IBA Membership experience data

[Rainway]

Hi,

I've been talking to Petit about beginning to replace our aging WW2 IBA's to modernize, monitor remotely and potentially implement a monthly membership program.

Petit informed me that although they don't favor a particular pay station that Dencar stations have great membership-selling features. More importantly they address my largest concern of customers sharing app logins by having license plate recognition (assuming not using an RFID sticker). I'd get reports of exceptions where license plate doesn't match authorized membership vehicle plate and I could choose a template to send customer with photo of unauthorized vehicle and ask if they want to resolve by 1) paying for an additional single wash or 2) upgrade to a multi vehicle plan.

For this post I'm asking if people have hard data to know first hand experience what I might expect in terms of how many washes/month memberships do (understand some seasonality and weather contingent0. Do people drop memberships and sign back up?

Also what has been your strategy for pricing memberships (e.g. 3x or 4x a single wash price & what to charge for additional vehicles) or a table of your single wash pricing to monthly single vehicle membership pricing?

Thanks!

 

[Wash4Life]

Hi,

I've been talking to Petit about beginning to replace our aging WW2 IBA's to modernize, monitor remotely and potentially implement a monthly membership program.

Petit informed me that although they don't favor a particular pay station that Dencar stations have great membership-selling features. More importantly they address my largest concern of customers sharing app logins by having license plate recognition (assuming not using an RFID sticker). I'd get reports of exceptions where license plate doesn't match authorized membership vehicle plate and I could choose a template to send customer with photo of unauthorized vehicle and ask if they want to resolve by 1) paying for an additional single wash or 2) upgrade to a multi vehicle plan.

For this post I'm asking if people have hard data to know first hand experience what I might expect in terms of how many washes/month memberships do (understand some seasonality and weather contingent0. Do people drop memberships and sign back up?

Also what has been your strategy for pricing memberships (e.g. 3x or 4x a single wash price & what to charge for additional vehicles) or a table of your single wash pricing to monthly single vehicle membership pricing?

Thanks!

We have touch-free IBAs, and I would say we have an average of four washes per month per customer. In comparison, we have a friction tunnel where the average is two.

I find that people do drop memberships and sign back up. Overall, I'd say the biggest reason someone leaves permanently is because they moved away.

Our pricing strategy is 3X for the IBAs, 2X for the tunnel. We give a $6 discount for the second vehicle for the IBAS and $10 for each additional vehicle. We do not give a second vehicle discount for the tunnel.

 

[Car_Wash_Guy]

One of my sites is a dual Petit with Dencar. Did the install/upgrade about a year and a half ago.

Right now I believe I'm sitting at just slightly over 2 1/2 washes per month per member across-the-board. I priced my wash packages at roughly 2.2 X the price of the single wash.

For sure the memberships ebb and flow usually you'll get some people dropping at least in my case towards the end of the summer and then about now it starts really ramping up and taking off.

I would say overall my experience with the transition has been exceptional. It really transformed my site from slightly above average to almost phenomenal for an IBA/ self-service site.

The Petit machines are incredible. In the almost 2 years I've owned it. The only thing I've changed has been a few rubber diaphragms for the chemical solenoids. The Dencar units have been great. Incredible company to work with and their customer service on point.

 

[HeyVern]

Most people wash 3 to 4 times a month, some will use all of their washes every month, some only use one a month. I have one who has three cars on his pass and only washes one car once a month. Dencar makes it easy to control the abusers, after the first couple of months, people figured out they weren't going to cheat the system and few try anymore.

 

[Keno]

We've been looking at the dencar system for the memberships, but were kind of swayed away by the upfront cost we have heard thrown around. Those who have done dencar for memberships, would you do it again if you had to re-spend your $ on the system? Any on-going costs associated besides the CC fees? Anyone care to share their actual costs to get dencar up and going and keep it going?

 

[AnalyticWash]

I think what many people do not understand about memberships is the customer support requirements that go with it. Its more than just buying hardware and being done with it.

If you have never operated a car wash with decent customer support you are going to be in for a serious reality check.

Keep in mind these are technology based solutions (no matter what company you go with). If you can barely work a keyboard and mouse (or smartphone) this is going to be a challenge to make work at your car wash.

 

[HeyVern]

I think what many people do not understand about memberships is the customer support requirements that go with it. Its more than just buying hardware and being done with it.

If you have never operated a car wash with decent customer support you are going to be in for a serious reality check.

Keep in mind these are technology based solutions (no matter what company you go with). If you can barely work a keyboard and mouse (or smartphone) this is going to be a challenge to make work at your car wash.

Very true, Denver's system is a challenge for anyone who isn't tech savvy. Most of the issues I've had with the system is helping customers get the app set up, I've had a few that just can not follow simple instructions. The biggest issue is with older people who either don't have smart phones, or just don't like using them. I've found some simple work arounds for this but, it takes time to get them set up. I always watch the line for older people coming through because they normally need help at the playstation just to buy a wash. I have several of them trained to find me when they pull in so I can come help them.

 

[Keno]

The customer service is something I hadn't thought of. We got into SS washes for the low employee and customer service requirements, coming from retail, we had enough with both aspects. We are usually at our washes for an hour or so a day, unless there is some repair work to do. And we are trying to get a cleanup person at each site, so we would be there even less once we get one at each site.

