Blendco prices

[Whale of a Wash]

My latest 5gallons of auto wash detergent- the 5 of liquid for my vector cost $255, I don't think i can justify the price anymore with all the available options out there. Have any of you Blendco users noticed the prices are out of this world now.

 

[Waxman]

What is soap cost per car at these prices? Is it really that good?

 

[robert roman]

“Have any of you Blendco users noticed the prices are out of this world now.”

What does “out of this world” mean?

For example, a friend’s price for basic touch-less is $6.00, takes one ounce of soap, cost $0.50 or 8 percent of sales.

5-gallon cost $320 ($0.50 * 128 * 5) and yields 640 washes.

If you use one ounce at $255 for 5-gallon, difference is 20 percent or $0.10 per wash.

If you are satisfied with brand, why bother over dimes. $0.10 adds up but $1.00 more per wash adds up a lot faster.

In other words, it’s easier to make more money by seeking a higher price than trying to find fractional savings in cost.

 

[mmurra]

Robert's response makes sense. Yet it might be that there is a more significant difference in the price of products, than just 10c. It is worth doing the math. In smaller and more comptetive markets, we must wring every dime out of our excess costs. The last 10+ years in our area have been difficult ones, and those of us that have survived, have tight control of our exenses. Chemical costs are significant and in the end, every dime counts. Mark

 

[Earl Weiss]

“

If you are satisfied with brand, why bother over dimes. $0.10 adds up but $1.00 more per wash adds up a lot faster.

In other words, it’s easier to make more money by seeking a higher price than trying to find fractional savings in cost.

Now for another opinion. Higher price may mean losing volume to competition who worries about dimes or even nickels and can make money at a lower price. Forget dimes, How about nickels.

Basic Tunnel wash may include pre soak, Soap, Wheel Cleaner and drying agent. Let's say you save 5 Cents each or 20 cents per car and you charge $3.00 for a basic wash and wash 100K cars a year. (Adjust price and volume as needed.) now lets say your direct Cost per Car is $1.00 for solutions, Utitlies, and Maintenance. Your Gross profit is $200K to pay overhead and hoipefully leave profit. Let's Say thats $150K. This leaves $50K net. (Again, adjust as needed for other factors as well like package upgrades.) Save 20 cents per car and the $20K falls directly to the bottom line. Huge percentage increase for little work.

Years ago the forum steered me to KR. (Don't use all their stuff) Saved me a bunch of $. Since then about 6 sales people offered to match my cost per car. A few were lucky to escape unharmed.

 

[robert roman]

I don’t believe your analysis is relevant because the tread is about whether or not Blendco detergent cost is out of this world for in-bay (Vector) not a conveyor tunnel.

“Basic Tunnel wash may include pre soak, Soap, Wheel Cleaner and drying agent. Let's say you save 5 Cents each or 20 cents per car and you charge $3.00 for a basic wash and wash 100K cars a year.” “Save 20 cents per car and the $20K falls directly to the bottom line.”

This is biased. Start at the beginning. 100K CPY * $3.00 = $300K

Say, cost of goods is credit card fees of $500 and chemical. Chemical is $0.10 per application or $0.40 per wash or total $40,000. Other expense is $45,000. Labor burden is $75,000. Property tax is $17,000.

This leaves net operating income of $122,500. Mortgage is $100,000.

Difference is EBTD of $22,500.

So, even if you scrimp and manage to add $20,000 to bottom line, the business still sucks!

“In other words, it’s easier to make more money by seeking a higher price than trying to find fractional savings in cost.”

By seeking a higher price, I am referring to the notion of applying marketing principals to sell more value added to customers, not just raising price in a vacuum.

 

[soapy]

You can buy a product called "Blend" from KR which is a pure surfactant made by Simoniz and is similar to the Blendco product for around $100.

 

[Whale of a Wash]

The Blendco seems to have jumped up about $100 for 5g. Also seems to have less cleaning ability than it did. The powder is HA Powder, and used to use Tire HA as a surfactant it was better for our soil (Clay). This auto wash detergent seems lame. Time to change as i am getting more complaints. Thanks for the Kleen rite info.

 

[Earl Weiss]

Difference is EBTD of $22,500.

So, even if you scrimp and manage to add $20,000 to bottom line, the business still sucks!

.

I don't think scrimping has anything to do with it. I am suggesting that by trying other suppliers. He may save the 20K and get the same results. So by almost doubling his bottom line with little effort. Order- Pay, Hookup solution and observe it's not a worthwhile effort?

BTW, was a t a show where a person at a booth for an unnamed supplier. (Hint - Starts with B ends with O) calls me over and without asking me anything says he will cut my solution costs in half. Ask how much te cost per car will be? He says 45 cents.

Didn't walk away, I ran.