The value of my wash.

[Semi-retired]

Customer call 8:30 a.m. Today- I put $2.25 in your machine and it doesn't work
Me- I apologize for the issue but the start price is $2.75 so if you add $.50 it will turn on for you.
Customer- (yelling in the phone) $2.75 for a Carwash is robbery! I want my money back.
Me- Robbery huh? It's $2.75 to start the self serve wash and I assure you it's a fair price.
Customer click

Apparently I need to work on the perceived value in my washes.
These particular bays have new boxes 5 months ago with bill, coin and wash cards/cc priced at $2.75 =4 min.
Hot water, soap, tire motor, pre soak, foam brush, hp wax but no dry I'm working on that.

 

[MEP001]

I would have told the guy that I'd send him his $2.25 if he left the wash without using it, and if he decided to add two more quarters and use it he'd be charged with theft of service.

I got tired of being bullied by people who think they'll get something for free by being an a-hole. A lot of the ones where I've gotten right back in their face are still coming back. One guy who actually called the cops on me was later super polite and pleasant when a vendor shelf hung and took his money.

 

[Randy]

What kind of timer are you using? Before I installed the Dixmor LED-7 timer I used to get calls like that. The LED-7 shows the customer how much more they need to deposit to get the equipment to start. I would have just said, “I’m sorry you didn’t have a positive experience, what’s your address and I’ll send you a refund”. And then misplace the paper I took the information on, I hate that when that happens.

 

[Robert2181]

Dear customer, we'll check that bay that you were in and the surveillance system, if any problems we will gladly give you a full refund.

 

[chaz]

$3 for 4 minutes is my suggestion. Sounds cheaper than $2.75

 

[mrfixit]

Price depends on region mostly imo. It should also be about quality in comparison to competition too. If you overprice your area you'll reduce the volume further than you may like. Or more than the price hike makes up for.

In our rual small town we are currently at 1.50 for 3:24. 34sec per coin.

Tried 2 dollars at our old 36sec.
(Always been 36 sec and was a 1.25 to start) we used to be a .25 to start when we opened in 2000.

A couple people flipped and I decided it was too high for our area. So I went to 1:50 and just cut the back end to 34 per coin.. Not a single complaint! More profit per coin and its more than worth it for the customer we have a really nice wash for this area 30mi radius. We just gave it away for too long.

What I really don't like to see is run down washes price gouging trying to charge what high quality washes do.

And op funny thing yesterday some old lady jammed quarters in the auto and called being really really rude. It broken i got ripled off, ect. It literally hasnt jammed for at least 6 months...

I don't tolerate that behavior, its unacceptable. .. "Sorry you had trouble... Refund is no problem at all". (°°°Don't care if you ever come back, don't need people like you)

Funny thing the guy behind her pulled right up and got his wash no problem in like 15sec.. lol. That just makes them more mad cause they feel like an idiot. But hey that's really not my fault.

If they are polite I give them a free token for the trouble, depending on the situation..

My motto is, if you have a real good business:

For every bad customer you lose.. A good one, or two is gained.

 

[Semi-retired]

Thanks for the comments and I usually respond the same way. I'm trying something new though like great customer satisfaction and charge the heck out of them. Lol!

Timer is an LED 7

I will be going to $3-4 min
I bought the location 7 months ago and the prices had been $1.50-4 1/2-7 min depending on the bay you were using and it was a foreclosure. Weird huh!

 

[robert roman]

I agree, my research suggest self-serve operators should be charging at least $0.75 per minute ($3.00 for 4-minutes).

This price would provide the potential for normal profit and better define and relate exit strategy with industry model.

Great customer satisfaction will increase value of your wash.

What satisfies carwash customers? Clean, shine and protect.

Clean means using the highest quality soap possible that smells good and contains optical brighteners and rinses quickly and crystal clear spot free water.

Shine means offering a product like colored foam that contains carnauba or synthetic wax that actually shines the paint.

