$1.00 to start?

[zepher]

I’m currently at $1.75 for 3.5 minutes but I have a crazy idea to do $1.00 for 3 minutes mainly to bring customers in and hopefully in return they will spend a lot of time using the foam brush and all the other options I offer. Is anyone still at $1.00 to start? If so, how much time are you getting for $1.00? I have seen a few $1.00 self-serve washes here and there in the past.

 

[Eric H]

If you do it let me know. I'll be right over to blow the extra mulch out of the bed of my truck for a buck. While I'm there I can wet down the truck, bucket wash it, then rinse for another buck. Don't give me any lip about the mess I make for $3, after all "It's just a carwash".

 

[zepher]

lol...I have that all now at $1.75....farmers coming in and washing out all their hay in the bay...barbed wire.....bullet casings.....some come in and wash out their cattle trailers.....which flings that junk all over the walls....haven't had a problem with bucket washers though....kids that go out mudding and running their muddy vehicle through my automatic then going over to the self serve bay and then back through the automatic....lol....oh the country living....lol

 

[washme1]

I’m currently at $1.75 for 3.5 minutes but I have a crazy idea to do $1.00 for 3 minutes mainly to bring customers in and hopefully in return they will spend a lot of time using the foam brush and all the other options I offer. Is anyone still at $1.00 to start? If so, how much time are you getting for $1.00? I have seen a few $1.00 self-serve washes here and there in the past.

I think it's a bad idea. I have a competitor who went from $2 to $1 start and he is never as busy as I am. Focus on improving the appeal and value of your carwash. Upgrade where ever you can. If customers have a good experience at your business they are not going to your competitor even if they can save $.50-$1.00. I have always felt that it's easier to stay home and not make any money than it is to go to work and not make any money.

 

[DiamondWash]

If you do it let me know. I'll be right over to blow the extra mulch out of the bed of my truck for a buck. While I'm there I can wet down the truck, bucket wash it, then rinse for another buck. Don't give me any lip about the mess I make for $3, after all "It's just a carwash".

HAHAHA I love it!!!!!

 

[I.B. Washincars]

HORRIBLE idea!!! You will be inviting bucket washers and letting me wash out my truck bed for a buck instead of $1.75. I doubt that you will see any significant increase in customers, and most likely not enough to cover what you will lose on the customers that just purchase one cycle. DON'T do it!

 

[thoffmanjr]

Make it $1 start for 48 seconds (if you want $1 start) and make $5 look attractive. You could get a simple bonus timer to give your customers 12 minutes for $5. Your current pricing would give them 10 minutes so give them better value. You could have a sign say something like "Bonus Time - $5 - Get 12 Minutes - Save 67%". Everyone is right: Those $1 washers are a pain in the a$$ so make them pay. You want a timer with a start delay so the timer doesn't start until they have put in their $5. Give them a reason to spend at least $5.

 

[harleygrant]

I saw this at a wash today near me. Brand new equipemnt (vacs,air shamee in bays, two different types of foam brushes, dollar bill and cc in bay, all the bells and whistles.). How in the hell are they ever going to make it back at $1.00???

 

[1carwash1]

In my infinite wisdom, I tried that once. The only thing I accomplished was to reduce my revenue. When I finally went back to $1.50, nobody said a word and my revenue returned to normal. I have also seen guys dump tens of thousands of dollars in improvements in their wash with no appreciable improvement in business. It is what it is.

 

[JMMUSTANG]

I have one wash that is a $1 for 2 minutes with Bonus Time of $5 for 14 minutes.
I have another wash that is $2 for 4 minutes and no bonus time.
The income is about the same at both washes.
There is little difference in how many mulch, trash, or bucket washers at either wash.
Those people are going to do those things no matter what the price.
It's not impossible but is very difficult to do most of those things in 2 minutes.
Most know how much it takes to wash their cars and put in the appropriate amount of money and a lot put in $5 for the bonus time.
I did it because no matter the amount of signage I had, every week I had customers calling me saying they put in $2.00, $2.30, $3.00 or $3.30 and nothing turned on. This is an affluent area and well educated area (at least they thinks so).
I would tell them that is the time showing not the $ amount. They would say I was wrong they knew how much money they put in.
I'd ask them if they put quarters in the slot? They said of course and did I think they were dumb. (A yea.)
I'd say if you put in quarters how did the amount come to .30 cents.
I'd tell them that was 30 seconds not cents. Most wanted to argue so I would just go over there and put in the right amount and of course the wash would start. They still wanted to argue that they put in the right amount.
After 15 years of hearing this crap I changed the price/time.
I hardly ever get a call about this problem now.

