Competitors are busy - we are not. New biz not making money

[johnmolida]

Last year me and two partners started a car rental business in a resort area in California. There are 3 other competitors that have been around for 5-10 years. We have the same or better cars, equal or lower prices, a more professional web site. Google ranks our web site #1 in organic and map results for the top keywords. Our web site gets 350-400 uniques per day (so says google analytics). All online reviews are positive. Our office is also closer to the tourist area than our competitors.

Here is the problem - we have slim to no business. Our competitors are busy. All their cars are rented daily and sometimes they are sold out. I spy on them by calling or watching their office so I see whats going on. They are always busy. In fact one of them just bought 3 more cars to keep up with demand. We go weeks without the phone even ringing. One of the competitors I used to work for and they got 90% of their biz from their web site and I saw how busy they were with tourists.

After a year of working and making zero I'm getting a little frustrated to say the least. The biz generates enough money to pay the operating expenses but nothing is left.

Anyone have any insight on why the competitoion is booming and we are floundering?

[huggytree]

they are obviously doing something you are not

when I rent a car I ALWAYS pick a big name.....id never choose the little guy...I did that once, had a car break down and had the rental guy blame me and accuse me of leaving my lights on....it took them 4 hours to swap cars and I almost missed my flight....and then they charged me extra because I brought the rental back 1 hour late(on their tow truck_)

I pick Alamo typically....I pay MORE.....same with Hotels...I never go cheap.....and I always have a good stay(no noise)

no one here can tell you whats happening...but odds are its marketing

[johnmolida]

None of the competition is 'big names'. We are not traditional car rental companies; we are niche market that ONLY does luxury cars catering specifically to tourists in our resort area.

[Fulcrum]

Have you considered trying to hook into the travel agencies? Most, if not all, of them are now offering full service (air, hotel, car rental, etc.).

Ask yourself how your target customers learning about the other guys. Like Huggy said, what are the other guys doing that you are not?

I'm no marketing specialist nor do I understand the car rental industry well, but that's where I would start.

[huggytree]

pick someone who is where you want to be....then copy them....that's what I always try to do

[billbenson]

On this one, I'd look at more old style marketing techniques. Wine and dine concierges in hotels. Get them to recommend you. Deliver your cars to the customer for free, whether at an airport or hotel. Since you are in the luxury car business, get customers out of great customer service that others don't provide. Track airplane arrivals so the car can be there when the customer arrives. Send them a text to respond to when the airplane lands. Ask them if they have checked luggage. If so delay your arrival with a car by 15 minutes. Give them a contact phone in the text. Same for hotels.

I was a field sales guy for 22 years. The travel part is a pain. I haven't done it since 1998 and I think its worse today than when I was traveling (airport security etc.). If someone can pay for a luxury car on their expense report, they can pay for incremental costs of giving them good service. What would I prefer, to get my bags, drag them to the rental car offices, get a car, sign contracts, drag my luggage to the car and leave OR walk from bagage claim, have a car waiting for me, sign an agreement and drive away.

It's kind of a no brainer, but you need to target the upscale traveler.

[Sean_DeSilva]

Try using creative packaging techniques to leverage the client base of complementary businesses. A wine and dine package with a local upscale restaurant, a family fun package with the local bike rental place or ski resort etc. The way you structure the offer is limited only by your imagination and level of rapport you build with other business owners.

Be very clear to them that you'll handle all the creation of the marketing materials and they are only responsible for splitting the mailing budget. If this seems unfair to you remember that you're tapping into their customer base when you do this.

[Harold Mansfield]

Last year me and two partners started a car rental business in a resort area in California. There are 3 other competitors that have been around for 5-10 years. We have the same or better cars, equal or lower prices, a more professional web site. Google ranks our web site #1 in organic and map results for the top keywords. Our web site gets 350-400 uniques per day (so says google analytics). All online reviews are positive. Our office is also closer to the tourist area than our competitors.

Here is the problem - we have slim to no business. Our competitors are busy. All their cars are rented daily and sometimes they are sold out. I spy on them by calling or watching their office so I see whats going on. They are always busy. In fact one of them just bought 3 more cars to keep up with demand. We go weeks without the phone even ringing. One of the competitors I used to work for and they got 90% of their biz from their web site and I saw how busy they were with tourists.

After a year of working and making zero I'm getting a little frustrated to say the least. The biz generates enough money to pay the operating expenses but nothing is left.

Anyone have any insight on why the competitoion is booming and we are floundering?

If I had to guess, I would guess that they are getting to the customer before you are. In travel and luxury services packaging bundles and partnerships seems to be where it's at. When you book a flight or any travel online, no mater where you book it, there are are resources to rent a car, get a hotel, make reservations at restaurants, take tours and everything else.

Are you partnered with or advertise on any travel sites? Travel agents who deal in luxury travel or high end clientele?

You also said that you are a niche player dealing in luxury models. Do ALL of the hotel concierge's in the area know about you? Do you have a relationship with them? Luxury travelers will almost always go to their hotel concierge, many times BEFORE they arrive, to get the things they want in order.


On this one, I'd look at more old style marketing techniques. Wine and dine concierges in hotels. Get them to recommend you. Deliver your cars to the customer for free, whether at an airport or hotel.

This. ^^

If you are able to start going around and talking to Hotel concierge's to recommend your services, maybe even allow them to book on behalf of their clients..how cool would it be for both the customer, AND the Concierge to have the car delivered to valet and waiting for the guest? Those are the details that Concierge's love.

