How does a $3 Start sound? Too Much?
- Thread starter blurdgman
- Start date
I use only token also but I still accept quarters. I am $1 to start for 2min 45sec. I really want to goto a $2 startup but I am worried my customers may rebel. A $1 startup makes everything so easy but I do get a lot of bucket washers.
I don't know where you live but a $3 startup sounds high unless you have grace timers. I live in SC and a $3 startup would be impossible.
I am building a new wash and I am considering a $2 startup for 5 1/2 mins with a $1 restart feature. What do you think I should do?
I don't know where you live but a $3 startup sounds high unless you have grace timers. I live in SC and a $3 startup would be impossible.
I am building a new wash and I am considering a $2 startup for 5 1/2 mins with a $1 restart feature. What do you think I should do?
Brett:
Only you can set your rate, however your startup should be $2 so that you can eliminate most of the bucket washers. I can't imagine having a bay tied up without your meter running while there 's a line waiting to wash on a busy day.
The users of my Washgear credit card terminals average around $4.60 and that includes maybe 10% who pay anywhere between the $2 and $3 with their card. I had someone pay $12.29 yesterday.
BluRdgMan
Blurdgman, I?d go to $3 for 4 minutes and not look back.
Brett, I've been at $2 for 4 minutes for years and I'm going to raise the price to $3 for 4 minutes soon. The problem with most car washes is their services are under valued.
Brett, I've been at $2 for 4 minutes for years and I'm going to raise the price to $3 for 4 minutes soon. The problem with most car washes is their services are under valued.
$3 for 4 minutes!!!????
How do you guys get any customers? I'm currently at $1 for 4 minutes. I really, really want to raise the price, but the old owner tried three years ago to raise the prices by a quarter and saw about a 25% decrease in sales for 1 year. He went $1.25 for 4 minutes.
Perhaps the $0.3125 cost per minute was too confusing, but I'm not too thrilled about trying it again. Thought about $1.50 for 6 minutes.... Still 25 cents/min, but I should squeeze a little more out of the weekly rinsers and bucket washers.
How do you guys get any customers? I'm currently at $1 for 4 minutes. I really, really want to raise the price, but the old owner tried three years ago to raise the prices by a quarter and saw about a 25% decrease in sales for 1 year. He went $1.25 for 4 minutes.
Perhaps the $0.3125 cost per minute was too confusing, but I'm not too thrilled about trying it again. Thought about $1.50 for 6 minutes.... Still 25 cents/min, but I should squeeze a little more out of the weekly rinsers and bucket washers.
coincarwash.ca
Washin cars in the GTA
We are at $3.00 for 4 minutes at one of our washes and $2.00 for just shy of 3 minutes at our other location. One is newer with all the bells and whistles. Both do good numbers.
MEP001
Well-known member
Wash-A-Roo
Living off .25$
instead of raising the price.....just lower the time. Say its 1.00 for 4minutes. Change it to 1.00 for 3minutes.
stef
Hi guys, I have a self serve in Warren, MI. I bought it as a fixer upper, it is now an excellent wash with great quality, but I?m losing thousands each month despite having grown a great customer base. I was charging $1.25 for 4min. and went to $1.50 for 4min. I actually saw an increase in business and more customers, but I still realize that I need to charge twice this amount to make money. I congratulate blurdgman for stepping up to the plate, he has the right idea, $3.00 for 5min. is great!! This is EXACTLY what this industry needs or we WILL go out of business!! It is important that we all work together because it is hard to charge what?s appropriate when the guy down the street is giving out free car washes!! A technician at Kim Supply told me that this industry is going to crash like the stock market did in 2000, and hopefully result in a correction. I know many owners in my area that are selling their washes because they are going bankrupt, yet they are refusing to raise prices??? What the hell is wrong with this picture??? I am ordering bill acceptors for each bay and 1 credit card acceptor for bay 1. When these are all installed my start up price will be either $2.00 for 4 min. or $3.00 for 6 min. I think this would be a good place to start.
wash-a-roo, lowering the time has never been a good business technique. People want time, which is an aspect of quality, and we have to give the customers quality. In fact we should all have displays to show the time so customers gain confidence and trust in the car wash. The trouble is that people are not accustomed to paying the appropriate price because everyone is deathly afraid to raise price?s. It?s time customers become accustomed to paying more!!
