Looking for opinions

[Tom Thumb]

I am thinking of changing all SS start up prices and looking for opinions from other owners .

This is what is on my mind,
at present my start-up price is $2.00 for 4min 30 sec.
Looking to go too state-up price $5.00 for 15 min.

Main reason for this idea is I have a lot of lawn service co.come and use 2 bucks to wash out their truck or trailers and I have to clean their trash up, and why not get 5 bucks if they still want to use it.

It appears that most customers that want to wash their own cars end up spending 5 bucks or more.

???????????? tell me what you think.

 

[DiamondWash]

I like the idea but i never did it because of the customer who deposits the $5 and only uses 6 mins and doesn't shut off the pump or switch to stop and the pump continues to run until either another customer comes in right behind them or the time expires.

 

[Bubbles Galore]

If you're really serious about doing this, I would recommend a floor loop sensor to help take care of Diamond's reservations.

 

[Whale of a Wash]

It looks like you will punish the grass guys and all your customers at the same time. Will the market around you take all your customers, as the average customer probably spends $3-4 at your wash. I think you should lower the time by a minute, customers cannot compute the time only the $ amount.
I have many customers that stop by every other day, and the higher price would scare them off, and alot of the people that wash only once a month will go even longer.

 

[Whale of a Wash]

It looks like you will punish the grass guys and all your customers at the same time. Will the market around you take all your customers, as the average customer probably spends $3-4 at your wash. I think you should lower the time by a minute, customers cannot compute the time only the $ amount.
I have many customers that stop by every other day, and the higher price would scare them off, and alot of the people that wash only once a month will go even longer.

 

[MEP001]

The high startup price can work, but you'll have to educate your customers. You'll want to have something to offer that others don't have. You might need to give more time than 15 minutes.

Be prepared to lose a lot of business to your competition over the startup price. We were only 25¢ higher than the nearest two washes for 8 years ($1.25 vs. $1), and I would routinely see people pull into a bay, look at the startup price and leave. You'll lose all the people that like to spend $2, let the time run out, do some hand washing and spend another $2 to rinse.

I would either look into the "Pay one price" format or run off the lawn service guys. Actually, I've already run off all the lawn service guys.

 

[PaulLovesJamie]

The lawn service guys and your prices are 2 different problems that your lumping together. I'd run off the lawn service guys.

 

[Randy]

Last summer we raised the price at 4 washes to $5.00 for 15 minutes in the bays and $2.00 for 5 minutes on the vac’s. We left one bay at each wash at $3.00 for 5 minutes. It took a while for the customers to get used to the price but they came around. No loop detectors, no sensors. We don’t too many customers leave the pump running when leave. The only problem is people just don’t read the signs or stickers we’ll get a call now and then that they put in $3.00 and nothing is happening in the $5 bay.

 

[robert roman]

Over the last several years, I have not come across too many self-service washes or other small businesses in Florida that have not experienced a 20 percent or more reduction in sales volumes.

The suspects are one or a combination of factors such as shrinking market, less demand, overbuilding, less highway traffic or increased competition from low priced express wash.

Increasing price today may not help if you face these obstacles.

Before trying to get more money from existing customers, it is generally recommended to try and increase the attraction rate of a store. Empirical data shows a 10 percent increase in attraction rate can lead to a 6 percent increase in market share.

The first law of attraction is potential customers must find the wash. Have you gone around door to door telling people you have the most functional and economical carwash facility in town?

Once you get new customers, loyalty program can be used to increase the value of existing customers. For instance, a 10 percent gain in loyalty can lead to a 2 percent gain in market share. 8 percent market share (6 + 2) can be the equivalent of a 25 percent increase in net site sales.

If the wash grosses $175,000, 8 percent would be worth roughly an additional $44,000 annually in sales.

There are times when price increases are justified (i.e. increase cost of goods). However, I believe you have more to gain by finding new customers rather than by raising price.

 

[txheat]

Raising price at this day and age will be a disaster. Don't feel bad about those "lawn care service" guys too much. I still hate them but they do bring the quarters. I had people wash their horse trailer that made the bay smell like crap. Just recently the worst had to be a guy who wash his truck bed that had tar and asphalt all over. Now bay has dark spots and ugly...grr

 

[txheat]

Raising price at this day and age will be a disaster. Don't feel bad about those "lawn care service" guys too much. I still hate them but they do bring the quarters. I had people wash their horse trailer that made the bay smell like crap. Just recently the worst had to be a guy who wash his truck bed that had tar and asphalt all over. Now bay has dark spots and ugly...grr

BTW my startup vend is $1.00 ... so dont feel bad.

