Dollar per minute

[I.B. Washincars]

It's already been answered once, but it is "Pay one price, Wash all you want". Basically, the wash is gated and you would enter by paying at an ACW and the gate will open to let you in. You can stay and use the equipment as long as you want and then leave through an exit gate.

 

[Greg Pack]

You guys act like the POP WAUW concept is something new. I first saw it up in Calgary Canada about 25 years ago. It was in large building, when you drove in you got a ticket at the gate, washed and vacuumed all you wanted and paid the cashier when you left. I don’t remember what it cost to use the facility.

A low flat rate? That's what the current model we are discussing is. In this region it is 6-10$ with free vacuums.

i have a friend that implemented this in his wash. In the heyday (early 90's) his seven bay self serve did about 90K. It had dwindled to less than 50K with all the express competition. He converted to pay one price in February 2013. He told me this year will be the best year his wash has ever had, with gross revenues anticipated to be in the 120-130K range

 

[I.B. Washincars]

You guys act like the POP WAUW concept is something new. I first saw it up in Calgary Canada about 25 years ago. It was in large building, when you drove in you got a ticket at the gate, washed and vacuumed all you wanted and paid the cashier when you left. I don’t remember what it cost to use the facility.

You don't remember what it cost, because there was not a set price. You paid when you left because you were charged for the time using the facility, more like a conventional self-serve. POP-WAUW is a different concept.

 

[robert roman]

“….sales…really good the last 10 years….biggest obstacle is severe cold….slows washing…. many customers that wash 2-3 times per week….hunting seasons where….trucks spend 15-20$....I have the only SS washes.”

Contestable market theory assumes companies behave competitive when there is lack of barriers to entry. When there is only one game in town, it tends to behave like a monopoly.

For example, the Hard Rock Casino in Tampa, Florida has no competition. As result, rewards program provides few rewards unless you are a whale. No free booze when you play. Drinks and food are super expensive. Table minimum $25 a hand. Parking is free.

Seminole Indians own Hard Rock and government prevents competition. So, Hard Rock has little incentive to change unless profits suffer.

As only self-serve in area, customer base is in similar situation. Difference is the barrier is cost to enter and exit the business not government regulation.

So, what is likelihood of new entrant in trade area?

If likelihood is high, POP may be a good strategy. Otherwise, it may not.

 

[blurdgman]

POP my be good for some however my average sell price is nearing $6 at $0.80 per minute. In my mind it's hard to justify a POP WAUW of $7. My high pay customers spend $10, sometimes re-start for $3 more. They take their time and do their wash in 12.5 to 16.25 minutes. Why should I lose that revenue to a higher start price of $7 with a lower rate? I would have to have a start of $10 and allow the high payer a time bonus at half rate $0.40 per minute. They can then have the luxury of even more time. Furthermore the high pay customers always use credit cards. I 'd like to try this in one bay but my Washgear doesn't allow one bay price setting. I'd have to offer it in all the bays.
My discussion is moot because it doesn't address a special deal to attract the low payers to spend more. The low payers are more apt to use tokens except that their increments of $1 per token is usually a problem to them. So what should I do? Punt ?

 

[robert roman]

Repositioning a business is usually done when there is good reason like poor financial performance.

$0.80 a minute is 67 percent above the benchmark. So, if wand customers are spending dollar amounts as described, POP may not be an attractive alternative.

Would I punt? Depends on what the objective is.

If you want to “attract the low payers to spend more,” lots of capacity is needed. One bay will not be enough and will frustrate customers.

I’d try to attract new high payers as well as encourage existing high payers to spend even more.

 

[jeffpohl4]

I have a tandem SS bay and charge $2.50 to start and you get 5 min, that puts me at .50 per min...am i really shorting myself that much or does your geographical location play that big a part in SS prices? I'm running around 775 CPM through at an average sale of $6.60. I apologize if i'm asking a question over Roberts question...I'm new to this whole world so put me in my place before i start bad habits

 

[blurdgman]

I have a tandem SS bay and charge $2.50 to start and you get 5 min, that puts me at .50 per min...am i really shorting myself that much or does your geographical location play that big a part in SS prices? I'm running around 775 CPM through at an average sale of $6.60. I apologize if i'm asking a question over Roberts question...I'm new to this whole world so put me in my place before i start bad habits

Your $6.60 average sale is pretty darn good. How do you charge? tokens? quarters? CC? bills? Does your system count up or count down?
Mayb you shouldn't rock the boat.

Maybe I should be lowering my rate from $0.80 a minute because I do have too many minutes unused. How elastic are SS prices?

 

[mjwalsh]

It's already been answered once, but it is "Pay one price, Wash all you want". Basically, the wash is gated and you would enter by paying at an ACW and the gate will open to let you in. You can stay and use the equipment as long as you want and then leave through an exit gate.

I do get it that mmurra & others may have had temporary success with the POP WAUW. For some of us we may want to look at it similar to the "all you can eat buffet" format that some restaurants have been doing for a long time. Based on the longevity of some of those with that format ... I am not convinced that it will carry the day long term.

