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Of course, when considering your future with an automotive franchise, it helps if you are interested in cars. Nonetheless, there is considerably more to purchasing an automotive franchise than just enthusiasm for cars.
There are alot of different types of automotive franchises that cater for different marketplaces. Some are centred around business to business markets where the customers are other business owners, running garages or other such car related businesses. Others focus on business to end user sales which is where the franchisee markets their services to consumers who are looking for automotive repair or other services.
Bearing this in mind what differentiates between business-to-business and business-to-consumer automotive franchise businesses, and how can you take advantage of these opportunities?
B2B (Business To Business) is doing business with the automotive trade. This can be an advantage in that traders are visible and the benefits of this are that finding possible customers is relatively easy. This will usually accelerate access to clients and assist you to win sales speedily. On the other hand traders might already have equivelent services to the one the franchise is offering. This basically means that the services that you, as a franchisee, are providing needs to have positive, added value points to attract the trader to move suppliers.
Business to consumer is building a domestic customer base. Although it can take time to build, the domestic customer is more often than not sold on relationship and is less price focussed. The householder wants reliability and excellence and are not usually afraid to pay extra to get it. The domestic market can also prove useful for being referred to friends and money is usually paid to you on the day. A loyal customer database therefore builds up as time passes and, due to instant payment from the customer, this improves cashflow for the company in contradiction to B2B businesses where thirty days to get paid is more normal.
There are many types of automotive franchise businesses but these often include SMART repairs, car valeting and car hire.
SMART (Small to Medium Area Repair Technology) repair franchises are to do with car paintwork restoration after bumps and scrapes. Recently there have been quite a few franchise systems arriving into the market that specialise in these kind of services. SMART repair franchises encompass a wide market providing services to both B2B and B2C customers.
Another big market is car valeting and those running franchises of car valeting brands can take advantage of the demand in both the business to business and business to consumer markets.
Car Hiring and Leasing represents another large market in the UK. For example car leasing franchises offer franchisees quick access into business to consumer aswell as business to business markets.
In view of the above, its easy to see that automotive franchise opportunities have great appeal to both business-to-business and B2C markets in varying amounts. Starting up a franchise system that has appeal to both types of customer can assist in both sales and cash flow.
Some good advice when looking for the ideal automotive franchise for you, is to search out a franchise opportunity that has happy franchisees and people at the head office you relate well to and would be happy working alongside.
Once you have chosen your most suitable franchise system, it is vital to pursue 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.

