Spot the Trend!

Our local paper, the Seattle Post-Intelligencer, has a feature article about the growth of do-it-yourself dog washes in our area. This time of year, business really picks up at these establishments, since our pets are now inside most of the time due to inclement weather. Also, a stinky dog can really put a damper on a family gathering during the holidays. So these businesses are doing really well.

"Like most self-service facilities, The Wash Dog offers several private rooms, each equipped with a standing-height stainless steel sink, a board that older or smaller dogs can use to enter and exit the sink and steps that younger dog washers can stand on. Aprons are available for those doing the washing." Rates start at $15 for 30 mins, and most shops offer all sorts of extras like nail clipping, and anal gland expression.

It's a good business model. Provide a service in a fast, efficient way. Set the price point where most people won't hesitate to make the purchase, then offer extras which will push up the total order amount.

However, one point jumped out at me and in the context of starting a NEW animal business. They are turning away business.

The article tells us "an informal count reveals 11 such facilities in the Puget Sound region, and "there are definitely new ones opening up," said Mike Ruffo, 33, co-owner of GroomingSPA Greenlake. "We send others our business if there's too much. There's enough to go around.""

So they get so busy they are turning customers away. And the demand is growing. So in the future, they'll be turning away even MORE customers.

How to fix this? Raise prices. Music to every accountant's ears, but most owners are really reluctant to implement a price increase, for fear of alienating their customers. But if they are turning away customers, aren't they alienating them then too? (Sorry. You have to load your dirty dog back in the car and drive to the ABC dog wash. We are too busy for you. But come back soon, ok?)

But there are ways to raise prices without alienating your customer. How? Add value.

I remember reading over the weekend that a 15-minute shower uses 60 gals of water. I thought that seemed high, so I found this water consumption calculator online. It's true. The average shower head has a rated flow of nearly 4 gallons per minute. So add in a customer using the toilet while at the shop (5 gals), and another 5 gals for washing the towels, and that 15-min dog wash session used a whopping 70 gals of water. At only 8 customers a day, a dog wash uses over 200,000 gallons of water annually.

Anyone who has driven around the Whole Foods parking lot looking for an available space knows that anything green or organic is HOT. So why not merge green and dog washes and create a green dog wash? Install a gray-water recycling system, use green shampoos and cleaning products, install low-flow showerheads, install compact flourescent light bulbs, and whatever else will save water and energy.

Then equally important: TELL EVERYONE! Every media outlet is clamoring for any type of story that has a "green twist". Send out a letter/email to every media outlet. Send emails to your customers. Post signs in your shop (and maybe even add some photos of the rainforest, polar bears, etc to your shop). Add "green" words to your ads.

Here are the messages you want to get across: 1) we are the area's first and only green dog wash, 2) we use XX% less water than our competitors, 3) a green dog is a healthy dog.

So now that you have differentiated your business from all the others AND created a perception of added value over those competitors, you can raise your prices accordingly. How much? Considering the significant barriers to your customers to make the modifications necessary just to meet your business model, I would suggest charging at least 15-20% more than the competition in your area. Call it the Green Premium.

(Photo credit: Meryl Schenker / P-I)