What's new
By:
Car Wash Forum

This is a sample guest message. Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

1 more IBA menu pricing question

S

soonermajic

Well-known member
Replacing a LW360, which does grest, w/ a Razor Edge. Pricing now is $7,$9 & $10.
$7 = 7%,
$9 = 7%
$10= 86%

Town is somewhat high % of avg to low income. I'm thinking $8, $10 & $12.
Thoughts are: will customers continue w/$10 out of habit, or convenience of a $10 bill? We're about 65% Credit Cards...
 
soonermajic said:
Replacing a LW360, which does grest, w/ a Razor Edge. Pricing now is $7,$9 & $10.
$7 = 7%,
$9 = 7%
$10= 86%

Town is somewhat high % of avg to low income. I'm thinking $8, $10 & $12.
Thoughts are: will customers continue w/$10 out of habit, or convenience of a $10 bill? We're about 65% Credit Cards...
Click to expand...

Coach, those percentages per package are great. That is where they should be! Don’t sweat the increases - in my experience, people stick with the same wash package, they don’t try to stick with the same price. The price of everything goes up. When the pizza place increases prices, people who get a pizza with everything in it don’t switch to just cheese to keep the price the same. They buy what they always have and realize prices increase. Plus, you are going to have brand new machinery and possibly some new chemical applications/ services. Go for it!
 
Your percentages per package tell the story; your prices are more elastic than you think.

$14,16,18 is where I'd go. Make the jump to more profitability and make it COUNT!!!

Don't you hand prep too????

My area is low to mid income, too. My old pricing was 10,12,13,15 and new is $16,18,20,22.

Things economically are different now. A detail I was getting $245 for is now $310. I'm getting very little pushback on price and my detail shop is booked solid out one month. Used cars start at $4000 for anything half-decent.

Look anywhere in the economy, from fast food to home prices. It's all way up. Why go low on carwash pricing?
 
Last edited:
Coach, as you know, we're in a small rural town of around 5,000 pop. and have a full range of customer demographic from low-income to higher income who live in the upscale subdivisions on Lake Corpus Christi which is adjacent to our town. Our prices for our Profile are $7, $10 and $13, with 60% to 70% buying the top wash. We plan to keep the same pricing after adding the Razor. And like yours, its 65% cc, 35% cash.
 
Good advice guys.
Wax, i hand prep @ the other wash, not this one. I will NEVER hand prep again! Juice is not worth the squeeze! Since no hand prep, no way I can double all prices.
I am now thinking more $9, $11, $13...
 
soonermajic said:
Good advice guys.
Wax, i hand prep @ the other wash, not this one. I will NEVER hand prep again! Juice is not worth the squeeze! Since no hand prep, no way I can double all prices.
I am now thinking more $9, $11, $13...
Click to expand...
Huge proponent of minimal price difference between second from top and top. If you go 9, 12, 13 - no one will get the 12 and will push up to the 13. 9’s will always be 9’s. People who entertain the idea of paying 12 will realize it makes sense just to go to the top. Especially since both are still under a nice round number like 15. Cash paying customers throw in a 10 and a 5 and still get money back - enough to vacuum!
 
I have a new machine coming in 2 weeks. My current is 7,8,9,10 with 80% credit. I am going to 8,10,12,15. I think that if 20% of my business leaves due to pricing I will still make more on the bottom line. I think anyone not taking a firm stand on pricing is making a mistake.
 
it's more market-based pricing than anything else. My opinion is that customers are less price sensitive especially when using credit cards. As credit card use increases I think customers become less price sensitive. I think once a customer pulls a $20 bill out of their wallet and put it in a machine in their mind it's gone anyway. Also I plan to use an app which will involve some discounting.I wanted to have high enough pricing to be able to absorb some discounts and still make money.

My wash is still under construction so it's still up in the air how the new pricing will work.
 
I think the top wash pricing ought to be a stretch. There are people that will hit that top button no matter what the price. Before fall my top two washes will be going up a dollar from $14 / $19 to $15 / $20. I’m not sure about my bottom two. I don’t know if I’m ready to raise my base wash from $10.
 
Think of all the things you buy, and then think of what, if anything, you have stopped buying due to a price increase. If you feel the value is there and the need is there, you buy. You may comparison shop, perhaps, but habits are hard to break.

I used the same gas station for years. I only switched last year because the owner of the one I liked got WAY TOO LAX with his open hours during COVID. In the case of my wash, I offer many 'spiffs' that competitors do not. Things like a towel dry station and prep bucket for the IBA. My car wash offers things like full-service detailing by appointment. I have equipment others do not, like an air machine for tires, a coin-operated mat brusher, and blowers in the SS bays to dry the car.

Every time I have raised prices I have agonized over it and every time I have experienced very little push back from customers while making more profit.
 
Even if some small percentage sticks with $10 wash rather than increasing to top wash, you’ll still be making more $$ by offering less product/time.
 
I had initial hesitation on jumping from $15 to $18 on my top package. Trusted my chemical rep and it has totally paid off. Was
$15 $13 $11 $9. Added 2 PDQ 360 plus w Ceramic and already offered Rain X and Extreme shine
$18 $16 $14 $10 now. 55% of my washes are of the top 2 packages, I'm a month away from beating last years revenue. If you're gonna do it, get it right the 1st time and you'll have Zero regrets.
 
You must log in or register to reply here.
Back
Top