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moving the bottom packages up

carnut2

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I just did a quick study of my packages. Roughly 45% of my customers use the $6; about 30% get the $8; 15% the $11 and 10% the $14.

I'd like to move the bottom package people up. Is it add-ons, or realign package content or "extras" like air freshener on top package that moves them?
 

MEP001

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I've had a similar thought - we're at $4, $5, $7 and $8. I've considered raising the $4 to $5, raising the $8 to $9 and dropping one of the middle ones.
 

JustClean

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We've only 3 washes and people choose 70% top wash, 15% middle and 15% basic wash.
Middle wash doesn't have the wax and underbody & basic wash doesn't have the drying and "active" pre-soak.
 

Earl Weiss

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I just did a quick study of my packages. Roughly 45% of my customers use the $6; about 30% get the $8; 15% the $11 and 10% the $14.

I'd like to move the bottom package people up. Is it add-ons, or realign package content or "extras" like air freshener on top package that moves them?
I think the only way you will find out is to experiment. Do you offer a clean car guarantee with the top package?
 

Buzzie8

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Here is a breakdown of my washes from yesterday in one of my IBA's (keep in mind they have been calling for rain all day and all week)
Package A 24 (Top Package)
Package B 5
Package C 1
Package D 1
This is typical for my wash. I attribute the high end purchases to only having drying on top two packages and the triple foam on top package.
 

robert roman

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“I'd like to move the bottom....people up. .... (what)....moves them?”

Customers can be “moved” if you solve their problems.

Sales mix provided equals average of $8.15, typical for express tunnel. Benchmark for top package marketing is $9.00.

Simple test for price is compare per capita income in trade area with U.S. per capita, this gives measure of relative spending.

In your case of $8 average, if trade area per capita is less than U.S., prices may be too high.

If trade area per capita is greater than U.S., it may be possible to create upward pressure on price.

However, increasing price by manipulating price alone (scaling up) to increase total revenue (profit) is same as trying to increase volume by manipulating price alone (scaling down).

Works in theory but results vary significantly by circumstance.

Besides price, marketing involves products (do they solve customer’s problems), promotion (is information/message reaching consumers) and distribution (do customers have sufficient access).

So, you should identify root cause before formulating a remedy (strategy).

For example, if you survey customers and find, say, only 5 percent of them are between the ages of 18 and 30 years old, this low level would have an adverse effect on volume as well as average price.

Low average can also be a sign customers do not appreciate what is being offered. Here, a satisfaction survey can be invaluable means to help determine customer attitudes and buying habits.

For example, currently, 63 percent of your average revenue comes from 75 percent of your customers (lowest prices).

Typical performance is 49 percent of average revenue would come from 36 percent of customers.

Above average performance would be 71 percent of average revenue comes from 61 percent of customers (highest prices).

Consequently, this leads me to suspect that price (alone) is not the problem.

Hope this helps.
 

buda

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A marketing research company I had occasion to talk with had been engaged by the famous automatic transmission service/repair company to study their packaging presentations. He shared with me the results of their findings:

1. Two packages are not good because having a low priced package and a higher priced package drives more people to the lower priced package.

2. More than three packages is too many, it's confusing, takes time to read a d comprend and think about so the customer moves to the simple lower priced package.

3. Their conclusion was a 3 package menu was best because it tended to drive more people to the middle package.

In our exterior wash we had 3 packages:

1. Wash only $5.00
2. Wash & POLISH 'n WAX. $7.00
3. The WORKS - wash, polish 'n wax, undercarriage wash, tire shine

We were 50% wash and 50% upsell with auto pay terminals.

The key with car wash extra services is what the customer "perceives" as a value, not what you think is a value.

The most popular services in my experience as an operator and consulting with operators are undercarriage wash and rust guard in the areas where salt is used and tire shine.

The other services you have to convince the motorist are needed or valuable.

Some will simply buy the best you got because that is there mentality and others who only buy the base wash and if you raise the price $.50 a portion will stop patronizing your wash because you've exceeded their ceiling.

Hope this helps

Bud Abraham
DETAIL PLUS SYSTEMS
 

robert roman

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“A marketing research company I had occasion to talk with had been engaged by the famous automatic transmission service/repair company to study their packaging presentations.”

“Their conclusion was a 3 package menu was best because it tended to drive more people to the middle package.”

Anthony Martino developed AAMCO transmission business fifty years ago.

Martino’s idea was to develop a business based on an efficient production system and bulk buying arrangements that would allow his shops to process work more quickly and charge less than independent shops and auto dealerships.

Transmission is a recession resistant and high ticket business. AAMCO is a franchise.

Martino launched MAACO in 1972. Martino’s idea was to develop a discount auto body business based on AAMCO structure.

Auto body repair/repainting is high ticket business (compared to wash), resistant to recession, much less so than transmission.

