Seasonal Pricing.

[rph9168]

I am beginning to think that some operators want to put a LED sign out front like a gas station so it would be easier to change prices more frequently.

I am with Steve and others. Price your wash according to the local situation, necesary profitability and quality of the wash. Fluctuating prices seasonally or for any other reason is asking for trouble. Car washing is a service not a retail item like gas, milk or eggs. If you want to raise prices do so but don't move them up and down at will.

 

[Michael McKernan]

I think I made it quite clear, there would dates set. Also, I think I made it clear, I was going to raise prices and leave them alone. The automatics is where I thinking about offering a $3 express in the summer. The first/last time I did. I found consumers washing twice a week at $3 instead of $5 once.
Either way, I don't think anyone wants to changes prices on a daily basis like you suggest they want to.
I only offered this suggestion, because what we are doing right now is not working with increased costs. God forbid this industry thinks outside the box.

 

[rph9168]

Mike,

I was not trying to upset you. I was just exagerating to what lengths some might go to in order to prove a point. I am also not against thinking outside the box because many new options can come from that. I think this forum has proven to be a good way to "test the waters" before jumping in.

I think pricing strategies have become a more important aspect of the business than ever before. In my area the $3 Express Wash with free vacuum has had a negative effect on IBA's much more than full or flex serve conveyors. Many IBA operators have lowered their pricing in an attempt to compete. I am not sure that is working so well. I wish I could say I have the magic answer but I think the solution is not that simple.

 

[pitzerwm]

I'm not sure that seasonal price changes would work as well as seasonal specials. I think that its all in the marketing.

 

[Ben's Car Wash]

Mike,

your frustration is felt by most of us. Yes, you have years as a retail grocer and years as a successful SS operator. But we all have that hesitation of when to raise prices in the face of rising cost. We always have those questions lingering in the background; will it drive away business? Am I over pricing beyond my compatition? Am I losing more than what I will gain in net profit?

All too often we wait too long to make the move up in price. Seems everyone sits tight and waits for the other guy to raise the price first... kinda of a reverse price war! Yes, we pay "surcharges" in winter time for all sorts of energy items. I just think that it would be better to raise the price now and leave it there... customers memory will forget by summer as the habit of using your site establishes a new level of pricing aceptance... which leads to more profitability throughout the year, not just the Winter season.

Thinking out of the box is great. But boxes have strong, tested corners, known volumes and certian shapes that can fit most ideas well, without going outside of them. And I'm usually the out of the box kinda of guy.

 

[smokun]

"Who's On First!"

Here's another suggestion that might clarify and hopefully advance this discussion. Bill hit the nail on the head.

Retailers have long known that it's easy to lower prices... and very tough to raise them. Instead of the seasonal yo-yo pricing, why not consider seasonal specials. I recommend them routinely to my clients and they work great. That allows you to condition the customer to look for and consider fresh new specials offered, and recognize the savings. It builds and reinforces VALUE without the risk of mere price devaluation. Instead of a 2-tier pricing program that is cumbersome and risky, offer a special instead. You have a plethora of choices: cold weather special, warm weather special, holiday special, manager's special, end-of-the-month special, national clean-up special, international shiny car month, and many, many, many more. You are only limited to your imagination... and enough combination choices.

Using merchandising specials enables you to help shift volume from busy to not-so-busy times. Want to build early morning traffic, offer a cup of coffee and a newspaper. Late afternoon traffic is a great time for take-home specials combined with the wash... such as a flower bouquet. Not very expensive, especially at the end of the day (if you source things well).

You rail at remaining inside-the-box, so step outside and get creative. Offer a kiss to every customer with every wash! You can get a great deal from Hershey's.

Seasonal things tie in well, too, Bottled cold water on a hot day. Hot cider in Autumn. Candy canes throughout December. Dog bones during the dog days of summer. Bring a little theater to your business! Lift it out of the same old stereotype carwash... and elevate it to a destination location simply because of the gimmicks. Done right, it can make your operation a lot of fun to visit... as well as talk about later.

(continued)

 

[smokun]

There's More...

Or, you can take the boring way that carwashes have done for fifty years: go up in price a quarter. Some guys have been doing the 25-cent thing for decades. Duh.

Pricing strategies are multifaceted approaches for improving revenue. growing volume and enhancing customer values-perceptions. Done properly, they work well every time. As they say in Texas, they're a hoot!

And, believe it or not, every time I raised prices for a deserving but weak-kneed client, his eventual response has been... "I should have done it long ago".

Increasing revenues doesn't always mean raising your base price. The risk is not in WHAT you do, but rather HOW you do it. Consumers respond well to mindful finesse... and are taken aback from its absence.

Exercise MARKETING FINESSE!

-Steve

 

[nascarwash]

2.00 for 4 minutes is a good mark up in s s almost no one can wash a car in 4 minutes and those who want to rinse a car off 2.00 is extremely reasonable hav a great day out there and be safe