Dec 21
adminLoan Options Car Wash, Franchising System, New Car
Why on Earth is Procter and Gamble getting involved in the Car Wash Industry? Moreover, why is perhaps the greatest consumer product company of all times getting into the franchising business. You see, P&G is a great branding company, and some believe the best in the world.
What intrigues Corporate America about the car wash business anyway? Well, here are some of my thoughts: There is a contingency of Harvard Business School MBA’ers who have as part of their class assignments to access the concept of a nation-wide “Car Wash Company” and once these kids get out of school, they remember this and then think it’s a good idea.
Thus, some end up in large fortune 500s like P&G (which is a GREAT COMPANY, so don’t get me wrong), some end up as investment bankers, and a few turn up in the car wash sector every once in a while.
I can recall P&G’s Mr. Clean showed up to debut at the International Car Wash Convention back many years ago and I actually sensed a bit of angered from car wash owners. It appeared that P&G assumed that car washes would sell their ‘personal’ car washing systems for home washing and thought they are a kindred spirit to those in the car wash industry.
P&G advertised in all the Car Wash Magazines and spent huge money (in relation to the car wash industry, not the behemoth P&G, whose annual gross is 15 times the entire car wash industry combined). I laughed because, I thought it was good to rub it in the face of the arrogant and politically petty car wash industry, they deserve it, mostly knuckle-heads, only a few really get it (5-10%). [personal opinion from years of observing the industry].
The Mr. Clean product showed up at major box store retailers in little packages and sold well, as expected and well researched I am certain. Again, I felt the tension, it appeared to be making the industry angry, kind of like Maguire’s did when it turned on the auto-detailing industry and sold directly to the public, it pissed off everyone. Good move for their bottom line, but bad move for their dealer networks, especially with other strong product lines like Pennzoil’s sub-brands or Auto-Magic an industry mainstay, ready to pick up new dealers.
Car Wash Owners and the Car Wash Industry; well, it’s a cut – throat, throw you to the dogs industry, it’s a cash-cow business and it attracts disreputables, wannabe mafia types, it’s pretty sickening. Many have been critical of players like Mace Securities that got into the business for instance, interesting history there.
P & G could make a go of it, but I believe they should buy Mister Car Wash, change the name to Mr. Clean, and make the “Mister Car Wash” a mini-sub-brand, merging without disrupting either brand; I think I could make that happen well enough. This would give P & G market notoriety, but would cost them too.
Then, Mr. Clean could sell off those units as Master franchises, where they were clustered and use them for new training facilities, for new owners. P & G has big guns and could use this to help get financing since new car wash business building has come to a standstill, financing issues. Still, car washing is down straight across the board, virtually everywhere. Yes, it will pick up and the new model will have to be $5.00 car washes in 5-minutes. Only, a couple of companies have mastered that so far.
P&G plans to sell its franchises for $500,000 and that may not be enough to do a car wash venture, and I have not seen the FDD (Franchise Disclosure Documents), to see what all that gets the franchise buyer. Indeed, I’d like to see the “Pre-Fab” buildings first (if that is there strategy), then maybe it could fit into a 500K deal.
P&G could also make it work, as an all-hand-wash, mostly outdoor thing, like they do outside Tempe, AZ near the college, where college students wash cars on top of a concrete slab with a clarifier underneath, but that will not be so great for a inclement climate weather locations. And I doubt if P&G would be looking there because that is not their style, but it would work well. Although I have not seen the plans, I doubt they are looking there.
Instead they are looking at a full-on facility, it’s just not in the cards in my opinion and I question their strengths and weaknesses, I’d like to see their SWOT Analysis, and poke some holes in it. Plus, for a company like P&G, they want to sell their products, thus, they do not want to own the car washes so they wish to franchise them. Wrong! That’s not right for their corporate focus, or core-business. And franchising is a litigious industry, just as Amos their new CEO, he knows better than anyone in the industry that truth.
Most franchisors in the car wash sector; Bob’s Car Wash, Rapido Rabbit, etc, have failed due to undercapitalization, and selling to franchisees that didn’t get it. Whereas P&G doesn’t have to worry about that, it doesn’t mean they need to go and throw money into a car wash sludge pit!
The car wash industry is over-saturated now and with the economy down, more so, it will be clearly 18-24 months until it returns, meanwhile new outlets will not be hitting legitimate ROI targets in that climate. Sure, things will return, but it will be a while. Any company entering this market will have to be low-cost, extremely high volume to win.
Most cities will most likely expedite building permits now, meaning 6-9 months max between submitting plans and first shovel turn, and 6-months to build. That is 12-months and means 6-12 months of dismal performance. Yes, the best time to go for it is when land is cheap, available, and distressed sales. But there is a gap in the time lag here and biting the bullet now, for big a full-on-franchise system is the wrong strategy once again in my opinion. I could make it work, but I guarantee they can’t as it’s been laid out.
