If any one sells their car washs at next
door C-stores with Pay at Pump how much do you give them for their commission to do this?
I operate two
PDQ access machines.
To begin, you will need to have at least capabilities of Access B pay station with bill/
coin/credit, receipt printer, remote access capabilities and WIFI connectivity.
If you have to upgrade, figure $20,000 installed per unit.
Next, there will be cost to tie into the store’s MPDs and sales counter plus
marketing expense for pump toppers, signs, promotion, etc.
So, how much commission to pay will depend on the circumstances and deal.
What’s it worth?
For the c-store owner, having a substantial carwash operation “on site” can fill a store profit gap of as much as 25 percent.
However, you won’t be sharing these profits.
For carwash operator, current gas/wash rate is 150:1. So, if store sells 100,000 gallons per month, expect 667 washes from pay at pump.
However, if customer must cross the street or exit property and re-enter another property as in no direct access (easement), figure gas/wash rate of around 250:1.
Like paying a tip at restaurant, the calculated tip amount (commission) should exclude sales tax (operating expenses).
If average revenue is $8.50, profit would be less $2.50 per unit variable cost plus fixed cost plus start-up expense (POS tie-in).
Here, 25 percent after expenses would be fair profit.
I also recommend a legally binding contract. The reason is exit strategy.
For example, if the “up” from the tie in is 25 percent, the market value of the business increases by 25 percent.
Without a legally binding and transferrable contract, you would not be able to realize this gain.