A question that has been asked last week regarding, how to market carwash? I want to be the best known in my area with the Best service provider in my area. How do I do that? How do I get customers? So today I am gonna go very deep into two or three concepts. So just put on your seatbelts and everything. This could be a long video. So we are going to discuss two or three things over here. We are going to discuss, how to be the best? And we are going to discuss how to be the richest? So how do you kind of be the Best service provider in your area? First of all, you gonna understand, what kind of a service provider or a product provider you are? Just to make it very simple, I am going to divide product providers in to let’s say, you are a product provider. What can a product provider you are? Are you hard products or traditional products that can be sold, delivered things like that? Or you are a soft product. Soft products are things like digital products and all of that. So digital products can be downloaded or can be delivered via the internet. So that’s hard products or soft products and then in services, you have two types of services local and global.
For example, in services, if you are a car wash owner, if you wanna a car wash regardless even if you become like the world’s best car wash the world’s cheapest in the world highest quality car wash. People who are not in your town or not gonna drive into your town to come to you. People are not into your locality and living 40 km away from your traditionally not going to try out all the way over just to get the car wash. Even if you like the best cash wash services provider.
So you are essentially a local service to understand you know what category I am, and then you would be the best in that category. So you can not be the best in the world in our help you long as you are the best in this category, which means local you are the best then your alright then you’re all set. Then the next thing comes to what type of customer do you have? So the customers that you have are they looking for a commodity or are they looking for a luxury experience. So for example, if you have let us say cooking oil, If you sell cooking regardless of how good cooking oil is. Another cooking oil is selling for 40 rupees you cannot sell your cooking oil for 400 rupees.
So essentially what you are right now is a commodity regardless of how well you wash the car people not gonna pay you 5000 rupees. So here is essentially a commodity and your thinking should always be how can I command luxury prices. Now finally being the richest also has to do with being the best all the. When I say best, a lot of business owners say, I need to be the best car wash, provider. No, you don’t need to be the best car wash provider you need to be the best fit for your customers who provides a bunch of products and services as we will see ahead.
So you are in the commodity segment where people are not gonna pay you more than 200 400-800 whatever it is for a car wash. Then you want to go into the luxury segment, so what is a commodity? and what is a luxury segment? loot at men versus women and young versus old. or middle east right young versus old I just write old like to be direct. So you can call 40 years old. So men versus women, young versus old. Men typically look at the car wash as a commodity which means they just wanted to be done.
Usually, they will employ somebody the society to clean the car and all of that, and that is pretty much it. Women on the other hand usually are not interested in taking care of the car and they are not very convergent of the kind of different things that you know that need to be done to take care of the car. So they are more likely to outsource all that headache.
Remember if you’re selling something inside the house, primarily you know women are very smart at comparing, bargaining. Because they are a much better understanding of the market. If you’re talking about something outside the house like a car or any kind of a machine or something men typically get their fingers dirty get the hang hands dirty over it and women are more likely to stay away from it and just outsource the headache. Now somebody who outsourcing the headache is a luxury customer. Somebody wants to get into integrities and understand the market and wants to price compare you and knows 20 of your competitors and then you know is basically thinking like that. They are not a luxury customer.
You want to move from commodity to luxury because that helps you to charge more. So men are in the commodity segment and women are in the luxury segment. In terms of young age anybody who’s less than 27 years of age over here, usually they will treat the car very important part of their life. They are very interested in keeping it clean, they are interested in keeping it shiny and things like that age group less than 27. Commodities more than 27 years old. Usually, you know they will they either have a drive or you know the car is not that much of an important thing in their life, because they have spouse, kids and bunch of other things like careers hitting new highs, taking a family vacation are more important things for them.
Keeping you know the car shiniest and best probably is not the most important thing. So now I just give a word of 4 letters. Old uncles are not your best audience. Young men and women of all age groups are your best audience. Ladies over any age group are your best audience and if there are men preferably lower than 27 years old are your ideal audience. This is where you are able to charge luxury prices. Now does that mean you overcharge your customers? They can get the same service for the same price in the next locality will you charge them two times the price and all that. I am not saying any of that. How do you provide the maximum value in order to charge the best price? There is no value and being the cheapest or second-cheapest. How do you go about charging or finding? Finding this customer and charging something that you deserve. So let’s go into two secrets.
2 Secrets of Successful Business
If you understand these two secrets, your life is set for the next five years. Especially if you are into products and services especially traditional services or hard products. Showcase traditional services and products. The first secret is marketing and the second secret is budget. Now there are two types of marketing.
