Monthly fee for unlimited washes - is it worth it?

[frank ames]

My car wash is rather rural, but close to big cities where most of our people work, and have easy access to such car washes: Car count is slowing for me and I’m wondering if this deal is the cause. I’m not sure exactly how it works, but it just doesn’t seem feasible when I think of higher use of product and wear and tear on my machines. What am I missing in my reasoning.

 

[washnshine]

What am I missing in my reasoning.

I don’t offer unlimited monthly plans, but most of the washes that do offer this around me have at least 10 and up to 30 or 40 locations. They are guaranteed $25 - $45 per month from thousands of memberships paid to them regularly. My guess is they have it worked out. Kind of like Vegas - the house never loses and the odds are in their favor.

I’m in the northeast and one thing I will tell you is the volume has to average out over the winter vs summer months. Very different washing conditions and frequency.

They’ve gotten smart and actually have a segment on the weather report on the local news stations, sponsored by one of the big ones that gives you a red (don’t wash) yellow (won’t last) and green (do wash) picture of the car in the corner of the screen. It’s the guide on whether to wash or not on each day of the week. You’d think “why would any wash ever recommend not to wash?” That’s because the have paid unlimited memberships and less frequent washing benefits them!

It can’t tell you how many memberships you have to sell and how many locations you have to have to make it work - but it is certainly commonplace near me, and many others from what I have seen and heard.

 

[DiamondWash]

The tunnel washes around me have people washing in the RAIN! I should have taken a picture today of it, and I bet those are all unlimited customers, talk about added utility costs, wear and tear amongst other factors to turn a profit, I'm still on the fence about offering a "limited" program but if they are washing in the rain or when they don't even need a wash (literally) you have to have a lot of members signed up to see a ROI.

 

[Mr. Clean]

Car count and revenue have risen since offering U/L and it sure has been an interesting/entertaining to watch behaviors.
No weather is too bad to wash in, regardless of how long it lasts. Water conservation? - not if it means not getting my money's worth out of the program! Had one guy complain to his body shop that the extra two weeks they took cost him $200 in wash opportunities even though he was paying $35/mo.
Practicality isn't a consideration anymore, but isn't that how we promote it? If we don't offer it, they go elsewhere, at least for a while. Still struggling with the rural commuters and the extra dirt on a constant basis.

Surely worth a try...............

 

[slash007]

I tried it and it didn't gain traction. Never had enough sign ups to make it worth it. Mostly the people that wash all the time would sign up. Also had lots of people that would wash other vehicles not listed. More than one car dealership tried to take advantage. I hear it works great for some, but it didn't for me.

 

[Wash4Life]

I tried it and it didn't gain traction. Never had enough sign ups to make it worth it. Mostly the people that wash all the time would sign up. Also had lots of people that would wash other vehicles not listed. More than one car dealership tried to take advantage. I hear it works great for some, but it didn't for me.

Did your club utilize RFIDs or LPR?

 

[slash007]

Did your club utilize RFIDs or LPR?

LPR, but I just manually check when someone washes too much and that's how I catch them. Nothing automated.

 

[OurTown]

LPR, but I just manually check when someone washes too much and that's how I catch them. Nothing automated.

Are saying that you had people changing license plates to other vehicles so they could wash them on their membership?

 

[washnshine]

Had one guy complain to his body shop that the extra two weeks they took cost him $200 in wash opportunities even though he was paying $35/mo.

He probably figured that he was missing out on getting a $14 wash for 14 days!

 

[Roz]

We modified our monthly program to 5 washes per month which reduced the abuse. Most customers were fine with the change as it still is a significant savings. Only lost the abusers who were insulted that they could not wash their vehicles every day regardless of rain. They were the only ones to complain when we closed the automatic to do the regular service work.

 

[DiamondWash]

We modified our monthly program to 5 washes per month which reduced the abuse. Most customers were fine with the change as it still is a significant savings. Only lost the abusers who were insulted that they could not wash their vehicles every day regardless of rain. They were the only ones to complain when we closed the automatic to do the regular service work.

Roz,

Do you have a website for your wash? I'm strongly considering doing what you did with a limited versus unlimited program due to the abuse factor.

 

[Roz]

Roz,

Do you have a website for your wash? I'm strongly considering doing what you did with a limited versus unlimited program due to the abuse factor.

Carwash

Nearby Near me Shineys H2O Water Works Water Worx All Shined Up Carwash Car Wash Touch Free Soft Cloth Automatic Vacuums Self Service Truck Bay RV

www.24wash7.com

We try to promote our Washbooks which offer a 20% discount and more flexibility to customers. More people seem to be gravitating to washbooks. Only the very price conscience are using the monthly plans from what I can tell speaking with customers.

 

[OurTown]

Roz,

Do you have a website for your wash? I'm strongly considering doing what you did with a limited versus unlimited program due to the abuse factor.

