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IBA pricing percentages

copperglobe

copperglobe

Active member
Four prices offered at the paystation/acw/pedestal. Those of you that have two "cheap" washes and two more expensive washes. Example: $5 and $6 for the cheap ones and $8 and $10 for the more expensive washes. I have been told that about 50% of customers go for the cheap washes and the others go for the expensive ones. This told to me by equipment reps and salesman (I know: trust but verify). My washes have all four washes at dollar increments- 5,6,7,8. I'm pondering putting in new equipment at my washes (holy cow expensive!!) and running the numbers to pencil them out requires higher prices and perhaps offering two low prices and two higher offerings.

So, for those of you that have two lows and two highs is it your experience that half go cheap and half go high? Thanks
 
Mine is at 5,7,8,10. Most used is the $10 wash and its at over 5000+ for the year. 2nd is the $5wash at 2187 for year 3rd is $7 wash at 2130 for year and 4th is $8 at 1900 washs for year. So as you see the 5 and 7 are neck and neck. But my most used wash is $10
 
Can't answer your question but here's this:

A rep told me years ago that if more than 40% of your customers are buying your top wash, you're too cheap. I have no idea where that came from, but it sounds good. :)

another tidbit: A tunnel friend of mine has said they found that three packages bring in higher ticket averages than four.

Just replaced a friction auto a couple months ago. Went from 7,8,10,11 to three packages at 8,12,16. $16 is a premium wax package. So far $16 is running about 40% of sales, 12 around %30 and $8 around 25% give or take. The one thing I would say is don't be afraid to raise prices substantially when you install a new unit, it seems customers are willing to pay.
 
Had an 18 year old Ryko in the bay when I decided to upgrade - prices were $8, $9, $10. Installed a new unit and went to $10, $12, $14, $16. Monthly average lands around $13.50. I really wish I would have gone a little higher in the pricing band. Has anyone ever done that? Install a new unit with higher prices, and raise prices again a year or two later?
 
Greg Pack said:
Can't answer your question but here's this:

A rep told me years ago that if more than 40% of your customers are buying your top wash, you're too cheap. I have no idea where that came from, but it sounds good. :)

another tidbit: A tunnel friend of mine has said they found that three packages bring in higher ticket averages than four.

Just replaced a friction auto a couple months ago. Went from 7,8,10,11 to three packages at 8,12,16. $16 is a premium wax package. So far $16 is running about 40% of sales, 12 around %30 and $8 around 25% give or take. The one thing I would say is don't be afraid to raise prices substantially when you install a new unit, it seems customers are willing to pay.
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Interesting insight. Since you are running roughly 40% with your top wash, do you think you will re-raise pricing in the near future?
 
WashSingh said:
Had an 18 year old Ryko in the bay when I decided to upgrade - prices were $8, $9, $10. Installed a new unit and went to $10, $12, $14, $16. Monthly average lands around $13.50. I really wish I would have gone a little higher in the pricing band. Has anyone ever done that? Install a new unit with higher prices, and raise prices again a year or two later?
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What unit did you replace the Ryko with?
 
copperglobe said:
Four prices offered at the paystation/acw/pedestal. Those of you that have two "cheap" washes and two more expensive washes. Example: $5 and $6 for the cheap ones and $8 and $10 for the more expensive washes. I have been told that about 50% of customers go for the cheap washes and the others go for the expensive ones. This told to me by equipment reps and salesman (I know: trust but verify). My washes have all four washes at dollar increments- 5,6,7,8. I'm pondering putting in new equipment at my washes (holy cow expensive!!) and running the numbers to pencil them out requires higher prices and perhaps offering two low prices and two higher offerings.

So, for those of you that have two lows and two highs is it your experience that half go cheap and half go high? Thanks
Click to expand...
We have a single bay IBA in a small rural South Texas town and due to the customer demographic, we go by the KISS principle and have only 3 packages priced @ $7, $10 and $13. 50%-60% buy the top wash. Average ticket comes to $11.68.
 
I was at $8,9,10,12. 90+ % were buying top pkg.

in March I raised to $10,12,13,15. No complaints! Lots still get top pkg but I haven't run numbers lately.

With an increase in price, even my lower pkgs make more profit because at $12 and 13 there is less energy and product used and very few get bottom pkg at my wash.
 
Instead of starting a new thread, I figured I would just post here since it's relevant. My wash packages are currently $7, $10, $12 and $15. Most popular are the top (28%) and bottom (30%) with the $12 (14%) being in last place. $10 is close to the top 2 at (27%). I have a Ryko Soft Gloss and OHD currently. Wash is in good shape but in a not so great location. Crazy amount of cars pass by each day, but it's not on a corner so they are driving 55mph+ when they pass by. Also only have access to wash from one side of the main street. You need to drive down and make a U-Turn to access if traveling on the other lane, so I count those cars out. On top of all that, there have been 10 new express washes built locally this past year.

Anyhow, with all that being said, I plan on replacing both of my IBA later this year and want to change prices as well when I do. I am considering going with 3 packages instead of 4, but don't know if it will make sense based on the #'s. On my top wash for $15, I include Tire Shine. I offer it as a $3 upsell option on the other packages. The other similar washes in town (IBA's) have a top wash of $15 but with no Tire Shine. They are in much better locations though. I am considering charging more since I offer more, but not sure how much.

