Well, before I retired, I was engaged in the franchise business of the automotive service industry. One thing I have noticed over the years is that the economy is in good shape or not doing well. That is to say, there is an expansion period or systole, growth or decline. One thing I remember is that many of our franchisees complain when the economy is down because they have a hard time making money. In fact, by simply adjusting the menus and the types of services you offer, you can easily switch to low-cost, high-volume business models and actually earn more during a recession. Ok, let's talk about it?
In fact, I realized that this was a very bold statement, but I can observe from experience and real life that it is indeed true. Wealthy people are often reluctant to pay $150 for car details, and the middle class will find other options, sometimes even driving themselves occasionally. I can say that one thing that never goes out of time is an $5 external car wash. You might say crazy, just spend $5 to wash a car. Still, during the recession, there will be a lot of business at this price. Even better, it is not difficult to run 100 cars a day in an office building parking lot.
You ask why I am mentioning this now? Then, our economic growth rate in 2012 is only about 1.7%. I think we will fall into recession again in 2013, and there will be negative growth. This means a reduction in the number of people employed and a reduction in the flow of funds in the economy. This also means that many of your competitors will go bankrupt, who knows, if you don't follow my advice, you can. Of course, this leaves more business for those who are still in business, because they are not proud of trying new things.
You don't have to ruin your reputation or the brand of your car details. You can simply call the new service you made; move the car wash. For the rest of the time, you can design the car at a higher price. In this way, you can now offer two types of services, even if the car detailed design business will be much less than the economic situation.
I think you will also find that with hundreds of mobile car wash customers, through these economies of scale, you will find more people willing to get more details than in the past. Yes, you may have to lower the price for all the details, but you should be able to stay in business during the recession without any problems. Please consider all of this and think about it.
Orignal From: Car detail business - considering survival during a recession
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