Pricing Opinions- Increase or Not to Increase $$

[SparklesSS]

Hi all,

I am new to the car wash industry so Ill provide some background info to get started:

• 4 bay self-serve wash in Ontario, Canada
• Custom Kraft Equipment (12 function) and a "newer" building (10 years old). Best/ most advanced self serve in the city.
• Lots of great add-ons such as in-bay vacs, wand dryer and music
• Wyndstar doors used in the winter so provides warmth for the customer and keeps the equipment warmer
• Population of about 70,000
• 3 other self-serve washes strategically located across the city so they are not really in direct competition
• 3 express tunnel washes between 1.6 and 2.8 miles away.

The wash is currently at $3:00 for 3 minutes 36 seconds. The other Self-Serves are $3:00 for 3 minutes.

The price has been this way since new and is certainly in need of adjustment.

Interested to know of your thoughts and experiences!! $3:00 for 3 minutes and match the others or $4:00 for 4 minutes?

 

[washnshine]

I’m always in favor of raising prices and showing the value of doing so. So for me, $4 for 4 makes sense. Keeping the price the same and taking away time ($3 for 3) shows your customers they are getting less for the same thing. If you go $4 for 4, you’ll still be at the same $ per minute as the other washes ($1 per minute), you’ll just have a $4 minimum. 3 minutes is not a heck of a lot of time anyway and most of my customers are spending more time than that in the bay. Sounds like a nice location with plenty of functions and amenities that will easily attract people willing spend $4 minimum. The doors alone for warmth in the winter are worth that!

 

[SparklesSS]

Anyone else gone through this process? Just hoping I don't push away customers. Any guidance/advice would be greatly appreciated!!

 

[celica]

Hi SparkleSS, I'm also in Ontario, Canada. What city are you in? I'm also $ 3.00 for 3 min. 36 sec. One comp. is $ 2/2min, other 2 are also $3/3min 36sec. I am in Kingston.

 

[Randy]

I would go to $4 for 4 minutes and then in about 6 month or so roll the time back to 3 min 30 sec. We only post the price on the front of our meter boxes, not the time. At the same time I'd raise the price of my vacuums. What are you charging for your vacuum's?

 

[SparklesSS]

Hi SparkleSS, I'm also in Ontario, Canada. What city are you in? I'm also $ 3.00 for 3 min. 36 sec. One comp. is $ 2/2min, other 2 are also $3/3min 36sec. I am in Kingston.

Northern Ontario....how close are the other washes to you?

 

[SparklesSS]

I would go to $4 for 4 minutes and then in about 6 month or so roll the time back to 3 min 30 sec. We only post the price on the front of our meter boxes, not the time. At the same time I'd raise the price of my vacuums. What are you charging for your vacuum's?

Thanks for the advice. We have vacs in each bay currently set up as a function on our rotary dial so runs at the same cost per minute. Very strong suction. Also have more vacs in the rear of the property that include shampoo and fragrence functions. $2 for 4 minutes there.

 

[celica]

Hi sparkles, I'm in the same boat where the other washes are far enough away that we each have our territory. I would serve an area that would have 25-30k of population to myself. If your ever planning on being in Kingston, let me know.

 

[soapy]

I would never want to be the cheapest wash in any market. All the free loaders and people who leave the most trash and mud tend to flock to the cheapest wash.

 

[Axxlrod]

Are you running a business or a charity? Maximize your revenue!

 

[Alpine Dreams]

There are 6 car washes in my city. I'm the highest priced one and I have the least amount of headache. When I went to the most expensive, the bucket washers disappeared and I have a lot less mess to clean from the other disrespectful individuals. The worst part of raising prices was all the money I have to take to the bank.

 

[Damoni88]

When it comes to you wondering if you should increase then its definitely time. I have 3 self serves and increased prices back in April/May and i haven't looked back. Im happy with my price's and i can count on one hand in 5 month's where someone said something. Biggest change i have seen is the bucket washers are pretty much gone! The cheapest wash in our town is also the dirtiest and most trashed. Think of it like this. Everything else in the world has gone up in prices so why shouldn't you!

 

[MEP001]

Biggest change i have seen is the bucket washers are pretty much gone!

I wonder why, maybe since they're only going to rinse they go to the cheaper startup wash?

 

[Damoni88]

I wonder why, maybe since they're only going to rinse they go to the cheaper startup wash?

