Do you want to start a car assembling plant? If YES, here is a 19-step guide on how to start a car assembling plant business with no money and no experience. Thinking of starting a car assembling plant in the United States is without doubt a very ambitious goal, which can be a stressful process. This business also can be quite expensive to start, but if your company is successful, you will make far more than you initially invested in the company and proudly call yourself an automotive visionary.
Starting this business is no ordinary feat and you will need to find a gap in the automotive industry that you can fill with your new company, like cars with simple controls for seniors or young drivers or a car that uses fuel in a more efficient, innovative way.
You can try developing your concept by choosing a specific target consumer, the technology your vehicle will use and how it relates to its proposed price point, how it will comply with local environmental and safety regulations, and how it will be manufactured. Since this business is capital intensive, you will need to source for means to get adequate funds.
You will definitely need a prototype and a car assembling business plan that you can show investors to convince them to invest with you. You will also need to employ excellent designers with experience designing for the automotive industry to create a design that works, and have a prototype built at a manufacturing plant. This prototype does not need to be the same as the end product that your clients purchase, but it needs to communicate your vision of that final product to investors and manufacturers.
19 Steps on How to Start Car Assembling Plant in The United States
Table of Content
- 1. Understand the Industry
- 2. Conduct Market Research and Feasibility Studies
- 3. Decide What Niche to Concentrate On
- 4. Know the Major Competitors in the Industry
- 5. Decide Whether to Buy a Franchise or Start from Scratch
- 6. Know the Possible Threats and Challenges You Will Face
- 7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
- 8. Choose a Catchy Business Name from the ideas Below
- 9. Discuss With an Agent to Know the Best Insurance Policies for You
- 10. Protect your Intellectual Property With Trademark, Copyrights, Patents
- 11. Get the Necessary Professional Certification
- 12. Get the Necessary Legal Documents You Need to Operate
- 13. Raise the Needed Startup Capital
- 14. Choose a Suitable Location for your Business
- 15. Hire Employees for your Technical and Manpower Needs
- 16. Write a Marketing Plan Packed With ideas & Strategies
- 17. Develop Iron-clad Competitive Strategies to Help You Win
- 18. Brainstorm Possible Ways to Retain Clients & Customers
- 19. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
1. Understand the Industry
First and foremost, businesses in the Car and Automobile Manufacturing industry manufacture cars and automobiles. These companies produce cars in assembly plants. According to industry reports, production has slowed in response to depressed vehicle sales.
Industry revenue experienced volatility which ultimately contributed to an overall revenue decline. But as the economy rebounded, consumer confidence has improved and financing options have become more widely available. This has released pent-up consumer demand for new vehicles in the first half of the five-year period.
Also note that industry interest rates remained low, which brought down the cost to finance a vehicle purchase, and sales across the automotive sector recovered healthily. But with the latter half of the past five years, production slowed in response to depressed vehicle sales. But even with the reducing revenue, the industry has continued increasing product innovation.
The largest proportion of companies in this industry is located in the Great Lakes area, with 29.3% of total facilities: General Motors in Detroit; Ford in Dearborn, MI; and Chrysler in Auburn Hills, MI. These three companies are known as the Big Three, or the Detroit Three. Notably, the great recession caused problems for The Big Three, forcing GM and Chrysler into bankruptcy and Ford to make drastic cutbacks.
It affected them into closing several plants as these companies restructured themselves out of loss-making performances. The number of companies in the Great Lakes region has been falling as a result of the restructuring and the Big Three’s financial woes. The second automotive hub in the United Stated is found in the West Region, which holds 21.4%.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
Cars are notably cheaper in the US than in other countries. There are no long waiting lists for new cars, but in recent years some new sports and luxury models have been in short supply. Although comparisons between new car prices in different countries are often very hard to make because of fluctuating exchange rates and the different levels of standard equipment, but most new cars are cheaper in the US than in other countries.
Reports have it that American consumers have a huge choice of cars and, in addition to a wide range of US models, most European and Japanese cars are available.
Ever since the introduction of the sports utility vehicle (SUV), the average size of American cars has been increasing, which isn’t surprising, given that SUVs have comparable handling and road-holding abilities. SUVs now make up a good half of the personal passenger cars on the road.
They’ve completely replaced estate cars (station wagons) as the family vehicle of choice, and some Americans are now lusting after a Hummer, derived from the military armoured vehicle, the Humvee. ‘Compact’ (or ‘economy’ or ‘mid-size’) models are around the same size as larger European cars, such as a Jaguar or Mercedes.