I live in a HUGE tourist area, and use to work for 2 major hotels, a limo and a concierge company here. Partnerships, and affiliates are how it's done.

Prime example: One of the Limo companies that I drove for was also a Concierge Company that ran desks up and down the strip. If any hotel guests needed a limo (or any of the other services that we provided), of course we got the call. But when guests needed other services that we didn't provide our Concierge's had a primary company for each service, and then a list of other vetted companies to call on to provide those services as back up, and of course got commission on the sale. That's how it works.

From what I've seen here in Vegas, getting in good with a Concierge desk requires a lot of courting and schmoozing, but more than anything they want to insure that their clients are getting the best and that the commission is profitable.

Also...
When I hear people say that someone got "90% of their business from their website", in the back of my mind I'm thinking that it wasn't JUST the website. That they got it from various online sources, partnerships and advertising. A website is part of that. Not the whole kit and caboodle.

Of course I'm guessing based on the information that you have given, but assuming everything is equal or in some areas better and your phone isn't ringing and theirs is, this is where I think the problem is. And if you are doing all of these things online and with Concierge's and they are still beating you...then they are doing it better (or kicking back more) and you need to understand how they are doing it better and start competing on that level. Maybe even hire a professional to help.

[justinnichols]

Simple. You are marketing, not selling. Start selling.

Do this, call on all of your current or former customers. Do a quick satisfaction survey, and ask them how they would like to be rewarded for referring business to you.

[billbenson]

Well, in this case 'sales' is really closing the deal. Sales can be a very general term and all sales isn't equal. You could consider a lead generation job calling people while their eating dinner sales. I get someone knocking on my door trying to sell me new windows for my house. The pitch is we were in the neighborhood and did X on your neighbors house down the street and just wanted to see if you are thinking about new windows. I get these sort of pitches by phone as well.

One of the really interesting things about the above pitch and this includes phone pitches if it's household related is they both say my wife has to also be present. I'm not going to schedule a meeting where a real sales guy comes in and does a hard sell on my wife.

I fell for this pitch for windows once (I have an older house and all of the windows are leaky). Actually I was curious what windows would cost so I wanted to get a price. Didn't have money for windows at the time though. So the kid who was an appointment setter (IMO I don't consider appointment setters salespeople) set up an appointment. It was mandatory that my wife be here.

So the sales guy comes by and asks where my wife is. He was beyond furious when she wasn't here. He wouldn't show me any brochures or give me any pricing. I told him not to let the door hit him in the butt when he left or something similar. I didn't loose my temper or anything like that.

This was one of those situations where I wanted to here the pitch and see what strategy they were using as a salesman. Call it ongoing education. If I get a good salesman on the phone I'll listen to their pitch. You can learn something there. If I don't want to hear the pitch, I'm polite but cut the conversation short. I never just hang up on someone unless they are rude.

If I am dealing with an appointment setter, I'm almost always polite. Usually you are talking to a kid who doesn't make much money. I might cut them short with a polite not interested, but I'm not rude to them.

I consider most of the above to be marketing, not selling. There is some crossover though. A call to action on a website is selling. Getting placed well on Google is marketing IMO. Appointment setters are marketing IMO although they are giving a call to action...

To the point: I think the original poster needs good marketing. Make that phone ring! Then he can worry about sales.

[Barcode Parade]

It's an niche market. According to what you are describing there can be only one reason as to why this is happening to such an extreme (competitors are busy, you have no clientele): They are getting to potential customers first, every time. Fix it.

[Boby]

Hi Jhon

It's surely not a matter pf service as your biz is relates to car rental that to a resort area. It seems like poor marking and linking of website. As you mentioned on organically a top serach engine ranked you No1 then also you are not getting business, it clearly indicates that.............

1/ the tourist comes to that resort area mostly through website ( As you have indicated that you competitors are getting business through websites) they must be inter lniked their (resort people & your competitors) websites with each other.

2/ while tourist are booking resort a pop up window or something like that must be highlighting or making a branding of your competitors.

3/ may be your competitors have involved some of the sale staff of resort for some kind.

I strongly suggest you to work on interlinking of website and work on cyber marketing than any other. go for mass mailing forum contact making. or hire someone expert in these field on contractual basis.

Regards
Boby

[JohnF]

Agree on packages and partnerships. I'd work on getting reviews and partnering with travel agents and hotels. With the hotels, I'd suggest adding value somehow, like delivering cars to them rather than making them come to you. Also, are you using any kind of analytics to see exactly what's happening with all the website visitors, where you're losing them?

[DeniseTaylor]

From what you're telling me, I get that your competitor has established relationships and trust from folks in the area. They are a known commodity somehow. Probably has a reputation and is getting word of mouth. Also, could he have Corporate contracts that you don't? Corporate accounts can represent a steady stream of business/income. Part of what you're experiencing could just be something that will ease with time as people get to know you. Meantime, how can you establish relationships? Can you offer some kind of incentive plan with auto body shops or insurance companies in your area? What about travel-related businesses? Instead of trying to get individual customers, perhaps you could establish something with people who will send you business?

[michaelstark61]

try working from different areas. Use multiple contacts numbers. This will help in reaching out more customers. Also hire friendly cab drivers and give few benefits to the customers like discounts on care hiring or hotel discounts.