Applying "branding" to price signs, and raising prices

[Sequoia]

Has anyone ever applied "branding" to their prices, using locally recognized value descriptors instead of the well-worn "deluxe", "standard", and "economy"? Has anyone had good or bad experience with presenting their prices in reverse order, from highest price down to lowest? And, has anyone described what vehicles should pay which price ... such as including on pricing signs that SUV's or trucks should spend $_____?

I'm trying to find a way to boost revenues not just by charging more, but by explaining or encouraging visitors to spend more money. Since I'm located in a forested area near giant sequoia trees, I though I'd consider playing up that angle when describing wash times/prices. (see below)

I am currently $2 for 4 minutes, with a promotion of $4 for 10 minutes. I'd like to move to a $3 startup, probably for 5 minutes, plus try to encourage more customers to spend at the $4 and $5 levels. Right now, virtually no one spends at the $5 level because the special "deal" is $4 for 10 minutes.

Here is what I am kicking around, and I'd appreciate your thoughts and feedback:

$5- Giant Sequoia - 15 minute wash
(for SUVs, trucks, & very dirty vehicles)

$4- Tall Cedar – High Value wash- 10 mins
(standard passenger vehicles, average condition)

$3- Basic Pine / Economy wash- 5 mins
(quick wash & rinse - motorcycles or vehicles)

 

[Whale of a Wash]

I think you should do that. It adds a little life to a basic wash. Nothing could be more boring than good, better, best.
My names are the Dolphin, Whale and Super Whale. My Whale themes are carried on my tokens and signs and envelopes for refunds- Lots of Whale Logos. My Avatar says Welcome to the Whale--With a Logo On the Vector

John

 

[pitzerwm]

Most expensive at the top

 

[MEP001]

I think your personalized "branding" and names are clever. It's not unlike the double-time bonus some people are offering, which I've been told is successful.

 

[I.B. Washincars]

Are we talking about SS or an automatic?

 

[MEP001]

I was assuming self-serve, since I've never seen an automatic wash pricing based on wash time.

 

[Waxman]

The idea is sound and clever and we all like it.

Only problem I have is getting customers to read ANY sign, even when they are trapped in my IBA, desperately wanting out and there is a RED SIGN 5 feet from their driver window telling just what to do if they're stuck.

Maybe they're brainwashed by tv to not read billboards and that somehow covers all signs?

 

[MEP001]

I know what you mean - the signage I put up is more for disclaimer purposes than instructional. Some people do read. My friend who has double-time when $5 or more is spent has made it work by explaining it to customers.

 

[Sequoia]

Signs

It's a 3-bay SS.

I get a fair number of customers who are renters of nearby vacation cabins. They do read the price signs as they need to in order to use the wash; beyond that, many of my signs are ignored as well.

 

[rph9168]

I have spent many occasions observing how a self service customer washes their vehicle. One fairly common denominator is that almost none of them read signs. Most appear to simply buy time. Some do go over the traditional bay sign that lists the best order to use the products but most do not. Some try to keep track of the time but again most seemed surprised when the time runs out.

It would be interesting to see how your sign works. I like the idea of listing the most expensive wash first and I might even consider using a larger font or different color to make it stand out. I would make two minor suggestions. Somehow I would include some good/better/best indications and secondly be consistent with the description of each wash. On some you list the activities (quick wash & rinse) while on others you list the vehicles condition (average condition - very dirty vehicles). I would probably lean toward listing the possibly activities and leave it up to the customer to decide what condition their vehicle is in and what they would like to do to wash it.

 

[pitzerwm]

An interesting fact that I have observed is that in the laundromat the guys read all of the directions, in a car wash the women. The main reason today for signage is to protect yourself in court. Just like the cop who pulls you over will say "ignorance of the law is no excuse".

 

[Sequoia]

Feedback

This is excellent feedback from all. Just was I was hoping for-- thanks!

I am still noodling through just *how* to make more people spend the highest amount instead of the middle or the lowest. Using signage or anything.

Any other ideas, including those outside the box, and welcome!

 

[Earl Weiss]

Maybe Mcd's, BK, and Wendy's etc. know something.

What do they name their deals?

 

[bigleo48]

I have renamed my 8 SS bays after local bays (our area is a boating meca). People like it, but must admit I don't get too many comments on it after 7 years.

 

[robert roman]

What you propose is a common practice in the conveyor and in-bay automatic carwash categories; offering “packages” of service and products tied to a naming convention.

Unfortunately, the technology currently does not exist in self-service to support this concept effectively.

Consequently, you may find the most benefit from employing the traditional, tried and true strategies.

This means extracting gains from operations and, more importantly, effective advertising and incremental business.

For example, you are presently selling time (and products) on a sliding scale.

$5 Giant = $0.33 a minute
$4 Tall = $0.40 a minute
$3 Pine = $0.60 a minute

“Right now, virtually no one spends at the $5 level because the special "deal" is $4 for 10 minutes.”

If the customer base is exhibiting price sensitivity at $4.00, this suggests that the path to boosting revenues would come from selling more products.

In other words, to get customers to buy more, you have to have more to offer them.