Note that a lot of cars made for the US market are liberally adorned with ‘idiot’ gadgets and buzzers. For instance, gadgets that tells you that your seat belt isn’t fastened, your lights are on or your keys are in the ignition. Some American cars have combination locks on the doors that can be used to lock or open them when you’ve locked your keys inside the car (provided you haven’t forgotten the combination).
Cruise control is fairly common and highly desirable when you’re driving hundreds of miles on a dead-straight road at 55mph or 65mph; it decreases your fuel consumption, helps prevent speeding and is less tiring. All these and many more have heightened the interest American citizens have on cars. The percentage of clients in this business is immeasurable and your target market is wide and promising.
3. Decide What Niche to Concentrate On
You need to understand that when automobiles were first invented, the very first cars were entirely made by hand by just a few workers. But today and with the advent of technology, millions and millions of vehicles fill streets all over the world.
It’s obviously not possible for each of these incredibly complex and technologically advanced machines to be made by hand by a few workers. Agreeably, modern car manufacturing techniques are obviously way more advanced than they were over a century ago, one key thing remains at the heart of the process is the assembly line.
Instead of mandating a single worker to complete multiple tasks to complete the assembly of a vehicle, the assembly line allows the vehicle to travel down a conveyor belt to individual stations, where workers perform a particular task on each vehicle as it travels past their station.
Note that through this process vehicles can be assembled quickly and efficiently. Workers specialize in a specific task, becoming more skilled and faster in its completion. This process also allows many vehicles to be in production simultaneously.
By focusing on a particular niche in this business you can be able to focus your strengths in advertising and promoting your business to your target market. The automotive industry has gone pass the stage where any car produced can sale. Now you have to be innovative and creative to convince people to patronize your products.
With the growing awareness for a sustainable environment and a green atmosphere, you can start a plant that assembles biomass fuel powered cars. You can build cars with easy operating functions for seniors or younger drivers. These are examples of niches you should consider in this business. Your creativity and ability to bring something new, exciting and needed in this industry will dictate how successful you get in this business.
Level of Competition in the Car Assembling Plant Business
Even with the rising number of bicycles, motorcycles, coaches, trains, planes and even cruise ships in use, cars are still the most popular means of passenger travel. According to reports, there were around 133 million passenger vehicles traveling on U.S. streets in 2015 – a figure that translates into an average rate of around 415 passenger vehicles per 1,000 inhabitants. In the same year, some 14.5 million automobiles were registered in California, the country’s most vehicle populous state.
But note that the number of cars sold in the U.S. went down from a staggering 7.9 million units in 2014 to a little over 6.3 million units in 2017, because the U.S. consumer demand moved towards larger vehicles over the course of these three years: U.S. light truck sales increased from about 8.7 million units in 2014 to almost 11.1 million units in 2017.
The Detroit Three, General Motors, Chrysler LLC and Ford, are the major U.S.-based automakers, although Chrysler LLC is a fully-owned subsidiary of the Europe-based Fiat Chrysler Automobiles holding. Also note that Tesla’s market share is growing rapidly due to the increasing acceptance of hybrid and electric vehicles.
In terms of U.S. light vehicle sales, General Motors was the most important vehicle manufacturer as of January 2017, followed by Ford, Fiat-owned Chrysler, Toyota and Nissan. About 3.9 million passenger cars were produced in the United States in 2016. Globally, Toyota, General Motors and VW are ranked as the largest passenger car manufacturers.
It’s also important to state that due to some global initiatives, such as the Paris Agreement, a lot of countries around the globe are enacting stricter emission controls on new vehicle models. As such, automakers are beginning to expand their business into the electric mobility sector.
Note that within the next few years, internet-connected car technologies and autonomous vehicles are set to stir up yet another revolution in the automotive sector. The global market for autonomous driving hardware components is expected to grow from 400 million U.S. dollars in 2015 to 40 billion U.S. dollars in 2030.
4. Know the Major Competitors in the Industry
- General Motors Company
- Ford Motor Company
- Fiat Chrysler Automobiles
- Tesla Motors
- AM General
- Toyota Motor Corporation
- Honda Motor Company
- Nissan Motor Company
- Mazda Motor Corporation
- Subaru Corporation
- Hyundai Motor Company
- Kia Motors
- Volkswagen Group
- Volvo Cars
- BMW Group
- Daimler AG
- Hino Motors
The development of the electric cars will owe more to innovative solar and aeronautical engineering and advanced satellite and radar technology than to traditional automotive design and construction. For instance, the electric car has no engine, exhaust system, transmission, muffler, radiator, or spark plugs.