Yes, they have an odd ball in our city in a bad part of town also that is $1.00 start up. Makes me happy less headaches of having to argue with people That obviously choose to ignore the10ft long sign that says "NO BUCKET WASHING"

 

[SparklesSS]

When it comes to you wondering if you should increase then its definitely time. I have 3 self serves and increased prices back in April/May and i haven't looked back. Im happy with my price's and i can count on one hand in 5 month's where someone said something. Biggest change i have seen is the bucket washers are pretty much gone! The cheapest wash in our town is also the dirtiest and most trashed. Think of it like this. Everything else in the world has gone up in prices so why shouldn't you!

$1 per minute would be on par with competing washes. This would be the higher startup cost, however I doubt anyone would travel across town to save a dollar and most people can not clean their vehicle for the $3 minimum regardless. I guess you can see that I am talking myself into it lol!

My wonder is will customers opt to just pay the $7-8 for a basis auto wash at one of tunnels?

The wash is still in its first year so maintaining cliental and revenue is certainly important.

 

[Damoni88]

$1 per minute would be on par with competing washes. This would be the higher startup cost, however I doubt anyone would travel across town to save a dollar and most people can not clean their vehicle for the $3 minimum regardless. I guess you can see that I am talking myself into it lol!

My wonder is will customers opt to just pay the $7-8 for a basis auto wash at one of tunnels?

The wash is still in its first year so maintaining cliental and revenue is certainly important.

4$ for 4mins will not hurt you one bit. Do it and dont think twice. Especially if you have the best/up to date wash. As i said earlier everything else go up and people still buy it. Alot of people dont like express washes cause they can and will scratch your vehicle so alot choose to do it themselves.

 

[SparklesSS]

4$ for 4mins will not hurt you one bit. Do it and dont think twice. Especially if you have the best/up to date wash. As i said earlier everything else go up and people still buy it. Alot of people dont like express washes cause they can and will scratch your vehicle so alot choose to do it themselves.

Thanks, I am going to make the move. In the process of getting new signage made to reflect the new price per minute.

 

[washnshine]

My wonder is will customers opt to just pay the $7-8 for a basis auto wash at one of tunnels?

20 years ago self serves competed mainly with other self serves. I believe there were basically automatic customers and ss customers. People using a ss were trying to do one or more of the following:

-Save money over using an automatic (there was a bigger gap in pricing so this was more significant some were $1 or $1.25 to start up)

-Were particular and wanted to get every detail on their own

-did not like automatics/thought they damaged vehicles

-enjoyed it/ or were do it yourself types

Self serves did not have all of the functions they have today and the monthly plans did not hit the tunnel world yet.

I think the line is blurred more today and self serves have to compete with tunnels/ee’s. and vice versa

The reason being is that:

-Self serves have to increase prices to make money and cover expenses. $1 start ups are pretty much gone. Heck - you are about to go to $4

-automatics are safer and put out a high quality product - advances in solutions, material, water treatment etc.

-ee’s with a monthly subscription can be financially feasible alternative to a few $5 self serve washes. There are ee’s around here with basic unlimited packages for $12 per month. Cancel anytime. Use only on the winter. Very customer friendly.

- many markets have fewer self serves and new ones are not being built.

That is why it is good you are aware of this and realize you have to offer quality products, services and an attractive facility with all the modern amenities.

In this day and age, good ss’s do compete with automatics. You will always have some people who will never use the automatic and some people who never have the time or are too lazy to use the ss. For the customers that are in the middle and could potentially use either, your ss has to be attractive in enough ways to sway enough of them to your facility so you get your share of the market.

 

[Randy]

The business model for Self-serve car washes is slowly dying. The number of Self-serve car washes are getting fewer and fewer every year. With the changing of the attitude of the young millennials who don’t want to wash their cars themselves the industry is changing. Most of the millennials I know very seldom wash their cars, they say it’s not important to them to drive clean car. The last Self-serve car wash to be built around here was about 10 years ago or so. The last couple of years with the high property values the car washes that have been sold are no longer car washes, the car washes are gone and something else is in their place. Step back and take long hard look at the publics perception of the Self-serve car wash industry, it's not very good. Most Self-serve car washes are magnets for the undesirables who come and do pretty much whatever they want to at night or in the early morning hours.

 

[SparklesSS]

The business model for Self-serve car washes is slowly dying. The number of Self-serve car washes are getting fewer and fewer every year. With the changing of the attitude of the young millennials who don’t want to wash their cars themselves the industry is changing. Most of the millennials I know very seldom wash their cars, they say it’s not important to them to drive clean car. The last Self-serve car wash to be built around here was about 10 years ago or so. The last couple of years with the high property values the car washes that have been sold are no longer car washes, the car washes are gone and something else is in their place,

Randy, where abouts do you live and what kind of climate? In Northern climates I think the self serve business still stands strong, especially with long cold winter months.