What can a car wash learn from a brewery? (Video)

Hey guys. I began releasing the carwashTV.com road trip series this week. The trailer was released last week. (www.carwashTV.com)

In the first episode we spent some time with Dan Kopman, co-founder of Schlafly Beer. They were the first brewery to open in St. Louis since prohibition.

I would love to hear what you guys think of the video and if you think it applies to car washing.

Episode 1: Schlafly Beer from carwashTV.com on Vimeo.

Kudos to Schlafly for succeeded in the shadow of giants.

I believe it does so for several reasons.

It pursues a niche market in area of about a 300 mile radius whereas AB and Bud compete in a global market. Arguably, Schlafly is to AB and Bud as a flea is to a big dog.

However, Bud has lost share to micro-breweries like Schlafly which offers as many as 50 styles of premium beer.

Schlafly overcomes its low-rent location with a strong value proposition to customers.

The Tap Room has beer lounge, restaurant and take-out, live entertainment, etc. Close by is the Brew House with tours, private parties, beer to go, food, etc.

Does the Schlafly case-study apply to car washing?

I believe it applies to a small market definition; conveyors or car wash operations that offer interior cleaning and express detail or have a detail shop on property.

Schlafly also commands a premium from customers for the value. Appetizers are $4 to $11, dinners $12 to $26. An 8 percent draft beer is $12, refills $10.

This isn’t exactly express pricing. Of course, Mike’s Express doesn’t charge $3.00 either and it seems to be doing pretty well.

However, Schlafly plays a “contact” sport requiring face-time with customers, like full-service does. This means having lots of employees to deliver a great variety of products and value-added services, most car washes do not.

Well done...hope you got a couple of 6packs for the road trip.

We did have some great beer there.

Robert: I think you're right on. Schlafly definitely invested in people and their community and they get a premium because of it. The full service lessons are obvious. But I think it also applies to Express in that it's getting harder and harder to simply offer low price and speed. A brand that stands for something and makes it clear that it has community ties is more important than ever.

I think the part about never stop honing your craft is a good lesson. This can be done by visiting websites like this one, attending trade show educational sessions (However, after a dozen or so it seems like there's not much new stuff) going on Car wash tours either yourself when traveling or as part of an association function, etc. However, I wonder what percentage of car wash operators never or rarely do any of these things. I would guess it is the majority.

“…. but I think it also applies to Express in that it's getting harder and harder to simply offer low price and speed. A brand that stands for something and makes it clear that it has community ties is more important than ever.”

Brand is certainly important and washes like Mike’s Express and others provides evidence of this.

However, I believe you have to start with an understanding of why price competitors decide to come in the first place.

Experience shows the most likely reason is more than ordinary and sustained profits others enjoy from their product category.

Seeing an opportunity for quick money, price competitors play the low-price, low-margin game and gain market share.

After a price discounter intervenes and sucks above-average profits out of a market, strategy would depend on whether the continued pressure to reduce price is coming mostly from the discounters or from customers.

However, at this point, it becomes more difficult and more expensive to create and grow a brand if one is not already established. Such is the plight of some self-service and in-bay operators.

For example, if you take an ordinary can of chicken broth and glue on a Progressive chicken noodle soup label, it is still a can of broth.

For a brand to stand for something there must be something substantial in the can other than low price.

Having communities ties is a given.

Agree with much of what Robert R. has said. I have tried the spectrum of advertising and contemplated the philosophy of customer attraction and loyalty. In my world:

There are those that play the low price game - most of the time, you get what you pay for. These customers seem less interested in quality and more interested in a wet car.

Some competitors use their car wash as a loss leader and attract customers to it through the c-store and subsidize it. These customers like the convenience, price bundling, free this or that and razzle dazzle.

An undeniable truth seems to be that all car washes retain a certain customer base/loyalty based on quality, convenience, and price. Do you want to wash 10 Chevys or 1 Cadillac (or both). I have found the discerning car owner to be my best customer because they take great pride in their ride which translates to a vote of confidence for me. Not everyone however, is a discerning car owner. So how do you appeal to everyone else? I have found it to be a price and wash to fit all needs, properly operating equipment, clean facilities, and of course a clean car when you leave. The key is to do those things that influence peoples perception (real or imagined) of quality, convenience, and price. At the end of the day, that seems to be what governs why and where people shop for anything including beer. Hats off to Schlafly for producing and selling a Cadillac in a world of Chevys and in their own backyard!

I liked the part when the owner talked about watching people at the beer cooler. People only bought what they knew. People are afraid to try new things. How many people havn't tried a car wash, or who have never had their car detailed. I can see methods like a groupon or something similar helping to bring new customers in to get them to "try something new".

Nice Pick, Kyle.... my compliments on the concept's exceptionally astute execution and production.

It seems that Dan and his team have taken a page out of Howard Schultz's STARBUCKS experience, and tailored it to both St. Louis and beyond.

And he's doing it via the effective use of a "story". The carefully crafted "story" creates a very engaging platform for all of his marketing initiatives.

Absent the social agenda of Ben Cohen and Jerry Greenfield's BEN & JERRY'S Ice Cream, Dan Kopman has adroitly harnessed a number of niche markets within the greater St. Louis marketplace... and is positioning his unique branding of both the numerous beverages... and quaint eateries with a unique packaging deftness. His taproom and other Schlafly venues serve as a tastefully inviting platform for growth, and his execution of engaging customer service combined with mindful oversight of customer feedback (both spoken and silent) should send a clear message to enterprising carwash and detailing operations as a model for their own business growth and powerful customer retention.

The takeaway message relates to the skillfully creative development of unique branding and comprehensive packaging. Once done, the "package"can be successfully applied to one or two... or many commercial carwashing and/or detailing operations. The enlightenment of the absolute importance of the story as the glue that holds everything together cannot be overlooked or under-emphasized.

Genuine Thanks, Kyle!

-Steve

www.SMOKUN.com