Weather Insurance

[JGinther]

So, I'm probably not the first to think of this, but I'm going to pretend its my idea anyway (unless its a bad one, in which case I plaigarized the idea and posted it because I was bored)...

So what if you sold an insurance policy... say for a buck or two... at an autocashier - conveyor or auto. Haven't thought it all the way through yet, but I was thinking the autocashier would prompt you for a buyup. If they paid, they would get a code on their receipt. You would enter a yes or no in the software if precipitation happened on that day; and if it did, all the codes given out previously would be 'good'. Maybe you would not offer the option if the zip code had precipitation in the forcast... I think you would have to use a zip code based weather report to 'validate' that the precipation happened... The idea is that you would only have to enter yes or no to if the precipitation happened, and the codes would automatically validate. I guess I'm just so sick of paying insurance companies for nothing, that I would like to be on the other end...

I know the 'weather guarantee' thing is similar, but I think this would make it a profit center instead of a cost center/loss leader market strategy.

Am I crazy?

 

[robert roman]

How much would a customer be willing to pay to avoid a loss equal to the price of a carwash over some unspecified time period (days, weeks)? You implied it may be worth $1.00 to $2.00. If the price of the wash is $10.00, the premium is between 10% and 20%.

If the competition is offering the typical 48-hr or 72-hr rain guarantee and/or has an unlimited program, I doubt there would be any demand for your insurance product.

 

[JGinther]

Thanks for the input Bob... To answer your question: I don't know! Wouldn't you just adjust all those numbers to find a sweet spot that worked out well? Maybe its $ 0.50 and 1 day... Maybe its half the price of the wash, and good for 10 days...

While the plan wouldn't be to use the insurance to 'compete' with rain guarantees or unlimited programs (but I guess it could depending on the pricing of your wash vs. the competitions...), it would just be a software option to add something to the sales mix and possibly add value to the customers perception - finally one that doesn't require pumps or stainless steel.

Obviously not everyone would buy up. Evidently there are people buying 'protection plans' on electronics, and extended warranties on low warranty vehicles vs buying a Kia...

 

[rph9168]

Why not just include that in your top package? Could be a selling point.

 

[cwguy.com]

This sounds like a nightmare for unattended washes? I agree with rph9168.... it would be a good selling point on your top package. But integrating this system and making it fair would be very hard. You would have to enter comp dates and zips all the time (lots of them)? Then a customer would need a unique receipt number? A date (maybe integrated into the receipt number)? Then the receipt would have to get verified with your entry unit somehow? Seems almost impossible (or a lot of work)? Unless this system was integrated into an entry unit by the manufacturer?

I reread your post and see where you said the entry unit produces a unique code. What entry unit are you using?

 

[JGinther]

Most newer autocashiers are now full computers, so the idea is that they would just sell this as a software option. It obviously wouldnt work with an old wash select or acw... it would just be a software update for a computer based unit. No, its not written yet. Im just curious how many people would sell it if they had it. Who knows...maybe hamilton or unitec or drb will see this and write it if people show interest... or more likely just laugh.

 

[cwguy.com]

The main problem is verifying the free wash. The zip would be to complex.... They could live or drive where it rained? But comping a "rain day" should be fine? The customer would have to come back.

As for an entry system.... How about this scheme? A special separate receipt prints for the top guaranteed wash.... Then any entry system would work. Then a customer comes back keys in the number.... external magic box credits free wash. I just patented this process. This would work.... You could also add a push button for printing your receipt. Seems a little complex though.... Customers don't even get there free vac tokens.

 

[JGinther]

I think you would have to pull from some recorded weather service report within a certain geographic area around the wash. I know some weather apps are based on zip codes, but don't know enough about it. When I was drinking/dreaming this up, I was thinking you would just enter into the software that it did indeed rain today (a fancy version would download that from some weather app on its own - which would make it 100% automated). If you entered that it did rain, all the customers that bought previously within a preset period would be able to use their code for another wash within another preset period of time. I like the option of making it exclusive to the top wash to make even more bucks... But I think I like a-la-carte better since it is one of the few things you could do a-la-carte without changing your automatic or adding length to your conveyor...

I like the idea of a retrofit box that would work like a bonus token dispensor, but it would probably be a little pricey when all was said and done - enough where upgrading to a smarter and upgradable autocashier made more sense.

The main question is: would a customer see value in this? It seems to me that if they buy electronics 'protection plans' on items that will absolutely be obsolete before a problem occurs, they would buy on potential loss from something unpredictable like weather... escpecially when that is the only thing that made their car dirty in the first place.

 

[Earl Weiss]

My head hurts just thinking about this. In Chiberia you could have rain in some spots and dry weather a few blocks away. "Lake effect" is a popular term. I could see all sorts of arguments about when and where it rained.

 

[rph9168]

One option might be to offer a free rewash for the top package within a set period of time (24hrs, 28hrs, 72hrs) - whatever you think might work for you.

 

[dewey9876]

That would be way to complex to implement, and I do not think many would opt to pay for it. I would do one of 2 things or both.
1. Raise price by .25 or .50 and give everyone a 24hr clean car guarantee.
2. Offer unlimited wash program, now your customer doesn't need to worry about weather and neither do you.

 

[madstack]

One option might be to offer a free rewash for the top package within a set period of time (24hrs, 28hrs, 72hrs) - whatever you think might work for you.

Better idea. Keep it simple.

 

[cwguy.com]

Another problem is there is never really a confirmed rain..... just a chance. Unless your talking about thunderstorms only? You could try getting rain levels from stations then having an equation that confirmed rain in the area? That would be the best probably? Maybe? Then change your guaranteed to 5 miles around your car wash? Or 20 feet and have your own rain gauge?

I think there is no easy method to automate this? Except rain levels.... But then how much of a radius from the wash? Or just enter a "yes" manually when you comp and it defaults to "no".... That's easy!

 

[JGinther]

I think the problem with the free rewash is that you would have people washing second vehicles and whatnot... The unlimited wash is good for expresses, but not sure about autos... Oh well maybe its just a bad idea. I guess I was thinking that someone had already done the dirty work like this: http://www.wunderground.com/history/airport/KFNL/2014/1/30/MonthlyHistory.html#calendar (see calendar view). I thought that within a certain area of the wash (like an entire city or by zip code as wunderground works) would have pretty accurate weather records. I then thought the application could just plug in to the database and pull precip records. But of course there is too many details to explain to a customer, and the records don't seem specific or detailed enough. It would probably be easier to just change the weather...

 

[cwguy.com]

I didn't mention this but I think everyone charges for their api. wunderground.com cost $20 a month. You could scrape their website but technically that would violate their tos I would think? Especially for commercial use. Yahoo I think is the only one that doesn't charge? But it's been 5 years since I looked at this stuff.

http://www.wunderground.com/weather/api/d/pricing.html

 

[JGinther]

Good point also. Oh well, just confirms my new quote: "The good lord maketh, and the weather reporter taketh away..." I hate weatherpeople anymore. I think they have costed us all billions.