It will require neither tune-ups nor—truly revolutionary—gasoline. Instead, its power will come from alternating current (AC) electric motors with a brushless design capable of spinning up to 20,000 revolutions/minute.
Also note that the batteries needed to power these cars will come from high performance cells capable of generating more than 100 kilowatts of power. And, unlike the lead-acid batteries of the past and present, future batteries will be environmentally safe and recyclable.
You also need to understand that integral to the braking system of the car will be a power inverter that converts direct current electricity back into the battery pack system once the accelerator is let off, thus acting as a generator to the battery system even as the car is driven long into the future.
The heightened use of cars and the increasing resistance to road building have made the American highway systems both congested and obsolete. But with the advent of new electronic vehicle technologies that allow cars to navigate around the congestion, the industry is expected to change dramatically.
Also note that the handing over of the operation of our automobiles to computers would mean they would gather information from the roadway about congestion and find the fastest route to their instructed destination, thus making better use of limited highway space. Rising intolerance for pollution coupled with extraordinary technological advancements will change the global transportation paradigm that will carry us into a new millennium.
5. Decide Whether to Buy a Franchise or Start from Scratch
A lot of entrepreneurs willing to start a car assembling plant approach business ownership with the sole idea that building from the scratch is their only option when they can also leverage franchise opportunities. Unless you have convincing reasons to start from the scratch, buying an existing car assembling plant may be the better choice.
Have it in mind that an acquired car assembling plant is a known quantity; starting from the scratch is less certain because its forecasts depend on estimated outcomes. By pursuing a franchise you can Leverage a turnkey operation with proven profitability and a well-oiled business model.
You need to understand that the probability of you achieving your goal of being a successful business owner immediately improves when you purchase a franchise instead starring from the very scratch. If your goal is to start a car assembling plant, you should assess whether there are good franchise opportunities available that suit your visions and make your entrepreneurial life easier.
6. Know the Possible Threats and Challenges You Will Face
Starting a business is not a simple task, especially not a car assembling plant. It takes strong willpower and creativity to be able to survive. Every business has its own challenges but what defines an entrepreneur is the ability of turning failures into success. Possible challenges of starting this business may include;
- Capital and financing your business
- Finding costumers
- Dealing with the stress of not having a steady pay check
- Managing your money, legal protection and taxes
- Dealing with negative people
- Building a reputation
- Fighting competition
- Hiring employees
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
We believe you have four legal structures to choose from when planning to start this business; sole proprietorship, partnership, limited liability company (LLC), or a corporation. But you have to understand that each legal structure comes with its own advantages and disadvantages, and you need to carefully examine your options before choosing a legal structure. Of all these legal structures, the LLC is the best legal entity for your car assembling plant.
An LLC is a “pass through” tax entity. It simply means that the LLC itself does not pay tax, you pay tax on the profits you receive. Note that the trick to reducing your tax liability is two-fold: start an LLC but tax it as an S-Corporation. Then you pay yourself a small but reasonable monthly salary and once per quarter you can take out a chunk of the profits as a distribution.
Note that you will pay standard tax on your monthly salary but the quarterly S-Corporation distribution is not looked at as employee wages so you will not have to pay social security or Medicare tax on this distribution amount.
8. Choose a Catchy Business Name from the ideas Below
- Metox assembling plant
- Cental factory
- Madax plant
- Red Ridge motors
- GIC assembling plant
- New Town Automotive
- Eastwood Service
- RC Automotive
- Skyline cars
- Craig assembling plant
- Castle Ride
9. Discuss With an Agent to Know the Best Insurance Policies for You
You should be aware of the enormous risk in the business. Just a single mistake in your work and your car might be the cause of something drastic. Also if the car parts are further damaged while in your care, you could be liable for those costs as well.
These and more are the reasons why insurance is needed in this business to protect you from the high cost of liability lawsuits, property damage, and cyber risks, you need a business protection plan that accounts for the nuances in your daily operations.
- General liability insurance
- Errors and omissions insurance
- Business owners policies
- Bailee’s coverage
- Workers compensation insurance
- Workman’s Comp Case Study
- Employer’s liability insurance
- Fidelity bonds
- Employment Practices Liability Insurance
- EPLI policy
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
Statistics have it that Intellectual Property theft is committed by half of all employees and competitors. Most employees in the automotive business routinely transfer company data to the cloud through personal emails and on to their flash drives, as part of the day to day execution of their jobs, and then they never clean the data off their systems.
