for those people who are complaining about income, HAPPY NEW YEAR

[cmawash]

we have had the same price for about 5 years in multiple locations and plan to stay this way as we watch out competitors increase prices , we are about a penny a second, during the past five years ,we have not increased prices for time vs coin deposited , Business has doubled, lots of new customers all generations, and complements on how well the equipment works.

The reason is a very heavy investment in new equipment, paving,painting, lighting improvement, vending, chemical up grades & changes to the way we do business, new maintenance and cleaning schedules, vacuums both combos and regular vacs and new pad locations, bill changers, coin meters/pads/vaults, timers displays. we even reworked the planters with new plants

Compared to 5 years ago its hard to recognize the car washes today, we even reworked the planters with new plants.

 

[JustClean]

That sounds good! I hope in another 5 years time you still have some money left to keep up the good standard or to invest

 

[Waxman]

It's up to each operator how to price the services they offer. It sounds like your wash is a leader in the market but you are priced below your lower level competitors.

If this is true, you are leaving money on the table. You don't need to justify it to the ACF members, only to yourself.

I am in business to make money. My business has seen expenses rise and therefore I raise prices of car wash, detailing and used cars. I am higher priced than my competitors because my wash is better. My wash is better because I work hard to fix what is broken and consistently strive to improve my business ( drill and connect artesian water well, add used car sales, paint car wash, purchase multi-family apartment building). I do these things with money. No shame in nice high prices that reflect value and quality. That is business.

 

[chaz]

Exactly. You keep the place updated and all working and nice, you deserve to make money. Your customers (mine at least) appreciate a nice high end facility. Stuff works, problems fixed quickly etc. my customers aren't idiots, they understand nice things cost more and prices have gone up over the years, in everything hing except I guess your wash. Yep, if want to leave $ on the table, I guess that is your business!

 

[Whale of a Wash]

Try it in a climate that isn't tropical. I gave up emptying garbage at the wash today as it was -10 with a 35 mph wind.
wishing I could sit in a lawn chair next to the wash in January and enjoy the weather like in California.

 

[cmawash]

the first thought in many peoples minds is make more money by raising the start price, marketing 101 teaches that there are other ways to make money, next time your in the grocery store; marketing 101 is practiced there. We are encircled by gas stations with automatic washes with start prices near coin op prices. there is a very large and brand new automatic with start prices @ $5.00 with free all you want vacuums. We complete with the big boys ( like cosco), if you don't update and change, then die a slow death and you can complain all you want on the way down, in the mean time we rake in the profits. love the thought that we are leaving money on the table, not really.

 

[chaz]

You've already said you have invested in updates and are the best around. That puts you above the gas stations I would think that at least around here are not kept in tip top shape. We don't have costco car wash here, but even so I'd think you are at a different level ?! But hey whatever works for you.

 

[washnvac]

Here is a wrinkle-- I have been the same start price for 10 years. That is $5.00 for up to 30 minutes bay time. Price is per car--double magnetic floor loops installed.

2014 was best year gross and net at my five washes.

 

[chaz]

$5.00 up to 30 minutes. That's an interesting concept and sounds like it works for you. What's the average time spent per car? After ten years I'd imagine your expenses have increased quite a bit. If you were say $6.00 even $7.00 (assuming a price increase at say year 5 and 10) I'd imagine your customers would have not seen that as unreasonable, just think how much better your year end could be moving forward.

 

[washnvac]

Avg. time per car is 15 minutes Spring to Fall. Cold Winter days 8-10 minutes. Decent day after snowfall about 18-21 minutes. Yes, ofcourse expenses have gone up. When I started, my chemical cost per car was 48 cents. It is now 69 cents.

It is about the experience to me. A customer can take their time and wash it right without hearing a beeping meter. If they leave dirty, it is their own fault. Before I switched, people would leave with a half brushed car, or soap dripping everywhere. Then there are the dry brushers, and the weep washers.

It works for me because I have done it so long, and it keeps customers loyal. And the regulars wash more frequently, because they realize they are getting such a good deal. I have definitely thought about raising the price at times, but we have ran a tight ship, and the margins are just fine where we are. The thought process also includes trying to keep lines at the s/s so maybe a few of those will come in an auto bay for an $11 wash. (which does happen quite a bit)

 

[Waxman]

the first thought in many peoples minds is make more money by raising the start price, marketing 101 teaches that there are other ways to make money, next time your in the grocery store; marketing 101 is practiced there. We are encircled by gas stations with automatic washes with start prices near coin op prices. there is a very large and brand new automatic with start prices @ $5.00 with free all you want vacuums. We complete with the big boys ( like cosco), if you don't update and change, then die a slow death and you can complain all you want on the way down, in the mean time we rake in the profits. love the thought that we are leaving money on the table, not really.

why would i want to cue off grocery stores??? they have some of the thinnest profit margins in any business!!!!!!!!!!!! pricing is different from marketing but you seem to think they are the same. not so. in business, things should match. marketing materials should be same quality as the building/lot/signs/equipment. it's something i work at consistently. pricing is separate from marketing but should also match. why not make your pricing more closely match your high quality car wash? yes you are leaving money on the table if what you say is true. the only way to know is to try a different price structure and then you will find out. what do i get if i'm right?

 

[cleaning up mud]

The way the prices of water and sewer have increased along with property taxes, I don't know how you cannot raise prices soon or a later.

 

[Robert2181]

What ever works the best for your area and makes a good Profit. Let the competition worry about you.

 

[WikiWash]

It's up to each operator how to price the services they offer. It sounds like your wash is a leader in the market but you are priced below your lower level competitors.

If this is true, you are leaving money on the table. You don't need to justify it to the ACF members, only to yourself.

I am in business to make money. My business has seen expenses rise and therefore I raise prices of car wash, detailing and used cars. I am higher priced than my competitors because my wash is better. My wash is better because I work hard to fix what is broken and consistently strive to improve my business ( drill and connect artesian water well, add used car sales, paint car wash, purchase multi-family apartment building). I do these things with money. No shame in nice high prices that reflect value and quality. That is business.

Agree!!!!!

 

[cantbreak80]

My favorite reply when the discussion turns to pricing and price increases:

"I'm not in business for the fellowship."

 

[rph9168]

My favorite response when someone says the other guy is cheaper is that maybe that's all his wash is worth.

 

[robert roman]

“Business has doubled, lots of new customers all generations, and complements on how well the equipment works. The reason is a very heavy investment in new equipment….”

I believe the principal reason is because you are located in Pleasant Valley which has a population of over 3,500 people per square mile and an economy.

I sincerely doubt you could make that claim where I’m located.

 

[robert roman]

‘Here is a wrinkle-- I have been the same start price for 10 years. That is $5.00 for up to 30 minutes bay time. Price is per car….”

“Avg. time per car is 15 minutes….8-10 minutes….18-21 minutes.”

This is good example of repositioning business.

Why does it work? One reason is population tends to be normally distributed.

Central tendency for self-serve is average sales $5.85. So, at one extreme, maybe 5.0 percent or less of customers will spend upwards of $10 to $12. At the other extreme is start-up price, say, $2.00.

Here, $2.00 is 4-min, $5.85 is about 8-min and $10 to $12 is, say, 20 minutes.

According to my model (benchmark), a $5.00 price and the value-added should lead to about a 6 percent increase in sales volume. Yes, per unit cost would be higher but not so much so and profits increase.

On the other hand, I find most self-service (profitable ones) can sustain a price increase of about 20 percent without affecting profit negatively.