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What is considered high volume and good sales/car for Flex Serve Car Wash
- Thread starter hkim310
- Start date
robert roman
Bob Roman
According to Auto Laundry News surveys, annual average sales volumes for flex-serve are about 20 percent greater than full-serve.
Flex-serve has a hybrid revenue model.
Conveyor component is same as express exterior. Average revenue is influenced by base price and percentage sales mix. Express benchmark is $8.50 average sales.
Express after-care average sales are a function of price strategy. Typically, operators charge one price for express wax, interior-super clean, etc., say, $24.95.
If 30 percent of wash customers purchase detail, average sales are $7.49 (0.3 X $24.95).
Total average sales for store = $8.50 + $7.49 = $15.99
Total revenue is then $15.99 X annual sales volume
Benchmarking is sound practice that should be augmented with price sensitivity analysis.
For example, per capita income can be used to help judge price sensitivity in a trade area.
Say, per capita income in trade area A is $25,000 and trade area B is $30,000.
A = $25,000 / $28,000 = 0.87
B = $30,000 / $28,000 = 1.07
A would tend to be more price sensitive than B. How much?
If benchmark for full-serve is $17.00 average sales, an estimate for trade area A would be $17.00 X 0.87 or $14.79 average sales.
Estimate for B would be $17.00 X 1.07 or $18.19 average sales.
Flex-serve has a hybrid revenue model.
Conveyor component is same as express exterior. Average revenue is influenced by base price and percentage sales mix. Express benchmark is $8.50 average sales.
Express after-care average sales are a function of price strategy. Typically, operators charge one price for express wax, interior-super clean, etc., say, $24.95.
If 30 percent of wash customers purchase detail, average sales are $7.49 (0.3 X $24.95).
Total average sales for store = $8.50 + $7.49 = $15.99
Total revenue is then $15.99 X annual sales volume
Benchmarking is sound practice that should be augmented with price sensitivity analysis.
For example, per capita income can be used to help judge price sensitivity in a trade area.
Say, per capita income in trade area A is $25,000 and trade area B is $30,000.
A = $25,000 / $28,000 = 0.87
B = $30,000 / $28,000 = 1.07
A would tend to be more price sensitive than B. How much?
If benchmark for full-serve is $17.00 average sales, an estimate for trade area A would be $17.00 X 0.87 or $14.79 average sales.
Estimate for B would be $17.00 X 1.07 or $18.19 average sales.
