moving the bottom packages up

[robert roman]

“Why is our industry different than….fast food….Package names instead of numbers. A La carte being almost non existent. Granted there are distinctions but do they warrant a different strategy and why?”

Good question.

Consumers expect fast food to be fresh, warm and tasty and the delivery fast and the order accurate.

Keeping this promise or value proposition influences customer satisfaction and loyalty and market share.

As for product, go to Mc Donald’s and order quarter pounder with cheese.

Via menu or past experience, we know this product consists of 1/4 lb hamburger patty (fried), pickle, mustard and ketchup and cheese on sesame seed bun.

Go to Burger King and order Whopper. Similarly, we know this product consists of 1/4 lb patty (broiled), lettuce, tomato, bun (no sesame seeds), etc.

Each is food (hamburger) but each is slightly different.

The value proposition for carwash can be described as clean, shine and protect motorist’s vehicles.

As for product, go to ABC carwash and order Basic, Good, Better or Best.

What is the product? For example, how much better is the “Better” wash as compared to Good wash? Does the “Better” wash offer more shine and/or protection than Good? And so forth.

Does Gold, Platinum and Diamond or another naming convention clarify any better?

Do carwash operators view their business in terms of clean, shine and protect or good, better, best?

In carwash like fast food, the main benefit of packaging or bundling of products/services is communication of information and expediency in ordering (sales transaction).

Consequently, ala carte would have tendency to slow down the process.

Exception is when ordering basic or good carwash and POS prompts (drop down menu) for, say, hot wax or tire shine. Thus, ala carte is expedient.

 

[Earl Weiss]

Dang it. I was hoping for answers and got more questions. All food for thought.

>>
What is the product? For example, how much better is the “Better” wash as compared to Good wash? Does the “Better” wash offer more shine and/or protection than Good? And so forth.
>>

One of the thoughts I had. We are in a service business as opposed to a product business. Is it a distinction with a difference vis a vis naming or numbering of packages?

>>Does Gold, Platinum and Diamond or another naming convention clarify any better?<< Beats the heck out of me.

>>Does Gold, Platinum and Diamond or another naming convention clarify any better?<<
I submit that this is the wrong question. How operators view it is virualy meaningless. How customers view it is what is important. Reminds me of going to the fishing tackle store with my dad. He would buy a fancy lure and say:" I don't know if it will catch any fish, but it caught me."

>>Consequently, ala carte would have tendency to slow down the process. <<

In theory perhaps. In practice I will again allude to the Fast Food industry. 90% of customers are repeat and will know what they want. We have the a la carte system and are low tech. No Paystations. Using a seperate greeter / cashier and loader the ordering and collection process can average 20 seconds per transaction or less and keep up with the ability of the tunnel to process cars especialy taking into account other human factors of the sit thru EE which make actual production numbers averaging 20 seconds or less per car over extended periods difficult (unless all the customers are geniuses not fumbling for change or a credit card able to follow the car ahead closely, find neutral keep the foot of the brake and drive out when needed.)

 

[robert roman]

“How operators view it is virualy meaningless. How customers view it is what is important.”

The latter is certainly foremost, but the former is necessary to get there.

I’ve been traveling the last two weeks and my last stop is the town where I grew up.

In 1969, there was one full-service and one self-service wash, the full-service long ago converted to exterior-only when the steel mills vanished.

We had several beautiful days, wash had no business. Why?

High noon, tunnel is “dark” as a black hole. Several cheap coin-op vacuums, no shampoo, no fragrance, no vending machine.

Two price system, $9 and $12, no total body, no hot wax, no tire shine, no ala carte.

Attendant sits inside tunnel entrance with feet propped up reading newspaper.

The owner doesn’t have a clue.

What is this guy selling, product or service?

How can customers get it if the owner doesn’t?

 

[Earl Weiss]

>>What is this guy selling, product or service?<<

From your observations - neither! I guess we could have a debate about semantics, but if you can't touch it, it's a service.

>>
How can customers get it if the owner doesn’t? <<

I would say the (potential) customers "Get It". That is why they are not buying. One question though. Does he put out a good quality wash?

