Looking for effective prmotional pricing ideas

[Greg Pack]

I took a three SS/IBA wash package over two months back that was foreclosed by a financial institution. At one time these washes did decent numbers. However, they had been poorly managed for three years and the market has become overbuilt. Revenue now is shockingly low for such nice facilities with good traffic They are grossing about a third of what they used to do. The bays are dry all the friggin' time. I feel like my biggest enemy right now is lack of business and activity on the lot.

I've always been old school when it comes to washes. You know: get everything working right and keep the place clean and hope the customers find it. But I really need to try to kick start the revenue these washes are bringing in. I wouldn't mind heavily discounting wash prices for a while if that helps. Current base price is 2.00/four minutes. These washes have been that price since they were built about six years ago and is the "going rate" for nice SSs in the area. I have already decided to lower startup to $1.00 and reduce time accordingly in the hopes of reducing startup price shock.

Has anyone implemented radical pricing strategies over a short period of time (30-90 days or so) that has effectively boosted medium- longer term revenues? I could do some pretty crazy stuff with pricing in the short term if it helped in the medium term. Any input appreciated.....

 

[Red Baron]

Unlwess you're in a low income area, I don't think lowering the price is the answer. Can you add features, i.e., triple foam and credit card acceptors?

 

[Greg Pack]

Washes are in a low-middle class income area. I think reverting to dollar startup may help with the dollar store mentality. Yeah, a few bucket washers might get by for 2.00, but right now I think I'd welcome that.

Due to my contractual agreement the washes can be pulled from me with thirty days notice if the bank finds a buyer. Because of this I can't spend any significant amount of money on upgrades. They really need nothing other than a few cosmetic repairs. These washes would be considered top tier by most in the industry: triple foam, all combo units, gabled roof with tile accent, shur-vends, etc.

 

[MEP001]

If it's not a lot of trouble, you could consider a single day a week with lower pricing but give more time per coin at that start-up, and advertise it with a sandwich board at the road. You'll get some new customers to try it, and when they learn things are working they'll start coming back.

 

[I.B. Washincars]

I like MEP's line of thinking, but I think it should be drastic. How about 25 cent Tuesdays or something like that? Give 30 seconds for a quarter, which is essentially the same price.

 

[smokun]

If you intended to keep the carwash and simply needed to win back lost customers due to poor management, here's an idea that has worked for me a number of times. However, you must be able to hold your breath for a bit of time, and the bank should help you with the promotion.

The concept is simple. Wash cars for FREE. And put your best foot forward while doing so. Be prepared to offer the no-excuses best wash possible... with your aim being to impress and engage customers. The promotion should be a week or two; you be the judge by assessing public reaction. Print flyers announcing the "Get to know us" Special and phone area businesses each day reminding them that you're giving FREE washes to their customers if they merely announce it to their customers. Open early and stay late. This is your opportunity to make friends and win customers.

Use the opportunity to sell your operation... and create excitement with excellent wash results. It always helps to have a flyer to hand out to each customer, thanking them for stopping in and getting acquainted. Use the flyer to let them know what you offer and how you intend to keep them happy; tell your story. You should be there every day to meet & greet each and every customer. Shake hands, offer an ice cold bottle of water and give them a business card with your cellphone number, inviting them to contact you directly with any suggestions or to alert you to problems. Make them feel very special with a direct line to "the owner"... because you care about them and want them to be satisfied. Everybody likes to be connected with the owner, especially if you are prepared to solve any problems on the spot.

This promotion has repeatedly proven to be a surefire way to turn a bad reputation around quickly. And most people appreciate the action of "putting your money where your mouth is" with a free no strings attached offer... as well as a satisfaction guarantee.

Need more clarification? Just ask.

 

[pitzerwm]

Steve, I think that this is a great idea. I think the key would be to have someone/you on the premises and to close it at night.

 

[Greg Pack]

I did think about of .25 for 1 minute for an entire month, and well as auto washes priced at $1,$2 & $3 dollars.

Steve I have not mentioned this yet but a small exterior tunnel with free vacs is part of the package. I had considered free washes there for a week. The tightwad in me says at least charge 1,2&3 and do it for a longer period The small charge would prevent abuse and recoup at least some of my costs. Although I admit that is not as attractive and potentially viral as free I could do it longer and is less of an administrative headache. I just set the pricing and leave it that way a while. Plus I could leave that plan in place long enough for a customer to develop new wash habits. So, what do you guys think would yield better results 90 days down the road: Free for a week, or $1,2&3 for a month?

 

[Greg Pack]

Or perhaps do both........