Two types of marketing
1 Feed Based Marketing
2 Search-Based Marketing
Very important to understand the feed-based or search base. What is field-based versus search-based? Search-based is a traditional old type of marketing that exists in India. I want to have a business card you know put it everywhere. I want to have a website, I want to have a banner you know these are the sort of things. Which is more you know people should know about me. People should know about me so that when they see my banner or you know when they see my visiting card when they visit my website you know they are interested I’ll put some nice videos photo whatever and they will be interested in buying my service. What is a feed base? I am gonna invest money upfront get the word out to a predictable number of people in a predictable amount of time. I am gonna invest money upfront in paid marketing. All of this stuff is paid marketing. Search-based marketing is organic marketing. Paid marketing and organic marketing.
I am gonna invest money upfront, I am gonna catch holder the local newspaper vendor who supplies the newspaper in my area, I pay them 5000 rupees to carry my pamphlets to 5000 households in a day. A predictable number of outputs which is a predictable number of people will see in a predictable number of times. Newspaper means same, they gonna see it. Facebook and Instagram come over here, any kind of SMS you get that agency come over here, telemarketing agency to make calls in your local area and some that come in feed-based marketing. What is search-based marketing? Any kind to do with your website, anything you have to do with local SEO anything publishing an ad in the magazine or something like that. This sort of thing comes over here in search-based marketing.
Feed base and search-based, so feed-based typically said I want to pay 5000 rupees to get this word in front of 5,000 people right then and there. Now what they want to do is they gonna see something and I am gonna have a call to action. Which says call over here to get a 50% discount and I gonna have a nice image over there. Call this number I have a 50% discount nice image or you can say visit my website, this website is a special website which is called a landing page. This landing page reads the number of people that are visiting on a daily basis.
It also says if you want to know more if you want to sign up or if you want to get this coupon to give us your email address, put in your telephone number and allowance to WhatsApp this coupon code to you allow us to e-mail this coupon code over to you. Field-based and there is search-based. Now very very important thing understand this. If you understand this part of life is set for the next five years because this is the type of marketing that is growing right now in India and it is already 20 years behind the US which means in the next five to 10 years India gonna catch up to the US is a lot of activity in this area and you need to align your business even if it is traditional products, traditional marketing, hard services traditional services, traditional marketing to this.
Remember that customers will always pay more in feed-based marketing. Let me give an example LIC is more search-based. LIC is India’s largest and the best insurance provider. LIC has developed a reputation over the last 30 40 50 years whatever I don’t know. So many many years LIC has developed this reputation. So, somebody knows you know searches what is a number one insurance company in India you pretty much come to know and it is LIC. Then you got the LIC you will find that for 27-year-old, 25-year-old whatever it is you’re starting out in that they want to buy the life insurance update latest 50 lakh rupees for a period of 30 years the premium is you know let us say 10,000 rupees. So, you pay 10000 rupees for a period of 30 years anytime anything happens to you, you got 50 lacs in the bag for survivors can get it whatever it is. But then you got the different companies, private companies which are giving ads. You see their ads on Facebook, you see their ads everywhere you see telling marketing agencies of people calling you to want life insurance.
These people summary comes in meet you at your home they talk about your they say ok starting off you want to be in 20 years 30 years etc. They talk to you about insurance, they talk to you about cash bags, they talk to you about investments, etc. They bundle everything together and they charge for the same type of insurance cover of maybe 40 50 lacs for a period of 30 years. They will charge a premier let’s say 54000 rupees they will charge at something like 54000. They will charge 4 to 5 times as much 5 times OK that is the game 5x that is the average. People who do feed-based marketing able to charge at an average of 5x.
They do everything like the one to be different pieces in here there are able to charge 5 times higher. Why? Because I am not thinking of something, somebody calls me and tell me he would you like to build your investment portfolio about 50 lac rupees in 20 years or something I will say you know broadly I will say some people say Yes some people say No. Then they will say, I will executive come in and explain it to you. The executive comes talks to me about this, this 2-way interaction they talk to me about some things, they get me sold an idea and then they say this will give you all of this you know at 50 grand. If I have 50 grand you know they will probably profile me for first and they have 50 grand.
I am not saying they are overcharging; I am saying they provide more value for a person of my age group because they have the chance to have two-way interaction. Because they have the chance to do two interactions, they are able to provide more value. Search-Based is pretty simple. People who go to Google remember people who go to Google are not buyers they are browsers. People who go to Amazon are not buyers they are browsers, people who go to Just Dial are not buyers they are browsers. What is the difference between buyers and browsers? A browser does not have a painful immediate need and you do not have a two-way interaction with a browser.
