Monthly fee for unlimited washes - is it worth it?

[Zal]

I just fired up a limited membership. LPR camera and Dencar pay station. The Dencar system lets the operator decide how many washes at each level. In a few months I will let you know how I am doing. This is a 10 year old PDQ 360 IBA with about 700-900 washes per month before the membership went in. Yes, it is a gamble but nothing ventured-nothing gained.

 

[John J Spokas]

Holy cow that's a lot to unpack.

Yes it is a lot to unpack, plus there is a lot of misinformation contained in that post. I have not seen any $3 express go up to $18 or $25 although a few are up to $4 and $5 low to about $12 for the most expensive offering. Around here Delta Sonic does offer high doller full serve washes along side the express low price of $8 but they are not a typical express they are a FlexServe operation.

 

[soonermajic]

Yes it is a lot to unpack, plus there is a lot of misinformation contained in that post. I have not seen any $3 express go up to $18 or $24 although a few are up to $4 and $5......

Might be some misinformation, but lots of truth to.

 

[Wash Sire]

Mis information? Just look around it cant be just in illinois. No $3 washes anymore except the sad IBA's that tried to copy and backfired. They are all up as high as $25 for a wash. They wash in an hour what some will do in a week. All of what I type of is truth. Express built 2 years ago, prolly cost 4 million to build, paid 975k for land, was listed for 11 mil and looks to be off the market. How long to make even a million operating a self serve. gas station company just paid 2.5 million for land with houses and businesses on it. Just the land, then tear down, infrastructure, more money then a lot of us will ever see. Good grief call me a liar thats fine. Guy who owned Blockbuster video prolly had the same complacent attitude. I can see the direction the industry is heading. Look at the companies with 100+ locations with 94 being built as we type. How is any local guy going to compete? The business model is loose money for 3 years, by then the competition is gone. More money in building them then operating them. 94 more tunnels being built. Fact just look around. A disease worse then the math heads. Hooked on the allmighty dollar, gotta get them ALL. Look at the big companies who bought up the little wash manufactures. Then raised the price and changed everything that made the company, to a number, an investment. Id gladly shut my doors, before I would use unethical tactics to make money. You don't own 3 locations or more, they don't want to talk. Look at the LPR systems and what they cost. The apps and the monthly fees. Prices out anyone who wouldn't make 8k to 10k a month More off of the memberships. A wash grossing 15k is still priced out, unless you like spending money and do it for fun. If everyone likes memberships so much, you gotta think outside the box. A wash Club, members only, like a gym. There is a lot to that with tax laws like getting away from taxing a service. Illinois will be like Wisconsin before long, as they have tried before to apply a tax to the service industry. But hey lets call names instead of brain storming the next Level that will keep these mom and pops open. Tax shelters disguised as car washes. Thanks for the replies though, LPR, Apps, Pay stations, Credit Card Fees, the ol operator is last in line to get paid.

 

[John J Spokas]

Mis information? Just look around it cant be just in illinois. No $3 washes anymore except the sad IBA's that tried to copy and backfired. They are all up as high as $25 for a wash. They wash in an hour what some will do in a week. All of what I type of is truth. Express built 2 years ago, prolly cost 4 million to build, paid 975k for land, was listed for 11 mil and looks to be off the market. How long to make even a million operating a self serve. gas station company just paid 2.5 million for land with houses and businesses on it. Just the land, then tear down, infrastructure, more money then a lot of us will ever see. Good grief call me a liar thats fine. Guy who owned Blockbuster video prolly had the same complacent attitude. I can see the direction the industry is heading. Look at the companies with 100+ locations with 94 being built as we type. How is any local guy going to compete? The business model is loose money for 3 years, by then the competition is gone. More money in building them then operating them. 94 more tunnels being built. Fact just look around. A disease worse then the math heads. Hooked on the allmighty dollar, gotta get them ALL. Look at the big companies who bought up the little wash manufactures. Then raised the price and changed everything that made the company, to a number, an investment. Id gladly shut my doors, before I would use unethical tactics to make money. You don't own 3 locations or more, they don't want to talk. Look at the LPR systems and what they cost. The apps and the monthly fees. Prices out anyone who wouldn't make 8k to 10k a month More off of the memberships. A wash grossing 15k is still priced out, unless you like spending money and do it for fun. If everyone likes memberships so much, you gotta think outside the box. A wash Club, members only, like a gym. There is a lot to that with tax laws like getting away from taxing a service. Illinois will be like Wisconsin before long, as they have tried before to apply a tax to the service industry. But hey lets call names instead of brain storming the next Level that will keep these mom and pops open. Tax shelters disguised as car washes. Thanks for the replies though, LPR, Apps, Pay stations, Credit Card Fees, the ol operator is last in line to get paid.

Okay then.......its not like that around here that is all I know.

 

[dax_festival]

We put unlimited at a double IBA site and have since expanded it to all our IBA sites. You have to drive memberships and have someone at the wash to educate customers, but we have a dramatic increase in revenues. We price our unlimited packages 2x the price of a single price wash With average usage 3 times per month. Sure, on average, I’m giving away one wash per month to each member, but I’m getting a whole lot more people paying that 2 washes per month than without the membership program. There is a handful of everyday washers, but the abuse is really a non-issue with an average usage of 3 washes per month. Pretty consistent over the last three years.

 

[Waxman]

I think it depends a lot on your market and your population and your price structure. I would not do it because my population does not warrant it and because I would be rewarding my best customers by giving them a large discount.