Do you have the abuse now or are speculating you would if offered unlimited?

 

[slash007]

Are saying that you had people changing license plates to other vehicles so they could wash them on their membership?

No, it's not really LPR, there is not verification. I just have a camera pointed at the entrance and manually check to see what vehicle is being washed. With Everwash they just scan a QR code to turn the wash on, so it doesn't matter what car you are driving, you just scan and wash.

 

[Roz]

Do you have the abuse now or are speculating you would if offered unlimited?

We eliminated the documented abuse. Did switch at two washes, one that uses rfid tags and the other used Everwash (now use our own app).

 

[John J Spokas]

My car wash is rather rural, but close to big cities where most of our people work, and have easy access to such car washes: Car count is slowing for me and I’m wondering if this deal is the cause. I’m not sure exactly how it works, but it just doesn’t seem feasible when I think of higher use of product and wear and tear on my machines. What am I missing in my reasoning.

In the express wash model the unlimiteds are designed to eliminate under utilized space in between cars. When you have 100' plus of equipment and gaps larger than 20' between cars the machine is still running in those gaps so putting paying customers in those gaps increases revenue vs expenses.
But I always think of it this way ever since the $3 express with free vacs model began to appear around here (Chicagoland)......if they aren't making money why did the early adopters build #2 and then #3 etc???

 

[Roz]

In the express wash model the unlimiteds are designed to eliminate under utilized space in between cars. When you have 100' plus of equipment and gaps larger than 20' between cars the machine is still running in those gaps so putting paying customers in those gaps increases revenue vs expenses.
But I always think of it this way ever since the $3 express with free vacs model began to appear around here (Chicagoland)......if they aren't making money why did the early adopters build #2 and then #3 etc???

You are right. Unlimited plans make no $ense for IBAs. We capped our monthly plans so we were not paying to wash peoples cars. We nvestment is too much when you take all expenses into consideration to discount our services.

Tunnels can wash in 1-2 hours what i can wash in an entire day with one IBA if we are slammed all day. They also have a much higher labor expense than IBAs so they have the pressure to make money any way they can even if their profit margin is about $1 on some washes. That is why most tunnels need to wash 10,000 cars min per month to stay in business.

 

[John J Spokas]

I have heard that well designed express washes were averaging 6$ + per car. I am sure that dropped a little with the unlimiteds but total revenue is likely increased. I do not have direct evidence of this, just ear on the tracks info.....

 

[Wash Sire]

Hi, not everyone is a fan of wal-mart, or the wal-mart tactics. Go in low, drive out the competition, then jack the prices up. 40 million + is new tunnel wash equipment, 0 in new IBA/ SS. Zero. Generally speaking from the central Illinois area, that I see. Started out $3 now they are up to $18 and $25. Investors get millions, the help gets a tip jar and the public to deal with. Shady membership tactis built on people not using what they paid for? A group of people who have never turned a wrench or probably even worked on a car wash piece of equipment, let alone clean out a vac. Shady, no good, and the way I see it, sure if one or two was around it would turn a profit, you get 10 in a 10 mile radius, just not enough of the pie to go around. These "investors" were duped along with a lot of other first time wash owners on the hopes and dreams of getting rich. Salesmen pumping them up with fictitious, far fetched numbers. But for it to end up a monkey see monkey do is just plain crazy. Wash all you want will be along the way side, like most of the all you can eat buffets. What the problem is the manufactures of equipment have gotten complacent with their products, and jacked the price up 4 fold, epecially if they bought out another company. Ginsan sensatron is the same as it was in the late 80's. No advancements, most operators are still in the late 90s with equipment and technology, I am guilty of it too. Just replaced some sensatrons from 1989. Just get comfortable with the status quo. Time to think outside the box. What I think needs to happen, $10 average per car no matter what. The IBAs all took a hit, little or big when the express tunnels started popping up. So the IBA no longer profits enough to let the bays slide and people trash the place. Every customer that steps foot on the property should be a $10 bill, each time. Had a guy complain he had to pay $6 to wash his corvette. Didn't know what to think when I said, "Somehow we are going to have to get another $4 out of you." We laughed, and he still uses the wash. Stand in line at the gas station and more people buy over $10 in lottery tickets, then usually scratch them off in front of everyone holding up the line, lol. A no good mcdonalds lunch $10 bucks. Heck coffee and smokes, $10 bucks. There has got to be something to step up the Self Serve industry. A thought here, look at the Texas Roadhouse, Steak Houses, the restrauntes you are paying $100 bucks at to take the family, they are packed every night. People always have something to celebrate, usually why they splurge and spend more for an "Occasion" those places are not interested in the $20 under crowd, plenty of $100 customers waiting to get in even. Lets apply this to washes with tunnels and competition on every corner. Someone is always getting a new car, a car gifted to them, a first car, a new to them used car, a hand me down, or getting one ready to sell. These would all be "Occasions" to really get that car spiffed up. Prolly pay a little more to do it. I don't know how to implement it or what to even impliment. My ideas are strictly unmanned location type stuff. One of the benefits of Self Serve over tunnel. But with all these great owner operators, operators, and equipment repair people and equipment manufactures on this forum, we should be coming up with the next level ideas, not copying something that most are dabbling in because they made so much. Either give it to uncle sam or spend it, type. Just no way for the little guy to compete. Spend 6 million building one, 2 years later put it up for 11 million, and possibly get it. How could the little guy compete with that. Im not counting others gross, but i doubt any of our washes will profit 5 million within 2 years. Takes money to make money. But without advancements in the equipment geared toward the bays and automatics it is going to be hard to pull off. Advancements that arent 5 figures either, seems the greed among the companies buying up smaller companies so they can see whos is bigger is ridiculous. They have a problem, a disease, its called Greed. All hopped up on dollar bills. All so some investors can profit millions and the little guy gets minimum wage on a scale where they eleminated the mom and pops. One day all the self serves will be a chain, unfortentally we will be the next video rental store, laser disc, VHS, good at one time now gone. Anyway, hope some see what i am babbling about. Thanks to all those that read the post.