For example, do you accept credit card payments or sell spot-free water, scented foaming clear-coat protection, spray-on Rain-X or similar total body protection, spray-on tire shine, spray-on brake-dust repellant, forced-air drying, snacks and beverages and do you offer some form of a customer loyalty program?

Hope this helps.

 

[Sequoia]

Value

Robert,

I've always felt it would be helpful for SS revenues if certain functions were "closed off" at low price points. For example, if you only put in $2 the foam brush would not work, but if you put in $X dollars or more then the foam brush WOULD work. Maybe ditto with hot water/cold water wash, etc.

Unfortunately, it seems that I am alone in this belief as none of the equipment, timers, etc. is configured to allow for this. At least none that I have seen for SS, but I haven't look at much for a few years now.

I've recently updated my PLC at the wash, and maybe in the future it will grow to do that as well. Not sure.

I don't know if there is resistance at the $4 level, or not. When I bought the wash, the average spent per customer was about $2. I set the "value deal" at $4, partly because it was double the current average spent, and it definitely has pushed revenues up. At this point, I believe that I can push prices higher and to do that would mean probably increasing the top value to the $5 level and increasing the minimum from $2 to $3.

My target customer base is interesting. Locals, who wash year-around, are moderately price sensitive. Vacationers from the San Francisco area who rent cabins marvel at how "cheap" the wash is. The right mix to handle both might be higher prices to capture the visiting San Fran $$$, and a bonus token promotion if $10 or $20 in tokens are purchased, as this would lower the overall cost for the locals. Not sure-- still noodling.

 

[pitzerwm]

It would be done with a PLC. Interesting concept, never crossed my mind, but you would/could price it like the IBA, the more money the more time and the more stuff that would work. If you put in a $1, you get 1 minute, high pressure water only. $2, 2 minutes, and HP and soap.....etc.... Interesting idea.

 

[robert roman]

“I've always felt it would be helpful for SS revenues if certain functions were "closed off" at low price points. For example, if you only put in $2 the foam brush would not work,”…. Unfortunately, it seems that I am alone in this belief as none of the equipment, timers, etc. is configured to allow for this.”

I don’t believe you are alone in that belief. Unfortunately, the industry is fairly mature.

When an industry matures, it inevitably experiences stable earnings, slower growth or decline.

To avoid decline, firms typically pursue innovation and technological change to prolong the life cycle of their products. The notion being that improving efficiency would result in maintaining a positive or at least constant trend in the product life cycle.

This trend is evident with the introduction of “new and improved” products, more “on-line” products, eco-friendly chemistry, express pay terminals, fast-pass systems, better wash materials, VFD, centrally operated vacuums, etc. as well as in-bay systems that clean better, faster and using less resources.

Of course, most of the innovation and technological change in the carwash industry is targeted at segments that are anticipated to have some potential for incremental growth; express exterior conveyors and in-bays.

Consequently, what you see in self-service are subsystems that can be simply tacked on to the existing form of infrastructure. For example, you can install bill acceptors, clear-coat applicator and forced-air dryer in each wand-bay. There are also devices available that will allow you to accept credit payments. In some cases, owners are seeking salvation by adding on a subsystem to wash dogs instead of cars.

In terms of innovation, it seems as though the current school of thought is to take self-service down the same road as express exterior. This would be achieved by restricting access to the property with a gated pay station, charging one price and having unlimited use of the facility with the exception of vending.

As the for the customer base, I had a similar situation when I owned a wash in Florida.

Wealthy snow birds made the hay during the winter and spring and the rest of the year I had to survive on a market that was 50% fixed, low income seniors.

My solution to this was to coupon the locals. People, especially seniors and women, love coupons.

Of course, for coupons to work, someone has to be on property to redeem them.

 

[Sequoia]

Coupons

Thanks for the feedback. This is EXTREMELY helpful-- thank you all. I've always squirmed at doing "token promotions" because I believe it cheapens the image of the token below its $1 selling price. Coupons are another possible route I had not considered and I will think about that.

Currently, my thinking is a price increase coupled with a "25-for-20" token promotion. If I am going to give away free tokens, I want it to be big enough to alter spending habits upwards. Somehow I don't think "11 for 10" will make customers spend more freely; maybe 25 for 20 would? Not sure.

And, I have been tinkering with how to present the pricing. Although the price levels are $5 / $4 / $3, I want to use signage to obscure the $3 level by presenting it differently-- keeping the focus at $5 / $4. Something like:

$5 - Giant Sequoia- Biggest Value Wash 15 minutes
- SUV’s, Trucks, any heavily soiled vehicle

$4 - Tall Cedar – Good Value Wash 10 minutes
- Regular size passenger vehicles, avg condition

Minimum to start meter – insert $3 for 5 minutes

Final thought-- the programming and wiring would be pretty easy to make the PLC give a free presoak session if a certain money threshold is spent- say $4 or $5. I'd rather segment delivering HOT water vs cold, but the plumbing, etc. to do that would be much more involved.

 

[Jeff_L]

I have renamed my 8 SS bays after local bays (our area is a boating meca). People like it, but must admit I don't get too many comments on it after 7 years.

I like this! Never even crossed my mind. You can name bays after things around your town, local heroes, etc.. Granted, it wouldn't really bring anymore revenue, but it would add personal touch to the wash.