I like the idea of higher usage of the IBA and making the stable income of memberships, but would have to consider the added management of that whole system.

 

[edcrawfordlv]

One of your advantages over the large EE tunnels is likely that you are open 24 hours. Uber, Lyft, and Turo customers frequently need after hours washes, depending on your community of course. So while those guys might be heavier users of a membership (lots of washes/month), you might find that they are washing when you normally would be dead anyway.

 

[Keno]

One of your advantages over the large EE tunnels is likely that you are open 24 hours. Uber, Lyft, and Turo customers frequently need after hours washes, depending on your community of course. So while those guys might be heavier users of a membership (lots of washes/month), you might find that they are washing when you normally would be dead anyway.

At that point are you even making money anymore? Or just using cycles on your IBA? And possibly losing money with the heavy use members?

 

[HeyVern]

I look at my sales on a busy day and see 50 pass uses and 50 paid washes and think, wow that would've a really good day if all of those washes were being paid for. Then I look at my sales on a snowy/rainy day and see a couple of sales and a couple pass uses and $600 to $800 in pass renewals and think, that's not a terrible day. Overall, I think my profit would be a bit higher without memberships but, not significantly. I know I have several customers that would go back to Quick Quack because they want passes. The number of heavy users is a pretty low percentage of total pass users. I think whether monthly passes are better or worse, like everything else, depends on your particular location.

 

[edcrawfordlv]

At that point are you even making money anymore? Or just using cycles on your IBA? And possibly losing money with the heavy use members?

Nearly every subscriber washes 4 times or less in a 30 day period. About 2% wash more than 10 times/month. Maybe the stats will change over time but Revenue/Washes remains strong.

 

[Keno]

Nearly every subscriber washes 4 times or less in a 30 day period. About 2% wash more than 10 times/month. Maybe the stats will change over time but Revenue/Washes remains strong.

I was talking specifically about the heavy users you mentioned - Uber, left, turo

 

[Car_Wash_Guy]

I was talking specifically about the heavy users you mentioned - Uber, left, turo

In my case, nearly non existent effect on the overall picture.

 

[tylerwash]

Have been using Everwash for a couple of years, averaging 4-6 washes/mo per customer depending on the season. EverWash doesn’t have the technology to catch the abusers. You do have to use your security camera system to spot check them and manually report them to Everwash. As for the pricing structure, Everwash strongly opposes charging a monthly customer more than 2X of a single wash. So, my cheapest wash is about 2X while the top wash is about 1.9X of the single wash respectively.

 

[RSmith]

I've tried to stay away from voicing my opinion on D*ncar, but I wanted to share what a typical day is like owning one of their pay stations. Here is from a few minutes ago today logged into my D*ncar account. I checked this earlier today and panicked thinking there was an issue with my wash (usually its the pay station being down or touch screen not responding or blank). Logged into the credit card processor their kiosks use, and I was washing cars all day, but you are not able to rely on D*ncar giving you accurate information.

 

[RSmith]

No matter which membership program you end up going with you're going to have instances like this. Do you send them an alert that they are stealing from you, or let it slide? This particular customer is 3 males, 1 female sharing my membership across 6 vehicles, and paying for 1. Surprisingly, I let this one slide. I am still profitable on their washes (unless you factor in them using the bay instead of a paying customer), but they have been members of my top wash since the day I bought the wash and did the remodel, they own one of the best restaurants in town that is always slammed, and I know people recognize them using my wash.

 

[HeyVern]

I've tried to stay away from voicing my opinion on D*ncar, but I wanted to share what a typical day is like owning one of their pay stations. Here is from a few minutes ago today logged into my D*ncar account. I checked this earlier today and panicked thinking there was an issue with my wash (usually its the pay station being down or touch screen not responding or blank). Logged into the credit card processor their kiosks use, and I was washing cars all day, but you are not able to rely on D*ncar giving you accurate information.

View attachment 10311 View attachment 10312

just click restart services and it will start reporting again. Happens occasionally it's not a big deal. There are going to be glitches with any paystation.

 

[RSmith]

just click restart services and it will start reporting again. Happens occasionally it's not a big deal. There are going to be glitches with any paystation.

VPN into the site and restart services on the kiosk? Genuinely asking because their isn't an option to restart services on their admin website and we all know what their support is like.

 

[HeyVern]

No matter which membership program you end up going with you're going to have instances like this. Do you send them an alert that they are stealing from you, or let it slide? This particular customer is 3 males, 1 female sharing my membership across 6 vehicles, and paying for 1. Surprisingly, I let this one slide. I am still profitable on their washes (unless you factor in them using the bay instead of a paying customer), but they have been members of my top wash since the day I bought the wash and did the remodel, they own one of the best restaurants in town that is always slammed, and I know people recognize them using my wash.

I look at the total number of washes they're using, if

VPN into the site and restart services on the kiosk? Genuinely asking because their isn't an option to restart services on their admin website and we all know what their support is like.

Yes, VPN into the paystation and restart services. All of your sales will report at the top of the hour as usual.