Subscription Model For IBA

[CW_GUS]

Hello everyone,

I am interested in exploring the potential impact of introducing a subscription model with 5 washes per month per vehicle to our wash. I would appreciate any insights or advice on how this model could impact the following numbers:

Annual Revenue = X$
Average Ticket Price = Y$
Number of Washes per Day = Z$

With a subscription model, customers would pay a set price for their five washes per month, which could impact the average ticket price and the number of washes per day. Additionally, the subscription model could provide a more predictable stream of income, which could be beneficial for financial planning and budgeting.

I would greatly appreciate any insights or advice on how the numbers could change with the introduction of a subscription model.

Thank you in advance for your help.

Best regards,
CW_GUS

 

[Car_Wash_Guy]

I introduces monthly unlimited at my IBA site coming on 2 years ago. I can only speak from my experience and my site. It was the best decision I've made for my wash.

I believe I'm sitting at 2.6 washes / mo avg on my members. I have members that literally come in almost every day and then there are customers that pay for months and never come in. It all evens out. I feel too many potential owners look at the possibility of abuse and it's a legit concern but you're going to have the underutilizes too.

My question is ..... what system are you gong to install how are you going to verify that the pass holder is the one washing and in the account holders vehicle? That is where the abuse comes in

 

[OurTown]

I introduces monthly unlimited at my IBA site coming on 2 years ago. I can only speak from my experience and my site. It was the best decision I've made for my wash.

I believe I'm sitting at 2.6 washes / mo avg on my members. I have members that literally come in almost every day and then there are customers that pay for months and never come in. It all evens out. I feel too many potential owners look at the possibility of abuse and it's a legit concern but you're going to have the underutilizes too.

My question is ..... what system are you gong to install how are you going to verify that the pass holder is the one washing and in the account holders vehicle? That is where the abuse comes in

What is your retail to monthly pricing multiplier? What percentage of income is monthly club vs retail? Assuming you are using LPR does your Dencar system show you how many unique retail customers you have per month?

 

[slash007]

Didn't work for me. Average was sitting over 5 for a while. I could not get enough members to lower the number. Also had tons of abuse and spent way too much time policing. Probably depends on your demographics. I used Everwash.

 

[Car_Wash_Guy]

Prices are :
$10/$25
$13/$30
$15/$35

About 55% of gross is mostly revenue.

Yes, Dencar system gives me a daily breakdown of everything.

 

[OurTown]

Didn't work for me. Average was sitting over 5 for a while. I could not get enough members to lower the number. Also had tons of abuse and spent way too much time policing. Probably depends on your demographics. I used Everwash.

I think you would need LPR instead of app based for unattended washes to reduce the abuse. Also Washify and Dencar have really good on screen marketing capabilities to get the membership up. From what I understand the more members you have the lower the average washes per month.

 

[OurTown]

Prices are :
$10/$25
$13/$30
$15/$35

About 55% of gross is mostly revenue.

Yes, Dencar system gives me a daily breakdown of everything.

Are you saying 55% of gross revenue is club membership?

 

[GoBuckeyes]

I introduces monthly unlimited at my IBA site coming on 2 years ago.

I believe I'm sitting at 2.6 washes / mo avg on my members. I have members that literally come in almost every day and then there are customers that pay for months and never come in. It all evens out.

Prices are :
$10/$25
$13/$30
$15/$35

At 2.6 washes/mo avg you basically are at your monthly multiplier which means your avg ticket hasn't really taken any kind of hit and your cost per wash hasn't gone up! In the two years you've had monthly plans how much has your volume and revenue increased? How does that compare to your growth prior to two years ago?

 

[CW_GUS]

Prices are :
$10/$25
$13/$30
$15/$35

About 55% of gross is mostly revenue.

Yes, Dencar system gives me a daily breakdown of everything.

Are these prices for single wash vs Membership ? What is the wash limit on your membership ?

 

[DavidM]

When done correctly, gross revenue goes up, average ticket goes down and most importantly, net profit goes up. Yes, you will wash more cars.