 

[OurTown]

Hi, not everyone is a fan of wal-mart, or the wal-mart tactics. Go in low, drive out the competition, then jack the prices up. 40 million + is new tunnel wash equipment, 0 in new IBA/ SS. Zero. Generally speaking from the central Illinois area, that I see. Started out $3 now they are up to $18 and $25. Investors get millions, the help gets a tip jar and the public to deal with. Shady membership tactis built on people not using what they paid for? A group of people who have never turned a wrench or probably even worked on a car wash piece of equipment, let alone clean out a vac. Shady, no good, and the way I see it, sure if one or two was around it would turn a profit, you get 10 in a 10 mile radius, just not enough of the pie to go around. These "investors" were duped along with a lot of other first time wash owners on the hopes and dreams of getting rich. Salesmen pumping them up with fictitious, far fetched numbers. But for it to end up a monkey see monkey do is just plain crazy. Wash all you want will be along the way side, like most of the all you can eat buffets. What the problem is the manufactures of equipment have gotten complacent with their products, and jacked the price up 4 fold, epecially if they bought out another company. Ginsan sensatron is the same as it was in the late 80's. No advancements, most operators are still in the late 90s with equipment and technology, I am guilty of it too. Just replaced some sensatrons from 1989. Just get comfortable with the status quo. Time to think outside the box. What I think needs to happen, $10 average per car no matter what. The IBAs all took a hit, little or big when the express tunnels started popping up. So the IBA no longer profits enough to let the bays slide and people trash the place. Every customer that steps foot on the property should be a $10 bill, each time. Had a guy complain he had to pay $6 to wash his corvette. Didn't know what to think when I said, "Somehow we are going to have to get another $4 out of you." We laughed, and he still uses the wash. Stand in line at the gas station and more people buy over $10 in lottery tickets, then usually scratch them off in front of everyone holding up the line, lol. A no good mcdonalds lunch $10 bucks. Heck coffee and smokes, $10 bucks. There has got to be something to step up the Self Serve industry. A thought here, look at the Texas Roadhouse, Steak Houses, the restrauntes you are paying $100 bucks at to take the family, they are packed every night. People always have something to celebrate, usually why they splurge and spend more for an "Occasion" those places are not interested in the $20 under crowd, plenty of $100 customers waiting to get in even. Lets apply this to washes with tunnels and competition on every corner. Someone is always getting a new car, a car gifted to them, a first car, a new to them used car, a hand me down, or getting one ready to sell. These would all be "Occasions" to really get that car spiffed up. Prolly pay a little more to do it. I don't know how to implement it or what to even impliment. My ideas are strictly unmanned location type stuff. One of the benefits of Self Serve over tunnel. But with all these great owner operators, operators, and equipment repair people and equipment manufactures on this forum, we should be coming up with the next level ideas, not copying something that most are dabbling in because they made so much. Either give it to uncle sam or spend it, type. Just no way for the little guy to compete. Spend 6 million building one, 2 years later put it up for 11 million, and possibly get it. How could the little guy compete with that. Im not counting others gross, but i doubt any of our washes will profit 5 million within 2 years. Takes money to make money. But without advancements in the equipment geared toward the bays and automatics it is going to be hard to pull off. Advancements that arent 5 figures either, seems the greed among the companies buying up smaller companies so they can see whos is bigger is ridiculous. They have a problem, a disease, its called Greed. All hopped up on dollar bills. All so some investors can profit millions and the little guy gets minimum wage on a scale where they eleminated the mom and pops. One day all the self serves will be a chain, unfortentally we will be the next video rental store, laser disc, VHS, good at one time now gone. Anyway, hope some see what i am babbling about. Thanks to all those that read the post.

Holy cow that's a lot to unpack.