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What's the effect to changing Start Up Price?

bigleo48

bigleo48

Active member
All,

I'm one of the last remaining carwash in the area with SS bays that are $2 To Start. Most are either $3 or $4.

So I'm going to increase the Start price to $3 soon. What should I expect in terms of customer complaints and increase in revenue (my per second pricing will remain the same).

Thanks in advance...Big
 
Big,

I've always agonized over implementing price increases, and then a month after doing it, I'm kicking myself for wating so long!! Any time I've made a change we might get 3-5 complaints, but more than anything its just people that didnt notice the change and wondered why the machine didnt start up. Have proper signage announcing the change, and I bet you will be surprised at how few complaints you get, especially with your competition already at that price.

ScottV
 
+1 to Scott's response, mostly its a few phone calls saying the equipment didnt start up. In general I'd expect a small increase in revenue, I've never seen it go down after a price increase.
 
+2. Not only have there been practically no complaints and an immediate increase in revenue when I've done this, but some of the "less desirable" customers stop using the wash to make a mess.
 
I'm thinking about doing the same thing going into the fall here. I, along with MEP hope that this will keep out some of the riff raff.
 
I had the same results as MEP. I ended up with more revenue and less mess to clean up after going up in price.
 
Why wait do it now! We raised our price to $3 for 4.5 minutes. Most of the other washes in the area have followed suit. We post a sign on the changer stating why we had to raise the price and never got one complaint. Raising the price stopped the scum bags riff raft from coming in for a while but they come back after they get used to the price increase.
 
I just went to $2 for 3 minutes-- no complaints for the quarter increase as I switched the changer to $1 tokens. Very easy to start a wash now, Most love it. I did get a call from one guy calling me all the bad names, as he had put in a $20 and got tokens , and he wanted laundry money. I do have a 16x16 sign telling about the tokens. The reasonable people people won't say much.
 
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I am at $2 for 3:15 and getting ready to post signs saying that I will soon go to $3. As soon as daylight savings time changes I will raise the price. At that point my electric bills start going up, and shortly after the heat will come on and gas bill will go up. My costs have increased and that's the way it is. Also hope to discourage the scumbags.
 
Why wait until Daylight savings time ends. Why not do it now. Post a nice letter explaining why you have to raise prices and be done with it.
 
Reds and Randy,

How close is your competition to you?

How many washes are at your current price structure?

Once you raise your price, will you be the most expensive (price to time ratio), or will you be matching existing prices?

Thanks

Mike
 
well, I'm at $2 for 3.5 min. and was planning to go to $3 startup time but increasing the time per dollar but now I think I may stay the same. based on these previous posts.
 
We have 14 car washes within 10 miles of our washes. When we raise our prices, within a month all of the other car washes have raised their prices to match ours. This has been going on since the early 90’s. Right now we are at $3 for 4.5 minutes. Every car wash has followed suit and raised their prices. I think most car washes are under priced and the public see this and they expect a cheap wash.

I remember years ago. A guy came in and washed the bed of his pickup out that had oily kitty litter in it. Oily kitty litter was everywhere, I was so PO’d I immediately raise the price by .25 and cut the time back. Raised the price in the vac’s. Went home expecting a lot of compliant calls, I didn’t get one compliant. All I got was a 25% increase in revenue.
 
I am in a rural location. I have 2 washes within 5 miles. 1 more 8 miles away. I have the newest, cleanest wash with more features than the others. I try to provide constant value for the money rather than be the cheapest around. I will raise my prices according to costs, explain it to my customers when I can, and do what I have to do. I am sure the bottom fishers will complain. I would stay at the wash a lot longer during the changover, but I am sick and cannot do that at this time. One other thing that I did not mention - I am going to increase the time to 4 min, so the actual price increase will not be as dramatic. Right now some people complain that it doesn't give them enough time, so i am hoping that by increasing the time and price I won't get as many complaints.
 
I am also in a rural location,at $ 2. for 3.5 minutes.The other 2 washes in town are at 1.75 at 4 minutes and 1.50 @ 4 minutes.Last 2 months property taxes and insurance went up due to new road construction in front,costs more for chemical and parts.3 month hunting season and winter is coming.The other washes shut down due to lack of floor heat too.Last but not least I want a raise for me! So it will be $ 3 @ 4.5 minutes.
 
I got a call last week from a customer complaining about a price raise on the price of my vacuums. It was late at night so it went to my voice mail. It took her 2 seperate calls to explain that she really like my wash and used it because it always worked. She of course explained that she uses it all the time but was upset that she could not get her car completly vacuumed for the price of $1, She lamented the fact that the price had been .75 cents and been raised. SHe wanted her .25 cent refund or she may have to start going somewhere else and she said I needed to change the price back to .75 cents if I were to keep her business. This is the second call I have gotten on my vacuum price raise. THe kicker is that I last raised my vacuum prices over 3 years ago.
 
I guess many of you have confused my IP with should I raise the startup price. I am raising it...I am trying to a certain that when I raise the startup price from $2 to $3, but keep the price/sec the same, how much of a revenue increase would I see? 1%, 5%, 10%?

Sorry if my initial post was confusing...Big
 
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