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Best Practice - Opportunity exists in the detail(s)ing


Waterloo store finds a better alternative to a body shop.
Like many other dealers, Bill Bustard and Brent Ravelle, principals in Bustard Chrysler Dodge Jeep of Waterloo, Ontario, found themselves struggling to come to grips with their body-shop business, which was going the wrong direction. Insurance companies were increasingly steering their business, and the store’s customers, to the major independents for crash damage repair, Ravelle explains. "So we decided to try something different."

They began by doing a mutually-supportive deal with an independent body-repair shop in their neighbourhood. "He does our body work and we do his mechanical work," Ravelle says. But that left them with an empty body shop and all its related overhead.

Partly to make use of that space, and partly to support their own used-vehicle operation, they considered setting up a detailing operation. "We wanted to raise the quality level of our used-car conditioning," Ravelle says. "Used cars have to look as good as if they were new to sell them these days."

At that point, they contacted Fine Details - a detailing franchisor based in Oakville, Ontario, in business since 1995. Ravelle had seen an ad for the company and thought it was worth checking out before they started off on their own. A wise decision as it turned out.

"We could have tried to set up our own operation," he says, "but when we analyzed the situation we could see that we would have a facility and nothing else." No background, no experience, no support, and no established infrastructure. Fine Details offered all that and more.

Turn-key operation
"Opening a franchised Fine Details centre puts you in business for yourself, but most importantly, not by yourself," says company president, Mark Shannon. As a franchisee, you are fully supported right from the start. The company works with you to design the facility and manage the construction phase, producing a turnkey centre, so you can be in business quickly and economically.

Ravelle confirmed that to be the case. "We opened our doors just four weeks from the day we signed the deal with Mark," he says. During that period his key staff went through a comprehensive two-week training program in Oakville that included not only detailing skills but operating procedures, advertising, and marketing as well. Each franchise centre is provided with an operations manual, which outlines daily operating procedures, as well as a marketing manual detailing proven business practices essential to ensuring a successful and growing business. When the appointed day arrived, all was ready.

In addition to facility preparation and personnel training, Fine Details provides all necessary supplies. Through experience, the company has been researching the best products for over five years. "We work with specialists and chemists to bring you the very best custom blends, designed from our own specifications." Shannon says. 

The list of specialty services offered includes full hand-wash and vacuum, fabric protection, leather shampoo and detailing, leather treatment, paint protection, high speed polishing, engine shampoo, dent removal and windshield repair. "It’s real detailing," Ravelle comments, "with Q-tips and toothbrushes, and cotton cloths - no chamois!" And no other fabric materials that can cause micro-scratches.

Business is good
Three months after opening, Ravelle is more than pleased with the results, and with Fine Details. Having the franchise behind the operation provides the same kind of advantages new-car dealers have over used-car dealers, he explains.

The detailing shop employees five people - six in the summer - and beyond just supporting Bustard’s used-car operations, which has itself increased dramatically, it is drawing business off the street. "About 30 percent of our business is external," Ravelle says, "and that is growing every week." Surprisingly, he says, about 90 percent of that business is from outside the store’s established customer base. Even other used-car businesses are sending their vehicles there.

"We have more than replaced any lost body-shop business," he reports, "in part because the expense load is so much less." In addition, the detailing business has opened a whole new area of opportunity. Beyond detailing just cars and trucks, for businesses and individuals, "we can offer services for boats and RVs as well," he adds.

Opportunity for others
Currently, Fine Details has 25 franchisees, all in the southern Ontario area. "Our vision is to grow Fine Details across North America and finally into other countries through the sale of franchises and entire territories," says Shannon. Franchise owners are entitled to a protected franchise area in which the company will not locate another centre.

In addition to the startup support and ongoing provision of supplies, being a member of the Fine Details network also provides a great advertising advantage. Achieved through a co-op fund, timely and targeted programs are designed to create awareness and drive business in through the door. The corporate staff comprises experienced executives from a variety of disciplines, who are accessible to answer questions and provide assistance.

The face of the auto business is changing. Current trends indicate vehicle owners are keeping their cars, vans and trucks on the road longer than ever before. That trend, combined with the fact that luxury car sales are increasing year by year, means that detailing services represent a significant growth opportunity. More so, probably than the body-repair business.

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