2007 ryko annual sales meeting 2007 ryko annual sales meeting reverse marketing “gasoline discount...
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2007 Ryko Annual Sales Meeting2007 Ryko Annual Sales Meeting
Reverse Marketing
“Gasoline Discount with
Car Wash Purchase”
2007 Ryko Annual Sales Meeting2007 Ryko Annual Sales Meeting
Reverse Marketing - Concept
• What is Reverse Marketing?
• A vehicle to compete with Big Box and Grocery Store gasoline discount programs
• Program Management – Electronic or Manual
• Value Driven Discounting – $0.10/gallon discount with $8.00 wash purchase– $0.05/gallon discount with $7.00 wash purchase– $0.02/gallon discount with $6.00 wash purchase
Reverse Marketing - Economics
Gasoline Sold/Month 100,000Car Washes Sold/Month 1,000Avg. Car Wash Revenue/Wash $7.20Total Car Wash Revenue 7,200
Discount/Gallon with any wash purchase $0.10Promotional Gasoline Growth 20,000Total Gasoline Sold/Month 120,000% of gasoline discounted/month 30%Average Gallons Sold/Customer 10Gasoliine Discount/Month $3,600Washes Sold through Promotion 3,600Average Revenue/Wash $7.20Car Wash Revenue/Month $25,920Less Gasoline Discount $3,600Net Car Wash Revenue/Month $22,320Car Wash Revenue Improvement 15,120
Prior to Reverse Marketing
Reverse Marketing
Electronic Example – 7 Eleven, Inc.
• Location – Plano, TX • P.O.S. – Gilbarco “Passport”• Promotion - $0.10/gallon discount with an $8.00 wash • Wash Prices - Express $6.00 & Premium $8.00
2007 Washes Sold Premium Washes Premium Wash Count Premium Revenue Total RevenueFeburary 827 52% 430 $3,440 $5,822
2007 Washes Sold Premium Washes Premium Wash Count Premium Revenue Total RevenueMarch 983 72% 708 $5,662 $7,314April 1041 78% 812 $6,496 $8,245
Prior to Reverse Marketing
Reverse Marketing
Point of Purchase Material – 7 Eleven, Inc.
Manual Example – Shell Marketer
• Location – Dallas, TX
• Promotion - $0.10/gallon discount with any wash purchase
• Wash Offering – Express $6.00 – Premium $8.00
Date Monthly Wash CountMarch-05 331April-05 366May-05 700June-05 547July-05 473August-05 715September-05 696
Average 547
Date Monthly Wash CountOctober-05 778November-05 1284December-05 1227January-06 1362February-06 1101March-06 1119April-06 971
Average 1,120
Reverse Marketing
Prior to Reverse Marketing
Point of Purchase Material – Shell Marketer
Reverse Marketing - Summary
• Increased Car Wash Profit
• Establishes Gasoline Purchasing Loyalty
• Incremental Gasoline Growth
• Enhanced Purchasing Experience
• Competitive Advantage