Mr. Clean brand is in a pickle, because NPDES and storm water rules are tightening, their home-use product puts consumers in jeopardy of breaking the law with water pollution rules. So, their only option is to do something different, but I do not think they have thought this through correctly. It will be interesting to watch, that’s for certain. Think on this.
Sep 16
adminArticles Bad Manners, Commercial Transaction, Conviction, Generous Person, Gift Horse, Gm, High Risk Group, Independent Expert, Insurance, Insurer, Models, New Car, New Model, Pig In A Poke, Premium Rate, Scam Artists, Showrooms, Sounds, Veterinary Science, Volume Sales
In some cases, the idea of looking inside the gift horse’s mouth to see how old it is and judge its health is bad manners. The generous person making the gift would be insulted if you were seen to question the value of the gift. But when you’re looking at a commercial transaction, it’s an idea to have the horse go through a full physical from an independent expert in veterinary science to ensure you’re not buying a pig in a poke. Remember there are a lot of scam artists out there who want your money and would give you nothing in return. Checking you are about to receive what’s being promised is always a good first step to protecting yourself. So have you seen the latest offer from GM? This once-great company is out to rebuild volume sales. To tempt people back into the showrooms, it’s packaging insurance with the car. Yes, friends, if you live in either Oregon or Washington, you can buy one of GM’s new models and get your first year’s insurance without paying another cent. All you have to do is sign up for a new model before September 2011, and you can drive the car off the dealer’s lot the moment the ink is dry on the sale contract. This sounds like a good deal. Is it?
The unknown is how much GM is paying for the insurance. Let’s say you go into a dealership and negotiate a discount in the list price of the vehicle you want to buy. Who’s to say that saving will not pay for your first year’s insurance? The problem with this offer is that you have to buy at the list price or walk away. You cannot refuse the insurance cover and buy the vehicle at a discount. So, if you have a low premium rate on your current car, it may well be worth buying a different new car and staying loyal to that insurer. But, if you are unlucky enough to be a member of a high-risk group, e.g. you have a conviction for driving while intoxicated, this promotion could be good value for you. Let’s assume you still hold a valid license. Instead of being forced to pay the top rates, you get insurance without question. GM guarantees you will be insured when you drive away no matter what your claims record or risk profile. This is not to say the insurer will continue covering you should there be an extravagant claim or claims. But, if you can afford to buy new, you will at least start off with cover.
GM also claims this will reduce the number of uninsured drivers on our roads. This is not real. If people can afford to buy new, they can afford the insurance. The majority of the uninsured are from low-income families who usually buy secondhand. Putting all this together, this could be a good offer for everyone currently paying high car insurance rates. Check out the list prices and see whether you can get discounts that would cover the premiums. If not, buying a new car through this program will save money on your cover. At the end of the year, hopefully with no claims, get multiple car insurance quotes. Hopefully, they will be more affordable.
Nov 22
adminVehicle Check Auto Transport Company, Auto Transporter, Budget, Car Transport, Critical Importance, Current, Different Reasons, Few Days, Importance, International Countries, New Car, New Destination, Right Time, Shippers, Ships, Surprise, Transport Companies, Vehicle, Vehicle Shippers
There are different reasons for which you need to take the services of an auto transport company to ship the vehicles from one destination to another. It is practically impossible for you to think that you yourself can drive in your vehicle from one destination to another. There are a number of ways in which you can transport your vehicle at the right time and also within the comforts of your budget.
When you are shifting from one place to another place, there are a number of tasks that you need to handle at a time and the problem that is quiet difficult to encounter is that how will your car be transported safely. Safety is of critical importance that you will have to take into account while you move your vehicle from the current residence to another. There are multiple cases wherein you will have to transfer your vehicle to another state or even in international countries; in such situations it is almost impractical to think that you need to transfer the vehicle yourself.
Further, at a new place you can definitely not live without your new car for many days as car is used in our day-to day lives for every purpose right from accompanying us to office till a relaxing night drive. So, if you desire to have the pleasant surprise to witness your old car at a new place just after few days you reach your new destination, then start searching for an auto transporter who ships your vehicle from the old place to another place safely and considering your car as an important asset. Incase you are much concerned about your car, then these days car transport companies have an integrated computerized technology that can help you track down the position of your car in transit.
Particularly, when you ship your vehicle overseas it is important to understand that you ensure the safety of your vehicle and it returns back to you in the same condition as you expect it.
