How does a $3 Start sound? Too Much?

[David Moore]

I am generally an avocate of raising prices; however, I went too far last time.

I raised to $1.25 for 3.25 minutes and vacs to $1.00 for 3 minutes. Keep in mind that all my competitors are 75 cents for 3.5 minutes. While my wash is newer and nicer, I lost business and since went back down to $1 start-up on bay and 75 cents on vac. I never received any complaints, just lower wash volume.

All this to say that I support raising prices and always want to set the market, but there is a point of lower benefit and I found it.

 

[Dubois Laundry/Carwash]

why then Bill Ben Berneke had a closed door meeting today with top members of Congress?

I doubt carwashing was at the top of their list

 

[pitzerwm]

Don't be confused, Doug always throws in "facts" that have nothing to do reality. I'm sure that the meeting was to discus destroying the economy in Florida so a Dem could win in 08

 

[stef]

Talk to your competitors

David Moore, You did the right thing trying to raise prices, but instead of lowering them back down when you saw customers patronizing your competitors, maybe you could have spoken with them about also raising their prices. After all sooner or later they too will have to raise prices or they?re going to go out of business. Car washes simply cannot keep operating this way much longer. I have been going around my area talking to owners, telling them to raise prices, and telling them that we have to work together. So I went ahead and raised my prices to $1.50 for 4 min. (which is still to cheap and will be raised again soon) and my competitor 2 miles away from me was surprised and said that now he too will be raising prices!! Someone has to be first, and we must all work together like colleges not like competitors or we will certainly be in trouble!!

 

[MEP001]

Car washes simply cannot keep operating this way much longer. I have been going around my area talking to owners, telling them to raise prices, and telling them that we have to work together.

Are you aware that that's a felony?

 

[Dubois Laundry/Carwash]

Are you aware that that's a felony?

It is only a felony if you and your competitor agree to FIX prices.

saying "gosh I don't see how you can afford to stay in business with such low prices, I had to raise mine just to keep up with utilites" isn't a felony; but it does "let him know" (just in case he doesn't watch your carwash for price changes) that it is time for an increase.

 

[rzeavy]

hi
I own two ss car washes 4 miles apart. (Southern. CA.), one location we charge $2.50/4 min. the other $2.25/4 min. it turns out that the income/bay/month is higher at the $2.25/4 min.
Their is a fine balance between cost per minute and the bottom line. Their are other factors involved to be sure, but this is somthing to think about.
Both car washes are doing well.

 

[Ben's Car Wash]

Don't be confused, Doug always throws in "facts" that have nothing to do reality. I'm sure that the meeting was to discus destroying the economy in Florida so a Dem could win in 08

I'd check the headlines once in a while.

Still Bill, SS per bay income has dropped over 6 years. 4 or 5 consecutive on average from what I recall from $1500 to now a little over $1250. Maybe some one can correct me over this time period.

 

[blurdgman]

My decision is to stand pat at $2 for 3.5 minutes. Maybe I'll slightly lower the time for coins only and keep the cc's the same. This, in time, will entice coin customers to use their cc instead and wash their car without buzzers, more leisurely.

 

[LisaLyons]

I think the question that needs to be asked is what are you offering that would make a $3.00 for 5 mins start time? If I was a customer, I would be asking if going to your wash was worth the price. So - what is it that makes it worth it?

 

[blurdgman]

Lisa:
Our wash must be worth $2 for 3.5 minutes equivalent rate of $3 for 5.25 minutes perhaps because it is very clean, well lit, all red white and blue theme with a giant flag hand painted on the front wall and everything works.
I'm really talking cutting the rate slightly. After reading all the posts plus my own reckoning I've decided to stand pat as I've mentioned prior to your post.
PS: I'd say that at least half our business is from women.

 

[blurdgman]

I'd check the headlines once in a while.

Still Bill, SS per bay income has dropped over 6 years. 4 or 5 consecutive on average from what I recall from $1500 to now a little over $1250. Maybe some one can correct me over this time period.

I looked at my sales curve over the last 24 years and see that indeed their was a drop over the past six years, however the low point was one year ago after that it's been rising rather nicely.
Keep the faith !

 

[Ben's Car Wash]

I looked at my sales curve over the last 24 years and see that indeed their was a drop over the past six years, however the low point was one year ago after that it's been rising rather nicely.
Keep the faith !

In PCW&D mag & ALN the SS Surveys annual published reports that I looked at over 6 years had falling revenues... all trending down for SS. That's my only point. It only states that the SS market has been over built and that prices have not been going up inspite of DECLINING REVENUES. The poster and some others are pointing out now that it is becoming almost impossible to survive in an aerena where the overall reflection in the industry is "you can't raise the price beyond". That's one of the problems with the industry as a whole.