 

[AutoSpaMobMO]

We put unlimited at a double IBA site and have since expanded it to all our IBA sites. You have to drive memberships and have someone at the wash to educate customers, but we have a dramatic increase in revenues. We price our unlimited packages 2x the price of a single price wash With average usage 3 times per month. Sure, on average, I’m giving away one wash per month to each member, but I’m getting a whole lot more people paying that 2 washes per month than without the membership program. There is a handful of everyday washers, but the abuse is really a non-issue with an average usage of 3 washes per month. Pretty consistent over the last three years.

are you using RFID, LPR or everwash?

 

[AutoSpaMobMO]

I think it depends a lot on your market and your population and your price structure. I would not do it because my population does not warrant it and because I would be rewarding my best customers by giving them a large discount.

Not sure what your population is but we are a rural town of 14,000. We have a Tidal Wave coming to town soon and I really just can't see that working on our town but it is happening. I am a little terrified of what it is going to do to business.

 

[traveler17]

Not sure what your population is but we are a rural town of 14,000. We have a Tidal Wave coming to town soon and I really just can't see that working on our town but it is happening. I am a little terrified of what it is going to do to business.

I’m in the same boat. Not a tidal wave but an express is coming. I’m expecting to take a bump but this town is very pro-local , small business…I hope!! Which unlimited program are you using?

 

[AutoSpaMobMO]

I’m in the same boat. Not a tidal wave but an express is coming. I’m expecting to take a bump but this town is very pro-local , small business…I hope!! Which unlimited program are you using?

I don't have one. I am just revisiting the idea again.

 

[lighthousecarwash]

I don't have one. I am just revisiting the idea again.

AutoSpa.....They have 5 locations in town and just put up signs for number 6 and 7. They have built tunnels within a mile of one of my locations and the 2 new ones will be within half a mile of one of my other locations. Actually will be right across the street from one of the other local IBA/SS owners in town. They have NOT hurt my business at all. The last few years, my revenue and wash counts are on the rise. I'm doing a 3rd location and will going with Beacon Mobile to offer limited wash club pricing and if successful, then I will implement at my other 2 locations and tie them all together. You will see a little dip when they first open and do their $1 wash promotion but don't make rash decisions trying to compete with something that you don't even know you will have to compete with.

Lighthouse

 

[lighthousecarwash]

Mis information? Just look around it cant be just in illinois. No $3 washes anymore except the sad IBA's that tried to copy and backfired. They are all up as high as $25 for a wash. They wash in an hour what some will do in a week. All of what I type of is truth. Express built 2 years ago, prolly cost 4 million to build, paid 975k for land, was listed for 11 mil and looks to be off the market. How long to make even a million operating a self serve. gas station company just paid 2.5 million for land with houses and businesses on it. Just the land, then tear down, infrastructure, more money then a lot of us will ever see. Good grief call me a liar thats fine. Guy who owned Blockbuster video prolly had the same complacent attitude. I can see the direction the industry is heading. Look at the companies with 100+ locations with 94 being built as we type. How is any local guy going to compete? The business model is loose money for 3 years, by then the competition is gone. More money in building them then operating them. 94 more tunnels being built. Fact just look around. A disease worse then the math heads. Hooked on the allmighty dollar, gotta get them ALL. Look at the big companies who bought up the little wash manufactures. Then raised the price and changed everything that made the company, to a number, an investment. Id gladly shut my doors, before I would use unethical tactics to make money. You don't own 3 locations or more, they don't want to talk. Look at the LPR systems and what they cost. The apps and the monthly fees. Prices out anyone who wouldn't make 8k to 10k a month More off of the memberships. A wash grossing 15k is still priced out, unless you like spending money and do it for fun. If everyone likes memberships so much, you gotta think outside the box. A wash Club, members only, like a gym. There is a lot to that with tax laws like getting away from taxing a service. Illinois will be like Wisconsin before long, as they have tried before to apply a tax to the service industry. But hey lets call names instead of brain storming the next Level that will keep these mom and pops open. Tax shelters disguised as car washes. Thanks for the replies though, LPR, Apps, Pay stations, Credit Card Fees, the ol operator is last in line to get paid.

I agree with this. It has been a long time since we've seen any tunnels charging that in Missouri. Current tunnel has individual washes of $25, $17, $12, and $7. Unlimited's at $40, $32, $27, and $20. Of course, they run that individual price up so high that it forces people to do the unlimited.

 

[AutoSpaMobMO]

AutoSpa.....They have 5 locations in town and just put up signs for number 6 and 7. They have built tunnels within a mile of one of my locations and the 2 new ones will be within half a mile of one of my other locations. Actually will be right across the street from one of the other local IBA/SS owners in town. They have NOT hurt my business at all. The last few years, my revenue and wash counts are on the rise. I'm doing a 3rd location and will going with Beacon Mobile to offer limited wash club pricing and if successful, then I will implement at my other 2 locations and tie them all together. You will see a little dip when they first open and do their $1 wash promotion but don't make rash decisions trying to compete with something that you don't even know you will have to compete with.

Lighthouse

I'm familiar with one of your washes. I drove past it last year when I was considering buying the old tiger wash east of you. You have a nice wash!

 

[lighthousecarwash]

I'm familiar with one of your washes. I drove past it last year when I was considering buying the old tiger wash east of you. You have a nice wash!

Good call not buying it. That new tunnel will be within 100 yards of it!