CC sales are up to 42%, What's yours?

[blurdgman]

Our Credit Card sales are now 42% of our business. We've had Washgear since 2003 and American Changer AC 2007's since 2005 at each of our 6 bay SS's. The total merchant cost is between 4 and 5%. We offer no discount on the Washgear business but the customer can STOP whenever. We offer 11 tokens for $10 otherwise it's a dollar per token. Startup requires $2 and runs at 75 cents a minute. We're in business 28 years.
Anyone still playing with quarters is doing themselves a disservice.
What are your thoughts?

 

[ted mcmeekin]

How does your total sales compare to pre CC's?

Ted

 

[blurdgman]

Sales pre-CC were about the same as with CC. CC sales have been a steady slow growth. Overall $$$ growth has been up and down year to year but on a positive slope. However we get big spenders on the CC. About 10% of the CC users spend between $10 and $14 per wash. Most CC users take their time and aren't disturbed by buzzers and alerts. Overall they average about $5.60 per wash. We get a few $2 customers that just rinse off, not enough to raise the startup price.

 

[mjwalsh]

Our Credit Card sales are now 42% of our business. We've had Washgear since 2003 and American Changer AC 2007's since 2005 at each of our 6 bay SS's. The total merchant cost is between 4 and 5%. We offer no discount on the Washgear business but the customer can STOP whenever. We offer 11 tokens for $10 otherwise it's a dollar per token. Startup requires $2 and runs at 75 cents a minute. We're in business 28 years.
Anyone still playing with quarters is doing themselves a disservice.
What are your thoughts?

blurdg & others,

It looks like the non stop advertising over the last 20 years for credit card use has filtered down regardless of the size of the transactions.

More & more laundromat owners are proving everyday that ATMs are a better business model. After seeing a positive cash flow factoring in initial cost, refilling labor & zero maintenance within a year I am convinced other car wash owners should not rule out the possibility of an ATM. We give out $5s at our car wash-dog wash-laundromat ATM.

At some self service locations, if there is increased in bay credit card usage it could be ... it is just displacing customers that aren't demanding the extra convenience of each piece of equipment having a credit card acceptor.

I can see why the banks are accidently on purpose "not adjusting" for inflation properly with better availability of dollar coins. It might cut into their lucrative merchant fees & the interest rates they are allowed to charge on past due cards!!!

mike

 

[blurdgman]

Mike:
I'm not entirely sure of your point, however every business is different. An ATM at our self serve would slow things up. The customer drives into a bay then walks to an ATM and waits for approval etc. then walks back to the bay. Our CC customers drive into a bay, slip their card into the Washgear and get approval in less than a second and begin to wash. The important part of our operation is that the only currency used goes into the bill changer and is metered in. The tokens collecting in the bay cash box do not attract vandals and our bill changers do not service non customers who just want to exchange their bills. Our vacs are seldom busy so there is plenty of time available for a customer to get a token or eleven of them in order to operate the vacs.
We don't offer drink machines or candy machines and the like because that business is just not worth it. We like our customers to spend their money on our own product, the wash, not someone else's.
BluRdgMan

 

[mjwalsh]

Mike:

We don't offer drink machines or candy machines and the like because that business is just not worth it. We like our customers to spend their money on our own product, the wash, not someone else's.
BluRdgMan

Blu,

Respectfully, I agree there could be a gain ... especially for your specific car wash. I just don't see it as a good fit & enough of a gain for the majority of us.

We have a 60 second grace period on our $5 to start PLC driven dog wash that works out well. We had a lady with 3 dogs a few days ago who spent $35 but was grateful for the ability to not be forced to put in the full amount each time ... especially with the smaller dog. It kind of takes care of the credit card argument of paying only for what the customer needs with a "count up" timer.

During the grace period opportunity they can even put in just one quarter or dollar coin to get the extra time needed.

mike