So, Martino adopted menu-merchandising scheme – base paint job, deluxe and premium paint – giving customer selection on basis of economy and quality.

Express wash free vacuum is low ticket business (essentially a commodity), resistant to recession not so much. Most washes are not franchises in literal sense.

Moreover, consumer attitudes and buying habits have changed considerably since MAACO business model.

So, I would have concerns about relevance of applying success of AAMCO or MAACO against express carwash model.
 

carnut2

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I see some of what you are saying. As I mentioned in my post about bugs just a few minutes ago, I had a customer say he was upset over the fact her believed I did not remove his bugs, when in fact I don't believe that was his concern. I believe his concern was that in the past he has had my staff pre spray and pre pressure wash and scrub with brishes when necessary etc and he did not get that from me/ I draw this conclusion from his parting remark that he was going to go to "XYZ" car wash because they get all the bugs. Now I have been thru "XYZ" and they prescrub every inch of your car with brushes because their wash is so old and equipment so sparse that they have to to get the car clean at all.

Perception. I have dozens of customers that swear our wash is the best, cleanest and driest they have had. Our facility is clean and well maintained. We landscape etc.

So I need to find my core customers and get them to multiply.
 

Earl Weiss

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A recent episod of "Brain Games" expored pricing / decision making. Firts they had 2 sizes of popcorn at the theater. $3.00 Small and $7.00 Large. No one would buy the large. In interviews they said it was just too much to py for popcorn. Then they added a medium for $6.50. Many chose the medium and were asked if they wanted a large for 50 cents more. Most said yes. In interviews they were asked if they didn't think $7.00 was too much to spend on popcorn. They replied "But it was only 50 cents more."

So, there may be a way to structure your packages. Years ago many did a la carte items with packages that saved money on multiple items. Walt Tack of Fon Du Lac spoke at the Chicagoland CWA and explained that the individual items are priced to make the combinations that much more attractive. As soon as you chose 2 items the upsell to the package was a natural. Adding any single item to a package made the titotal cost close to the next package so the upsell was a natural.

Later Walt came back and was touting the now popular package only choices. I kept my A La Carte & package system and think it works for us for the reasons stated above.
 

robert roman

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Brain games another gem from the good folks at NGC, the network now famous for churning out TV’s best garbage reality shows.

Good, better best is decades old news.

Ala carte is passé.

In my neck of the woods, a theater ticket is $10 and large drink and popcorn is $15. $15 sells like hotcakes. The reason is free-refills, like unlimited.

Of course, its five bucks for one ounce candy bar, less demand, higher margin.

Multiple item pricing is clumsy, time consuming and it can be difficult for customers to determine true value.

Instead, merchandise solutions.

Pre hot wax, my express clients that merchandise in this manner averaged over $10 a car.

Good, better, best and ala carte averages maybe $8.50.
 

Earl Weiss

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Good, better best is decades old news.

Ala carte is passé.

.
The point was pricing and package elements, not just 3 packages. I guess my point was not clear.

As far as passe goes... well, since I read it on the internet it must be true!
 

Earl Weiss

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Can't help but wonder is our industry different than others. Why do we use package names instead of #s like the fas food guys?

If a la carte is passe, then I guess the fast food guys are clueless since they offer a la cart items as well .
 

MEP001

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If a la carte is passe, then I guess the fast food guys are clueless since they offer a la cart items as well .
I've noticed that most fast food places now have the "numbered" menu items dominate the menu. Taco Bell was one of the last to make that change - there were just categories on the menu and you'd order from them. Now it's difficult to even find the individual items on the board.
 

Earl Weiss

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I've noticed that most fast food places now have the "numbered" menu items dominate the menu. Taco Bell was one of the last to make that change - there were just categories on the menu and you'd order from them. Now it's difficult to even find the individual items on the board.
Agreed that packages dominate. I go to TB occasionaly but since I pretty much know what I want which typicaly incudes an ala carte item I no longer look for it on the menu board. I just ask for it. I will look again next time. At some other places the package seems to have a "Sandwich only" price as well. It seems drinks and deserts are featured seperately . what would be the equivelent of our drinks and deserts?
 

Earl Weiss

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At TB last night. The menu board above the counter had 10 panels. 3-4 were dedicated to a la carte suggestions. 3 were dedicated to packages. The rest were for deserts, drinks and special. So at least 50/50 for a la carte vs specials. I guess mr. roamn needs to contact Yum Brands nd tell them their marketing people use passe techniques and they should hire him.
 

Earl Weiss

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I was referring to the carwash business not retail in general.
As noted in post 15. Why is our industry different than others like the fast food industry. Package names instead of numbers. A La carte being almost non existent. Granted there are distinctions but do they warrant a different strategy and why?
 
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