Also, most employees, despite their non-disclosure agreements, believe that the creative work performed on behalf of their employers remains their own. You have to understand that intellectual property protection is very well required in the car assembling plant in form of patents protection, trademark and copyright protection, Technical Data and an Software Protection.
It’s advisable that you implement and reinforce non-disclosure and non-compete agreements, use forensic techniques to monitor your network, maintain privacy and security through key word phrases, and develop a solid relationship with a digital forensic investigator to keep your works and trade secrets safe.
You should also avoid reallocating equipment or information without making a forensic copy, discard the forensic image for at least six months, do not allow your workers use personal flash drives; try not to underestimate the determination of a thief.
11. Get the Necessary Professional Certification
- Certificate in Automotive Technology
- Vehicle Acoustics – NVH
- Heavy Equipment Truck & Transport Technician Certificate
- Certificate in Transportation Engineering
- Certificate of Advanced Studies (CAS) Computational Fluid Dynamics
- Certificate III in Light Vehicle Mechanical Technology
- Automotive Service Technology Certificate
- Professional Program Certificate in Electric Cars (TU Delft)
12. Get the Necessary Legal Documents You Need to Operate
Getting all the documents and licenses needed for a car assembling plant can be a very daunting task. All these permits and licenses need your time, energy and paperwork to be able to obtain them. But no matter how hard you feel this task is, don’t risk your business shutting down before it fully begins.
Have it in mind that starting your business without the proper licensing is a criminal offense in some states, while others hand out hefty fines. Here are some legal documents needed for a Car assembling plant.
- Business license
- VAT registration
- Employment agreement
- Federal tax identification number
13. Raise the Needed Startup Capital
One of the huge problems faced by entrepreneurs is not choosing a business niche but the capital and funding for the business. Starting a car assembling plant can be very hard due to the amount of funds needed to set it up. You will need funds to buy tools, rent offices and utilities, pay employees, and also build a corporate identity.
You will need funds to run your business for a while before you start making profits to sustain it. Lack of adequate funding in this business means failing even before starting up. Have it in mind that you will need a working business plan and an attractive prototype to fully convince investors to pitch their rent with you. Below are few ways to obtain startup funds in this business.
- Loans from friends and family
- Bank loans
- Angel investors
- Personal savings
- Venture capitalists
14. Choose a Suitable Location for your Business
It’s very important to say that the location you choose for your car assembling plant has a direct effect on your operation’s cost as well as your ability to serve customers (and therefore your revenues). Also, location decisions, once made, are difficult and costly to change. It is advisable that you go for a location where you can easily afford its rent.
Also have it in mind that the location you choose needs to be legally acceptable for whatever you plan to do there. There is a possibility for a spot to be good for business, but if it’s not zoned for what you plan to do, you’re asking for trouble. You’re advised never to sign a lease without being sure you’ll be permitted to operate your business in that space.
Note that your city planning or zoning board determines what activities are permissible in a given location. If your zoning board has a problem with any of your business activities, and it’s not willing to work out a way to accommodate your business, you may have to find another space.
15. Hire Employees for your Technical and Manpower Needs
Although the basic principles of car assembling lines are the same, recent innovations have changed things a bit. Mechanization of tools and parts revolutionized car production once, and now it’s happening again. For instance, robots now perform some of the tasks that human autoworkers formerly performed. Also since assembling line work involves repetitive movements, it’s easy, and sometimes safer for a robot to take over a role a human used to play.
The picture most people have of an assembling plant are painted as old newsreel footage of auto workers building cars in greasy, grimy, dirty factories; however, new automotive production lines have been praised for their clean, light and open architecture. Even though the bulk of an automobile is virgin steel, petroleum-based products (plastics and vinyl) have come to represent an increasingly large percentage of car components.
These light-weight materials derived from petroleum have helped to lighten some models by as much as thirty percent. You also need to understand that all the components that go into the car are produced at other sites. It simply means that thousands of component pieces that make up the car must be manufactured, tested, packaged, and shipped to the assembly plants, often on the same day they will be used.
This process takes huge amount of planning. Most automobile manufacturers in the United States require outside parts vendors to subject their component parts to critical testing and inspection audits. In this way the assembly plants can anticipate that the products arriving at their receiving docks are Statistical Process Control (SPC) approved and free from defects.
Once all the parts of the automobile is assembled at the assembly plants, production control specialists can follow the progress of each embryonic automobile by means of its Vehicle Identification Number (VIN), assigned at the start of the production line.
