Gallons Pumped - Cars washed
- Thread starter Austin
- Start date
Indiana Wash
Member
1 wash per 80 gallons would seem like a lot. Even with an average purchase of 10 gallons, that would be one in 8 cars. With 8 pumps and one wash that would mean a constant line at the wash since, it would take less time to pump 10 gallons of gas than it would to wash a car.
The 1 wash per 300 may be better, but I think it would depend a lot on the climate and over what period of time. Any given month may be rainy. People still buy gas in the rain, but they rarely wash their cars. There are exceptions. It would also depend a lot on the location. Yes, it is at the gas station, but if there is a better or preferred wash next door, the same formula would not apply.
Long story short, I don't think such a formula exists or could exist.
The 1 wash per 300 may be better, but I think it would depend a lot on the climate and over what period of time. Any given month may be rainy. People still buy gas in the rain, but they rarely wash their cars. There are exceptions. It would also depend a lot on the location. Yes, it is at the gas station, but if there is a better or preferred wash next door, the same formula would not apply.
Long story short, I don't think such a formula exists or could exist.
I think 300 gallons per wash is the the most common one I have seen but I don't think that is really all that reliable. I have seen several other formulas but as has already been mentioned there are variables that come into play - store location, location of competitors, type of wash amount of fuel pumped, fuel price, etc. I don't think I would rely on any one formula but rather a combination of factors.
schmj4910
New member
Our station sells one wash for every 50 gallons of gasoline sold, but I would say that is atypical -we have a pretty well-established carwash.
PEI
Active member
We use a base formula of 1 carwash for every 60 gallons sold. This formula has to be adjusted based on other factors, however, to generate a more accurate projection. You need to consider who the gas stations normal customer is. Is it located next to an interstate? Is it in an affluent section of town? Is it on the going home side of the road? etc.
All of this said, my experience is still that projections based on gallons sold is far more reliable than those based on traffic counts.
All of this said, my experience is still that projections based on gallons sold is far more reliable than those based on traffic counts.
Jud
New member
Depending on the geographical location, your carwash counts can also vary hughly by season. My station has 2 IBA's (touchfree and friction) and ranges from a summer low of 1 wash/85 gallons to a winter high of 1 wash/25 gallons. If I were planning on selling 1 wash per 300 gallons I'd invest in something else. We average out at about 1/55 year over year, and I feel that is too low.
robert roman
Bob Roman
The methods used to develop commercial sales forecasts are multiple and vary from simple analogy to very complex spatial interaction models.
The analog-based or ?rule-of-thumb? procedure you described (gas/wash rate) is relatively inexpensive to use. However, this simple rule-based method is over simplistic and subjective and the results are often grossly wrong.
Common experience has shown that gas/wash rates vary from 25 to 300 gallons. The rate is affected by several factors.
Market ? Demography (pop, HH expenditures, etc.), traffic, proximity to competitors, etc.
Convenience ? Location, visibility, access, parcel size and configuration, etc.
Image ? Brand, visual appeal, customer service
Value ? Type of carwash operation and quality
Moreover, like most marketing relationships, gas/wash rates are S-shaped. In other words, the relationship between gasoline and carwash volumes is not linear.
Another problem with using the ?wag? method is production. If sales volumes are over-estimated, the site may never realize the expected return. Conversely, if sales are under-estimate, the site may never realize its potential.
I speak with a background of over 20-years of modeling and forecasting experience.
With this in mind, you may want to consider the formal and rational use of data, rather than a wag, for something as important as a capital investment.
The analog-based or ?rule-of-thumb? procedure you described (gas/wash rate) is relatively inexpensive to use. However, this simple rule-based method is over simplistic and subjective and the results are often grossly wrong.
Common experience has shown that gas/wash rates vary from 25 to 300 gallons. The rate is affected by several factors.
Market ? Demography (pop, HH expenditures, etc.), traffic, proximity to competitors, etc.
Convenience ? Location, visibility, access, parcel size and configuration, etc.
Image ? Brand, visual appeal, customer service
Value ? Type of carwash operation and quality
Moreover, like most marketing relationships, gas/wash rates are S-shaped. In other words, the relationship between gasoline and carwash volumes is not linear.
Another problem with using the ?wag? method is production. If sales volumes are over-estimated, the site may never realize the expected return. Conversely, if sales are under-estimate, the site may never realize its potential.
I speak with a background of over 20-years of modeling and forecasting experience.
With this in mind, you may want to consider the formal and rational use of data, rather than a wag, for something as important as a capital investment.
