BP and Diamond Car Wash

[DiamondWash]

Our wash is next door to a BP station that selling washes for us at the pump and inside for a 10% partnership fee they give us a check every 2 weeks of the month, and now they had a company come in and they want to have a $2.00 carwash package setup for them a basic soap and rinse in the touchfree bay and a basic foambrite wash and rinse in the other bay BUT here's the kicker we don't get that two dollars the BP station keeps it and is taken out of our check each 2 week period. I have a major problem with this but my other 3 partners don't seem to see it the same way I'm. Is there something missing here that I'm not seeing?

 

[robert roman]

“Is there something missing here that I'm not seeing?”

Perhaps you missed seeing your partners smoking K-2.

A convenience store and petroleum site typically sells about 75 percent of its washes at the pump. Your cost is royalty 10 percent off the top.

$2.00 price less in-bay variable unit cost of $1.50 = $0.50

You may as well be washing cars on a new car dealership lot.

If you plan to sell car washes at gas site, you have to market and promote as such.

You can’t make much money in carwash business subsidizing other businesses operating expenses.

 

[Earl Weiss]

I am trying to figure out if I am missing something. BP gets $2.00 and you get nothing?

 

[JeffM]

Just looking on your website; assuming that you are selling them the $7 wash for $6.30 (10% discount) and they now want it for $5 (taking $2 fee)? Pls correct me if I am wrong.

How many washes are you actually getting from them on a monthly basis vs. wash counts from before the partnership? Unless they are adding to your wash count, they are only selling to existing customers and hard earned cash from your pocket. Giving up $2 on a $7 wash is absolutely crazy IMHO.