Auto detail shop pursues a cause

Women serving women: The owners hope to provide a job base for single moms, and to attract female customers

By Glen Warchol
The Salt Lake Tribune

Most large firms know all about the power of cause marketing. At its simplest, a corporation cooperates with a charity to raise money and awareness for an altruistic cause. The association with a good cause proves the company’s social responsibility — and, with any luck, enhances its bottom line.

American Express coined the term in its 1983 campaign that raised $1.7 million to renovate the Statue of Liberty — and also dramatically increased use of Amax credit cards. Actor Paul Newman has raised money for dozens of charities through his Newman’s Own line of popcorn, salad dressings and salsas.

Salt Lake entrepreneur-activist Karen Mecham is betting a cause-based approach can work for a small business, too. In July, she opened Advanced Auto Salon, an auto detailing shop where vehicles are meticulously cleaned inside and out. The price of packages ranges from $25 for a quick clean up to $140 for the highest quality restoration detail.

To open the business at 255 W. Crossroad Square (2250 South), she put on the line her family’s savings, a Small Business Administration loan and an investors money.

Right now, it is mostly a family business involving Mecham’s adult children. But Mecham sees another purpose beyond the company’s survival and profitability. She hopes to offer jobs in her company to single mothers who are receiving training, an education or otherwise putting their lives together.

This is our way of giving back to the community, Mecham says.

If we can get these mothers successful, they will lead their children out of poverty.

So far, one single mother is on the shop’s seven-person staff. But Mecham expects that to increase as the business expands. This won’t be our only shop. We plan on having a lot of them, she says. Who knows? Maybe we will franchise them.

Mecham, who is co-founder of the Bringing Hope to Single Moms Foundation and has a masters degree in public administration, is no idealistic dreamer. Based on her research, she is convinced the detailing business can make a profit. And data shows, she adds, that if consumers have a choice between two otherwise equal businesses, 60 percent will choose the cause-based one.

But first things first. Our first mission is to clean cars better than anyone else, she says, because if we don’t clean cars really well, it won’t matter what good we do.

Mecham decided to focus on women as customers.

I found that 58 percent of decisions on automobile appearance are made by women, she says. Most detail shops are dark and dingy, and the employees are condescending to women about car services. Mark Thorsby, executive director of the International Carwash Association, says Mecham is on target. Although women tend to mistrust car service professionals and feel intimidated, he says, they have become vital to the industry. "This has been a cultural shift over the last 30 years. As women become equals, they have the same lifestyle and business needs as men, Thorsby says. Women executives, like men, don’t have a lot of discretionary time. They are not going to do it themselves when it comes to car care.

Mecham sees a future in this trend. The pie [for detailing businesses] is so big, you can do badly and still make money.

While Thorsby is dubious about the profit margin in a poorly run detail shop, he does agree the business is perfect for a beginning entrepreneur it's absolutely wide open, the barrier is so low, he says. You have to have some knowhow and you need a facility. But you can get into detailing for a few thousand dollars.

The industry figures a first-class mobile detailing service requires about $20,000 in startup money. Mecham says her business, with its top-she1i, environmentally friendly filtration equipment, required about $100,000.

The national average for detailing businesses is seven cars a day. We already have that, Mecham says. Our goal is 20 cars a day and we hope reach that in 18 months.

And that would bode well for Salt Lake’s single moms.

glenwarchol@sltrih.com

Reprinted from The Salt Lake City Tribune - October 26, 200