Blowout oil change sale gets attention of customers, competitors

My competition wants to shut down the oil change special, yet my customer base is intrigued as long as we can perform.

We decided to offer an absolute “blowout" deal on oil changes and/or supplies to entice new and old customers to visit our newly restored "we didn't start the fire" business. Call it a loss leader of sorts, but everyone eventually needs an oil change, and one offered at an attractive price, properly promoted, should be just enough to entice even the shrewdest of my customer base.

So we set the price at rock bottom, did the preliminary advertising, put up the proper signage, and lay in wait. It’s much the same as deer hunting or scouting for deer, baiting the site with corn and apples, erecting a tree stand, and waiting for what should come.

The phone began ringing off the hook the first morning of our promotional blitzkrieg. To my disbelief, the first three hours of the calls were not for appointments, but rather queries regarding points of clarification: "Is this the right price for this oil change and not a typo in the newspaper?" We readily assured the callers that the price was indeed correct. We made several appointments that morning.

Later, all of my competitors began calling, asking the same questions. Questions about the price for sure, but then followed by questions with a slightly different lilt, like “Do you check the brakes for that price? 'Do you check the fluids?” Further questions asked what type of oil is used, viscosity ratings, etc. Pros for sure, as most regular consumers don't ask those sorts of questions.

I was besieged by disbelievers and naysayers from my competitors that had benefitted from me being out of business this summer due to the fire that ravaged my shop and warehouse June 6.

In my youth, I played a lot of basketball, mostly just street ball and pick-up games. This oil change special reminded me of several games where my team was so superior, the opposing team began calling a foul every time we stole the ball, blocked a shot, got the rebound, or in general made a play of any statistical worthiness. In street ball, just like in the real world, pretty much, all is fair. No blood, no foul is the accepted rule.

While our pricing and aggressive strategies have bruised the egos of our nemesis rivals, there has been no real blood loss. All they have to do is up their game to compete, because there is no mercy rule in this "game." Besides, I've already suffered by losing everything, and there is nothing more dangerous as an opponent than a competitor who has nothing left to lose.

There is more to be learned here than just analogous basketball-related euphemisms regulating aggressive business practices.

It's quite easy to predict how your competition will react at times, but it's not so easy to guess the overall perception your customer base will have when presented with a fantastic deal that will save them a lot of money or provide them an advantage otherwise not offered by your competition.

I consider our ridiculously low oil change price akin to that of having a 7' 6" center on a basketball team. It scares the life out of the competition and enthralls the spectators/customers. Nonetheless, competitors and customers alike have immediate reactions or the urge to just check it out.

My competition reacts to subdue my 7 1/2 foot tall "oil change,” forgetting about my shooting guard, strong forward, three-point shooter and point guard. My customer base just wants to see it all in action. While my opposing team is focused on my star “player,” my consumers and spectators are curious of the same thing, yet begin to realize we have other strong players on the team as well. My competition wants to shut down the oil change special, yet my customer base is intrigued as long as the guy can perform. Or rather, get the same expected service offerings that they are used to.

Out of tragedy, even the loss of everything you hold sacred and relevant, it all boils down to two things: value-added service and savvy marketing. Make sure you offer a great product or service and effective personal marketing of yourself.

Stay with me – not me-too marketing – but a me-first marketing. Set the benchmark. Be the first in your market to offer something and back it up with sound business principle, product and strategy. Granted, after losing our parts showroom and warehouse in a horrific fire, I also have somewhat of a sympathy card to play, but that play is a bluff at best. Customers still want you to perform at the same basic skill level regardless of loss or not and regardless of sale price or not. Customers want value, but are now willing to listen to whatever else you have to offer.

Responses have been overwhelming to our tremendous deals to encourage new and old alike to revisit our business. Kind of like having your wife or husband of 20 years dress real sexy, and not complain about going golfing or shopping.

If you want to make an impact on your business, make an offer that no one could refuse. Most of your customers and competitors alike will be so focused on this crazy deal that it will open up many “passing lanes” to other products and services that will amaze you. On top of that, you won't feel pushy to ask for the deal. And here is the real beauty: you don't have to lose your store to fire, flood, tornado, earthquake, or zombie attack to make this happen. Prep, plan, and play ball!

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About the Author

Mark Smith

Mark Smith

Mark Smith is the former owner and president of Wholesale Auto Parts in Summersville, W. Va. He now is the member services coordinator at the national headquarters of Federated Auto Parts Distributors in Staunton, Va. A recipient of the "National Business Leadership Award," Honorary Chairman by the Republican National Committee, Smith has served on the West Virginia Automotive Wholesalers Association Board of Directors, Nicholas County Board of Education Advisory member, and on his local Rotary Club as Charter President. He also is a former National Advisory Council member for Auto Value/BTB, a former consultant for Epicor Solutions and consultant for GLG Council. He can be reached at [email protected].

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