In some more advanced assembly plants, a small radio frequency transponder is attached to the chassis and floor pan. This sending unit carries the VIN information and monitors its progress along the assembly process. Knowing what operations the vehicle has been through, where it is going, and when it should arrive at the next assembly station gives production management personnel the ability to electronically control the manufacturing sequence.
As a prospective entrepreneur in this field, you need to know that the assembly process quality audit stations keep track of vital information concerning the integrity of various functional components of the vehicle. In this new era, quality is seen as a process built right into the design of the vehicle.
In this way, assembly operators can stop the conveyor if workers find a defect. Corrections can then be made, or supplies checked to determine whether an entire batch of components is bad. Car recalls are expensive and manufacturers do everything possible to ensure the integrity of their product before it is shipped to the customer.
After the vehicle is assembled, a validation process is conducted at the end of the assembly line to verify quality audits from the various inspection points throughout the assembly process. This final audit tests for properly fitting panels; dynamics; squeaks and rattles; functioning electrical components; and engine, chassis, and wheel alignment.
The Service Process Involved
Car assembly plant represents only the final phase in the process of manufacturing an automobile, for it is here that the components supplied by more than 4,000 outside suppliers, including company-owned parts suppliers, are brought together for assembly, usually by truck or railroad. Those parts that will be used in the chassis are delivered to one area, while those that will comprise the body are unloaded at another. Explained below are the processes of assembling a car.
Normally a car or truck is constructed from the ground up (and out). This frame is the base on which the body rests and from which all other assembly components follow. This frame is placed on the assembly line and clamped to the conveyer to prevent shifting as it moves down the line.
The automobile frame moves to component assembly areas where complete front and rear suspensions, gas tanks, rear axles and drive shafts, gear boxes, steering box components, wheel drums, and braking systems are sequentially installed. At this stage of production, an off-line operation mates the vehicle’s engine with its transmission.
Company workers use robotic arms to install these heavy components inside the engine compartment of the frame. After the engine and transmission are installed, a worker attaches the radiator while another bolts it into place. Because of the heaviness of these component parts, articulating robots perform all of the lift and carry out operations while assemblers using pneumatic wrenches bolt component pieces in place.
- The Body
A floor pan is the biggest body component to which a multitude of panels and braces will be either welded or bolted. As the floor plan moves down the assembly line, strongly held by clamping fixtures, the shell of the vehicle is built.
First, the left and right quarter panels are robotically removed from pre-staged shipping containers and placed onto the floor pan, where they are stabilized with positioning fixtures and welded. Then the front and rear door pillars, roof, and body side panels are assembled in the same fashion.
Then the shell of the car assembled. This process lends itself to the use of robots because articulating arms can easily introduce various component braces and panels to the floor pan and perform a high number of weld operations in a time frame and with a degree of accuracy no human worker could ever reach.
Statistics had shown that robots can pick and load 200-pound (90.8 kilograms) roof panels and place them precisely in the proper weld position with tolerance variations held to within .001 of an inch. Moreover, robots can also tolerate the smoke, weld flashes, and gases created during this phase of production. As the body moves from the isolated weld area of the assembly line, subsequent body components including fully assembled doors, deck lids, hood panel, fenders, trunk lid, and bumper reinforcements are installed.
Before painting, the body is expected to have passed through a well detailed inspection process. The shell of the vehicle passes through a brightly lit white room where it is fully wiped down by visual inspectors using cloths soaked in hi-light oil.
Under the lights, this oil allows inspectors to see any defects in the sheet metal body panels. Dings, dents, and any other defects are taken care of right there by skilled body repairmen. After the shell has been fully inspected and repaired, the assembly conveyor carries it through a cleaning station where it is immersed and cleaned of all residual oil, dirt, and contaminants.
When the shell leaves the cleaning station it goes through a drying booth and then through an undercoat dip—an electrostatically charged bath of undercoat paint (called the E-coat) that covers every nook and cranny of the body shell, both inside and out, with primer.
This coat acts as a substrate surface to which the top coat of coloured paint adheres. After this process, the shell is dried again in a booth as it proceeds on to the final paint operation. After the shell has been fully covered 1 V with a base coat of colour paint and a clear top coat, the conveyor moves the bodies through baking ovens where the paint is cured at temperatures exceeding 275 degrees Fahrenheit (135 degrees Celsius).
