efficient than chasing one at a time.

So mass media marketing is not a bad thing, just make sure it targets your zebra, not all mammals. Don't advertise in the newspaper when you can advertise in a specialty flyer that all of your zebras read?</HTML>
Re: Who Is Your Best Customer?
November 04, 2003 02:45PM
<HTML>Brian:

What you want to do is completely with merit. All you have to do is decide exactly what it is that you want to do and what it will take in terms of time; money and effort to achieve it.

Then simply set down a plan of attack to achieve it. Do not set time standards to achieve it unless there is a natural time frame associated with your goal. Like you need to make a decision by year end because your lease runs out. They say to set time standards creates pressure which is not always good in goal setting.

Nothing is right or wrong for an individual with regard to personal/business goals. All you have to do is decide if what you want to do will result in the income you also want to achieve.

For example, if you only want to be private and detail vehicles and boats at $500 a wack then you have to decide if there is a big enough market in the area to sustain that type of business.

Regards
Bud Abraham</HTML>



buda
Re: Who Is Your Best Customer?
November 04, 2003 03:09PM
<HTML>BIFF:

The only thing I would say about your dissertation on marketing is that YES, direct mail can result in alot of wasted effort, if, as you clarified you do not TARGET.

But then, that is why you direct mail to TARGET.

The key is to first identify who the BEST customer is. Is it a Ferrari driver? A doctor? A person making over $200,000? A person who lives in neighborhoods where the houses are $1 million plus?

So when you have TARGETED the best customer then you decide why they would buy detailing services, under anyother name. Protection of leisure time!! Protection of investment!! Ego gratfication!!

You decide if this customer would like you to come on site or to pickup and deliver the vehicle.

Then, what you do is design a direct mail piece that will be read, not thrown in the waste basket like hundreds of other pieces they might receive daily. You can try to design the piece yourself, which will probably result in your having the piece thrown away. That is why they have professional designers and advertising people.

What I have found, and what direct mail expert tells you is the following:

1. Put your piece in a number 10 envelop
2. Put a postage stamp on it and not a bulk mail pre-print number
3. Hand address or hand type the customer's name and address
4. Same with your return address

Why do all this, because it looks like a personal mailing to the individual. And few of us will throw away anything that looks personally addressed.

5. Inside should be a brief one page letter that is personally addressed to
the individual. You writing to them. What you say is right to the point.
You must assume they know what detailing is and have a need for it
All you want to do is let them know you are available and convince them
in a few words that you are the best in the area and that you will
come on site or pickup and deliver or that you offer shuttle service.

If your marketing research was correct then they will know about detailing and if your message is right on they will respond. If they are not interested in detailing nothing you could have said in the letter will convince them otherwise. Other than you have now let them know you are around and when they have a need for detailing they might call you.

This is the basis of direct mail. With this kind of targeting you can get as much as 25% return.

I worked out a direct mail program for a customer with a chain of carwashes. What they do periodically during the year to get new business and reward their current customers is to mail out about 10,000 FREE exterior carwashes per location. The idea is to get a person into the carwash the first time. Once they come in once they then can be convinced by service; quality and price to become a regular customer. If you can't get them in the first time you have no chance of their becoming a regular customer.

The result, a consistent, in all locations of about a 25% return and of the 25% returned, over 33% are first time customers to the wash.

Plus, they are usually able to sell the "FREE" wash another service like on-line polish and wax so they at least breakeven on their direct mail.

So you see if you TARGET carefully direct mail can be very effective and frankly is the only way you can be assurd to any degree that your message is seen.

Even if you advertise in magazines that are read by the "rich and famous" you can't be sure they will see your advertisement. If you advertise on TV programs or RADIO programs that are listened to by the "rich and famous" you can't be sure they will be seen or heard.

Direct mail is without question the only way to reach the target market you are looking for and have any assurance the message will be read.

Regards
bud abraham</HTML>



buda
Re: Who Is Your Best Customer?
November 04, 2003 03:09PM
<HTML>BIFF:

The only thing I would say about your dissertation on marketing is that YES, direct mail can result in alot of wasted effort, if, as you clarified you do not TARGET.