 

[zepher]

Thanks for all the information....I'll throw some other ideas together for marketing....lol....I have enough mudders and farmers coming and using my bay for a trash can already.....lol

 

[I.B. Washincars]

I had the same issues as JMMUSTANG. That is an issue inherent with timers showing the amt. of time purchased before the turn-on amt. has been reached. The alternative was to program them to show coins in, 1 in, 2 in, 3 in, etc. This was no better because customers would say that "It says 3 minutes but it doesn't come on." when it said 3 in. When I changed to the newer LED-7 Dixmor timer that problem went away 100%, not a single complaint in 9 years since the change. Please don't let a poorly designed timer sway you to lower your price.

 

[zepher]

I too have the same problem every once in a while. It's mainly older customers or customers who shouldn't be washing their car at a car wash if they don't know how to read the signage and pay attention...lol...I switched the timer to display coins in and the calls have gone down slightly....It's not enough of a problem to upgrade my timers though...

 

[soapy]

Lets look at your propasal from a cost stand point. A few years ago the ICA did a study on SS carwashing. If I recall correctly for those washes that were at .50 cents per minute averaged a variable cost of 30%. This took into account soaps, taxes, etc. but did not include debt service. At your current price you have a variable cost of .15 cent per minute or a total variable cost of .52 cents for that cycle. Your GP on this cycle is $1.23. Assuming that you are not going to turn down your soaps etc with a new price your variable price will remain at .15 cents per minute. So your new price of $1 for 3 minutes will give you a cost of .45 or a GP of .55 cents. In order to make the same amount of profit using your new pricing you will have to wash 2 and 1/4 cars more just to have the same profit. If your new price leads to 3 times the business with 3 times the work you will net an extra .42 cents.

 

[Waxman]

I think the $1 to start is a bad idea.

You want to implement things at the wash that will make more profit and this isn't such an idea.

 

[madscientist]

My opinion on this subject has remained the same for the past 15 years.

If you are thinking of lowering your price, it is a sign that you need to raise your price! (not to be confused with forum member "Raise The Price", but I think he would agree).

The same holds true for the stock market (think it's time to buy, it's probably time to sell), real estate (ditto), and many other real life situations.

 

[2Biz]

I've read a lot of these debates and find it interesting that "Cost To Operate" is never part of the responses or discussion. Some of the operators/posters here might need to charge $2.00-$2.50 startup based on a lot of factors, cost of Insurance, local taxes, property taxes, and water and sewage rates to name a few in order to make just as much as someone charging less in a lower taxed area along with cheaper utilities. Where my wash is located, we have a 7% sales tax, property taxes are ten times less than a comparable self serve wash in the city, and my sewer and water bills are a lot lower in comparison...Also I'm sure what I paid for our wash is a lot less than a comparible wash in a larger town or city.

So my argument or addition to this thread, is the owner/operator needs to balance what he charges based on the cost to operate and what the market will bare in your area. When we bought our wash a year ago, the bays was set up for $1.00 for 4 minutes. I raised that to $1.25 eight months ago after making some significant improvements...The last two months we've seen Income more than doubling expenses which is the first time thats happened since we bought the wash....

So I think what you charge is realitive and should be based on a lot of factors...Not just because thats what a wash charges in the high rent district in order to keep the doors open...Hope this makes sense...

 

[I.B. Washincars]

I'll say it. I charge as much as I can. If my expenses were half what they are now, I would still charge as much unless something else dictated that I needed to lower them. It's discretionary income, the market will dictate what we can charge. If I trade my truck in at the local dealer and get 10K for it, am I supposed to think he is going to price it at 12-13K because he doesn't have as much as he expected to have in it? If it will bring 20K he's going to price it in that range. Justify increases all you want, but if your customers aren't willing to pay it you can't make them. Raise price when you can, don't wait until you need to.

 

[pitzerwm]

Its been discussed before, if you raise your price, you need to lose a X% of people before you actually drop below where you were and its obviously less wear and tear on the equip. Calculating it the other direction, what will you need to make up for the additional cost and wear & tear. I vote for going up not down, I always ended up with more revenue and less wear&tear.

 

[MEP001]

I vote for going up not down, I always ended up with more revenue and less wear&tear.

Same here. Offer the best product, keep everything working and charge a premium for it. You'll keep the customers you want and lose the ones you don't. You'll also have less mess to deal with.