Protection means offering a product like Rain-X that imparts hydrophobic effect on glass and paint, and has staying power (last several weeks).

If the customer’s problems are solved in this manner and you make a point to tell them about the value they are getting and guarantee it, $0.75 a minute isn’t much of an obstacle.

This approach also helps get rid of the cheapskates because they shop price not value.

 

[JMMUSTANG]

What really ticks me off are these same people spend $15-20 to park their car at a NFL, NBA or any other pro or college event.

 

[Waxman]

I don't worry about people that complain about price. I set my pricing not them. I am here to make money; that's what having a business is for, not struggling to pay bills.

I'm adding 2 more vacs and going to $2 for 6 min. soon after that. Let them complain. However, few do.

 

[Stuart]

" my research suggest self-serve operators should be charging at least $0.75 per minute ($3.00 for 4-minutes).

This price would provide the potential for normal profit"

Robert, what do you consider "normal profit" for self serves??


Still at $1 for 2:04. Business has never been better!! And I have people complain about price/time but I still see them washing. .

Bays take credit cards/washcards, Qtrs, tokens, $Coin.

Am still old school-timers in ER with beepers in the bay and no visible timers in the bay for cash customers. vacs just went to $1 4min at one location after installing vac dualars on most of the vacs.

 

[chaz]

"Still at $1 for 2:04. Business has never been better!! And I have people complain about price/time but I still see them washing. . "

Good for you I guess. I'm at $3 for 4 minutes and my business is doing very well, and I'm, making more $ I guess than you. I'm ok with the guy that thinks I'm too hi and goes elsewhere, cause he's typically the same guy that leaves a mess

 

[mrfixit]

Unbelievable... People here would faint... Man it makes me nervous thinking about it... I don't know it sounds great... Good for you chaz thats nice. Do you think cost of living, location, and stuff could be involved in the price you charge.

Seems way far out of reach for my area and demographic... Northern Illinois small town, 3600 ppl, median hh income 45,000.....

And if some of you saw the wash you would probably demand I raise it to 3$ for 4 min.. It is a nice newer place good ss area.. This is something we really need to think of before the new year.

Yeah many people just blast mud everywhere and leave it, truck beds, mowers, ect. Its a desgrace many times and costs money.

 

[Randy]

Unbelievable... People here would faint... Man it makes me nervous thinking about it... I don't know it sounds great... Good for you chaz thats nice. Do you think cost of living, location, and stuff could be involved in the price you charge.

Seems way far out of reach for my area and demographic... Northern Illinois small town, 3600 ppl, median hh income 45,000.....

And if some of you saw the wash you would probably demand I raise it to 3$ for 4 min.. It is a nice newer place good ss area.. This is something we really need to think of before the new year.

Yeah many people just blast mud everywhere and leave it, truck beds, mowers, ect. Its a desgrace many times and costs money.

Are you freaking kidding me!! You need to raise your price. I’m I a small town, population is around 3500, a mix of military and low income. We charge $2.50 for 3 1/2 minutes in the bays and $1.50 for 3 minutes on vac’s. The people who wash out there truck beds and trailers, lawn mowers etc. will still come, let them complain, if they want to make a mess then they are going to pay for that. I hear it all the time, oh I can’t raise my prices because I’ll lose too much business, bull $hit you aren’t going to lose the ones you want to keep. The washes around us pretty much follow our lead, we raise our prices and they raise there’s.

 

[robert roman]

“….these same people spend $15-20 to park their car at a NFL, NBA or any other pro or college event.”

My wife is pretty frugal and major coupon clipper. However, she won’t bat an eye at the prospect of spending hundreds in an hour at the casino.

I have $1,500 tied up in an electric assist bicycle and have never bought anything on e-bay.

On the other hand, a friend I ride with has an e-bay app and won’t spend more than $100 for used bicycle. This guy could buy and sell me.

“Robert, what do you consider "normal profit" for self serves??”

