National Oil & Lube News

May 2017

Digital issues of National Oil & Lube News, the trade magazine for the preventive maintenance industry

Issue link: http://noln.uberflip.com/i/815973

Contents of this Issue

Navigation

Page 73 of 83

72 NOLN | www.noln.net " " • Designed to store diesel and bio els, motor oil, used oil, ATF, DEF and heating oil, class II and class III combustible fluids • Outer tank holds 110 percent of inner tank for maximum protection • Up to 50 percent lighter than conventional steel tanks • Easy to install • Compact design • Exceeds industry standards • UL2258 Certified • Compliant with NFPA 30 & 30A • Low-cost • 30-Year warranty • Leak-proof and will not corrode For all your automotive oil and lubricant storage needs. DOUBLE-WALL CONTAINMENT www.RothLubeTanks.com 1.888.266.7684 Contact Roth today for more information. www.RothLubeTanks.com 1.888.266.7684 $149.99 and it includes up to 12 quarts of synthetic oil, top of the line engine treatment and a synthetic fuel system cleaner. en, you set your next best oil change at $99.99 and it includes up to seven quarts of synthetic oil, the engine treatment and synthetic fuel system cleaner. When compared to a $149.99 price point, all of a sudden the $99.99 service looks like a bargain. Utilizing the anchor decoy has some other well intended side benefits. e first side benefit is catering to the driver that always gravitates to the highest priced service. ere are always those customers who want to feel they are getting the best. is is often referred to as the exclusivity principle. Setting the rate of a ser- vice at a high price caters to those individuals. Of course, the vast majority of consumers gravitate to the middle. So, again, setting this high-priced anchor decoy sets a higher bar for the mid-lev- el service. Imagine where your ticket and profitability might be if your current best service all of a sudden became your biggest seller? e reverse also holds true. Most consumers don't want the cheapest option or value option when there are better alterna- tives for just a few dollars more. e task at hand is just explaining the added value that comes along with the premium price tag. So if packaging and anchor decoys are of little interest to you, I offer you this last little retail trick some might find to be common sense, yet many don't put it into practice. Recently, I was talking to one of my business friends. He was talking about trying to land a new fleet for his carwash. His normal price at the carwash is $14.99. He offered the fleet a carwash for $9.50. What's wrong with this some might ask, including my business friend? There have been countless studies published showing that prices ending in the magic number nine, $9.99 or $9.49 as examples, actually boost sales. Another interesting tidbit is most consumers consid- er $9.99 and $9.49 the same just as they do $39.99 and $34.99. If you currently have any prices that don't end in $X.99 or $X9.99, try raising them to the next $X9.99 and see what happens to your sales and profitability. Getting back to my original point, striking a balance between guest count and ticket av- erage is obviously challenging. There may be times when you need to focus on service times rather than time-consuming services or repairs. In those instances, consider the use of packages to help maintain your ticket and profitability without sacrificing guest counts. If you get your service writers' accustomed to offering packages every day to every guest, you will also see your ticket average and profitability soar as you add those additional services when time permits. S SEAN PORCHER is a veteran operator in the quick lube indus- try, having owned and operated up to 54 locations across six different states. After significantly reducing his operating footprint, Porcher helped launch Throttle Muscle as a way to help raise money for charity while providing operators high-quality products with increased profit earning poten- tial. Porcher also teaches business strategy courses at his alma matter, Cal Poly, SLO. He can be reached at: sporcher@ throttlemuscle.com The idea of bundling a low-cost, high-profit fuel treatment and engine treatment into a standard oil change is difficult for some operators to grasp. I always relate it to McDonalds. What do you order when you pull up to the drive through? Typically, the answer is a No. 1, 2 or 3. Offering an oil change package is no different.

Articles in this issue

Links on this page

view archives of National Oil & Lube News - May 2017