Jony82, you too have to raise price?s too, $1.00 for 4min. is what?s killing this industry. You are losing your ass, trust me I know!!
coincarwash.ca, I congratulate you, you are an idol for this industry, as soon as people begin following your lead this industry can return to profitability.
Hi guys, I have a self serve in Warren, MI. I bought it as a fixer upper, it is now an excellent wash with great quality, but I?m losing thousands each month despite having grown a great customer base. I was charging $1.25 for 4min. and went to $1.50 for 4min. I actually saw an increase in business and more customers, but I still realize that I need to charge twice this amount to make money. I congratulate blurdgman for stepping up to the plate, he has the right idea, $3.00 for 5min. is great!! This is EXACTLY what this industry needs or we WILL go out of business!! It is important that we all work together because it is hard to charge what?s appropriate when the guy down the street is giving out free car washes!! A technician at Kim Supply told me that this industry is going to crash like the stock market did in 2000, and hopefully result in a correction. I know many owners in my area that are selling their washes because they are going bankrupt, yet they are refusing to raise prices??? What the hell is wrong with this picture??? I am ordering bill acceptors for each bay and 1 credit card acceptor for bay 1. When these are all installed my start up price will be either $2.00 for 4 min. or $3.00 for 6 min. I think this would be a good place to start.
wash-a-roo, lowering the time has never been a good business technique. People want time, which is an aspect of quality, and we have to give the customers quality. In fact we should all have displays to show the time so customers gain confidence and trust in the car wash. The trouble is that people are not accustomed to paying the appropriate price because everyone is deathly afraid to raise price?s. It?s time customers become accustomed to paying more!!
Jony82, you too have to raise price?s too, $1.00 for 4min. is what?s killing this industry. You are losing your ass, trust me I know!!
coincarwash.ca, I congratulate you, you are an idol for this industry, as soon as people begin following your lead this industry can return to profitability.
Ben's Car Wash
Conveyor & self service
Stef,
I mostly agree with your assesment. This is like a reverse price war, everyones holding out going up on prices.... mean while back at the ranch a $3 EE wash builds 3 blocks down the street and takes 40% of your business while sealing their own fate in a long slow painful death! there is something fately wrong with this picture and no one seems to want to correct it!
Business in this industry is off (hell business in the US is off) by 30-40% in the past 2 years and not getting better. Yes it's in pockets, but when in another area of the ACF I read that in TN a whole chain is selling all of it's washes... it's troublesome.
The question is: Can a $3 start up work for a SS? IMO...not if you have an EE within 10 miles that offers a $3-$5 wash. Hell I just started a $3 wash promo (5 for $15 pre-paid) at my tunnel smack next to my SS so there is almost no chance of me getting a $3 start up (I'm at $2 for 5 min.). I'd definately be at $2 and put in CC readers. I'm still pulling in over $6 per CC transaction and $3.50 per cash.
Question here in economics is, are we in a recesion or are we heading into one and how long will it last? And how will this effect the car wash industry? I think we have seen this already in some areas.... just ask JimC in Ohio.
I mostly agree with your assesment. This is like a reverse price war, everyones holding out going up on prices.... mean while back at the ranch a $3 EE wash builds 3 blocks down the street and takes 40% of your business while sealing their own fate in a long slow painful death! there is something fately wrong with this picture and no one seems to want to correct it!
Business in this industry is off (hell business in the US is off) by 30-40% in the past 2 years and not getting better. Yes it's in pockets, but when in another area of the ACF I read that in TN a whole chain is selling all of it's washes... it's troublesome.