 

[Buzzie8]

I just raised mine to $2.50 for 4 min. and I think it was a good move. I did the calculations that I could lose 20% of my customers and still do the same revenue. Less water, less chemical, less clean-up. I do not think I lost 20% of my customers and I also feel that the customers are using more because they need to either cash in for more quarters or put more time on with my bill acceptors. If they go down the street to the $2.00 wash, I own that too! If they go to the .50 wash 3 miles away nothing works and it is very dirty. So far I am pleased with the results, although the bays seem quieter which sometimes is scary. I have not done a financial analysis yet but I think it was a good move.

 

[Tom Thumb]

Thanks to everyone for the imput, this is a great forum for this type information.
To offer a little more info. on my thinking other than just the lawn guys,
built wash in 2000 and has been a very good investment except for the last 3 years, due to the economy and type of workers in this area( mostly service workers)their income is down but appears to be getting better.
The wash is kept very clean and well lit, concrete lot , most income comes from the 2 IBA's . It seems that everything I buy has gone up in price except my wash, so in a way I feel I am falling behind and should increase prices to stay inline with other expenses in today market.
I do realize there will be a decrease in the beginning but feel customers will except the increase as time passes because everything else they buy has gone up.
This wash was built as a investment not as a income generating business although except for the last few years it has been a great producer of income.
In some other business I have been in I found out that statistics does not always work, alot of time you just have to do what you feel is right and treat the customer the way you want to be treated.
I am not saying statistics are not right I just have never made any money off statistics.

Thanks for allowing me to seek advice from some of the best car wash owners.

 

[robert roman]

I agree, statistics are not always spot-on. However, what kind of an investment is building a wash that is not designed as an income producing property? Please illuminate me because I have never worked with a carwash developer to make money in this manner.

 

[PaulLovesJamie]

Raising price at this day and age will be a disaster

Why?

FYI I'm of the exact opposite opinion, which is why I'd like to hear your reasons.

 

[Tom Thumb]

My brother and I are both retired and fortune enought that we do not have to continue to work for a income, but we both like to stay active doing something, so we looked at several options that would not require full time employees, decided on building a 1/6 bay car wash, managed to purchase an acre in what we feel is a growing area here in central florida.We are able to maintain the wash and do most of the maintenance without having to hire help from outside.After 2 years of operation we were able to purchase a used W/W same as our new one so now we have a 2/4.
As I said earlier we did not build it as a income producing business,( but don't miss understand if it does provide an income that is a great thing)The main reasoning behind the wash was to give us a good investment in the land and have the business cover the expenses, and give us some freedom to fish and do other things that we wanted to do during our retirement.
As long as the wash can cover the expenses,( this does even in this slow market)
and the land continues to increase in value (as it has) we feel we have a good investment.
So, if this is wrong please let me know and I will surely, take your advise and look into it.

Thanks again for the replys.

 

[Waxman]

lower time instead

I'd lower the time before I'd raise the price for startup. It's simple to me; if you raise startup price but keep price per minute same, you make more $ off only the washers who use minimum time, but if you lower time per coin you make more from all customers. Since the folks who use the minimum are definitely in the minority of customers, your increased revenue potential is far greater from lowering time per coin.

That's what I did and it has helped cash flow. It's great that Randy has had success with a $5 startup and, to be fair, he has the experience and know how to run a better SS than me, so he his higher startup price is likely fine with his customers, as they know they get a good value. We all should raise prices not willy-nilly but rather when it is warranted.

I also raised prices in my IBA this past Summer and was worried because it seemed the IBA was losing volume but now that cars are salty here in MA, people are washing more and the increased revenue is noticeable and welcome.

 

[MEP001]

If I plan on increasing the start-up, I always reduce the time by a second or two each month, then bring the time per coin back up when I raise the price. More people notice the longer time than notice the increased cost.

 

[robert roman]

Who am I to say what you are doing is wrong.

You asked for opinion.

When I owned and operated carwash, the goal was to maximize profits. This has been the same goal of all carwash developers and operators that I have worked with over the years.

If you view carwash is a pastime or hobby where profit is not the motive, that’s your business.

If so, then why be concerned about what prices you charge.

As for land appreciation, there hasn’t been any in Florida since about 2005.

In fact, the real estate forecast for the State overall in 2012 is a growth rate of – 4%.

 

[Tom Thumb]

You are right and I do appreciate your opinion.
I did not say it was a pastime or a hobby, you did , I said is was a investment .
The concern about prices is to try and stay in line with the price increase to me in operating cost.
As for land appreciation, how can you make such a broad statment as that about the status of the state of florida?
(At present we are building of the most modern Veterans Hospital, 3 medical research facilities, and college campus all being build in the Lake Nona area and is said to compete with the Research Triangle located outside Raleigh,N.C.)

Please don't read in to this something that is not there, I have great respect for you and your opinions and responce.