Same in the Full service sector. Last year, almost 50% of the washes got into this thing about "illegal labor" and "how can I make a profit" if I have to pay employees a legal wage? It's called the LAW! Even some big maned washes wrote articles in the "professional magizine" about their "plight" over illegals and how not having them would ruin them financialy. The law remains and business must exist within the structre of the law... or not exist. If they can exist LEGALLY, or can't make a profit with what a customer is willing to pay for a service... then they can not exist... without being SUBSIDIZED. Car washes are not a necessity and should not be subsidized therefore if they can not be a free enterprize... should not exist.

PS... I support RON PAUL... not a DEM.... BILL

 

[PaulLovesJamie]

Doug supports Ron Paul???

PS... I support RON PAUL... not a DEM.... BILL

Doug supports Ron Paul??? That does not compute!
Actually I am delighted to hear that, but wow, I would have bet against it. Large sums no less. Happy to be wrong, even happier that I didnt bet!

FYI, my gross revenue has continued to rise ... slowly. Net is dropping off dramatically due to inflation, primarily in utilities. Therefore I too am in the middle of a price increase - from $2 for 4 minutes to $2.50 for 4 minutes. Yes I am concerned about hitting a price ceiling, but the alternatives are to eventually lose $ or to sell out, so I'm raising.

 

[Greg Pack]

I think raising prices can be a little challenging if expresses are competing in your market. As a consumer,if all you're after is a clean car, expresses are generally a better value. $5 and free vacuum is the going base price around here. My guess is that will cost about $8 at my place to adequately clean a vehicle in SS (12 minutes SS, 8 minutes vac).
So I could see where expresses could keep downward pricing pressure on SS that have higher startups. Sure, you have people that don't want friction touching their car, or can't go through an express because of aftermarket stuff, but I think the former is a dwindling segment.

Having said that, I'm going up to 2.25 start. this wash has been 2.00 since it opened in 2001.

 

[cebo]

I've been @ 1.50 for 4 minutes for 7 years and my competitor is @ 1.25 for 4 minutes. I can't continue to absorb the costs anymore and will go to $2 for 4.5 minutes and start cutting time back to 4 minutes over the next 24 months. You can't work for nothing. We had a Western Auto store (closed in '91) and my father refused to substantially cut prices due to Walmart. They eventually won, but most other WA stores closed years earlier because they cut their margins in half. In Alabama my costs are low. I don't see how anybody can make it at $0.25 a minute.

 

[pitzerwm]

When you raise your price, calculate how much business you can lose and still gross the same amount of money. Obviously, your net will be a little higher from less use and ware & tear.

 

[Jony82]

Jony82, you too have to raise price?s too, $1.00 for 4min. is what?s killing this industry. You are losing your ass, trust me I know!!

Killing the industry? I guess I will kill the industry to stay competitive. My own pocket book comes before the industry's.

Not losing my ass. I make more running my car wash than working as a chemist, and I do pretty well at that.

My car wash is a little run down, it needs a lot of cosmetic work and some major improvements in the technology area (bill acceptors, credit cards, etc). So, my wash is a little below average in terms of what I have to offer as compared to the other washes in the area. They are a little newer, easier on the eyes, etc. But, they are 50 cents per minute and I am 25 cents per minute. I get probably 3x as many customers as my neighbors. If I raise prices, I can't differentiate myself (yet) from them and draw customers. There would be no need to come to mine when, for the same price, you can go a few blocks down and get a nicer, more up to date place with a few more bells and whistles.

This spring is when I'll update the place to this decade, snazz it up, and raise the price. Not going to budge on the 25 cents per minute but I will increase the minimum to 1.50 instead of $1.00. If the neighbors go to 75 cents/min, I will increase to 50 cents/min.

 

[JMMUSTANG]

An operator at the Vegas show a couple of years ago told me the best thing he did instead of raising prices(he was 1.25 start) was convert changers to dollar coin/tokens.
Most customers inserted $2.00 bills to get 2 coins. They would then insert both dollr coins in the bay acceptor instead of 1.25-1.5- in quarters to start the bay.
Sounds pretty simple but his gross went up big time.
When I got back home I was going to do just that.
I'm 1.50 for 4 min.
As usual though things started breaking and needed immediate fixing and I forgot all about his idea.
I'm thinking maybe this spring I'll do it. If I don't forget again.

 

[pitzerwm]

This is a great example (Jony82) realizing how to take advantage of his particular situation. Here is an article that might shed a little light on constantly thinking and making changes to stay alive. http://www.autocareforum.com/go-high-tech.html