But then, that is why you direct mail to TARGET.

The key is to first identify who the BEST customer is. Is it a Ferrari driver? A doctor? A person making over $200,000? A person who lives in neighborhoods where the houses are $1 million plus?

So when you have TARGETED the best customer then you decide why they would buy detailing services, under anyother name. Protection of leisure time!! Protection of investment!! Ego gratfication!!

You decide if this customer would like you to come on site or to pickup and deliver the vehicle.

Then, what you do is design a direct mail piece that will be read, not thrown in the waste basket like hundreds of other pieces they might receive daily. You can try to design the piece yourself, which will probably result in your having the piece thrown away. That is why they have professional designers and advertising people.

What I have found, and what direct mail expert tells you is the following:

1. Put your piece in a number 10 envelop
2. Put a postage stamp on it and not a bulk mail pre-print number
3. Hand address or hand type the customer's name and address
4. Same with your return address

Why do all this, because it looks like a personal mailing to the individual. And few of us will throw away anything that looks personally addressed.

5. Inside should be a brief one page letter that is personally addressed to
the individual. You writing to them. What you say is right to the point.
You must assume they know what detailing is and have a need for it
All you want to do is let them know you are available and convince them
in a few words that you are the best in the area and that you will
come on site or pickup and deliver or that you offer shuttle service.

If your marketing research was correct then they will know about detailing and if your message is right on they will respond. If they are not interested in detailing nothing you could have said in the letter will convince them otherwise. Other than you have now let them know you are around and when they have a need for detailing they might call you.

This is the basis of direct mail. With this kind of targeting you can get as much as 25% return.

I worked out a direct mail program for a customer with a chain of carwashes. What they do periodically during the year to get new business and reward their current customers is to mail out about 10,000 FREE exterior carwashes per location. The idea is to get a person into the carwash the first time. Once they come in once they then can be convinced by service; quality and price to become a regular customer. If you can't get them in the first time you have no chance of their becoming a regular customer.

The result, a consistent, in all locations of about a 25% return and of the 25% returned, over 33% are first time customers to the wash.

Plus, they are usually able to sell the "FREE" wash another service like on-line polish and wax so they at least breakeven on their direct mail.

So you see if you TARGET carefully direct mail can be very effective and frankly is the only way you can be assurd to any degree that your message is seen.

Even if you advertise in magazines that are read by the "rich and famous" you can't be sure they will see your advertisement. If you advertise on TV programs or RADIO programs that are listened to by the "rich and famous" you can't be sure they will be seen or heard.

Direct mail is without question the only way to reach the target market you are looking for and have any assurance the message will be read.

Regards
bud abraham</HTML>



buda
Re: Who Is Your Best Customer?
November 04, 2003 07:09PM
<HTML>I guess its really a numbers game and each of us has to decide what approach works best for us based on the investment (including time not just money) to do a direct mail campaign versus another form of advertising and the return on that investment.

Direct Mail:

What will it cost you to reach 500 qualified customers by mail?
Include how long will it take you to manually create each individual mailer; what is your time worth per hour?
+ Materials, printing and postage.

Estimate your return on investment: Bud says you'll get up to a 25% response rate. Experience has taught me that 10% is more like the average. So lets split the difference and estimate a 17% response (which is very, very good)

Magazine or flyer advertising:
What will it cost you to place a professional looking ad in a publication that will reach at least 500 qualified customers? (the distribution will be much more but you have to hit 500 qualified customers within that distribution)
There is no reason not to assume the same 17% response rate if your ad's messaging and appearance are done right.

In both cases if you have a professional design your ad or mailer, include those costs.

Whatever route you choose, make sure you know all the costs of the campaign. My point being that direct mailers can be a very labour intensive process and the response rate can be no better or worse than other media form if they are done properly. The key is the right message to the right person or persons whatever your medium.

Personally, I would rather shoot at a heard of zebras than shoot at one zebra at a time. Chances are that if I miss one, I'll hit another, without the effort and expense of getting up and going to find another single zebra to shoot at and possibly miss. But if you have time and resources to go hunting door to door, by all means, its your choice.</HTML>
Re: Who Is Your Best Customer?
November 04, 2003 07:30PM
<HTML>Bif:

You are certainly entitled to your opinion about forms of advertising. However, I think that based on what you are saying, that is all they are is "opinions."