I still say if more of us would get off our duffs & encourage Congress to go to the $5 minimum paper money which would make dollar coins the eventual new workhorse of coins & the $5 bill as the eventual new workhorse of the bills ... self service operators would all be farther ahead ... including those of us who also accept credit cards. That way if the "going norm merchant rate" creeps ... the cash alternative will still both be an option & a lever. Those of us who make dollar coins available or even higher denomination tokens available ... we definitely see an increase in convenience vs the "carpal tunnel aggravating for the customer" quarters only situation.

Robert Roman & crew continually repeats "doom & gloom" for the self service portion of our business ... yet he & others fail to acknowledge the increased problematic number of quarters needed for the customer as being a detriment.

I also stick to my guns when it comes to the "cardio benefits" for the customer moving right along while washing at our self service bay facilities!

mike walsh http://kingkoin.com/USA_Deficit_Reduction.html

 

[jeffpohl4]

I accept cash, coins fleet cards and credit cards. I'm not sure how common credit card accepters are in the self serve world but I know I'm the only one around here that does. CC sales account for just over half of my SS business so I like to think I capture more business because of them.

 

[robert roman]

Mike,

If you kept up with current affairs, you would know the doldrums are over because ICA reported that the industry posted gains in wash count and average revenue in 2012.

As for its share of the total available market, I’m not sure it’s possible for self-serve to drop any lower unless gasoline sites with carwash convert from in-bay to express mini-tunnel.

As for your coinage crusade, it reminds me of the science fiction movie Minority Report.

Theme of movie is free will versus determinism. Free will is making choices without constraints of prevailing factors. Determinism means for every event there are conditions that could cause no other event.

If you can convince me the convenience and future demand for coinage is greater than convenience and future demand for technology, I’ll join your crusade.

However, it’s gone from coin to bill, bill to plastic card, pager to cell phone, cell to blackberry, berry to smart phone, phone to iwatch and iwatch to skin implant?

Ten years from now coins will become trivial like postage stamps. I don’t see any future in coins.

For example, casino industry is already converting ATM/bill breakers so they no longer dispense coins. Instead of change, the machine prints a change ticket that has to be reinserted in slot machine or redeemed at cashier’s station. Strategy has saved gobs of labor expense.

I didn’t know I had a posse.

 

[blurdgman]

Solution for low payers

For the past year I was at $0.80/minute. I went back to $0.75/minute and found that I have more low time washers than before A $2 start but a rate of 4 minutes for $3. My CC starts at $3. My high payers are still in there with $10/ wash. My average car wash is about the same $ spent between $5.25 and $6.20 average. I also increased the soap amount by 25%. My highway signs for the holidays say:
More Bang for the Buck ( and it was hunting season)
More Time & Soap
You'll be Glad
Merry Christmas!

I'm glad too!

 

[Stuart]

I bought 2 carwashes 5 years ago with prices at .43 cents per minute and have just increased to .48 cpm just this month ($1 for 2min 4sec). I have increased price each year. I have 1 IBA at $5-$6-$7 without any price increases in the 5 years. Though I have increased my bay price .05 over the past 5 years my gross sales have increased by 57%. Credit card was installed 5years ago with a $3 start with count up and average at $6.20 for the last 3 months. I have made some additions to my equipment list to help generate my sales increase - blow dryers in 5 of my 11 bays and most recently in November with Rainx.
There are 3 other SS in town with attached c-stores (iba at 2) (mine are stand alone) and an express wash 1/4 mile away from my IBA.
48,000 in population

I have been reading about price increases on here for the last few years about raising starting price to $2 or $3 (I'm sure in some markets this pricing is really needed or there will be no business). Robert questions the sustainability of the self service carwash and many other reasons we should convert our bays to a different business model. I am not sure where Robert's information comes from, what I see from driving down the hiways and talking with wash operators is we are doing good business and will be for years to come.

I tend to believe that many of the SS operators are pricing their carwashes to keep many customers away in the name of less trash, less mud and more money. The customer coming in for just a quick rinse and go is also gone -- the easiest money you can make.

The motto I keep hearing on here is "more money with less customers". Though this concept sounds wonderful When we stop thinking about the customer and just think about our wallet, well -----keep increasing your prices and soon you will have much less customers with Robert leaning back in his chair saying "I told you so".

Yes I want to stay in business, pay my bills, make some money and provide a service to my city and I know the day will come my start price MUST go to $2 but it will be a regretful move to stay in business, not to repel my customers.

 

[chaz]

Hey Stuart, good for you. Where are you located I'll happily send my wash and run and, sloppy customers your way. In the meantime, I'll have cleaner bays, and less wear and tear and yes more money from fewer customers. I have no use for the guy that wants to spend a buck or two and then leave a messy bay that no one else wants to use till we spend 10 minutes of free time cleaning. My minimum start is 3$ for 4 min cash or credit with count up. Yes I have seen customers leave without washing because they only want to pay a buck. Sorry, not at my wash.

Have a happy and profitable new year!