New prices and dropping lowest package

[Eric H]

I’ve had the same pricing and temporary menu board since opening in 2016. My goal was to have this menu replaced by the end of September and I haven’t even spoken with my sign guy...what can I say, time flies when you are busy. It’s time for me to buckle down and get moving on this project.
This site has Razor3’s with the option for 1 buy-up per package. I currently offer Ceramic Coat for $5 and will switch to Salt Neutralizer for $2 when the winter weather arrives.
I am considering dropping the $8 wash because it is less than 10% of sales. My pal Waxman said to me “Why would you even offer an $8 wash? Your SS customers spend more than that in the bays!”
I’m thinking of going with 3 packages keeping the current $10 wash and from time to time offering a “Manager’s Special” to use the 4th wash option.
The next change I am considering is making the top wash include every option, meaning NO buy-ups. Currently, the top wash is $15 with a $5 buy-up making my max ticket price $20. Would making this package all inclusive for $25 be a good idea or should I keep the current package but move the price to $20 plus the buy-up at $5?
Any other input or ideas are greatly appreciated! I’ll give you extra points if you include a picture of your current menu for me to blatantly plagiarize.

 

[Car_Wash_Guy]

I'd go to 3 packages with no buy ups. I feel it confuses customers. I went from 4 to 3 with a 30% price increase. Should've went higher.

 

[Waxman]

Drop the $8 wash. Think of driving the customer toward the $TOP$ package.

Some people just buy the top no matter what.

Given credit card usage, the price becomes less of a concern, due to the disconnect between plastic and the reality of spending the cash.

I'm not sure how to price your lower washes, but at $25 for the best, you shouldn't be too much below $20, which seems odd, but that's the market we're in.

My new Razor packages will be $16,18,20,22. Yes, it's high. It's what the market will bear.

 

[soonermajic]

I simply can't wrap my mind around yall's pricing! When I bought my wash, 3 mos ago, it had a nice heavily used, LW360. Pkgs were: $7, $9, $10 !
Should open our new Razor Edge w/ $9, $11 & $13. I fretted over $12 /$13 & went w/ $13.

Just another of the plethora of reason to NOT FORCE everyone in the US to have $20/hour minimum wage!!!

 

[washnshine]

I simply can't wrap my mind around yall's pricing! When I bought my wash, 3 mos ago, it had a nice heavily used, LW360. Pkgs were: $7, $9, $10 !
Should open our new Razor Edge w/ $9, $11 & $13. I fretted over $12 /$13 & went w/ $13.

Just another of the plethora of reason to NOT FORCE everyone in the US to have $20/hour minimum wage!!!

Every market is different. It costs $16 to cross the George Washington Bridge.

 

[Waxman]

if the market pricing is leading you in the direction of $20 then why not go there?

If self-serve customers are already spending on average over eight dollars per wash, why not price the automatic significantly higher?

When I fill my pick up up with gas it's $80. When I buy food for five people at a fast food restaurant it's $50.

 

[Eric H]

I simply can't wrap my mind around yall's pricing!

I sometimes say the same thing about the low prices are down south! How can washes have such low pricing when we’re all paying about the same for supplies?
One of the reasons I want to increase my price, or drop the lowest package, is to increase my per car average. I am anticipating a significant increase on natural gas this year. The cost to run the floor heat is one of my largest expenses. I’m also anticipating a drop in volume as gas prices increase. Either way, I expect my Net to decrease no matter what I do. I’m just trying to limit how much the Net drops.

 

[MEP001]

How can washes have such low pricing when we’re all paying about the same for supplies?

Supplies are the least of my operating costs. Water/sewer and electric is ten times that, and utilities are pretty cheap compared to some of you guys.

 

[soonermajic]

Supplies are the least of my operating costs. Water/sewer and electric is ten times that, and utilities are pretty cheap compared to some of you guys.

Same. Supies are cheap, but water, sewar, electric is where the cost is. That being said, they're really cheap compared to other parts of the Country. Maybe half as much...
I bet we make about the same net, for my $13 top pkg vs. your $20 top pkg.

AGAIN, the deason why there should NEVER be a $20 minimum wage. Our's is $7.25 & that is plenty.

 

[GoBuckeyes]

For context Eric, where are you located…East Coast? What is the SS pricing in your area since it’s been referenced several times.
If you can get $25 Hats off to you!

 

[Eric H]

For context Eric, where are you located…

Central Massachusetts. SS pricing is $4 for 5 minutes. I didn’t get a single complaint when I went up from $3.50 for 4:40 in 2019. My IBA prices are $8,10,12,15 with buy-ups for $2 and $5.
Most Pricing near me goes from $10-22 for IBAs and friction tunnels.
My closest competitor with the same format (touchless/SS bays)is priced the same as me but he doesn’t have buy-ups. So my top wash is actually $22 while his top wash is $15.
I think I should be happy with the pricing I have but, as I stated above, I’m trying to insulate myself from the anticipated increase in Natural gas, gasoline and all of the associated increases that go with those increased costs

 

[soonermajic]

SS is Tx La, Ok is $1 --->$2 for about 4:00.

Shocking, the difference in prices.

 

[washnshine]

SS is Tx La, Ok is $1 --->$2 for about 4:00.

Shocking, the difference in prices.

Is that the heavily populated areas and big cities it Texas too, coach? Like Dallas, Houston etc.?

 

[Waxman]

I'm about $1/minute SS. Central / Western MA. $3 start. $5 credit card.

 

[MEP001]

Is that the heavily populated areas and big cities it Texas too, coach? Like Dallas, Houston etc.?

Only in the nicer parts. There are still some washes in San Antonio that are 50¢ for 3 minutes.

 

[AutoSpaMobMO]

I wish the market would hold those prices here in central Missouri! My prices are $6, $9 and $12. My closest competitor is the same.
I bought my wash 3 months ago and those were his prices. Mine is definitely the nicer wash in town and a great location. I keep thinking my prices could go up a 1 or 2 dollars.
I am currently looking at another wash just 35 miles south of me in a college town much bigger population than where I am and his current prices are 5,7,8 and 9 which I thought was just too low. There are several tunnel washes there which is something we don't have here so I really don't know how they impact his business.

 

[Eric H]

I wish the market would hold those prices here in central Missouri! My prices are $6, $9 and $12.

I think you should make some minor improvements and raise the prices if you think the customers won’t revolt!
A large coffee here is over $3 from the local donut shop. I suspect theprice of a cup of coy is the same in Central MO. Why would our prices be so far apart?
If you’re washing 10,000 cars per year and you raise the price $1 this year, you’ll make another $10,000 without changing your expenses. You should probably reinvest some of that money into the business to help make it the best in the market.

 

[chaz]

I’m now at 10, 12, 15 on IBA and NO buy up options

i was 8, 10, 12, 14. I subtly dropped the 8 from signage, then dropped it a month later as an offered option on my cashier….though the unmarked button still offers an $8 wash….I sell about one $8 a week…be soon will totally drop the option. My average wash increased by about 90cents

 

[Eric H]

My average wash increased by about 90cents

Interesting. I calculated that if all of my $8 customers switches to the $10 wash with no other changes it would increase gross less than $10,000.
it seems that a fair number of your customers are buying higher packages

 

[chaz]

Interesting. I calculated that if all of my $8 customers switches to the $10 wash with no other changes it would increase gross less than $10,000.
it seems that a fair number of your customers are buying higher packages

yeah….buy what about the old $8 customer that now goes…in my case to the 12 or even 15! I know it’s weird…but with three vs four choices….customers seem to gravitate toward the middle. My top wash is still my top seller ….and my (new) bottom price is still my lowest.