The question is: Can a $3 start up work for a SS? IMO...not if you have an EE within 10 miles that offers a $3-$5 wash. Hell I just started a $3 wash promo (5 for $15 pre-paid) at my tunnel smack next to my SS so there is almost no chance of me getting a $3 start up (I'm at $2 for 5 min.). I'd definately be at $2 and put in CC readers. I'm still pulling in over $6 per CC transaction and $3.50 per cash.
Question here in economics is, are we in a recesion or are we heading into one and how long will it last? And how will this effect the car wash industry? I think we have seen this already in some areas.... just ask JimC in Ohio.
pitzerwm
Active member
Doug, your throwing in a few totally bogus "facts" in a post serve only to question the whole post. If you watch the financial channel you would know that the S&P 500 profits have not been off for the last years. Business in this industry is off (hell business in the US is off) by 30-40% in the past 2 years and not getting better. And the business in this industry hasn't been off 30-40%. You are the one that started the post and for some its been off some but for many its been ok until this last quarter. Including you, your business is up until recently.
MEP001
Well-known member
Did you ever happen to confirm this by either counting the cars manually like you said you do or by polling your customers, or is this based solely on the start-ups reported by your timers?Ben's Car Wash said:
Ben's Car Wash
Conveyor & self service
Bill,
Look at SS car washes as a trend over 6 years now. In SS surveys 4 of 5 years a majority (I beleive I recall this correctly) were trending DOWN! Now I have only owned a SS for 7 months, so I haven't followed the SS area very closely... but I think I am correct. Check with the others here. The SS market has been OVER BUILT NOW FOR SEVERAL YEARS. The EE market has begun to fall apart (at least the $3 concept) in most regions. And the FS market is struggling to keep up with labor cost and rising chemical/ land/ insurance/ taxes/ regulation.
Bill.... I run 2 car washes actively, not sit my a$$ down and analyze markets.... I see my bank account and the dollars that pass or don't pass my hand!
What has been BOGUS is how this economy has been managed (or mismanaged) into debt, low interest rates to bail out the banks for making bad loans (watch out next few weeks for a .5% cut) and money constantly borrowed to float our debt! No businessman could get away with running a company like this Nation. It's bad all around.
The poster is right to raise the price to a "fair price" and to make a decent profit. He can't exist on a NEGITIVE MARGIN... neither can this NATION.... it's a farce. The stock market is floating on false info (again) which keeps it over inflated.
If your interested.... watch this clip from a few days ago of the Republican debate on FOX. http://youtube.com/watch?v=QKjhNa6PGLk
Look at SS car washes as a trend over 6 years now. In SS surveys 4 of 5 years a majority (I beleive I recall this correctly) were trending DOWN! Now I have only owned a SS for 7 months, so I haven't followed the SS area very closely... but I think I am correct. Check with the others here. The SS market has been OVER BUILT NOW FOR SEVERAL YEARS. The EE market has begun to fall apart (at least the $3 concept) in most regions. And the FS market is struggling to keep up with labor cost and rising chemical/ land/ insurance/ taxes/ regulation.
Bill.... I run 2 car washes actively, not sit my a$$ down and analyze markets.... I see my bank account and the dollars that pass or don't pass my hand!
What has been BOGUS is how this economy has been managed (or mismanaged) into debt, low interest rates to bail out the banks for making bad loans (watch out next few weeks for a .5% cut) and money constantly borrowed to float our debt! No businessman could get away with running a company like this Nation. It's bad all around.
The poster is right to raise the price to a "fair price" and to make a decent profit. He can't exist on a NEGITIVE MARGIN... neither can this NATION.... it's a farce. The stock market is floating on false info (again) which keeps it over inflated.
If your interested.... watch this clip from a few days ago of the Republican debate on FOX. http://youtube.com/watch?v=QKjhNa6PGLk
Baywash
Mike
I recently raised my SS $1 for 3min 20sec to $1 for 2 min and vacuums from $.75 to $1 for 4 min. Since raising the price 3 months ago, I have recieved no neg. feedback.
