30 October 2009
Starting Up An Automotive Franchise Opportunity
Posted by freetraficsystem under: Franchise .
Of course, if you are thinking about an automotive franchise, its beneficial if you have an interest in cars. Nonetheless, there is much more to buying a franchise in the automotive industry than just a car.
There are many types of automotive franchises that cater for varying marketplaces. Some focus on business to business sales where business owners are the most likely customers in the automotive trade. The other type are fixed on business to end user sales. This is where the franchise owner will sell their services to consumers who are looking for car related services.
Bearing this in mind how can you see the contrast between business-to-business and business-to-consumer automotive UK franchises, and what opportunities exist as a result these differences?
B2B (Business To Business) is doing business with the trade. Benefits include the fact that the traders are easy to find and therefore finding potential customers is relatively easy. This will usually accelerate access to customers and help to win business quickly. On the other hand traders may already have a similar service to those your franchise offers. This basically means that the franchise brand that you, as a franchisee, are providing needs to have positive, added value points to persuade the trade buyer to move suppliers.
B2C (Business to Consumer) is working hard to build a solid domestic customer database. Although this can prove hard work, the domestic customer is more often than not persuaded on relationship and not so much concerned with cost. The householder wants trustworthiness and quality and will often pay extra for it. The domestic customer is also good for referrals and payment is usually instant. Trust with your customers therefore builds up as you become established and, because the consumer also pays on the day, this can improve cashflow for the company in contrast to B2B businesses where 30 days to get paid is more normal.
There are many types of automotive franchise businesses but these commonly include SMART repairs, car valeting and car hire.
SMART (Small to Medium Area Repair Technology) repair franchises mainly centre around car paintwork restoration from wear and tear. Recently there have been a number of franchisors arriving into the market that offer these kind of services. SMART repair franchise systems encompass a wide market and can provide services to both B2B and B2C customers.
Car valeting is a huge market also and franchise operatives of car valeting brands can take advantage of the demand in both the business to business and B2C markets.
Car hire or Leasing is another big business in the UK. For instance car leasing franchise opportunities offer franchisees quick access into both domestic and trade accounts.
In summary, automotive franchises are a great choice for both B2B and B2C markets to one degree or another. Running a franchise system that has access to both markets can help balance cash flow and sales.
The key to finding the most suitable automotive franchise to suit your needs is to find a franchise opportunity that has profitable franchisees and people at the head office you relate well to and would be happy working alongside.
After making a choice of your most suitable franchise system, it is critical to concentrate on following the proven franchise model energetically.
The British Franchise Association national franchise survey states that over 90% of UK franchisees run profitable businesses. Choose carefully and you could be one of them.
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