 

[smokun]

ALWAYS AVOID DEVALUING Your Service

Studies have shown that reducing price as you have suggested actually does significant damage to the integrity of your product or service. Discounting can be a very slippery slope when perceived value is considered.

Believe it or not, giving a product or service away as a valuable gift is a safer more prudent action because you've never attacked the integrity of the price or value. And it is much easier to return to regular pricing once the FREE gift initiative comes to an end. The true worth is intact, yet the benefit of the promotion enhances its value simply by remaining stable.

Forget about the discount... and understand that the true aim of your promotion is to build customers. You achieve that by offering convenience, value and quality. Discounts don't add anything positive, especially when seemingly done in desperation.

 

[Earl Weiss]

couple of things I have tried to get volume up Quickly. 1. Free vacs for a month at the Slef Serve Simply pulled the coin Boxes and put on stickers saying deposit quarters and retieve below. 2. Advertised "Customer appreciation day" Free Wash. Pulled the vault doors and had them deposit quarters and retrieve. That way I did not have to worry about a lot of waste. 3. I don't know if you can use tokens in your acceptors and what cost you can absorb. Consider giving away tokens for a get acquainted period.

Gave out over 18000 free washes to various business including mailings to chamber of commerce members in groups of 6 or so asking that they give them to customers and employees. Also delivered them to the post office, fire houses, schools - for teachers, and any business with a large employee parking lot. They were good for our slow months of Oct-Nov. about 3000 were redeeemed. Hopefuly a large % became regular customers.

 

[Waxman]

I think the answer lies in doing exactly what smokun says plus implementing guerilla marketing tactics and promotions with charity events.

Offer a free Fathers Day Carwash, etc.

Make flyers. Get some churches involved by giving away tokennotes they can sell (big hit for me).

Get the book Guerilla Marketing and read it. I did and found it excellent.

I think your ideas are way too narrow in scope. It's time for you to get outside your 'old school' thinking and really go for it, promotion-wise.

 

[Greg Pack]

Oh, I confess I'm pretty narrow in scope when it comes to promotions. Spare time is an issue and discount pricing is the easiest promotion to implement. I can only neglect my primary long term business for so long for another I might not own in ninety days. So any promotion I try must be fairly efficient from a time standpoint and offer a pretty quick return.

 

[Greg Pack]

Steve, interesting standpoint on the discount pricing. Don't cringe, but the little tunnel is going to be the price whore on the strip anyway. It's a small rehab. There's an express 1 block away in a town too small for one tunnel, much less two. He has a nice new facility with about twenty free vac spots and is priced at 5,8,&10. Previous owner had same prices as him, prepped the cars, and offered free wonder wafers air freshener. His car count was shockingly low. I've had four bay SSs that grossed more. We're gonna prep the customer and charge 3,5 &7 with free vacs. $7 gets you tire shine and a Rain-X type product-a helluva deal! If I can get to 3K cars at $5 avg I'll be turning cartwheels in the parking lot.

My entire pricing strategy is that I'm betting the consumer is looking for a deal right now. I'm looking at the restaurant industry for guidance. Subway has reported great success with their $5 footlong, Little Ceasars with their crappy $5 pizza. Even casual dining places are coming up with their heavily promoted specials.

 

[Sequoia]

Promotion

Based on your last post it sounds like you have some uncertainty about what *exactly* is going on with this market. While that uncertainty exists it makes it more difficult to target promotions effectively.

You might consider doing a limited term of free washes, coupled with a customer survey. I'd time (and restrict) the free washes for busy periods such as commute traffic or weekends, and do what it takes to make it known that for an XX hour block of time that day all washes are free. You can make it as big or as little as you want.

The catch? Require your customers who are getting a free wash to fill out a brief written survey that is designed to give you exactly the info you want on this particular market. Tabulate the results and go from there.

One caveat: recognize that the survey results were from the people who were there. The prospects who never visited are another nut to crack.

 

[washboy]

I recently got a wash that was managed poorly. It is a nice wash in a good area that has been around for over 20 years(1 iba and 6ss). The numbers are below average. Within the last 3 years 2 washes were built with in a 2 mile radius. When I got the wash the old owner was charging $2.50 for 4 min witch I didn't change to keep up with what he was doing, numbers same. I did go about making it a better wash though, ie better chems, equipment worked, returning phone calls. What seemed to work was putting up banners, flags, new signs. People came to me and said thank god you put a nice wash here we needed it, when did you build it. I got all my signs, flags and banners free with my chem supplier. Witch is one of the things that cost more than the prev owner the other maintance. Everyone wants to try the new wash out. I need to do more but making it stand out has given me good feedback.