Offer 3 or 4 Automatic Wash Packages & Menu Design Ideas

[RockyMountain]

All the posts I could find on this topic are more than 7 years old, so I thought I would start a new one.

First Question: We currently offer $5, $7, $9 and $10 wash packages. It has been suggested to me by our chemical supplier to only go with 3 options in stead of 4. His contention is that more people will move up a package with only 3 choices. Any thoughts on that?

Second question: Does anyone have a current menu board/sign that you are proud of? If so, what seems to work well about it? And would you be willing to share photos? Here is a link to our 3 year old menu board for reference/suggestions.

http://dirtbusterscasper.com/packages.html

Thanks to all that respond!

 

[BCWS]

Pricing should be based on service offered. You're going to find that not only will some of your $9 customers move up but some will move down. What did you accomplish? Or maybe they will go to one of your competitors for the services offered on your $9 wash.

 

[madscientist]

In my opinion it is better to have 3 wash choices because it is difficult to make a real separation of services offered between each of the 4 washes. I would say you should drop your bottom wash altogether. Since you are making new signs you should consider raising your prices to maybe $12, $10 and $8. Are you making any money on that $5 wash?

 

[rph9168]

It depends on whether you can really differentiate the services offered in the packages. What is the difference among those packages and how much difference is there between the 5 and the 7 and the 7 and the 9 the 9 and the 10? Without knowing what you are able to offer in those packages it is really just a guess what to do.

 

[RockyMountain]

In my opinion it is better to have 3 wash choices because it is difficult to make a real separation of services offered between each of the 4 washes. I would say you should drop your bottom wash altogether. Since you are making new signs you should consider raising your prices to maybe $12, $10 and $8. Are you making any money on that $5 wash?

Because I offer 2 step-presoak, spot free, drying agent and dryers, I'm pretty sure I'm breaking even on the $5 wash.

Here is the seperation:
$5- mentioned above
$7- adds undercarriage and rocker panels
$9 adds triple foam and 2nd HP rinse
$10 adds it all plus rain-X.

Pretty significant differences in my opinion...
But maybe I could eliminate the $5 and simply add undercarriage on all packages.

 

[RockyMountain]

Carwashguy, that is why I included the link to the wash package menu.

 

[tdlconceptsllc]

I personally went from $5 $7 $9 $10 on my auto to $6 $8 $10 $12 in 2015 my old average per car was $8.33 now its well over $9 average and I didn't loose any customers which was my worry, I had to due to chemical prices and water and sewer rates in my town are going up 9% next year in 2016 this business has so much overhead. I only give the dryers on my top two packages on purpose. hope this helps.

 

[madscientist]

Because I offer 2 step-presoak, spot free, drying agent and dryers, I'm pretty sure I'm breaking even on the $5 wash.

Here is the seperation:
$5- mentioned above
$7- adds undercarriage and rocker panels
$9 adds triple foam and 2nd HP rinse
$10 adds it all plus rain-X.

Pretty significant differences in my opinion...
But maybe I could eliminate the $5 and simply add undercarriage on all packages.

Is the undercarriage/rocker panel spray important to the cleaning process (I believe it is)? If you do away with the $5, then every customer going through your wash gets that important feature. Some cars won't need it, but right now you are leaving that choice up to the customer and you run the risk of someone who needs the undercarriage choosing the $5 and not coming clean......and getting a bad impression. Conversely, if even your cheapest wash knocks the mud and salt off, then you don't take that chance. Every car going through your wash gets the benefit of the U/C spray.

It doesn't cost you $2 to add the U/C to your $5 wash, so your profit margin is much higher on your $7 wash. The next question is what percentage of your washes are the $5 wash right now?

 

[ToFarGone]

Because I offer 2 step-presoak, spot free, drying agent and dryers, I'm pretty sure I'm breaking even on the $5 wash.

Here is the seperation:
$5- mentioned above
$7- adds undercarriage and rocker panels
$9 adds triple foam and 2nd HP rinse
$10 adds it all plus rain-X.

Pretty significant differences in my opinion...
But maybe I could eliminate the $5 and simply add undercarriage on all packages.

I couldn't get past this post. You need to KNOW what each package cost you. I know there are some variables that may make it hard to know precisely 100% but you can get damn close. Knowing these expenses will be a huge key to building your wash packages and what functions will be used when.

I can tell you based strictly on my market and not on any other:
My lowest wash is called the "Regular" (similar to Good, Basic, The Dust Buster)
The lowest level wash will NEVER get a blower and this would eliminate drying agent as well.
I don't offer an undercarriage on a $5, never have and never will. Its a bump to get them to the next wash.
If you are doing a high/high presoak process (and the first pass is stronger than the second) you should be able to do one pass for the level of cleaning a $5 wash can accomplish.

I believe your idea of doing away with the $5 and sticking with other three solves a couple problems. I think you have thought about it and have a good idea. It gets rid of a wash that isn't a money maker (making money-your first and most important goal) AND makes the decision process faster, easier, and in my experience, more profitable.

Sorry for the long post but I was in the exact situation once and I agonized over it. Eventually I figured it out but I wanted to try to help. I believe your instinct is right...move forward and kick ass.

 

[robert roman]

“We currently offer $5, $7, $9 and $10 wash packages. It has been suggested to me by our chemical supplier to only go with 3 options instead of 4. His contention is that more people will move up a package with only 3 choices.”

I’m familiar with markets in Wyoming so don’t sell short by adopting price strategy used by operators in Iowa or other areas that have significantly different market characteristics.

