Do the franchisees believe this is $10,000 well spent?
Through 2007, Itasca-based Midas Inc. plans to spend up to $4 million to spruce up the interiors and exteriors of its 1,800 stores nationwide. The goal: Enhance curb appeal, reduce clutter and create more educational displays to draw customers into the auto repair chain’s stores.
and
A Midas spokesman says franchisees — at least those willing to participate — would spend about $8,000 to $9,000 per store. Midas plans to chip in up to $2,500 per store, he says, which will cost the company between $2 million and $4 million through 2007….
When Midas underwent its ’90s makeover, the company spent about $15,000 per store which included new signage.[edit: analysts say it did little to improve sales.]
Personally, I’d prefer to invest ~$2,000 in sprucing up the curb appeal and ~$7,000 on innovative (educational) promotions, or something that promotes “trustworthy and honest service”. The game is obviously increasing the quantity of customers through the door in the first place and offering honest services at a fair price. Once the potential customer is in the store, low-pressure upselling of recommended repairs or maintenance is routine.
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-212-3423.
Promos are short lived, and if they don’t work you have nothing left. But, I don’t think a minor makeover or fixed up interior will help boost business. Creating good value in the mind of the customer should keep them coming back, but I don’t know how to do that, how you get them to think of you when they need your services.
Maybe a way to increase sales is to partner up with local business or HR department and offer a special service, so employees have a new “perk”. Maybe offer cheap rates, free pick up/deliver of autos.
Treasury Paper:
Advertising and promos do last in the minds of consumers. You want the consumer to think of you the next time they are in need of your service (auto repair, good BBQ, hair cut, cleaning). It’s no coincidence that the companies with highest sales also spend the most on marketing and promotions.