- Interior assembly
At this stage, the painted shell goes through the interior assembly area where workers assemble all of the instrumentation and wiring systems, dash panels, interior lights, seats, door and trim panels, headliners, radios, speakers, all glass except the car windshield, steering column and wheel, body weather strips, vinyl tops, brake and gas pedals, carpeting, and front and rear bumper fascia.
Then robots with suction cups take the windshield from a shipping container, apply a bead of urethane sealer to the perimeter of the glass, and then lay it into the body windshield frame. These robots also pick seats and trim panels and transport them to the vehicle for the ease and efficiency of the assembly operator. After going through this section the shell is given a water test to make the proper fit of door panels, glass, and weather stripping.
This is the stage where the chassis assembly conveyor meets the body shell conveyor. As the chassis goes through the body conveyor, the shell is robotically lifted from its conveyor fixtures and placed onto the car frame. Assembly workers, some at ground level and some in work pits beneath the conveyor, bolt the car body to the frame.
Immediately the mating takes place the car moves down the line to receive final trim components, battery, tires, anti-freeze, and gasoline. At this point the car can now be started. Then it is driven to a checkpoint off the line, where its engine is audited, its lights and horn checked, its tires balanced, and its charging system examined.
Any defects discovered at this stage require that the car be taken to a central repair area, usually located near the end of the line. Then a group of skilled trouble-shooters at this stage carefully analyst and repair all issues. After the vehicle must have passed its final audit, it is given a price label and driven to a staging lot where it will await shipment.
16. Write a Marketing Plan Packed With ideas & Strategies
The first step in advertising your car assembly plant is to critically research the industry. This detailed research should help you create the right business logo and offer specialized services that aren’t offered elsewhere.
You also have to establish opportunities to demonstrate your superior knowledge and skills to the local community. Lack of marketing experience can sometimes be overcome through persistence and innovation. Things you should note for you to successfully market your business may include;
- Using Marketing Collateral
Note that brochures, business cards, folders, direct mail pieces, and other types of promotional materials are called marketing collateral. When creating a marketing plan for your car assembly plant, make sure every piece of marketing collateral reinforces your brand and value proposition. You need to get the utmost impact from your collateral; it needs to be targeted toward its recipients. When it is delivered to the wrong person, a valuable piece of collateral will become dust.
- Competitive Awareness
Competitive awareness is the major point for creativity in marketing. There’s nothing wrong with creativity, but if it precludes your message from being represented alongside other car assembling plants, it could be a sign that you’re out of touch with the marketplace. It’s very advisable that you consult a professional marketer before you implement this strategy.
- Using Newsletters
Do not forget that a company newsletter has promising potentials as a marketing device. Have it in mind that blatant marketing messages aren’t appropriate in newsletters because they don’t communicate informational value to your customers. Make sure that your newsletter contain industry news, product use tips, and other content that captures your customers’ attention.
17. Develop Iron-clad Competitive Strategies to Help You Win
Any plans you have to win your competitors in this business should be plans that grow your business through word of mouth. You will also need to spend a fortune on TV ads, SEO and PPC campaigns, and even direct mail. In this business, you also have to invest in low-cost marketing ideas that target past and present customers. Keep your business in their minds, and you’ll increase your new customer referrals. Other ways may include;
- Know Your parts and cars
- Offer Referral Credits
- Be a leader in your industry
- Show them the money
- Diversify your income
- Make it look easy
18. Brainstorm Possible Ways to Retain Clients & Customers
Offering discounts to first-time customers in local newspapers, magazines and industry publications is one of the most effective marketing tools available. Also note that satisfied customers discussing the coolness of your work on social networks is also an inexpensive and highly effective form of advertising. Establishing social media pages that encourage communication is a great investment. Other things to bear in mind may include;
- Good service
- Be Social
- Winning on price
- Delight on image
19. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
Building a solid reputation takes time, so don’t expect customers to come flocking to your door after you’ve produced one or two cars. But as long are you are doing quality work and your customers are happy, word will get around and you’ll start to build your customer base.
This business needs expertise and experience and it will take you time to figure out what works and what doesn’t. But you can copy what others are already doing, or you can develop your own tricks and techniques that give your cars an edge over the competition. Boosting your brand awareness is very crucial in this business because it measures a potential customer’s ability to recognize your brand.
Brand awareness is best spread through both inbound and outbound marketing efforts. When competition in an industry is high, brand awareness can be one of a business’s greatest assets. Ways to boost your brand awareness may include;
- Take to social media
- Launch a PR campaign
- Invest in promotional merchandise
- Hold an event
- Exhibit yourself
- Sponsor something
- Organize an experiential stunt
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