Service Industry Case Study
About the business
- Type of business – Self drive and chauffeur driven car hire
- Market – business to business and business to consumer
- Goal of Business – Create a new revenue stream
Understanding from Analysis:
This business had around 300 self drive cars available for hire + 14 chauffeur driven cars.
Self drive cars were made available to businesses and consumers, chauffeur driven cars were hired out to businesses and embassies.
The business serviced it’s own fleet of vehicles and it was this which provided an opportunity.
Service mechanics were not being fully utilised and I thought about the type of businesses who hired cars. Some of the customers were hiring cars because their car was being serviced.
I approached senior management and suggested setting up a new service offering. The idea was simple, collect their car when it needed servicing and replace it with a hire car and reverse this once their car had been serviced. An additional plan was to valet each car so customers got a nice fresh car returned.
One particular challenge related to the strict rules mandated by car manufacturers at the time. They weren’t happy with the suggested idea of servicing their cars as they wanted to protect the dealerships. In the end, we were able to go ahead by only servicing cars which were outside the vehicle warranty.
Simple trifold brochures were printed and the project was initiated by yours truly. A process was agreed so that the manager of the service area could easily book cars in and provide follow up with customers.
The service was offered as an addition to the existing self drive and chauffeur driven car services.
This innovative venture proved highly profitable especially since it was almost 100% of new profit. The only hard costs were some brochures and a little time. It’s hard to say what the real impact on the overall business profits was but best guess suggests another 2% on existing gross profits.