What does a browser do? What do you do on Amazon? You want to look for let’s say screwdriver. You go to the screwdriver and then what you see is what is the highest amount, Stars for the lowest amount of price. That’s what happens when Justdial, you list your business on just dial and then Just Dial will give them 20 options on different-different car wash providers and automated cars versus all the beautiful machines and waxing and all of that and there is another person down the road who got this like a basic hose you know who is kind of more of a low and provider and their charging 200 bucks and you charging 800 you are never gonna get the business.
So, remember people who do search-based marketing those days in India are over because you are getting price compared you know somebody just getting compared like vegetable prices. Here on these search-based engines which are Google, Amazon, Just Dial any of these engine’s list. For doctors, you have this thing called Practo. What is it? It is basically a price comparison tool for people to find out the different providers in the area. Now doctors are still highly specialized but traditional businesses are not that specialized. So, you never wanna do search-based marketing but you want to do feed-based marketing.
This brings me to the other thing you need to have something called a marketing budget. As a consulting agency is this what we specialize in helping our students and our customers to do. So have got 2 kinds of customers corporate customers, corporate clients and then we got individuals who are starting their businesses and all that. All of them we teach this, How do you have started with a small budget? Which could be in 10000 rupees a month and how do you get 30000 all of it? You put 10000 and 30,000 comes out of the tailpipe. Better than putting money in the stock market better than putting money into real estate and all of that.
You can triple your money literally within 30 days. To start with 10 grand and 30 grand come out of the tailpipe provided. You have a good part of the services and you know car wash is a pretty good product service. Then how do we get this money out? which brings me to the second secret. The first secret is you need to have paid marketing and hence you need to have paid marketing budget. What are you gonna pay to the newspaper vendor? What amount you wanna pay Facebook. What you wanna pay to the Instagram influencer.
A car wash or car is a very visual item, if you are the right kind of Instagram influencer you can pay them. You can do a little bit of geo-searching soap. You can find people in your own city and things like that. Anyway, all of this takes money but the money converts into two or three x. If you have a good business. You know car wash is pretty good business. Now how do you get this money out? You build your customers. Remember this second secret. If you understand the first secret, next five years you are bulletproof. Remember these golden words Billing. ACV average cart value. Big Bazar makes more money than any other vegetable vendor or any other Kirana store. Not because they charge more because they provide more value under the same roof.
Big Bazaar is a big company any Kirana provider or local vegetable vendor, not because they charged more because they provide more value to the customer and the same roof that means every customer passes through that cash counter at average spending between 2000 and 5000 rupees. Probably more 2000 5000 rupees compare that to an average Sabjiwala or a Kiranawala whatever. People call, hey man can you send me milk, bread, egg, etc. The bill is never 2000 5000 bucks. When you go to the Big Bazaar, my friend. The average cart value of everybody walks in is 2 to 5 grand. I will give you 1 or 2 examples and then I’m gonna give you a resource where you can find more information around this.
So, how do you increase the average cart value when people walk to your car wash? First of all, don’t make people walk into your car wash. No buddy has time. So, If you have bright little pamphlets or circulating to the local newspaper vendors, hello we have a great car wash Nobody’s gonna come in. Make it easy for people to pay you. Make sure they want to pay you more money than they would usually spend at the car wash. So what do you do is? You say we have a nice photo, we got car wash done by our proprietor polish lasts 3 times longer and what is the customer? They are not interested in watching their car. What about audio pros customers not interested in watching their car. Use improves the resale value of your car. What are the two things that people are interested in and life? Two things people are interested in the life money and love.
This thing hits your first need. What is the first need? The resale value of your car is increased if looks better. Plain and simple. Now any car wash person can say that. So, how do you get head of a competition to make sure that when the thing you only of you and never anybody else. You see people with the spray cans on the petrol pump that are saying, Hey man I will get your scratch removed, I will do this, I will remove your scratch and all and they will give you a little demo then they will sell you a product for 450 rupees. If you negotiate with them, they will sell it to you for 250 rupees.
That little thing that removes the scratches. That is direct marketing by the way. That is feed-based marketing. They approach you it’s paid marketing because they have been paid to approach by that company. Either they have their own salespeople or the sales who do thins telemarketing or frontend marketing for you. So, they are doing paid marketing to push their product. That’s what you are doing.
