Use a Microscope to Evaluate Your Market
Last week I talked to you about listening to your market. This week we are going to discuss how to use a microscope to look at your market and find the perfect clients.
When I evaluate a market, I take a look at its general economic health, the level of vehicles within the market, and how good of a job the current detailers are doing within the market.
First, I make in inquiry through the local Department of Motor Vehicles and find out the total number of vehicle registered within the market I’m evaluating. Second, I determine how many real competitors I have, other detailers offering the same type and level of service.
Now that we have some numbers, it’s time to do some math. Some industry organizations have said that 10% of the driving population has their care detailed regularly, but that number is tainted because it includes cars washes and dealership level details. Here are some more accurate numbers…
- Entry-level detailing, under $200 is closer to 5%
- Mid-range detailing between $250 and $400 is about 2-3%
- High-end detailing is about 1-2%
Most of us would like to service the high-end segment of the market, so now take the total number of vehicles and calculate 2% of that number (multiply it by .02). Let’s be conservative and say there are 100,000 vehicles in your area. 2% is 2,000. Next, divide that number by the total number of detailers in your area. In this example, if there are 12 detailers, then that means if you work hard and do things right, you could gain a total of 167 detailing clients.
That may not sound like a lot, but that’s plenty of high-end customers if you manage things right and offer incredible service. I would rather serve fewer clients and a much higher level than serve a huge pool of clients with mediocre service.
Detailing is a service business, and if you take aim at a high level of service, you don’t need thousands of clients to find your Detailing Success.