There is quite a bit of competition in industry, and there is quite a bit of animosity between various companies doing their businesses slightly differently in the marketplace or competing in the same sector using different business models. Take for instance a mobile carwash and a fixed-site mechanized carwash. Obviously, the fixed site carwash has $1 million invested; well over $200,000 in equipment, $300,000 in a building, and let's not forget the $500,000 value of the land which sits underneath the carwash.
Yes, that's a good chunk of money, and that will represent a large number car washings to ever reach a return on investment. Now then, when it comes to a mobile carwash chances are the mobile carwash operator - including all the equipment, vehicle, and everything all combined - has less than $30,000 invested. And therefore, their return on investment is much easier to attain, and thus, they can charge a lower price. Because of that, a fixed site carwash owner might get very angry if mobile carwashes are running around washing all the cars and taking their business away.
Further, there are all sorts of rules and regulations that fixed site carwashes must deal with constantly. With mobile car washing, there are only a few rules and regulations they must consider. Another reason that fixed site carwashes don't appreciate their mobile competition. This anger and animosity between the two types of businesses in the carwash sector causes tremendoes of friction. But, sometimes it is better to cooperate than to compete. Let me explain, and I have four points of I'd like you to consider;
1. Advertise
2. Co-Market
3. Water Purification
4. Zone Marketing Cooperation
First off, there are some vehicles that carwashes cannot wash because of their size and shape. There are also fleet vehicles whose business owner doesn't want to pay their employees to drive over to the carwash. It makes sense to co-market and co-brand, even co-advertise with a carwash and allow them to sell washes on location for motor homes, and fleets of vehicles. Allow them to do the billing, and charge them a reduced rate. Those customers belong to the carwash owner, but he contracts with the mobile carwash to do the cleaning.
Next, I'd like you to consider water purification. Did you know that fixed carwashes use reverse osmosis water for their spot free rinse? Wouldn't it be nice for the mobile operator to fill up every morning with spot free water? Why not buy that reverse osmosis water for a couple cents per gallon to fill up the mobile operator's tanks? It's an added revenue stream for the fixed carwash, and it makes the mobile carwash's job much easier.
Lastly, I'd like you to consider that the average trading area for a carwash is about a 5 to 10 mile radius and the carwash may have customers that are beyond that point, and fleets of vehicles, where the customers don't want to drive to the location based carwash. Why not let them hire the mobile carwash. Indeed I hope you will please consider all this and think on.
Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes writing 24,222 articles by July 22, 2011 at 2:22 PM is going to be difficult because all the letters on his keyboard are now worn off now..
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