Greg Pack
Wash Weenie
Would you mind sharing how you net improved? Not looking for your numbers, in percentages is fine. I keep looking at these unlimited clubs clubs and the simple math looks challenging. I continue to be intimidated by the idea.
Competing With Express Tunnel Wash
- Thread starter carstawash
- Start date
soonermajic
Well-known member
If you washed 80cpd before & no memberships, avg ticket of $13 + $390.000
If you wash 170 cpd now & avg ticket price is $8 + + $480,000
But you may very well make less money when you factor in Cost of Dencars, wear & tear, double chemical, electric, CC fees, labor, water etc cost
If you wash 170 cpd now & avg ticket price is $8 + + $480,000
But you may very well make less money when you factor in Cost of Dencars, wear & tear, double chemical, electric, CC fees, labor, water etc cost
Your average ticket assumptions are off. Unless the monthly pass is set up poorly, you should not drop from $13/ car to $8. $10 or $11 would be more realistic and now your annual revenue is $600-670k. That should leave a nice profit after covering the additional expense.
soonermajic
Well-known member
No, mine are not "off", & your's are not either. They are just assumptions. Either of our assumptions cpuld be correct.
Here is why I am assuming $10-$11.
The inputs include percentage of members, price of monthly pass, and washes per member. I think 40-70% member washes is realistic. Monthly pass price averaging $30, and 3 to 3.5 washes per month per member.
70% members, $30 per month, 3.5 washes per member =594,000 OR 60% members, $30 per month and 3 washes per member = 672,000
One thing to add, this scenario makes it look like is it more profitable to have less members. That is because we are assuming identical volumes. In the real world, more members = higher volume so it would be highly unlikely the the same site could wash the exact same number of cars with or without members.
In my opinion, the key to a monthly pass is limiting it to one vehicle. Most (maybe all) of the operators that are unhappy with their monthly pass at an inbay, are using a system that cannot prevent multiple vehicles from using 1 pass.
ShinePro
Well-known member
Somewhere in this menagerie of topics I talked about demographics and economy. (but I cant remember where)
Some IBA’s are going to do this and be very successful. Some most definitely will not.
Big towns/lots of traffic- go for it
Small towns/ same old Customers all living 5 minutes from your wash/ buyer beware!
I think it all comes down to location and demo’s
For my two small town washes
I just dont see it working!
Time will tell
Some IBA’s are going to do this and be very successful. Some most definitely will not.
Big towns/lots of traffic- go for it
Small towns/ same old Customers all living 5 minutes from your wash/ buyer beware!
I think it all comes down to location and demo’s
For my two small town washes
I just dont see it working!
Time will tell
Greg Pack
Wash Weenie
I thought about trying membership with the coinless app. Initial thought is now $29/month for $50 credit. My pricing is 8,12,&16 on my friction unit. That pricing would allow 6- $8,, 4-$12, or 3-$16 washes per month or combination of the washes. Due to the nature of the app the customer would be able to wash multiple cars on one account so unlimited would be asking for trouble. I think clubs lose a lot of the marketing pizzazz when you restrict washing though. I believe coinless said you can either have wash points expire at the end of the Month or let them roll over. I first thought about letting them roll over but now thinking more about having them expire at the end of the month. Having points roll over might help retention though because few would want to throw away a bunch of points by cancelling the program. Not sure how well it would be received but I guess it really doesn't cost anything to try as I'm getting the software more for loyalty program anyway. Any thoughts folks?
soonermajic
Well-known member
Still very curious about CarWashGuys real #'s.
soapy
Senior Member
My town demographics are 70,000 people with 8 new express tunnels all less than 10 years old. I did not try to put in a mini tunnel and try to compete. I did try a monthly pass program using my wash card system and did not get enough users with it justify keeping it. I stayed all touchless and offered a option from all the friction tunnels and kept about half of my automatic wash business. I concentrated on keeping the SS side of things always working and putting on a good chemical show. My SS wash business has grown over the last 10 years. I offer a free vac or $1 off next wash token with the automatic washes. That has helped me against the tunnels but they still will take business IMO.
ShinePro
Well-known member
Thank you for that info!
That is one of the more useful informative comments so far.
I have a tunnel .6 mile away on the other side of town. It was a rundown dump and I mean dump. A year ago they sold it and the new owners spent $1.3 million on refurbishing it, new everything. They installed 16 free vacuum drops, they are offering a $9.99 monthly wash package. It’s been 4 months since they’ve reopened. So far my vacuum business is down 60% and my bay wash business is down 40%, I’m glad I don’t have a mortgage or I’d really be in trouble. Then to make matters more interesting I’ve found out that they are going to build another express tunnel almost directly across the street from me. So the pie just keeps getting smaller and smaller.
Car_Wash_Guy
Well-known member
Wow that’s about the worst. Sorry you’re dealing with that. What’s your plan?
traveler17
Well-known member
Randy , do you not have an IBA?
DakotaHoskins
Active member
I’m seriously thinking about going 100% free vacs to compete with the tunnels. I think increased wash volume would offset lost revenue. We have got to eliminate reasons for them to go to the tunnels over us ss IBA guys.
I have also had several customers ask about the mat machines. Is anyone using one of those ?
I have also had several customers ask about the mat machines. Is anyone using one of those ?
GoBuckeyes
Self-Serve and Automatics
When I first opened, I had cars constantly pulling in, filling the garbage cans, and expecting to use the vacuums for free. When they realized the vacs weren't free, they'd drive off. Now that they know the vacs aren't free, they don't come in and dump their trash. I'd never do free vacs. I had some complaining from actual customers about it at first but, that went away pretty quickly and revenue from the vacs is increasing weekly.
Greg Pack
Wash Weenie
Ive got the free JKO big brusher. Customers like it and it's relatively trouble free. Many of the local tunnels are using the rhino mat washer. Neat but you have to have a water source.
ShinePro
Well-known member
Yes
15% of the total purchases were purchased on the app
Spent 2 hours on phone today with other app users trying to game plan increasing usage
The 45% increase- well we started fine tuning soap and other products
Spent days testing different applications
Added Ceramic
Quit worrying about speed
Started putting out an A +++ car
And let the word of mouth run
ShinePro
Well-known member
I ll be more specific
Got on the computer the other night and went digging for info
Of the nearly 1000 app users/downloads
Only 10% have either opened it or bought a wash this month
20% since june 1
40% since feb 1
I know some of the 30-40%
We drink
occasionally.
They have washed in the last 2 weeks
I ve seen them there
But not using the app
That is why I have stated on here that folks are having app fatigue.
The older the customer the sooner it sets in
Got on the computer the other night and went digging for info
Of the nearly 1000 app users/downloads
Only 10% have either opened it or bought a wash this month
20% since june 1
40% since feb 1
I know some of the 30-40%
We drink
occasionally. They have washed in the last 2 weeks
I ve seen them there
But not using the app
That is why I have stated on here that folks are having app fatigue.
The older the customer the sooner it sets in
ShinePro
Well-known member
