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monthly unlimited wash program

Ric

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We have had a few customers ask if we offer a monthly unlimited wash pass. We have considered it but don't feel it is a good idea in an iba due to the low volume throughput. What other offers can we provide to compete with the monthly unlimited? Discounted wash coupons, pre paid cards, buy 3 get 1 free, etc.?
 

Jeff_L

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Would your volume go up if you did offer the monthly pass?
 

robert roman

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“We have had a few customers ask if we offer a monthly unlimited wash pass. We have considered it but don't feel it is a good idea in an iba due to the low volume throughput.”

I agree with this but it is hourly capacity and not throughput (volume) that is the cause.

Throughput is the rate at which carwash generates money through sales.

Throughput = selling price minus cost of goods

Selling price = total sales volume times average price

So, if you want to increase throughput, you would need to increase total sales volume or average price or decrease cost of goods.

Total sales volume (market share) is function of customer attraction and customer loyalty rate.

Attraction is how effectively a wash “pulls” or captures business from frontage road, competition, businesses and households. Increasing capture has profound effect on hourly capacity of IBA.

Loyalty rate is how often customers visit and how much they spend. Increasing loyalty has much less effect on hourly capacity of IBA.

Purpose of loyalty program is to increase visitation by rewarding the most loyal and profitable customers. VIP card is a common mechanism.

Membership should be free but customer must give personal information which allows for e-mail blast and text marketing (i.e. phone app). Typical rewards are free wash on birthday; buy 4 get 1 free; special deals like free services (i.e. vacuum) or discount on extra-pay wax.

An effective VIP program should provide you with a nice lift; between 10 and 15 percent boost is about average

Another option is a business model I developed for IBA called quick service carwash (QSCW).

QSCW model is a means to provide better service speed, quality and value using in-bay automatic. The model doesn’t involve moving belts, labor or conveyor equipment.

QSCW can increase typical in-bay throughput by 80 percent.
 

BBE

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Would your volume go up if you did offer the monthly pass?
I'm sure it would. The same guy who washed his car 3 times a month will now wash it 30 times a month for the same price :)

Volume might go up, but that's kind of the problem. Unless people are buying it and never washing their car, it's volume increase with no profit increase. Which may be an ok gamble in a tunnel where you can do a high volume, and you can wash those monthly unlimited customers once a day without any effect on how quickly you are servicing your full paying customers, but it's a bit more dangerous in an IBA.
 
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Waxman

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We offer our top wash for half price on Tuesdays. It's always very poopular and a nice busy day on what used to be the slowest.

Other ideas; give a nice discount on pre-paid wash cards. say 12 washes for the cost of 8?

It would be an easy thing to sell thru a website and mail to the customer.
 

bigleo48

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I guess Robert is away or wants to keep his idea for paying customers.

Anyway, I too have struggled with the idea of the unlimited pass for a touchless IBA. This week I am rolling out a new program that is subscription based and allows some of the same features as the unlimited pass. Here's what I'm doing;

For the Touchless, IBA, I'm offering a card based subscription, that is 3 washes a week with a 3 months minimum. This is our deluxe wash, but the customer can upgrade to better washes. There is a 10% discount if after-hours is selected (6pm to 6am).

We'll see how it goes...
 

BBE

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I guess Robert is away or wants to keep his idea for paying customers.

Anyway, I too have struggled with the idea of the unlimited pass for a touchless IBA. This week I am rolling out a new program that is subscription based and allows some of the same features as the unlimited pass. Here's what I'm doing;

For the Touchless, IBA, I'm offering a card based subscription, that is 3 washes a week with a 3 months minimum. This is our deluxe wash, but the customer can upgrade to better washes. There is a 10% discount if after-hours is selected (6pm to 6am).

We'll see how it goes...
Leo,

How will you monitor the cards being passed around to family/friends and not staying registered to one vehicle?
 

bigleo48

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They are not registered to any vehicle. They can be passed around. I am basing my program on 66% redemption...but even if it is totally redeemed, I will still make a profit.

A big oil company here has a similar program that is very successful. An acquaintance of mine use to run the gasbar/Convenience store/carwash. Their card is one wash every day. Their plan also allows passing the card around. However, this is difficult. I know people and families that does this and it turns out, the person wanting to wash never has the card...and eventually the card goes missing. We are not responsible for lost cards.

Big
 

BBE

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Definitely give us an update after it's been up and going for a few weeks. Also, are you pricing it right in line with a monthly unlimited?
 

DiamondWash

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I have been also researching this idea for IBA's and in my opinion RFID is the only way to go, we get customers asking about a unlimited program I just don't see profits I see in major jump in volume yeah but how does that help pay the bills, I have customers who wash their vehicle every other day especially in the winter here, if I was to offer a $29.99 for our top wash $10 once a day washpass and they came in every other day to wash that's $40 a week at 4 weeks a month that's $160 of washing for $29.99 for a SINGLE vehicle!
 

bigleo48

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Diamond,

Yes RFID would be nice, but RFID is a $2k install. So I'm going to the card system that I already have and limit the washes instead of being unlimited (currently at 3 per week).

Perhaps with those numbers you would lose money. But I think you need to look at your competition, delivery costs, what price makes it for you. Then decide....

In my situation, its $59.99/mth for 3 washes per week, 3 mth minimum, can be upgraded to $69.99 or $79.99 for my top wash.

I don't think I'll sell a ton, but I will also stop the bleeding to my competition and I will make a decent profit on each subscription sold.

If it's a problem, I can adjust or cancel the program. Didn't cost me much and I'll at least learn something about my customer base.

Big
 

Reds

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Big, I know from past posts that you have a Unitec WS2 entry machine. Am I correct? If so how do you monitor the washes so that they don't use a month's worth in one week? Or 3 months in one month? Or 3 on one day? And is there a way with the WS2 to program a discount during certain hours? I am interested in trying some kind of discout program but concerned about how to control it. Right now I sell VIP gift cards at a discount.
 
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