The Benefits of Co-Branding with Moran Family of Brands
Businesses trying to drive growth often face a paradox.
They want to expand their offerings, without trying to be all things to everyone. Expanding product or service lines can open new revenue streams, but doing it all within one concept can be confusing, branding-wise, for consumers.
The Sweet Spot of Co-Branding
In the auto services industry, co-branding of Mr. Transmission, specializing in transmission maintenance and clutch repair, and Milex Complete Auto Care, a full-service auto repair shop, is a perfect example of the right approach. It creates a location that is two brands in one, complementing one another, while each remains specific.
“Our differentiator is bringing these opportunities together,” said Ben Reist, franchise development representative for the Moran Family of Brands. Co-branding the concepts creates multiple revenue streams, competitive advantages, leverages overhead, and provides a one-stop experience for customers.
“It’s one business in one location,” said Reist. “You can build a special relationship with customers.”
Mr. Transmission and Milex Complete Auto Care complement each other. A customer in need of transmission repair might only visit Mr. Transmission once and never again. Milex enables the operator to serve the customer three or four times a year.
“You create convenience for your customers and reduce your customer acquisition cost, because of cross-selling opportunities,” said Reist. “A customer can come to you for transmission repair and have a positive experience and later come back to you for general auto needs. And it works both ways; they may have a good experience with Milex and come back to Mr. Transmission when they need transmission work.”
Each side of the business refers work to the other.
Efficient and All-in-One
Unlike a business owner who gets too far over his head and expands his building and property beyond the ability to profit, a franchisee co-branding Mr. Transmission and Milex has two businesses in one location. An owner of one of the brands can add the other efficiently, at a relatively low investment, without a larger footprint.
A co-branded, single-unit Milex/Mr. Transmission franchise costs from $204,364 to $288,067. The franchisee must have approximately $75,000 liquid assets and a $300,000 net worth.
Also, employees are easily cross-trained to work for both brands.
You can even co-brand three businesses in one by adding an Alta Mere shop, which specializes in custom window tinting and paint protection services.
Multiple Revenue Streams
Co-branding allows an owner to expand the breadth of services, while still keeping both branded somewhat separately. It’s the best of both worlds.
The co-branded location offers much more than either one on its own—while maintaining, in the customer’s view, expertise in multiple channels of the automotive business.
As mentioned above, referrals flow naturally back and forth between the brands. If you include Alta Mere, customers will remember to return when they need paint protection film or a GPS tracking device. And if you own an Alta Mere store and install custom window tinting on a car, you’re likely to get more business for your SmartView Window Solutions brand when the same customers are considering window tinting for their home or business.
For more information about franchising these business concepts from the Moran Family of Brands, click here.