You make assumptions about the type of response you would get from printed advertising with no backup.

In my old life I was an advertising manager for HANNA Car Wash Company managing a $300,000 a year advertising budget for the equipment company as well as a $150,000 budget for the company owned carwashes.

In addition I have directly handled the advertising for several clients over the years and my own company advertising plus when I owned two detail centers for 10 years handled our advertising budget.

I can tell you with all this experience you will NEVER GET 500 responses from an advertisement for detailing in magazine. In fact, I have never gotten 500 responses from any print or electronic media advertising.

You are arguing to be arguing but not back it up with any fact, only assumptions to make or try to prove a point.

As for the response that my customer received from his FREE carwash mailing you will not get that kind of response direct mailing detailing to any target market.

You make a good point about cost to do the mailing vs return. But look at it this way. If your costs to do a mailing were as follows:

1. 1000 mailings
2. $0.37 postage = $370
3. 1000 envelops 50
4. 1000 letterhead 25
5. Printing 100
6. Time to Address 100
7. Price of list 250

TOTAL PRICE $895 divided by 1000 = $8.90 per lead

If only 2% came in for a detail service this is 20 customers. Now how much would each customer be worth initially? Say $100, that is $2000 in immediate business, not to mention other cars in the family, or referrals.

Then ask also what is regular customer worth to you EACH YEAR.

My point that if you spend $500 for an ad in a magzine my experience tells me I would be lucky to get 3 to 5 calls, at best. I have done it.

Just a few well intentioned thoughts on the subject of advertising back by years of experience.

Bud Abraham</HTML>



buda
Re: Who Is Your Best Customer?
November 04, 2003 07:30PM
<HTML>Bif:

You are certainly entitled to your opinion about forms of advertising. However, I think that based on what you are saying, that is all they are is "opinions."

You make assumptions about the type of response you would get from printed advertising with no backup.

In my old life I was an advertising manager for HANNA Car Wash Company managing a $300,000 a year advertising budget for the equipment company as well as a $150,000 budget for the company owned carwashes.

In addition I have directly handled the advertising for several clients over the years and my own company advertising plus when I owned two detail centers for 10 years handled our advertising budget.

I can tell you with all this experience you will NEVER GET 500 responses from an advertisement for detailing in magazine. In fact, I have never gotten 500 responses from any print or electronic media advertising.

You are arguing to be arguing but not back it up with any fact, only assumptions to make or try to prove a point.

As for the response that my customer received from his FREE carwash mailing you will not get that kind of response direct mailing detailing to any target market.

You make a good point about cost to do the mailing vs return. But look at it this way. If your costs to do a mailing were as follows:

1. 1000 mailings
2. $0.37 postage = $370
3. 1000 envelops 50
4. 1000 letterhead 25
5. Printing 100
6. Time to Address 100
7. Price of list 250

TOTAL PRICE $895 divided by 1000 = $8.90 per lead

If only 2% came in for a detail service this is 20 customers. Now how much would each customer be worth initially? Say $100, that is $2000 in immediate business, not to mention other cars in the family, or referrals.

Then ask also what is regular customer worth to you EACH YEAR? It could be more than $100.

My point that if you spend $500 for an ad in a magzine my experience tells me I would be lucky to get 3 to 5 calls, at best. I have done it.

Just a few well intentioned thoughts on the subject of advertising back by years of experience.

Bud Abraham</HTML>



buda
Re: Who Is Your Best Customer?
November 04, 2003 07:40PM
<HTML>Boy, somebody needs a nap.

The only one arguing here (as usual) is you Bud. I'm just offering another opinion that is as valid as yours is.

The two opinions are out there for everyone to digest, agree with or reject, and that is my only goal.

If you need to "win an argument" then I will gladly give you that victory if it will make you feel better.

I see no need to turn this into a pissing contest by posting your resume.</HTML>
Re: Who Is Your Best Customer?
November 04, 2003 09:50PM
<HTML>Biff:

You are right, we can let the forum decide for themselves.