So, what you do is, you go to this company’s, you go to different petrol pumps and you’ll find different companies, local companies doing this little spray thing that the evens out the paint. You buy all of these products, which will cost you may be one or two thousand rupees to test out all of their products. You find which one is the best. Most of these companies are very small companies most of them have a listing on Amazon and the people on the petrol pumps pushing you to the 250 rupees products.
To make that product costs 80 rupees and what you gonna do is you gonna test out all these different products in the market place. You buy from them to earn 250 bucks each, you will test out the different brands and then you’ll find out the one that is the best. Then what you gonna do is, you gonna place a bulk order with them you gonna say to get 1000 pieces, 2000 pieces, 5000 pieces, etc., and what I want is a good price which is 80 rupees and then what I want to do is instead of putting your label, I wanted to put my designer label. Give it to them in a digital copy and then what they gonna do is instead of their label they will put your label.
Figure out, where the factory is? This difficulty getting it from a chemical factory and putting the label on it. you go to the factory say I want this exact thing but I want my label on it. So, the factory will say, well I won’t give it to you 80 bucks a piece or 100 whatever it is. No problem. Buy it at let’s say 80 to 100 bucks apiece. Now you got 2 products. What are the two products you have? You have the car wash and you have the scratch remover. Then what you have is something called a consultation product.
3 little things, you create a little printed book out of it like a booklet out of it or a pamphlet of it. It should have at least 10 pages and at least 20 different images. Three little things, five little things, seven little things that you can do in order to keep the paint on your car stick in span for the next five years why because somebody is driving a car today chances are they now give that car for resale for the next 2 years, 3years 4 years, 5 years. So, what you have done is? You lock down that customer for 5 years. You wanna save, If you want to sell your car, when did you get the car Sir/ Mam and man says I got the car 1 year ago.
That means you want to try it for at least two years more so that the resale value is gonna be realized two years later so the longer it is better it is for you. So what you say is, Mam/ Sir would you agree with me? What if your car looks better then chances are it will get a better resale value. Let me ask you a question, I have a very nice photo of a beautiful car from my pamphlets which made you come to me or whatever, right? That the thing is attractive. They will be like ya it means everything, looks mean everything. So you say now, you going to potentially sell your car when it gets old 2 or 3 from now and single most important thing that’s gonna affect how much you can charge? Is the date of purchase, model number which is the data of manufacturing, and how does it look? They probably agree with your say, yes. So what do we have is? We do 7 things If you tie-up with us. This means we can buy our annual membership with us which will give you access to 6 car washes and annual membership. 6 or 12 car washes per year and we use our own proprietary scratch remover. We gonna use our own proprietary scratch remover, for which we will give you 12 cans and we do a car wash. You don’t need to come to us; we will come to you pick your car up. Do the whole thing, video the whole thing.
The whole thing will be done on live video, so you know how the car is being washed. We will apply the proprietary scratch remover, which is the best scratch remover available in the market. Also, we will do 7 little things over a period of 1 year. You can get 3 years subscription or 2 years subscription or etc. Get 3 years subscription that costs, let us say 42000 rupees the whole thing. As long as you live in this house, which is we are local but if you shift house is 20Km away or 30km away, what you do is, I am gonna send my guy over and he will pick up the car for next year every month. We are gonna do your car wash and this upkeep job, pain upkeep a job. What you do is lock in that customer. You created a city-wide customer and not only a local customer base, because they know even if I shift my house they will pick up the car for me.
The second thing is you increase the cart value. So instead of 400 rupees now you’re pitching a 40000 rupee product. Instead of them washing the car with you today and somebody else tomorrow you lock them in. Continuity my friend ok. Now a lot of this concept I am just pulling from our academic programs and the services that we give to people. I won’t be able to explain everything in great detail here. So I am just throwing out this term that you need to add to your vocabulary if you are a business person continuity is very important. This means how do you get a customer to keep coming to you every month and keep paying you. Without doing anything manipulate, there is nothing manipulate over here. You just giving them an option or a service under the same roof which increases the average cart value just like Big Bazaar.
Big Bazaar before you pass out to that graded till also give you magazines, chewing gums, key chains, things that you may not think about. Nobody goes Big Bazaar because their key chain is broken, but when they check out that little thing is hanging over there and they realize, Oh my God I need a new key chain because my other car key chain has broken. And by the little things that nobody thinks about but they need them. That’s why Big Bazaar is such a big company and small Kirana is not a big company. Why? They provide more value under the same roof.
