Should I give more tokens for $5, $10, $20 in change machine

[Jason Studer]

I am finally going to dispense dollar tokens in my change machine.

Should I give out more tokens per dollar

example:

$5 get $5 tokens
$10 get $12 tokens
$20 get $25 tokens

Please let me know what you are doing.

Thanks' Jason

 

[GoBuckeyes]

We've been dispensing $1 tokens for over a decade. I have never and would never give a bonus for any particular bill. We accept tokens in our automatic washes so I certainly don't want to discount that. People are smart, they would walk 20 yards to the changer so they could save two dollars on a $12 wash. Giving bonus tokens also complicates your accounting. What is your reason for wanting to give a bonus? People who don't want 20 tokens for a $20 bill won't be any happier with 25 tokens. The people who would take advantage of that are the people who are using your facility frequently anyway. You may as well just lower your price and keep the accounting simpler. Just my opinion.

 

[Jason Studer]

I just have a 4 bay self serve, just so you know.

I have a wash a 1/2 mile away that is closing, he has been giving discounted tokens for a couple of years, and there are a few other washes around doing the same.

I want to gain and keep any new customers coming back, and if they say a better deal for $10 or $20 they might spend it and be forced to come back. Just a thought.

 

[borumrm]

I dispense tokens as follows
$1 = 1 token
$5 = 5 tokens
$10 = $11 tokens
$20 = $22 tokens

 

[MEP001]

I would think that offering bonus tokens when you switch to dispensing them will help customers appreciate the change (No pun intended).

 

[Randy]

No! Why would you want to give bonus tokens? We’ve been there and done that 25 years ago and it doesn’t bring any customers back, loyalty is pretty much wishful thinking. What we do is accept the competitions token as a Quarter and we get lot of their tokens.

 

[MudMoney]

Going to kick your dog! Why are you devaluing your services,are you going to be the next wash closing down? Don't be a follower be a leader,too many owners in the business are over influenced by their competition.

 

[Earl Weiss]

I don't Sell tokens and don't plan to. Have watched all discussions with great interest. One comment about Tokens is always the "Walk Off Value" I would think encouraging larger sales by offering a 10% discount ( i.e. 22 for $20) would increae walk off potential to a point where the walk of profits exceed the discount.

Also, many (not me) offer bonus time for larger $ purchases at the meter box / bill acceptor. Is this much different?

Then you have the theory that "Spending" tokens is not psychologicaly the same as spending $ so trowing in an extra token or two is not like throwing in an extra dollar or two.

Ask 5 operators a question, get 10 opinions

 

[PaulLovesJamie]

Giving bonus tokens also complicates your accounting.

Can you please explain how this complicates accounting?

 

[PaulLovesJamie]

Dispensing additional "free" tokens for larger denomination bills is either part of your pricing or marketing strategy (or both). As such you need to determine exactly what it is you are trying to achieve - based on your post it appears that you want to
- match the pricing of competitors who are giving additional tokens
- gain new customers
- retain new customers
I'm dont think that giving additional free tokens would achieve these objectives, but I dont know nearly enough about your wash or its market to know, you pretty much have to make that call.

Also, I think most of us give coupons/discounts/charity washes of some sort, and I'm certain that all of us spend $ on marketing of one kind or another, so I'm a bit skeptical of the comments above saying "NO, dont do it!" Some washes its not appropriate to discount, but what percentage of businesses offer no discounts whatsoever??

FYI I have 1 rural 5 bay SS. I give 23 tokens for a $20 bill, been doing it for around 15 years. My original reasoning was to soften customer dissatisfaction when I switched from quarters to $ tokens, and yes I think it helped with that. I continued to do it to incent customers to spend more, but over time I've concluded that didnt really work. I continue to do it today for one reason only - as a "bonus" to my better customers, better being defined as those who are happy to put $20 bills into my changer. I only have a couple dozen such customers; they always have a full tube of tokens in their car, they wash very regularly, dont pay any attention to how many tokens they drop in, wash the floors with their last couple of minutes, dont let other customers abuse "their car wash", etc etc. I also drop in a few tokens for them occasionally, give them free samples of new vending products, and make sure they all have my latest t-shirts. I dont suppose I need to explain the value of such customers. I dont think that giving the 3 free tokens for a $20 created these customers for me, but it helps keep them happy.

 

[rph9168]

You need to think this strategy all the way through based on long term and short term goals. As many point out, additional tokens may not increase volume but some feel it helps keep customers coming back. If you start giving bonus tokens you will have to continue that practice. If you are just trying to increase volume maybe other marketing efforts could be used such as coupons or charity washes or even free wash coupons. The fact that the other wash may be closing means you will probably get some of those customers by default which should help. Take some time and try to analyze your goals before you start your marketing efforts to make sure they will achieve what you want them to.

 

[BBE]

You could also do "bonus time" For instance 1 token equals 2 minutes, but the 5th token gives an extra 2 minutes. So 5 tokens equals 12 minutes. You may prefer to do just that instead of giving bonus tokens. Let us know what you decide and how it goes.

 

[Jason Studer]

Sorry for slow reply, 12" of snow last night, what a mess.

The car wash up the road is not closing do to lack of business, The owner himself is putting up a senior assisted living center on the property.

I have charged more for my wash then he does since I purchased the wash 13 years ago . Me $2.00 for 4 min. him $1.00 for 3 min. I just don't want the new customers to have sticker shock without giving them a bonus. Yes my customers will also get a bonus, but they deserve one. I have a lot of my customer that will hose bays, empty garbage, and kick out the losers. Got to love them.

Thanks for all the input. I will post a review after summer to let you know what I decided and how it went.

 

[Jeff_L]

Giving out extra tokens for a larger purchase is a business decision you must make. Everyone here will have their own opinions, but only you really know your business. You should weigh in what exactly you're trying to accomplish by doing this, and if it will accomplish that. Personally, it might be a good strategy to get the $5 customer to buy $10 or $20 if the get an extra token or two. After all, you're selling them tokens, but be sure you don't allow an exchange of tokens back to cash. Also, think about the walk offs, meaning you'll have to replenish. I can't tell you how many times I've seen a token or two from car washes in peoples cars. They forget about them, which is really cool.

 

[Stuart]

In my changers I give--- 1tkn=$1 / 2tkn & 3dollar coins=$5 and for the $10 and $20 it is multiple of the $5. No bonus in the changers. All of my equipment accept the token, dollar coin and quarters.
I offer a 20% bonus for purchases over $50. 60tokens for $50. The places I sell mostly with this bonus payout is the Fire Dept, Law Enforcement, companies with a fleet of vehicles (ie heating and air companies). I have purchases up to $600 with the bonus sales. All these employees washing at my carwash for work may also wash personal cars at my wash too.

I have thought about the changer bonus but then why not just lower your price for everyone by 20%?
And my reconciliation on the changers in case of problems and inside theft would be head-banging and frustrating to account for. IF I would do it in the changers it would be for the $20 bill only. And remember these tokens are costing you money, even though we like walkaway tokens-why give them an extra one to take (which they may just trash or give to someone else and lose that sale) and costing you more money?

If you are offering all tokens in the changer I believe your changer sales will drop considerably. Customers complain about getting 1 token for 1 dollar. But getting 12 tokens and using only 5 today to wash- they will only use the changers only 1 or 2 times before they bring their own money or go somewhere else.
My thoughts

 

[Earl Weiss]

Earlier I posted that I do not use tokens. Then recalled I do sell the coinco paper tokens at a discount in volume. I only sell $24.00 for $20.00. My tunnel cashier handles the sales. It's advertised in each bay and on a seperate sign. Not a big Seller.