IT IS OK TO FIRE CUSTOMERS.....

Have you ever fired a customer? Sounds crazy especially in a down market like the one we are in today. But you will have to admit that you probably have or have had customers that are simply not profitable, and they do not just have to auto dealers.

These are the customers, who, no matter how much you think you need their business that are hurting both your top-line and bottom-line.

If you know who they are, fire them.

There is probably not one detail business owner that has not had a customer who should be fired based on the lack of profit you get from them and/or the problems they cause you.

Your most valuable asset is your time, and if it gets wasted on activities that are not profitable it results in you loosing money in the end.

I challenge you to find those customers who are not profitable, it is easy to find the commmercial accounts by what they pay you and what they demand. Not so easy with retail customers, especially those that are more or less, regular but always want a little more and a little more for what they pay you.

Don't get tricked into thinking you can't rid of them because you don't have another customer to replace them. That kind of thinking can get you into trouble, because if you are loosing money on a customer it is costing you.

For example, your hourly shop rate is $50 an hour and it takes you 2.5 hours to do a dealer car which is a cost of $125. The dealer only pays you $100. But you make it up on volume right, he gives you 5 cars a day. Well figure it out, you are loosing $25 a car x 5 = $125 a day on every car you do for the dealer, not to mention the retail cars you have to refused to do because you have the dealer cars to get done.

You might as well save a lot of time and stop doing business and stare at the walls all day doing nothing.

By eliminating the customers who are not profitable you free up your time to go after better and more profitable customers.

Without being rude the best way to get rid of the unprofitable customer is to raise the prices. If they accept the higher prices then they become a profitable customer. If they don't and leave you have achieved what you wanted to get rid of them.

You will be amazed how getting rid of (firing) the bad customers will improve your bottomline and probably your morale too.

Regards
Bud Abraham

AMEN!

Sometimes prices can be reassuringly expensive to customers. You need to provide the accompanying assurance of quality though but those people will appreciate your angle and your work.

Many people ask the price because they have never had a detail service before and have no idea what the costs might be.

That is why you have to tell the customer you need to see the vehicle in order to give them an accurate cost estimate.

"But I got a price from another shop???"

"Well Mr/Ms I do not how how those detail operations work, but I need to see your vehicle in order to survey the needs of the vehicle, show them to you and then determine what it will take to bring the vehicle back to a new car condition, as much as possible. I do not want to over charge you for work you might not need and I do not want to under charge as it would cost me money, you can appreciate that. Bring the car in and I will be happy to give you an estimate.

Keep in mind that these other shops might be doing wholesale work for auto detailers where they do what the car needs for one price and it is usually fast, cover up work to just make the car look good to sell. I do not think you want that kind of work do you?"

"Yes, I do."

"Then you better go to the shop that quoted you a price without seeing the car."

Or if they say, "no certainly not I want a good job"

"Then I need to see the vehicle to give you an accurate estimate of cost."

Hope that helps.

Bud Abraham

It certainly helps, Bud. Actually, the whole sales aspect of detailing services is something that really needs developing and not just by me. You highlighted that a lot of shops give standard pricing that is pretty low and it is just to get the customer in the door. That is the broad application of Detailing Sales across the board and seems to be detrimental.

Dealing over the phone, or face to face, I am actually kind of a shy, easy-going sort of person. I hate to say it, but that sales script you put in up there is pretty helpful!!

Go on Amazon.com and buy the book, "The E Myth-Revisited" by Michael Gerber. New it is $7.50 on Amazon you can buy it used for cheap.

It will be the best investment you ever made. If you do not agree I will pay you for your investment in the book.

All pricing low does is drawn in the "bottom-feeders" which are not loyal detail customers. You want to attract loyal customers which are the people who will come back to you time after time because they value service; quality reliability and dependability and not price.

You market on price and you get price shoppers who alway buy based on price, that is not a Loyal Customer.

Those are the one you want to "Fire" or not hire at all.

Bud Abraham

Thanks Bud. I just googled that book and for anybody not familiar, here is an 11 page summary:

[www.marshallcf.com]

It looks like powerful content so I will take your advice and get it.

Great response I was not aware of that summary. I hope you don't mind if I use it elsewhere.

