Robert, if you have an average sales of $10 with a 4 tier pricing scheme and you decided to go to a one price wash, why would you only charge $7.00?
Main reason is a $10.00 price may chase away people who buy $5.00 wash regardless of how much value-added is rolled up into the one price wash. Conversely, people who buy $13.00 wash may visit more frequently at $10.00 price.
To calculate if one price makes sense requires information about beforehand and proposed.
What is current sales mix (take rate) and COG for each wash package? COG needs to include
credit card fees, chemical, utilities, and equipment maintenance. In addition, assumptions are needed for volume, capacity, pricing, and product recipe.
Moreover, there is market consideration. In Albany FS is $30.00, Clearwater, FL. $15.00.
Again, principal constraint for in-bay, one price, is physical - time on the machine.
Here, price can’t be so low that increased hourly demand leads to excessively long waiting line and long average waiting times.
If bottlenecks occur frequently, total volume will be affected.