My Credit Card Use Results

[MEP001]

I did some math a few years back, actually counted cars washed by customers and verified approximately 20% more spent via credit card over cash per car washed.

I've also had a LOT of people tell me they come to us over the competition because we accept cards in the bays.

 

[rph9168]

Being able to use credit cards has become more of a convenience that keeps customers more that one that attracts them. Most operators that I have talked to feel that credit care acceptance is a worthwhile addition to their wash.

 

[Earl Weiss]

Being able to use credit cards has become more of a convenience that keeps customers more that one that attracts them. ....

It is the same with "pay at the Pump.' Ininitialy the thought was "Don't do it" make them come into the C Store to pay and they will buy other stuff. In very short order all gas stations had it except for perhaps the Union strongholds like NJ that don't have SS Gas.

 

[Mel(NC)]

CC sales have been much less than I anticipated. I have had CC readers for 3 years in 2 of my 4 SS bays. Credit card sales have remained steady at 8% since I started taking them. I even have signs up stating credit cards are accepted.

 

[bighead]

The disparety is fascinating.

Last month my CC sales in 2 self serve bays and one dog wash was 39.3% of my gross.

For my Auto, it was 69.7% of gross.

Of course, in my self serve bays i'm count-up... maybe that is a difference...

 

[Earl Weiss]

By industry standards my SS is underporming due in no small part to having my $3.50 EE on the same property.
Do I know if customers spent more with CC? No. I started with Crypto in 4 of the 8 busiest bays. Within a few months I added it to the other 4.

FWIW March 2015 was likely the best weather month for washing in both SS and Tunnels. The SS credit card receipts were over $5000.00

I would do it again in a heartbeat. All in charges run about 5.4%

 

[Randy]

How many car wash operators have to pay sales tax on their car wash sales? We pay 8.7% on every dollar the car wash makes. The exception is we don’t pay the sales tax on the wax cycle, how they figured that out I know. We pay tax on chemicals/soap, repair parts, even items we buy out of state and are shipped in.

 

[Earl Weiss]

How many car wash operators have to pay sales tax on their car wash sales? We pay 8.7% on every dollar the car wash makes. The exception is we don’t pay the sales tax on the wax cycle, how they figured that out I know. We pay tax on chemicals/soap, repair parts, even items we buy out of state and are shipped in.

Color me confused . How does the Sales tax issue fit in with the Credit Card issue? Is it because you pay CC fees on the Tax collection portion of the sale?

 

[Randy]

Earl, Do you pay sales tax on the self serve car wash? By the time you count the sales tax, credit card fee’s and all the other BS we are almost 16% per card swipe. The State of Washington is trying very hard to collect sales tax on online sellers, like EBay, Amazon etc.

 

[Earl Weiss]

Earl, Do you pay sales tax on the self serve car wash? By the time you count the sales tax, credit card fee’s and all the other BS we are almost 16% per card swipe. The State of Washington is trying very hard to collect sales tax on online sellers, like EBay, Amazon etc.

Looking at a table for Wash it looks like the highest rates are about 9.5%. About the same as here. Are your CC 6.5% "All In"

I am In Illinois. SS wash in Niles. tunnels and Gasoline Sales in Chicago. Perhaps highest Sales / Gasoline Tax in the country. No tax on washes yet. Amazon Collects taxes.

Gasoline much more competitive than washing. On a $3.00 gallon if you are .02 higher than the guy down the street you can lose 10% of your volume overnight. Gross margin on a gallon of gas is .50 if you are lucky. Taxes make up about .75 of that price. Figuring an average sale of 10 Gallons, a credit card takes 10 cents per gallon or 20% of your margin.

So, while the overall % as a portion of sales may be lower than your SS Hit, it's much higher as a % of rvenue and what you pay in redit card charges to collect taxes for the government. Bottom line - No sympathy from me!

 

[mjwalsh]

Earl, Do you pay sales tax on the self serve car wash? By the time you count the sales tax, credit card fee’s and all the other BS we are almost 16% per card swipe. The State of Washington is trying very hard to collect sales tax on online sellers, like EBay, Amazon etc.

Randy,

I think what some don't realize that when it comes to buying out of state located supplies & parts ... a high state local sales tax often ... depending on the state ... becomes a "use tax". This is where we were blown away by one of our state tax department auditors who continued to use his accounting degree like a weapon during the very unpleasant audit. He went back 7 years ... 12% compounded interest ... on any amount of "use tax" not paid.

I wonder if enough politicians will ever wake up to just one of the root causes of horrific unemployment & debt to GDP problems in the USA. That is when they consciously or unconsciously have their minions seek out smaller businesses ... just because they are vulnerable & more easily audited. By that ... private individuals outside of businesses were never audited even though most did not & do not voluntarily pay their state's sales tax rate (out of state purchases) by way of "use tax". The law basically makes everyone in a state a criminal but ... only the small businesses (criminals in their eyes) were selectively & continue to be selectively enforced on the "use tax".

Thanks to a too often inept news media & too complacent of citizens including business people ... politicians are too often allowed to go their "merry way" after being the very individuals & parties fanning those kinds less than ideal tax & enforcement of tax policies.

mike walsh www.kingkoin.com

 

[Stuart]

I have 2 locations. My cc sales at the slowest location is ~25%-27% of sales and the other is ~36%-38% of sales.
I pay 8.05% in sales tax.