I’ve seen unlimited programs have a take rate of anywhere from between two and six percent of the initial customer base.
For example, Ken Brott, formerly with DRB, asserted some years ago that if we assume a normal distribution the median would indicate the typical customer visits an average of about four times a year.
So, if the business attracts 25,000 unique customers and we assume average usage, annual sales volume is 100,000.
Four percent of 25,000 equal 1,000 members. If each member visits three times a month, 1,000 X 3 X 12 = 36,000 washes.
25,000 – 1,000 = 24,000 X 4 = 96,000 washes
Thus, total volume is 36,000 + 96,000 = 132,000 washes or about 30 percent increase in total volume.
Important consideration when planning for new build or upgrade of going concern is peak hourly demand.
Peak hourly demand for 100K CPY is roughly 95 cars. So, peak hour with unlimited would increase to 127 cars.