The point of the MoviePass analogy wasn’t to presume that a local car wash could gather 1.5 million members. The point was that when the price drops to attract the masses, usage also drops accordingly. People all of a sudden don’t go to 25 movies a month just bc the price is $10. Same with car washing.
It also doesn’t matter what you or I would buy. It matters what the average customer will do. If you price any club to high, only the most frequent washers will take advantage of it. In turn, you won’t sell many
memberships bc the average customer doesn’t see value in a high price. Find the sweet spot in price and the infrequent washers find great value in it, even if they don’t use it as often.
My overall average is 3 washes a month per member. I wish it was higher so no one would be tempted to cancel.
28% of my members use it 3x or more. Those customers are still worth $25 a month for me as is the customer that uses it once a month.
The incremental cost of washing more cars each day is tiny. If you wash 100 cars a day, how much does it cost you to wash 5 more? Almost nothing besides water and chemicals as every other cost is already fixed. You don’t lose on the 28% who wash more frequently, the still pay you exponentially more per year than your average pay as you go customer.
Your pay as you go average is not the end all be all number you’ve been used to. Bringing in more revenue should be way more important.
The economics should work in the SS as they do inthe tunnel.