Bud Abraham

Hey Profile Detailer, when I posted the link you gave us it takes you to Marshall Commercial Funding? Where did you find this link I want to make it work correctly.

bud Abraham

Strange.... I think this forum seems to abbreviate web-links automatically. Just click on the link to the PDF document and then copy the web address that appears in the top.

Here is a summary I posted way back when...

The E Myth Summarized

Entrepreneurs are innovators and experimenters. Technicians are workers . Managers try to keep things from changing and tend to resist new ideas because most new ideas don’t work . Entrepreneurs must try to be all three, keeping the three personalities in balance .
The greatest business people understand the astonishing impact little things can have on the world.
Most businesses are not started by entrepreneurs trying to build wealth. They are started by technician types who want to be their own boss. The technical work a business does is far different from operating that business. A mechanic may not be competent to run his own repair shop, no matter how good a mechanic he is. Businesses must grow and change but technicians who have started their own businesses resist change. Eventually the business gets away from them and quality slips.
Franchising is providing turn-key operations that deliver consistency and are set up in such a way that no highly skilled employees are needed ( Any business that depends on highly skilled people cannot be easily replicated and will suffer whenever such people lose motivation, quit, or become moody ). Everyone should emulate the franchise model even if they will not be involved in franchising . Turn-key franchise models can function without the hands-on involvement of a particular owner. They are based on systems that keep things going like clockwork. Your business model will provide consistent value to your customers, employees, lenders, and suppliers beyond what they expect. The model will be operated by people with the lowest possible level of skill, will stand out as a place of impeccable order and all work will be documented in operations manuals. The model will provide a uniformly predictable service to the customer and will use a uniform color, dress, and facilities code.
Your business reflects you as a person. Your faults will be its faults so you must be open to change.
As a business grows, you must take on more oversight responsibilities and institute systems to supervise employees and to tell them what they are to do and why.
Have a clear picture of what the company will look like when it is successful. Think of how such a company will act and start out acting that way. Every day should be devoted to business development and not simply to doing business.
The entrepreneur asks how the business must work and not simply what work or product will be produced by it. He sees the business as a system for producing results for the customer, not simply a place where work is done in exchange for payment. He starts with a well-defined picture of the future and works toward it instead of trying to keep things as they are. He envisions the business in its entirety and from that defines its parts instead of thinking of assembling parts to build the business. He sees the business as a model that fulfills the needs of customers in an innovative way. The commodity isn’t what’s important. How it is delivered is. To the entrepreneur, the business is the product.
Questions to ask yourself : How will my business look to the customer ? How will my business stand out from all the rest ? What are the solutions to the frustrations of my target customers ? What opportunity exists ? How can I give my customer the results he wants systematically rather than personally ?


Without a clear picture of the customer, no business can succeed.
A business that looks orderly tells your customer that your people know what they are doing, tells your people that you know what you are doing, says that while the world may not work, some things can, says that the structure is in place, assures the customer he can trust the result and assures the employees of their future with you.
The Operations Manual is a how-to-do-it guide. Without it all routine work turns into exceptions.
Questions to ask yourself : How can I get my business to work but without me ? How can I get my people to work but without my constant interference ? How can I systematize my business so that it could be replicated 5000 times with every example functioning the same ? How can I own my business and still be free of it ? How can I spend my time doing the work I love to do rather than the work I have to do ?
Innovation. Quantification. Orchestration ( the elimination of discretion or choice at the operating level of your business ). Quantify everything related to your business, such as the number of people entering the store each day.
Business Development Strategy : Your Primary Aim is what you hope to accomplish in the long run. Your Strategic Objective is the vision of the completed business, what you must do to achieve your Primary Aim. Your Organizational Strategy : Organize around responsibilities and not personalities. Draw an organizational chart. Your Management Strategy is based on a system instead of depending on talented managers.
To get your employees to do their jobs properly, take them seriously, making sure they understand the idea behind the work they are assigned. A business can supply the employees with needed structure and community in their lives.
The hiring process should include a scripted presentation outlining the central idea of the business, the history of implementing that idea and the attributes a person will need to succeed in the job. Meet individually with the applicant to ask his impressions and see if he is committed to the idea. Notify the chosen applicant by phone with a scripted presentation. Send thank you letters to those not hired.