What is considered "high volume" for a Flex Serve Car Wash? Also, what is considered average, good, and GREAT for sales/car for a Flex Serve Car Wash? Trying to get an idea of where we stand in terms of industry averages for Flex Serve Car Washes.
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.
