Price increase

[HCW]

I read every article regarding price increase but I am hesitant to do so. Our price is $1.75 for 3:30 and the closest wash (2miles away south) just raised their price to $2 for 3:36, this car wash is very run down and never attended, the other closest car wash (3miles away north) pricing is $2 for 3:35 and this car wash is better than the other one but not attended as much as ours and in a more populated area. According to some customers we have the best car wash in town and we believe it. We are very hesitant to match their prices due to a significant increase in revenue recently and was wondering if it's due to our lower pricing? I am afraid of attracting the messy customers with our lower pricing and worst raising the price and lose customers. Any suggestions?

 

[slash007]

Raise your prices, you will not regret it. Then post back here after a month letting us know how nice it is to have the extra income.

 

[Waxman]

Yes raise the price. No worries. No looking back.

 

[MudMoney]

You will not lose the loyal customers.By having the best wash in town in your words,I would charge the most and never look back.I charge $3.00 for 4 minutes the other 3 washes in town are anywhere from $1.50 to $2.00 for 4 minutes and 2 of them are for sale.Their down fall in my mind is not keeping a clean place and out of service bays and the biggie lack of pride in their business.BTW I deal with penny pinching farmers and ranchers and union mentality that I'm making money off them.Raise your prices!

 

[chaz]

Yeah, raise the price! Even if you loose a few customers, you'll still be making more money. True customers understand you are there to make money. Keep the place nice, they will stay loyal.

 

[Randy]

What are you waiting for, raise your prices. I think most car washes don’t charge enough to make a decent profit and put money back into the facility. This last April was the time I raised my prices, I went from $2 for 4 minutes to $2.25 for 3:30 minutes for the bay time and raised the vac’s to $1.25 for 3 minutes. I got no complaints, but have noticed an increase in revenue. This winter I’m going to $2.50 for 3 minutes in the bays and $1.50 for 3 minutes on the vac’s.

 

[chaz]

Yep raise the price. Though I am not a big fan of two increases in in one year, nor am I fan of raising price and cutting time. My customers are pretty smart and they understand it's ok to make make money, but they like me trying to fool them. I also want to work away from pricing in 25-cent increments. I am at $3 for 4 minutes. I accept bills and dollar coins and CC. Though my equipment also takes quarters, I do not offer quarters in change.

 

[seattleguy]

Raise your prices. Also go to $1 tokens so your pricing is always raised to next highest dollar. On my last big raise I did lose the worst 10% of my customers I think. The losers that throw their trash on the ground and think they have a right to give me their household refuse. Good riddance.

 

[HCW]

Raised it today, I'll report back in a month or so. I appreciate all the above encouragements.

 

[chaz]

Just curious, what are your new prices and bay times ?

 

[HCW]

Old price was $1.75 for 3:30, I wanted to raise it to $2 for 3:30 but I just found out that it is $2 for 4min now. I can't figure out how to set it up to take $2 to start 3:30 and 30 seconds for each additional coin!

 

[I.B. Washincars]

$2, which would be 8-25¢ segments, is not evenly divisible at 3:30. It figures up to 26.25 seconds per quarter. If the timer is a Dixmor, you will have to set it at 26 or 27, which figures out to 3:28 & 3:36. Some of them have a bonus feature that MAY allow you to bump additional coins up to 30 seconds, but I'm not sure.

Let us know what timers you have and then maybe someone can nail down a verdict.

 

[HCW]

It's a dixmor and I think you answered my question. I was thinking to set it up for $2 for 3:30 then 30 seconds for each additional coin but I guess that's not how it works. I went with 27 seconds per coin.
Thanks again!

 

[RealScott]

How many of you display how much time you get for the $? If not why don't you? I see more often than not operators that just put how much to start but no sign of how much time you get. However, I also know that when I'm there, people always ask how much it costs and how much time you get, even thought it's on the sign right there.

Does anyone put a sign up about how much it costs to wash a car? I get this question a lot too, I suspect from new customers, "how much does it take to wash my car"?

Thanks!

 

[MEP001]

I answer them "Everybody is different, it just depends on how clean you want it."

 

[Waxman]

tell them 'it's up to you'. 'to rinse it off is $3. to use all functions and do a really nice job is $6-9.'

 

[HCW]

Thank you thank you thank you. No regrets so far

 

[APW]

I just raised my prices to $2.00 from a $1.50. Not one complaint yet! I also dropped my vacuum time by 30 seconds. Hope to do it again in 6 months.

 

[chaz]

Likely the price increase in 6 months will be noticed and talked about. In my opinion, you should have made one (larger) jump and moved on. It's been 9 months since I went from 2 to 3 dollars for the first 4 minutes. Only a hand full of folks even commented, and when i said its my first change in 7 years they didn't discuss it further. My average spend per customer is up, my biz is up and my mess is less as the ones that leave the biggest mess are also the ones that don't like paying 3 dollars to start.

 

[robert roman]

Given magnitude of change in price of gas, meat, etc., I don’t suspect most people would quibble about difference of wash price when measured in several pennies and seconds.

Consider the big picture.

“According to some customers we have the best car wash in town and we believe it.”

This implies established customer base and business most likely in mature phase (stable income).

So, “significant increase in revenue recently” may be signal customers are finally fed up with inferior store(s) now charging slightly higher price.

Here, “inferior” is more influential than price.

So, if price is raised $0.25, say, to cover inflation, new and old customers probably would not balk at this given inferior store.

If inferior store makes improvements, then it’s a different story.

So, what most mature companies try to do is extend life cycle instead of compete on the basis of price.

Methods include redesign product/service, introduce new products or services, extend market range (advertising) and expand customer base (i.e. responsive website, customer loyalty program).