Van Batenburg: EVs and the Four Ps of Marketing

Whether you have a master’s degree in business or grew up in a family tire store or somewhere in between, the four “Ps” of any business need constant attention. You may remember them: product, place, promotion and price. How do these apply to your business when it concerns new technologies  — in this case, the addition of servicing high- voltage vehicles?

What do we call high-voltage vehicles? The National Institute for Automotive Service Excellence (ASE) has called them “xEVs” for the last couple of years. The sub-categories for xEVs are: hybrid electric vehicle (HEV); plug-in hybrid electric vehicle (PHEV); battery electric vehicle or electric vehicle (BEV or EV); electric vehicle with a range extender (EV-RE); fuel cell electric vehicle (FCEV), and plug-in fuel cell electric vehicle (PFCEV). That’s six somewhat different drivelines. Did you know that all six use a powerful three-phase electric motor to power the wheels? The major difference is the fuel sources that are used to drive the vehicle. The majority of vehicles you will see in your shop are HEVs, PHEVs and EVs.

To be successful in your line of work requires repeat business. That means we lead with the first “P,” your product. For most of you, that’s more than just tires. The customer must feel taken care of when they pick up their car, truck or whatever has wheels on it. We all know that sometimes the small things are what matter the most, like a friendly hello, a clean car or a real thank you for their business.

My younger brother, Ray, traded in his Mercedes and bought a Hyundai Tucson PHEV a few months ago. He called me to let me know and I went over to his home to see the new ride. We both live in central Massachusetts. I gave him my old level II electric vehicle supply equipment (EVSE). That’s technician speak for a 240-volt charger. His electrician installed a plug for a clothes dryer in the garage and off Ray went to work each day, using only the power of the sun. (A few years back, he installed a solar panel system and he doesn’t use the entire amount of electricity it makes.) His PHEV rarely uses gas as his drive to work is less than 20 miles, round trip. He loves the car.

While I was there, my brother told me a story about his son, Joshua. He lives in Los Angeles and drives a five-year-old Mazda with 60,000 miles. The car had a small coolant leak and he was quoted over $2,000 for a repair by an auto service facility. They listed every coolant hose as needing replacement. Josh, 22, called his dad to get some advice. Ray told him to ask a friend’s parents to get a referral. Under $280 and a day later, the upper radiator hose was replaced. No more leaks. I felt bad for my nephew, worse for Ray and terrible for our industry. The first “P” was violated. Don’t take advantage of any potential customer. Ray asked me  why they tried to “rip off my kid.” It was an ugly conversation.

The second “P” is place. My business, Automotive Career Development Center, is getting a makeover — a new parking lot, a fence and a fresh paint on the exterior. 
Your place extends beyond your business. It’s also your website, social media, your business card, your uniform, the company truck — really anything people may see and associate the “feeling” they have for your business. 

Most, if not all of us, have a building. Keep it in good shape, even if that means scaling back occasionally on a purchase that can wait. (Though how about installing an EV charging station at your dealership?)

“Promotion,” the third in line, needs constant output. You need to talk with your customers and tell your own story. It’s not enough to let others talk about your company. To make any company grow, you need to be better than the competition — without bad mouthing them — and you need to be unique. Educating your customers is key here. Make sure you’re the person who’s telling your business’ story.

The fourth, “price,” is so hard today and has been for a long time. If you excel at the first three “Ps,” then it is easier to make a profit. All of your employees will need to be well-trained with smiling faces. Your managers must love people and your top decision-makers will need a pretty good crystal ball. EVs are here to stay and they need a priority spot when thinking about your four “Ps.”