FLEX-SERVE paradigm recommends VENDING

[Uncle Sam]

This is a copy of a post made by Steve Okun under Conveyorized & Express Washes on 8-4-2010. I hope Steve won't mind if I use it now; it is still good advice and applicable today.

Uncle Sam

*****
With the rush for some exterior washes to offer FREE vacuums, how many also offer profitable vending items to their captive audience?

Vacuuming activities, free or paid, prompt consumers to appreciate the convenience of vended consumables and supplies. However, most locations needlessly overlook the obvious revenues generated by consumers who are thirsty, hungry and in need of other stuff that can be purchased with the simple swipe of a card or acceptable paper money. The bigger and more diversified the vended offerings, the more revenue generated. Why send customers elsewhere for revenues that will easily fall in your lap?

And this reminder especially targets EXPRESS EXTERIORS that generate significant numbers of customers who use their FREE vacuum area and are more prone to offsetting their bargain vacuuming experience with a beverage or snack... and maybe a packaged detail towel or wet-nap.

WAKE UP and read my lips: CAPTIVE AUDIENCE!!!

Once again, even more $$$$ needlessly left on-the-table. WHY?!!!


-Steve
__________________
Steve Okun
S.M.OKUN & ASSOCIATES

 

[mac]

Good question. I talked to someone I considered very knowledgeable with this form of washing, and he was against it. His thinking was why pay someone to stock machines and collect money, when your goal is to get them in, wash, and get them out. Less labor, hassle, and trash. Kind of made sense. I would guess it depends on the location.

 

[robert roman]

“Once again, even more $$$$ needlessly left on-the-table. WHY?!!!”

It’s called the “Freemium” model - change a product in creative way such as adding new functional features to make the product more appealing.

So, ancillary product like vacuum is offered free but money is first charged for exterior wash (features and functionality).

This strategy can be used to build a consumer base when marginal cost of producing extra units is low.

Another tactic some OEM’s and consultants are suggesting is to sweeten the pot even further by offering customers free prep area and wiping towels and window cleaner. In other words, increase cost of goods rather than lower price.

Apparently, a lot of folks believe carwash is an elastic good.

 

[Uncle Sam]

Mac,

I don't want to start an argument about vending, but I would like to point out some inconsistencies in your knowledgeable friend. There would no extra labor since the attendents already there would do the servicing of the vendor. The customers are already vacuuming their cars and can take as much time as they want. They may even do some detailing of their car before or after washing, so you are not going to move people through any faster than they want to go. The detailing may offer the opportunity to vend something to them; that produces revenue that is being passed up without a vendor. There may e a little more trash since people miss the trash can, but the added revenue may be well worth the effort. The goal of the wash is to provide a good experience to the car wash customer.

Uncle Sam

 

[mac]

This is one of the things I find interesting in business. You can talk to three different operators, and get at least four different opinions. What works for some, just doesn't for others, and vice versa.

 

[robert roman]

“The goal of the wash (express exterior) is to provide a good experience to the car wash customer.”

The goal is to maximize profits. This achieved with no-waiting, stay-in-car, 4-minutes, high quality, low price and free vacuums (freemium).

“The customers are already vacuuming their cars and can take as much time as they want.“

This may be true theoretically. However, in practice, taking as much time as customers want is discouraged in many cases.

Evidence is express design objective – maximize cars.

Guideline for express vacuum is 20 percent tunnel. So, 100’ would be built with at least 20 vacuum spaces. 10 minutes/space equals 6 cars/hour times 20 spaces equals 120 cars/hour. 100 percent demand is covered with design.

At the start and finish line of a full-service, work stations are vertically-oriented and 14’ wide. It is suggested production cell in flex-serve is at least 18’ wide. Most detail shop bays measure 15’ wide. However, vacuum spaces at most express are oriented diagonally and usually 10’ to 11’ wide.

Airline firms don’t want customers to relieve themselves on the passenger compartment floor, but the size of the bathroom certainly indicates how far a company is willing to go to compromise customer experience for profit margin.

In airlines case, experience shows the convenience of flying outweighs the inconvenience of tiny, difficult to use bathrooms.

“The detailing may offer the opportunity to vend something.....”

If the wash is designed properly, this would be true because marginal rate would not be affected. Otherwise, it might. For example, what happen at 100’ tunnel washing 80 cars/hour that has only 10 vacuum spaces?

Vending at most express wash fits like round peg in square hole. Now, pundits recommend offering even more for free stuff.

If you would like to collaborate, I believe there are ways to level this uphill climb.