 

[carnut2]

Would like to revisit this thread about moving customers up. After two months of re-educating customers that a basic wash is just that, our numbers are still stuck at 40% for the basic wash. We offer 4 packages, with under body, tire shine, triple foam, and body protectant on the upper packages, yet a customer told me today he gets the cheap wash because it cleans just as good as the upper ones. Does that mean the customers think that triple foams, lava arches, and any type of waxes are not needed and all they want is a clean dry car?

 

[JeffM]

I would not make the assumption that all your customers have that mindset. Those that do need to be shown the value they are recieving by moving up to a higher level of service; that's where you come in! Do your staff take orders or are they sales people? (If you have an autocashier what I am about to say does not apply.) About 6 years ago we became salespeople rather than just order takers. Our base wash was about 40%, similar to your situation, and our Lustrashield sales were low (15-17%). Using proper incentives for our sales people and suggestive selling, we now see our base wash around 20-25% and Lustrashield at 28-31%. It has made the world of difference on our revenue!

Your time will be better spent educating customers on why they should take the top package rather than telling them why "a basic wash is just that".

 

[robert roman]

“.....our numbers are still stuck at 40% for the basic wash.”

“....customer told me today he gets the cheap wash because it cleans just as good as the upper ones.”

The basic wash should “clean” as well as upper washes so I would regard this as a good sign, customer is getting quality wash.

This underscores the point that “upper” washes aren’t about “clean” they are about solving other problems.

As before, one can speculate all day long why a number is stuck at 40 percent. I’d rather deal with evidence.

For example, I know there are express washes in your market/region that average over $10 a car. If they can do it, so can you.

One way to learn about carwash attitudes and habits is to conduct a customer survey.

You can do this by asking customers as little as 15 unbiased questions. Valid results require at least 100 respondents, 200 is better.

You can also use mathematical models to ponder price and service combinations. I’ve done both in your region, and the area household statistics bore the conclusions out.

 

[carnut2]

Thanks for the two replies above. We have done surveys but don't feel we are getting a true grasp of customer needs. Any help with the questions on the survey would be greatly appreciated.

 

[robert roman]

Given the effort, expense and time involved in conducting a survey, I would hire a marketing research firm that offers mystery shopper service.

For example, if you are interested in learning what customers think about prices, you would not ask them; do you think our prices are too high?

The reason being is that most people would rather have more of something rather than less of it. In other words, just about everyone would like a lower price. Thus, the answered is biased.

To avoid this, a survey model is designed and agreed to which defines what information and improvement factors are measured. The results allow for comparisons to determine how well a store is doing now against previous results.

For example, experts like ACSI, J.D. Powers, etc. find satisfaction drivers for auto service companies like car dealerships, brake and muffler, full-service carwash, etc, are employees (42%), facilities (17%), services (10%), image (9%) and cost (9%).

In addition, you would also want to ask some questions to understand characteristics of customers like age, marital status, type of vehicle, income, sex, how far do they drive, how often do they wash, wax, and vacuum, etc. plus their e-mail address.

Then the data needs collated, analyzed and interpreted.

Hope this helps.

 

[Earl Weiss]

Would like to revisit this thread about moving customers up. After two months of re-educating customers that a basic wash is just that, our numbers are still stuck at 40% for the basic wash. We offer 4 packages, with under body, tire shine, triple foam, and body protectant on the upper packages, yet a customer told me today he gets the cheap wash because it cleans just as good as the upper ones. Does that mean the customers think that triple foams, lava arches, and any type of waxes are not needed and all they want is a clean dry car?

If 40% are basic, this means 60% upgrade?
I don't know if this is a bad % or not according to industry standards. Perhaps others know what the upgrade % is.

I do know that anecdotal evidence seems to suggest that the higher over all volume of an EE the lower the percentage upgrade seems to be.

NS built their flagship wash in El Segundo. One article had them mention thatb they were surprised by how high the overall volume was and how low the percentage of upgrades was.

Years back on this forum guy touted his high upgrade percentage ( mine was very low in comparison). After a while it became clear that by March one (Yes in the sno belt Jan and Feb are high volume months which can be triple low volume months) My volume for the 2 months was the same as his annual volume.
I think he was out of business in a year.

I have no illusions that I am the Nordstrom of Car Washes. People go to Walmart for a reason.

 

[Washmee]

If the only way your wash is profitable is by selling upgrades you are going to have a tough time staying in business.

 

[JeffM]

While very true, selling upgrades makes it much easier to remain in business during slower times.