You have to use a system that allows people to sign up easily in an unattended environment and protects from abuse. (Abuse is washing multiple cars on one plan)

You have to price it correctly - Too expensive and the only people that sign up will be the heavy users. It has to look like a great deal for almost everyone.

Limiting it to 5 washes a month may discourage signups. I would recommend allowing at least 8, if not more.

David

 

[Car_Wash_Guy]

Are you saying 55% of gross revenue is club membership?

55% of my daily washes are membership washes.

 

[Car_Wash_Guy]

Are these prices for single wash vs Membership ? What is the wash limit on your membership ?

Yes those are the single/membership prices.

I put 75 as the monthly limit per car. I have customers that come in every day and I have customers that pay for months and maybe wash 1x every 4- 6 weeks. Some pay and never use it. Kinda like people with gym memberships. lol

 

[Car_Wash_Guy]

At 2.6 washes/mo avg you basically are at your monthly multiplier which means your avg ticket hasn't really taken any kind of hit and your cost per wash hasn't gone up! In the two years you've had monthly plans how much has your volume and revenue increased? How does that compare to your growth prior to two years ago?

My whole site has grown. I'll gross almost 3x what I did pre the dual Petit and Dencars. We've washed 65K cars in the autos in the trailing 12mo.

 

[OurTown]

55% of my daily washes are membership washes.

I'm asking what percentage of gross income is membership fees/dues.

 

[soonermajic]

My whole site has grown. I'll gross almost 3x what I did pre the dual Petit and Dencars. We've washed 65K cars in the autos in the trailing 12mo.

You washed 65,000 cars in 12 mos, on Dbl Petit's?

 

[AutoSpaMobMO]

I am considering doing unlimited at my wash. The previous owner dis unlimited via an app (not sure which one) and he had terrible abuse with it so I am considering RFID readers. I have wash select II's. It's roughly going to be around $9,000 for the system and Im struggling with if it's worth it.
My attendants are on duty m-f 10-2 sat sun 8-3 so that's the only time someone can installs the tags. I'm considering expanding those times at start up and do a huge marketing campaign

 

[Car_Wash_Guy]

You washed 65,000 cars in 12 mos, on Dbl Petit's?

Yes.

Without a doubt Dencar is the best system . Only system that I’m aware that truly prevents fraud. Actually in my case I feel it makes you additional money. It allows other cars under passholders accounts to enter the wash and then you’re able to either charge them or get them to add it to their pass. Win-win at least in my situation.

 

[Car_Wash_Guy]

I'm asking what percentage of gross income is membership fees/dues.

For the last 4 months it looks about 35% from recurring monthly passes

 

[pmullens1985]

My whole site has grown. I'll gross almost 3x what I did pre the dual Petit and Dencars. We've washed 65K cars in the autos in the trailing 12mo.

65k in a year? That’s absolutely wild. I just purchased one and am getting into this and It only Does like 5800, small town. I’m not sure i can afford the conversion to washify or Dencar? But it’s the first thing i want to do. I want memberships and jsut ordered nayax credit cards becuase currently it’s cash or coin only

 

[dax_festival]

Hello everyone,

I am interested in exploring the potential impact of introducing a subscription model with 5 washes per month per vehicle to our wash. I would appreciate any insights or advice on how this model could impact the following numbers:

Annual Revenue = X$
Average Ticket Price = Y$
Number of Washes per Day = Z$

With a subscription model, customers would pay a set price for their five washes per month, which could impact the average ticket price and the number of washes per day. Additionally, the subscription model could provide a more predictable stream of income, which could be beneficial for financial planning and budgeting.

I would greatly appreciate any insights or advice on how the numbers could change with the introduction of a subscription model.

Thank you in advance for your help.

Best regards,
CW_GUS

If you price right, 98% of your members will wash less than 5 times a month. I’d just go unlimited and monitor your average washes to make sure you’re under what you want to be. My view is that any subscription model that isn’t unlimited is confusing and the value proposition isn’t there for customers, especially if another wash in town is doing unlimited. It’s all in how it’s marketed and I think unlimited marketing is the only way to go.

We’ve been doing unlimited for 3 years and the highest our average washes got was 2.9. The majority if people just don’t want to wash their car every day.