Gross sales $100,000. This is includes revenue from 5-bays plus vacuums.

$100,000 X 0.4 expense ratio = $60,000 NOI / 12 months / 1.25 DSCR = $4,000 maximum allowable monthly payment (MAP).

$4,000 / month applied over 20 years at 5 percent and LTV 75 percent yields $600,000 loan amount and $200,000 equity or $800,000 project cost.

$60,000 NOI - $48,000 ($4,000 X 12 months) = $12,000 EBTD

Now, reduce MAP to $2,000 and apply 20-years at 5%, LTV 75% yields $300,000 amount and $100,000 equity or $400,000 project cost.

$60,000 NOI - $24,000 ($2,000 X 12) = $36,000 EBTD

Gross sales $100,000 X 4.0 = $400,000 market value

 

[mrfixit]

Are you freaking kidding me!! You need to raise your price. I’m I a small town, population is around 3500, a mix of military and low income. We charge $2.50 for 3 1/2 minutes in the bays and $1.50 for 3 minutes on vac’s. The people who wash out there truck beds and trailers, lawn mowers etc. will still come, let them complain, if they want to make a mess then they are going to pay for that. I hear it all the time, oh I can’t raise my prices because I’ll lose too much business, bull $hit you aren’t going to lose the ones you want to keep. The washes around us pretty much follow our lead, we raise our prices and they raise there’s.

Thanks Randy!

That's sounds more like it. I know I need to raise it, we should be getting paid more for all this work and effort. I don't own yet, just operate so this will help me clear these hampering thoughts from our wash.

Hey a gallon of milk cost the same here as everywhere else.... Right.

 

[Waxman]

Operator's fears of raising prices are ridiculous. Raise your price so you can make money at this. It's a tough business, though I do enjoy it. Don't worry; you'll make more money.

 

[mrfixit]

Yeah I thought so.. Thats kinda my theory I've had, i felt we've given it away for too long. customers have been spoiled... Just didn't realize it really was that far off. I took over operations last Dec. I quickly got it back to turning a profit every month at these prices, but you can imagine that wasn't easy. Most of that profit is from work I've done on the automatic probably. So I could have got paid double or more for the work I do here, instead of working for free sometimes... some people seem to think a carwash is a joke and you should work for free or something, any idiot can do it, makes me mad.. We're here to make money, or why have a carwash. I can see why we do hit a profit wall, because we don't get enough $$ for our services. I can see it. We reach about maximum potential around here and it's just not enough there.

Do anyone feel its good to post a notice of the increase, or anything explaining it to customers. Or just flip it and let the chips fall where they may.

 

[Stuart]

I see many posts stating to raise prices, make more money, stop giving away your service.

I post my price/time for info only- not bragging rights. . Newbies get on here and when they see some of these time/price structures that they must do it or die. This is not the case.
There are many things to consider when structuring your time/price like location demographics (as stated earlier), what does your wash look like, what selections do you have, and so many more.

For those of you who believe that you must have the highest price in town I would also be interested in what your average monthly SS bay gross is. For example If you were at $1 and your each bay gross was $3000 pm. Or price was $3 and bay gross was But there again you have the issues as town size, site specifics that we do not know.

What I can state is my prices will rise when I know I am ready to raise it and not from reading on forum that I must, which seem to me is always the message.

 

[JMMUSTANG]

I'm upgrading a wash that I opened in 1993. Price point at the time was $2-4 minutes.
Just using my Real Estate tax as an example of how most if not all cost at my washes have increased.
Real estate taxes was $2,300 per year.
In 2008 when the economy started to soften I lowered my startup price/time to $1-2 minutes, still the same per minute price point.
Real estate taxes were $5,600.
I'm going to change my startup in January to $2.50-4 minutes.
Real estate taxes this year $9,800.
By the way in 1993 I could get a haircut for $7-8.
Now I pay $19-25 for less hair to be cut.
Seriously they use a scissors and a comb.