Managing Conversion Shops
Besides LPG conversion kit installation and servicing, most conversion shops also offer maintenance services to fleet owners. Taxi operators and even bus owners can avail of this business management service by leaving to the conversion shops the task of having a regular check-up schedule for their vehicle fleets. Some shop owners can even go as far as helping monitor their monthly usages per vehicle to keep costs down and monitor driver performance as well. Such extra services will serve as an enticement for fleet owners to have their vehicles converted in a shop offering such service. It is almost unique to this new industry sub-sector.
Management services can be incorporated into their service offerings since monitoring is part and parcel of motor shop services. These can include producing monthly or even some weekly progress reports on the performance of vehicles that were converted such as mileage, measurement of carbon dioxide emissions and even noise emissions or pollution. It is usually conceded that LPG vehicles run quieter compared to regular petrol or diesel engines. A lot of the fine particle emissions (referring to diesel engines) are also eliminated without any loss of power to the vehicle. A significant portion of the nitrogen oxide emissions are also done away with (in some cases, up to 70% less). Even individual vehicle owners can use these services. At least they will know how their vehicle is doing before and after the LPG conversion.
For those who are business-minded individuals, perhaps going into the conversion business can produce great financial rewards. With the trend towards environmentalism, it is safe to assume that the LPG conversion business will experience a boom in the years ahead. It would be an advantage for early starters to put up their conversion shops before its market gets saturated with so many competitors. Maybe offering franchises is the way to go on this.
Franchising is a proven alternative mode of business expansion. Start-ups have higher chances of becoming successful because of management support such as advertising, service standards, accounting and marketing expertise. The only drawback is that franchisees need to pay certain royalty fees in exchange for such management support services. But this is only a normal part of doing business and the trade-off is that risks are minimized. It is better to pay royalty fees as a portion of gross sales than take a risk of eventual bankruptcy. Risks are higher for businesses that are stand-alone setups without the franchiser's support services.
Some business owners find it hard to accept paying royalty fees and resent this arrangement. However, franchise fees are a normal part of doing business especially when copying proven successful methods. Maybe the only contentious point is how much in royalty fees to pay. A franchise arrangement can be quite simple to follow and step-by-step rules and instructions need not be overly complicated. A simple business like LPG conversions can also be started without resorting to franchise arrangements. This will, however, deprive the owner of some benefits in a franchise such as offering services of a well-known reputable brand since franchising involves using a famous brand that had been well accepted by consumers.
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