Are memberships for me?

[Car Wash Brothers]

I am in a very tough spot right now. Competitor is doing memberships and we are not. It has been a weird year with weather so we cannot accurately tell if it's affecting our business. If you ask me for the months of June, the answer is no. We have been killing it. the first 5 months of this year has been rough. I am trying to wrap my head around how many members am I going to get? This is a number I have yet to find a decent answer for. Rural town of 26k people. Average income is only like $40k a year. I do see alot more nicer cars now compared to 10-15 years ago. I don't think its worth it for 400 members. Maybe 750 plus. Is it true that once you had memberships in place that your retail revenue stays the same but you gain more revenue from the unlimited plan? Say I do $200k in sales a year. Now I add unlimited plan and that $200k stays the same but you gain 400 members at $30 a month. $144k a year in memberships plus $200k equals $344k in revenue compared to the past years of a stagnant $200k in revenue.

Another note. I have a conveyor express wash and a touchless wash under the same roof. Do I wrap both into the unlimited program. I was told to stay away from that. Thoughts from you guys that have experience?

 

[DavidM]

Not doing memberships at your tunnel is affecting your business regardless of the competitor. A tunnel with memberships (set up correctly) is more profitable than one without memberships, everything else being equal.
That said, if the new competitor is better in some way, memberships alone will not save you.

David

 

[Car Wash Brothers]

Not doing memberships at your tunnel is affecting your business regardless of the competitor. A tunnel with memberships (set up correctly) is more profitable than one without memberships, everything else being equal.
That said, if the new competitor is better in some way, memberships alone will not save you.

David

Everyone is telling me memberships are the way to go but show me no statistics. I would like to hear from someone that has a population of 26,000 and average HH income is $40k. I doubt I will have over 400 memberships. It is easy to say memberships are the way to go when you are setup in a densely populated area. I have 50% cash customers. Older generations that I can tell you do not like memberships. We are in an area where its lower middle class. People want a deal.

I have heard a lot of our customers say the other wash is terrible, so they come back to us. or they go and check to see what the hype is all about and it's not impressive. Even some that say they got the membership for the winter months so they can wash every other day and then cancel.

How would you say a membership program is set up properly? By the price points alone?

 

[Wash4Life]

How would you say a membership program is set up properly? By the price points alone?

Besides price points:

1. What system you use.

2. Being able to sell memberships. You can have the greatest car wash and membership program in the world, but it won't mean a thing if you can't sell it.

3. Customer relations

 

[Greg Pack]

I have a friend who runs an express in a smaller town and I think a lower income level than yours. I think he has 700 members or so. His employees are not very aggressive at sales either.

 

[Car Wash Brothers]

Do you mean what kind of Kiosk we have?

 

[Car Wash Brothers]

well thats good to hear! whats his highest single wash price? Does he do ceramic and/or hot wax?

 

[Speed Wheels]

It's great to hear you're interested! For the highest single wash price and services like ceramic coating or hot wax at the entry kiosk, I recommend checking directly with the dedicated salesman there. They typically handle pricing details and service offerings tailored to customer needs, including premium wash options and additional treatments like ceramic coatings or hot wax applications. This personalized approach ensures you get the most accurate information and can make an informed decision about services that best suit your vehicle's needs and your preferences.


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