I took the idea from this forum to provide complimentary drying towels and it has been a huge success. People are spending more time on the lot, therefore spending more on vacuums and vending.....and leaving with cleaner cars.
I took the idea from this forum to provide complimentary drying towels and it has been a huge success. People are spending more time on the lot, therefore spending more on vacuums and vending.....and leaving with cleaner cars.
3 dollar startup here in the Dallas Fort Worth area would be Financial Suicide, I think !!!
MEP001
Well-known member
In order to benefit from such a high start-up price, you'd have to offer something to make it attractive. Some are giving "unlimited time" or double time for $3 or $4 deposited.DavidMD5 said:
pitzerwm
Active member
You should always raise your prices to continue to make a profit, running in the red, will never work. Ben, you are not remembering right, for everyone that was down in the last few years, there were as many or more up. As for the mismanagement of the economy, having lived through many Presidents and Fed Chairmans, since you have no control, and screaming that the sky is falling doesn't work, its your responsibility to figure it out and survive, whatever happens in your area. Sometimes, you get out and do something else, sometimes its just, don't have all your eggs in one basket. BUT one thing that I know doesn't work is running around blaming everyone else for your problems. What amuses me is that by your own admission, you are doing as well or better than in the past and yet you are crying that the end of the world is near. The only problem with sitting on my a$$ and making $150K a year is boredom, so I just started an International web design & development company, so when you are ready for a killer web site really cheap, I can take care of that. These smart kids will still work for $15 an hour. And actually work.
I used to be priced at $1.50 for 4 minutes at all locations. I dropped the price to $1 for 2.5 minutes about 4 years ago. I had 2 competitors open up at $1.25 for 3 min 20 seconds right before I did this. I also added bill acceptors at most locations about this time and I dispense dollar tokens and or dollar coins at most locations. The dollar startup really cut down on the people who put in a dollar or dollar token and could not understand why the time didnt start. My revenue has grown but at a very slow rate. 3 months ago I raised one location(no competition within 15 miles @ this location) to $2 for 5 minutes instead of $1 for 2.5 minutes. The weather has been bad ever since so I don't have a good feel for what impact it has had on revenue. I will have a harder time raising the price at other sites because of competition but if I see significant growth in the test site I may bite the bullet and give it a try. I also give 5 free minutes when a customer deposits $5. I get a lot of fives in the bill acceptors.
My other businesses have done very well the last 3 years but car wash revenue has been flat and carwash expenses have risen much faster than revenue. I reinvested every penny the washes cashflowed last year upgrading equipment. I replaced 2 old automatics with 2 new ones, put several washgear systems in, put extrutech on the walls at 5 locations, upgraded vending, some new vacs, new coin boxes with bill acceptors, and the list goes on. Hopefully I will see a positive impact on revenue the next couple of years. I hope that light at the end of the tunnel is not a freight train headed my way.
Doug P.
My other businesses have done very well the last 3 years but car wash revenue has been flat and carwash expenses have risen much faster than revenue. I reinvested every penny the washes cashflowed last year upgrading equipment. I replaced 2 old automatics with 2 new ones, put several washgear systems in, put extrutech on the walls at 5 locations, upgraded vending, some new vacs, new coin boxes with bill acceptors, and the list goes on. Hopefully I will see a positive impact on revenue the next couple of years. I hope that light at the end of the tunnel is not a freight train headed my way.
Doug P.
Ben's Car Wash
Conveyor & self service
No Bill, I'm fairly sure I remember correclty the stats from over the past 5-6 years of reading the SS surveys in both PCW&D magazine and Auto Laundry News on SS revenues. They were trending DOWN. As an industry the SS market has lost market share and revenues has been dropping, not gaining, but I will wait for some one here to post the actual stats on that. Full Service washes have had small gains, EE were having gains but in the past 1-2 years have saturated the market place and have slowed.
So tell me why then Bill Ben Berneke had a closed door meeting today with top members of Congress?