I have settled on starting with $8 wash and am open after that. I am considering doing $8, $12 and $16. Can't decide if $16 is good for my top wash or if I should go to $17. Another options is $8, $10, $13, $16 (or $17). Theory is so many people buy the bottom wash, they would pay at least $8, but since the next wash up is only $2, more people will hopefully upgrade. Then you have the people that get the top wash no matter what. Then there is the issue of what options go with what package to make each upgrade enticing. Another option if 4 packages is $8, $11, $13, $16 (or $17). Top package gets everything including Tire Shine and Lava, $13 everything but Tire Shine. $11 you lose the lava and Rain-X, but still get TF and Undercar Etc.

Items I have to offer and decide on which package gets what are Tire Shine, Lava, Rain-X (or equivalent), TF, and Undercar. I will offer dryers on all packages.

Thoughts?
 
slash007 said:
Instead of starting a new thread, I figured I would just post here since it's relevant. My wash packages are currently $7, $10, $12 and $15. Most popular are the top (28%) and bottom (30%) with the $12 (14%) being in last place. $10 is close to the top 2 at (27%). I have a Ryko Soft Gloss and OHD currently. Wash is in good shape but in a not so great location. Crazy amount of cars pass by each day, but it's not on a corner so they are driving 55mph+ when they pass by. Also only have access to wash from one side of the main street. You need to drive down and make a U-Turn to access if traveling on the other lane, so I count those cars out. On top of all that, there have been 10 new express washes built locally this past year.

Anyhow, with all that being said, I plan on replacing both of my IBA later this year and want to change prices as well when I do. I am considering going with 3 packages instead of 4, but don't know if it will make sense based on the #'s. On my top wash for $15, I include Tire Shine. I offer it as a $3 upsell option on the other packages. The other similar washes in town (IBA's) have a top wash of $15 but with no Tire Shine. They are in much better locations though. I am considering charging more since I offer more, but not sure how much.

I have settled on starting with $8 wash and am open after that. I am considering doing $8, $12 and $16. Can't decide if $16 is good for my top wash or if I should go to $17. Another options is $8, $10, $13, $16 (or $17). Theory is so many people buy the bottom wash, they would pay at least $8, but since the next wash up is only $2, more people will hopefully upgrade. Then you have the people that get the top wash no matter what. Then there is the issue of what options go with what package to make each upgrade enticing. Another option if 4 packages is $8, $11, $13, $16 (or $17). Top package gets everything including Tire Shine and Lava, $13 everything but Tire Shine. $11 you lose the lava and Rain-X, but still get TF and Undercar Etc.

Items I have to offer and decide on which package gets what are Tire Shine, Lava, Rain-X (or equivalent), TF, and Undercar. I will offer dryers on all packages.

Thoughts?
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I would start at $10 not $8. I think considering the $2 difference as an incentive to buy up isn’t as relevant as you think it is. Since you will have new equipment, I think you could be at $18 for the top pkg. Why not go $10,12,15,18?
 
Waxman said:
I would start at $10 not $8. I think considering the $2 difference as an incentive to buy up isn’t as relevant as you think it is. Since you will have new equipment, I think you could be at $18 for the top pkg. Why not go $10,12,15,18?
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I thought about those exact same #'s, but my theory is my best selling package is my lowest, and that isn't typical for a good wash. I wouldn't have thought twice in the past, but with all of the competition, customers can go to one of the newer express washes and for $10 they get free unlimited vac and mat cleaning as well. I thought about dispensing a token to IBA users, but I don't like the logistics of it and don't enough people would come because of it to justify the added expense and headaches.
 
Waxman said:
With an increase in price, even my lower pkgs make more profit because at $12 and 13 there is less energy and product used and very few get bottom pkg at my wash.
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I have thought the same thing. If there was a constant line of customers my $12 wash would gross and net more than my $16 wash because of faster throughput and lower chemical costs.
 
Slash, maybe entertain the idea of removing dryer's from the bottom pkg.? On here I leaned To do 3 pkgs not 4. I did That & it raised my avg ticket price.
Ive also seen lots of guys say dryers on top pkg only, or remove from bottom @ the least. I removed from bottom & that was a benefit for me as well.
 
When I bought the wash there were no dryer options on the lower package. I recieved call after call from people thinking they didn't work since they don't read signs, so I added them to all wash packages.
 
slash007 said:
When I bought the wash there were no dryer options on the lower package. I recieved call after call from people thinking they didn't work since they don't read signs, so I added them to all wash packages.
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That should be fine as long as you price accordingly. You might want to check with your power company and see if they do a demand charge. For a while we were getting dinged about a dollar every time the dryer motors started up even with them staggered across 14 seconds.
 
FYI: I do not offer Blow Dry on my bottom pkg.

I don't worry about people not reading signs ( CUZ THEY NEVER DO ). I focus on profit.

Having a 'wet wash' option for the customer is a good idea, IMO. For many reasons.
 
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