Regards
Bud Abraham</HTML>



buda
Re: Who Is Your Best Customer?
November 05, 2003 04:59AM
<HTML>Biff...you make some very valid points and I'm sure that advertising in publications works for the companies that use that media. If it didn't, then I doubt they would continue to advertise.

However, I think for what we are trying to accomplish, direct mail is the way to go. To be successful detailers, we need to develop a repeat clientele. To do this, we have to cultivate relationships based on a strong, common bond with our customers. That bond is usually their desire and our challenge to keep their vehicles looking as close to new as we can for as long as they own the vehicle. This translates to greater pride in ownership, higher resale value, faster sale of the vehicle, etc. for the customer.

Now, if we analyze the psychology of a direct mail letter campaign, we're starting to make that personal bond right from the start. By sending a letter personally addressed to the potential customer,it gets their attention. It's not another postcard or flyer that they rifle as they walk up their driveway from the mailbox and toss into the trash as soon as they get in the house.

The customer looks at the envelope, reads his/her address, the return address and sees the stamp. "What's this all about?" their curiosity piqued, they open the letter and read it. Once they read the info and the offer of a free car wash or 10% off any detailing service, they have to decide if they want to keep the letter. Now, you've already got them to invest some of their time and you have their complete attention. No other print ads nearby to distract them or the article on the same page, etc. They are totally focused on who you are and what you're all about and what you're willing to offer them to come in and check you out. You've already started building the bond with this indivdual and if they're detail conscious (the kind of customer we want) and it's convenient for them to stop in to your grand opening open house, they're more inclined to do so. You've given them reasons (convenience, discount) to stop in and see you and you've come across as someone who cares just by the personal nature of sending a letter addressed to them. You;ve taken the time to send a letter addressed to John Q. Smith and it says Dear Mr. Smith: rather than Dear sir/madam or Dear Future Customer.

People like that touch. It gives them a feeling of familiarity and security. And more importantly, it lays the foundation for building a relationship based on trust that you will take very good care of their vehicle and give it back to them looking like a shiny new penny and you've begun to gain their confidence that you will take care of their car time after time with great care and consistency.

The letter campaign is, in my opinion, much more personal than a print ad. Sure, you can get jobs with a print ad, but with a sincere letter, you can get lifelong customers and let the letter do some of the work for you because the chances of booking them for a job if they come to your shop are robably 90-100%.

My partner & I have been checking out printers. The cost to print 5,000 full color post cards is $6-700. these are the small 4X6" type cards and that price doesn't include postage. Our mailing list of every Benz/BMW/Audi owner in our county cost $220. The list consists of 3,500 names. I talked to my partner about sending a letter announcing both the service facility and the detail shop and offerring 10% off any service work and 10% off any detail work and he agreed that it was a great idea, liked the personal touch and would actually be cheaper than a card campaign. So, we'll probably go that route. If we do, I'll keep you posted on the results.</HTML>
Re: Who Is Your Best Customer?
November 05, 2003 05:21AM
<HTML>i just got one of those letters in the mail today, its in the garbage right now with all the other people's letters trying to sell me stuff, dont know many people at all that respond to mailings looking to buy into services
being offered, whos got the time anyway to go through all those direct mail letters, and they all mostly personalize them to try to trick you into opening them, only a fool would fall for that</HTML>
Re: Who Is Your Best Customer?
November 05, 2003 05:35AM
<HTML>Rod:

Definitely keep us posted on the results of your mailings. How did you go about getting all the names of these high end owners? Did you call the dealer?

I want every Mercedes, Audi, Ferrarim Porsche, Acura, Jaguar, and any other high end owner's address. Wondering if I should call every dealer around who sells these cars or should I check a single company? This is a great idea for the mailings. Didn't know you could do that.</HTML>



Take care,

Brian
Precision Auto & Marine

Learn to detail boats! Visit www.detailtheboat.com
Re: Who Is Your Best Customer?
November 05, 2003 05:38AM
<HTML>Brian...we got them from a company that sells mailing lists. I'll get you the info and let you know. They're very reasonable and very, very current!!!</HTML>
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