What you have done over here is provide more value on the same roof. Now, what to do? If you throw in a little CD. 7 little things that you do to keep your car speaking and span and you say, you can have this CD today. If you pay me 1700 rupees. I’ll do your car wash ok I’ll give you two of these can the scratch remover for 250 bucks each ok that’s 500 rupees value and I’ll give you the CD which is let’s 1000 rupees value to 2000 value. Because if you learn, how to do the seven steps that we do at our car wash learn to do by yourself. 2 years later or 3 years later, you will be more worth you know more resale value. Now if you have a youngster, people who are less than 27 years old. They want to buy that CD why because they were the very very car is an adventure ride they bought this not like a product is not conveyancer, it’s a part of their culture.
So young people will typically buy this CD. Older people may not buy this CD because they are like I don’t have time to watch this long CD but as long as you put this together in a package, you can charge 1700 bucks. Now suddenly from 800 rupees, you double your cart value to 1700. You do this in 36 months that cost you up to 70000 rupees and you say, why don’t you sign up with us for three years or two years and we are giving a 50% discount or 40% discount. and we are gonna charge 42000 and this whole thing you own this whole thing.
Not only that, even if you ever shift from here to there in the same Town or something like that, we will basically pick up your car or even if you shift houses the family grows bigger you know something like that, we will pick up your car from anywhere in town. That’s what you’ve done is, you suddenly turned to spend five thousand rupees only newspaper vendor and the thing went out to 5,000 people even if you convert 1 customer like that one customer like that at 1% conversion rate which usually takes you from convert 25 to 50 customers but even if you convert 1 hi ticket customer pays you 40 Grand upfront on your credit card machine, you all set.
You just converted 5 grand of advertising money into 40 Grand and I am not talking about the other customers who will take the pure. No, just give me an 800 rupee car wash or give me the 1700 thing. Just give me the varnishing products. You can say If you just want to the scratch remover does 500 rupees because that’s the market rate. You can check on Amazon whatever. As long as it has your brand name on it and not some third-party brand name it cannot be compared. So, basically stand up in the competition, you get your own local customers at least city-wide customer and you build continuity into the program which means that every time person comes into your store you have a plan, lot of them will not buy but you have a plan to lock them for 3 years.
That’s how the insurance people operate. Everything that up that this insurance person comes to your house will sell you will be three years lock-in but they will say, hey not only will you invest with us for your insurance will also get to the money back in three years and after that, but all of the premiums that you are basically paying will also go into an index mutual fund plan that savings will grow at 10% so basically at after 30 years even if you’re not dead you basically get 50 lakh rupees in your bank and the insurance policy will still be in force. Till you actually die or something like that. So, they will create a package like that which is the customer is a headache of.
Even if I live I make money, even if I die I make the money. And then I get cashback on all other premiums that I had paid and basically, all I need to do is don’t worry about it for 3 years. So, let’s just do this is to this. That’s why any ICICI Prudential person, Kotak person you know any Yes bank mutual fund guy, you know any HDFC mutual fund guy, insurance guy any of this guy ever shows up to your place, they will always pitch you 3-year lock-in the product. Remember that LIC very simple is going to the website by any insurance you want boom its done 10000 boxes of premium. But they are not able to charge very much. It’s just they’ve been around forever so they’ll real life is good. Similarly, if you like Maruti Suzuki you have been around forever then you are you all said but if your local business you are getting smarter about this.
Two Secret you got remember is your marketing budget to do this and you got to figure out how to improve the average card value and make it easier for your customer to pay you. ok now with Instamojo in the game is a very simple man, free book a free consultation, pre-book a free car wash at 50% off and you can come in any time during the next 90 days. You know boom, You can just charge them 350 bucks straight of Instamojo. The moment they see your ad or the moment to see the pamphlet it says hey an Instamojo pay a 350 pre-book etc, call this number we will put you on the chat. You can come in any time you have you want you can call us prebook pay us 350 bucks and call us will get your car pick up for you.
So make it easy for the customer and provide everything that they will need in regard to that product line for the next three years within one roof and you are off to the races nobody can compete with my friend. Using these secrets we have helped our customer’s travel agency to charge and keep the building up during lockdown when it was illegal to travel agencies we got customers travel agency. Billing customers during the lockdown by rolling out membership programs? We got commoditized businesses like photographers there is a rate for photographers. Per day is 2000 bucks regardless of what you do. To triple the average deals to triple their rates. We had the people who are businesses in construction and all of this business has been totally down during the lockdown, slow down we help them reinvent and create products that are you know braining from 2 to 500000 rupees a piece instead of 5000000 rupees. And keep the billing up during the slow down.