For example, in my area of Florida basic full-serve wash is about $12.95 and in-bay $6.00 whereas in Naples in-bay is $12.00. In some Toney areas of Conn., full-service top package wash is $44.95.

What is principal constraint that prevents single standard in-bay from making money now and in the future?

Answer is throughput capacity or rate at which carwash generates money through sales. Throughput equals selling price minus cost of goods (excludes all labor and necessary operating expenses).

So, COG would include credit card fees, chemical, utilities (water, sewer, electric, fuel) and equipment maintenance.

What is the principal constraint that prevents increasing selling price? Answer is time available on the machine. Since time on machine can’t be increased materially, how can price?

Answer is to exploit the constraint by elevating the product/service.

“The lowest level wash will NEVER get a blower and this would eliminate drying agent as well.”

For example, the suggestion above is the exact opposite of elevation.

In other words, the basic service is the core product of the business. It should be something you are proud of turning out the door and value-added package washes should be exceptional.

I’ve worked with in-bay operators in this capacity. Results vary but a sound marketing plan can have a significant ROI.

For example, if you wash 20,000 cars and manage to increase average per car revenue by $3.00, throughput would increase by roughly $42,000.

Anytime you increase NOI in this manner, you increase the market value of the business irrespective of market cap rate.

 

[pgrzes]

I went last year from $5,7,9 &10 to $6,8,10&12. My wash packages are much more balanced now and my average price went up close to $1.50 per car. I dont offer undercarriage or blowers on basic wash and am thinking of going to single hp pass rather then high/low, next package adds a medium pressure undercarriage and blowers, then triple foam and second hp pass, then durashield and extra front or rear and slower speeds on top pkg. Some people are under impression they should not do undercarriage pass?? Its in their owners manual?? So be careful in not offering a wash without it.

 

[GoBuckeyes]

One thing I don't necessarily like in your current pricing is that your top package is only a dollar more than the one below it. If you don't know what its costing you to put that Rain-X pass on it may be less profitable to you than the $9 wash. You have $.25 - $.40 in chemical, plus water plus at least 30 seconds of time to apply it. That 30 seconds could decrease your throughput by 6 minutes (one more car) at peak times. That's not enough bang for the buck to me.

 

[DiamondWash]

Here is a Wash Menu I just helped remodel

https://www.dropbox.com/sc/zm85r8ku2krgt9h/AAAgHrqNfRUCNQcc9pBac2kLa

 

[rph9168]

It looks good. I would prefer using the term "Best Wash" rather than "Best Value". From my experience people that buy the top wash are looking for the best wash they can get for their vehicle and are not necessarily driven by value.

 

[I.B. Washincars]

Waaayyy, way, way, too many brain cells are strained when this subject comes up from time to time. It's 3 vs 4, not 3 vs 40. There is no right answer. My washes all have 4 selections and I am kicking my competitors butts, most of which have 3. Do I think that is the difference? No. If you think you have enough to offer to differentiate 4 washes, do so. If not, use 3. IMO it's not going to amount to a hill of beans. Most of the suggestions, theories, or whatnot are subject to speculation, conjecture, or SWAG. Whatever way you choose, don't make the cheaper washes much cheaper than the better ones, and don't make them look that appealing on the menu.

 

[robert roman]

“Most of the suggestions, theories, or whatnot are subject to speculation, conjecture, or SWAG.”

You have to be deliberately obtuse to suggest this.

“Whatever way you choose, don't make the cheaper washes much cheaper than the better ones, and don't make them look that appealing on the menu.”

Again, these tactics are the exact opposite of elevating a product/service, just like below.

“The lowest level wash will NEVER get a blower and this would eliminate drying agent as well.”

Slum lords make money because tenants have few choices. Retailers can’t because there are now too many alternatives (competition).

In Florida, Hess c-store/gas chain lived off the fat of the land for years and let its stores become outdated, under-staffed, awful customer service, filthy bathrooms, terrible wash, etc.

Wawa (and Thornton’s) came to town, cleaned up and Hess sold to Speedway.

Similarly, many different types of carwash users will switch to express exterior or flex-serve wash when given the opportunity because of the difference in value.

There are plenty of facts to back this up.

“There is no right answer.”

Indeed, when it comes to price strategy there can be a lot of right answers.

For example, there are operators having success with “pay-one-price” in certain markets.

 

[Waxman]

i like good better best pricing. mine is 8,9,10,12. my bottom pkg is no underbody, foam polish or blowers.

my friend eric floated the idea of an ultimate wash with multiple passes for $15-17. i like that idea.

 

[ToFarGone]

“Most of the suggestions, theories, or whatnot are subject to speculation, conjecture, or SWAG.”

You have to be deliberately obtuse to suggest this.

“Whatever way you choose, don't make the cheaper washes much cheaper than the better ones, and don't make them look that appealing on the menu.”

Again, these tactics are the exact opposite of elevating a product/service, just like below.

“The lowest level wash will NEVER get a blower and this would eliminate drying agent as well.”

Slum lords make money because tenants have few choices. Retailers can’t because there are now too many alternatives (competition).

In Florida, Hess c-store/gas chain lived off the fat of the land for years and let its stores become outdated, under-staffed, awful customer service, filthy bathrooms, terrible wash, etc.

Wawa (and Thornton’s) came to town, cleaned up and Hess sold to Speedway.

Similarly, many different types of carwash users will switch to express exterior or flex-serve wash when given the opportunity because of the difference in value.

There are plenty of facts to back this up.

“There is no right answer.”

Indeed, when it comes to price strategy there can be a lot of right answers.

For example, there are operators having success with “pay-one-price” in certain markets.

Did you just call me a slum lord???