Remove wet wash from menu

[washnshine]

I offer a $6 wet wash that accounts for about 6-7% of my sales. I'd like to get rid of it because most of the customers that purchase it need more cleaning, but just want the cheapest option, and I don't like cars leaving my auto looking like they just used the self serve for 4 minutes.

The wet wash wash has:

Presoak
HP wash
Spot free rinse


My next wash up is $7 and has

Wheel blast
2 step presoak
HP wash
Drying agent
Drive through dryer

I have two more packages that offer all the extra polishes/waxes/underspray etc. - I'll keep them as is - I just want to get rid of the $6. Given the options I offer in the $7 package, I'm proportionally overcharging for the $6, - it probably should be $5.

Anyone have experience eliminating an "economy" package? The 7% that currently use it do not have a cheaper option anywhere else around me, and they would have to become $7 customers if they still want my cheapest wash, but they would get a significantly better looking product. If they get upset, they can go elsewhere for a $7 wash that does not equal mine. Any thoughts?

 

[chaz]

Go for it. Here's what I did. I dropped my bottom wash and added a new wash between my top two. This still offers four choices at a higher ticket. I've only had a few customers say anything since I made this change in May. I explain I didn't raise prices, just dropped the wash as it was little used. I now have a choice just below the top for those that don't feel the need for tri color.

Safe to say your other washes are also "wet" ?

 

[washnshine]

Thanks Chaz.

No - only my bottom wash is a wet wash - all others have the drive through dryer.
My wet wash is really a bare bones package.

 

[chaz]

Oh, that's what a you mean by wet wash. My bottom wash, $8 does not and never did have a dryer option. My other three washes have dryer and additional items. I think we all over worry about customer reaction. Even if you loose a few by dropping the bottom wash, you will more than make up for it with your higher tickets

 

[robert roman]

“Anyone have experience eliminating an "economy" package?”

Yes, I have lots of experience.

“I just want to get rid of the $6. If they get upset, they can go elsewhere for a $7 wash that does not equal mine. Any thoughts?”

Yes, I might consider re-thinking this strategy.

Wet wash uses one soap, wash (basic water amount) and RO water, probably 3-minute wash or 20 cars an hour, price $6.00.

Package one has wheels (uses more water & elec.), 2-step (doubles the chem.), drying agent (adds chem.), RO, dryer (lots more elec.) and longer wash cycle than wet wash equals less cars per hour, price $7.00.

Nothing wrong with the recipe for this package or its price as long as you are satisfied with the in-bay’s total car count and average sales generated by – “…two more packages that offer…extra polishes/waxes/underspray etc.”

However, the consequence of this strategy is it closes the door on the economical shopper including those that might be looking for even a lower price point, say $5.00.

Why give existing customers and potential customers a reason to visit the competition?

Instead, I would consider strategies like top package merchandising, up-sell, clean-shine-protect, etc.

What to do would depend on counts, sales mix, prices, margins, competition, etc.

 

[washnshine]

Hi Bob - thanks for the input - here is my reasoning for some of the points you highlighted:

"Nothing wrong with the recipe for this package or its price as long as you are satisfied with the in-bay’s total car count and average sales generated by – “…two more packages that offer…extra polishes/waxes/underspray etc.”

I do not like the recipe for the wet wash ($6) because it does not meet what I would consider a minimum standard of cleaning for most of the people who buy it, hence my desire to get rid of it. I do not see what I would consider a quality basic cleaning until my $7 wash, and that is why I would like my menu to start there.

"However, the consequence of this strategy is it closes the door on the economical shopper including those that might be looking for even a lower price point, say $5.00."

A $5 automatic wash cannot be found within a 25 mile radius of my wash. In terms of closing the door, I would be giving them a significantly better wash for a $1 increase from what they currently spend. Two years ago I bumped up the price on my top package significantly with hot wax - customers had to pay more, but got more - same thing will happen to my $6 customers having to become $7 customers - they get more.


"Why give existing customers and potential customers a reason to visit the competition?"

I know my competition well and I'm not sure who they would visit, unless they want to pay more for less. $7 at my competitors will not get them what I offer.

"Instead, I would consider strategies like top package merchandising, up-sell, clean-shine-protect, etc."

I have Simoniz Hot Wax, tire shine and a top package that makes the cars look buffed. It sells for $14 and accounts for 1/3 of my sales. There really isn't much more I can offer in this IBA on the top end. I just would rather my minimum offering be more substantial.

 

[chaz]

Here's a thought, drop the dryer from your $7 wash, and name it the "new wet wash"(as a name example), your signage should promote the added benefits of the new wet wash. You can then insert a "wet wash plus blow dry "( as a name example) for say 8$.

 

[washnshine]

Chaz,

I like this idea a lot. I get the benefit of better cleaning with the 2 step presoak for my bottom package and can justify the price increase with improved wash quality.

Thanks!

That's why the forum is a great place to bounce ideas off other operators.

 

[robert roman]

“…..bumped up the price on my top package….with hot wax - customers had to pay more, but got more…..”

Exactly, but what was the motivation.

For example, I always advise offering the strongest online hydrophobic product available on the market, packaged or up-sell. The reason is the product’s capability to shine and “protect” surfaces up to 30 days. Hot wax is one of several “spray and rinse” that has very high surface contact angle and durability.

“Protect” is important because its one-third of the carwash value proposition.

So, satisfying this need is what causes average sales to increase when the product is added to the product mix. Consumers gravitate to the value added.

I advise clients to charge $4.00, average COG $1.00. So, if four selections are offered and 70 percent of customers are buying top two packages, it doesn’t get much better than this.

Conversely, exterior express with $3.00 or $4.00 base wash with free vacuum might have only 25 percent of customers buying the top two packages. As much as 50 percent buy the base wash. Here, its low price that initially pulls people from highway and their drive-ways.

Arguably, it would be very tough to sell a $14 in-bay wash in this market.

“I do not see what I would consider a quality basic cleaning until my $7 wash, and that is why I would like my menu to start there.”

This is a great business philosophy. However, if you can get $14 in-bay price and base is $7.00, you may be leaving enough volume on table to support another unit.

 

[washnshine]

Bob,

This menu revision basically raises the price of my bottom package $1, and accompanies it with an increase in quality of the wash. This adjustment seems pretty straightforward with a direct justification to the customer. My top customers had to pay more for higher quality when I added the hot wax, now my entry level package customers have to pay more for higher quality when I add a second step of presoak to their package.


"I advise clients to charge $4.00, average COG $1.00. So, if four selections are offered and 70 percent of customers are buying top two packages, it doesn’t get much better than this."


Pricing is regional - there are no operators of any type of wash (tunnel, IBA) charging $4 in this area. If we did, we would certainly be losing out on potential profits, given this market. I have not seen a $4 wash (near me) in probably 10+ years.

"Conversely, exterior express with $3.00 or $4.00 base wash with free vacuum might have only 25 percent of customers buying the top two packages. As much as 50 percent buy the base wash. Here, its low price that initially pulls people from highway and their drive-ways.

Arguably, it would be very tough to sell a $14 in-bay wash in this market."


Agreed, but I do not have an EE selling for $3 or $4 with free vacs anywhere near me - that is why I can get $14 for the top package and $11 for no hot wax. That is why my competition is in line with this pricing as well. Additionally, I'm in the Northeast and driveway washing cannot exist from December - March.


"This is a great business philosophy. However, if you can get $14 in-bay price and base is $7.00, you may be leaving enough volume on table to support another unit."

Perhaps, but I just want to start by getting the bottom package in my existing IBA set first!

Thanks for your input - it is appreciated.