Before you ship your vehicle have a thorough inspection of the vehicle like you need to note the current mileage, dents scratches and even the nicks, cracked glasses or any flaws. Just check all these facts of your vehicle have been covered and accounted properly in the insurance coverage. Evidence is crucial to be possessed especially when you witness any kind of damage to your car during the shipping process and you will have explanation and justification to cover up loses that have been incurred to your company. As mentioned earlier, there are other options like you can transport the vehicle even through rails but the demerit that you will encounter is that you will have to pick up the car from the terminal they transport it by yourself. So, the best option is to choose vehicle shipping wherein you will get the vehicle transported right at the doorsteps of your new residence. Vehicle shipping is the most sought after option that helps you to ship your vehicle both within your state and even abroad safely and in an organized manner.
May 25
adminAuto Loan Best Car, Best Deals, Car Finance, Car Loan, Car Loans, Comparison Chart, Expensive Cars, Finance Company, Finance Deals, Finance Loan, Interest Rates, Lenders, Loan Company, Loan Options, Luxury Segment, New Car, Payout Options, Plethora, Refinancing Loans, Thousands Of Dollars
If you are looking for car finance and loans companies then you can find a plethora of them on the internet. But do their consultants have good knowledge? Unless their consultants have skills and experience to uncover the right option for you, you should not fall in their bait. Try to find a company that can even help you with refinancing your existing car loans and help find a better deal. They should be able to present a comparison chart in front of you stating the best car finance deals in the state.
There is a wide range of lenders in this sector. So try to see if your consultant is presenting you with a list of lenders of Car Finance – Loan. Since there are many lenders in this area, the interest rates have to be low. The interest rates on the car loans range from 7% to 8% depending on the age of the car from being 36 month new car to 48 month used car.
You also have to see at the money saving aspects like – there is no recurring or ongoing fee, and there are preferential payout options. Basically your Car Finance Company should be able to offer you the best deals either for your business or for you.
Now, the general aspect is that people want to buy more and more expensive cars without actually paying much for them monthly. They want more luxury, more car and they are now stretching out on their loans. If you see closely the prices of the same cars with same features are going south. But the catch is the luxury segment. Thus it is the improved quality of the cars which is motivating the customers to stretch their loan options. These days an average car runs easily a distance of 100,000kms. So the customers don’t really worry before buying a new one.
But the above scenario has a repercussion. Customers are paying thousands of dollars in the interest. Thus the buyers who are paying long car loans may find themselves in a fix or financial limitation if they require a new car after a few years. The temptation to buy a new car with improved luxury is one of the reasons to change it!
This may also bring forth the fact that the buyers now owe more money on their existing car than what it was worth. The bottom line is that do not get into the longer term Car Finance loan.
May 13
adminAuto Loan Approved Auto, Auto Consumers, Auto Loan, Best Interest, Budget Auto, Car Dealers, Cash Buyer, Drivers Seat, Duration, Interest Rate, Interest Rates, New Car, Pre Approved Auto Loans, Purchasing A Car, Shopping, Smart Consumers, Special Offers, Step At A Time, Time 3, Uncertainty
Many smart consumers are wisely opting for pre approved auto loans when purchasing a car and there are several reasons why they are taking this route. Buying a new or used vehicle can be complicated but arranging financing should be quite straightforward. This article will explain the benefits which can be gleaned from a auto loan that is approved in advance when shopping around for the best interest rate and terms to finance your new purchase.
1. By being aware of how much you can borrow and the duration of the loan, in advance of going to the dealer, you are clearly placing yourself in the drivers seat. This will do away with any hidden costs and uncertainty which may arise when you try to arrange your auto loan through the dealership from where you are buying the car.
2. You can walk into the dealership, with your preapproved auto loan safely in place, which in turn will allow you to choose the car you want and at the same time negotiate the best price, as a ‘cash buyer’. You can also take advantage of any other offers the dealer may present to you. Best of all you will not have to sacrifice such offers in order to secure a lower interest rate. Let’s face it; the dealer never gives you both great interest rates and special offers at the same time!
3. You can eliminate over extending yourself and stay within your budget. Pre approved auto loans make you aware of exactly how much you have to spend and you cannot overstep the amount of the loan. This discourages you from making a purchase which is really out of your financial reach.
4. Another great advantage is that you will essentially be a ‘cash buyer’. So you will not have to dicker a around or come up with a deposit payment for your new car, as you are paying the total price of the car at the time of purchase.
5. By arranging your auto loan prior to going into the car dealers and taking each part of buying your new vehicle a step at a time, you are less likely to get involved in a quickly closed deal on a car you do not really want. You are less likely to completely lose your sense of good judgment just because the salesman is good at his job and has got you so excited at the prospect of owning a new car.
When looking for a new car a and auto loan, it pays to shop around and do a little research of your own. The finding and comparing of a few auto loan quotes online will save you money and time, it is easy, fast and secure. You could try your local bank, or make an application on line in minutes. Applying for a pre-approved auto loan is a simple and efficient method of financing your new or used car purchase and getting the most benefits.
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