Adding combo wash- need pricing ideas....

[Greg Pack]

Hi guys, I have a 4/2 with touch free units in middle to upper income area. The wash does decent numbers with the IBA making up the bulk of my site revenue. I have a fair amount of IBA customers that do not like friction units and also those that have bike and ski racks, etc. However, my current philosophy is most customers just want a clean car.

I have recently purchase a used combination unit made by the same manufacturer as my touch free (coleman) and plan on replacing one of the touch free units with this combo unit. I'm doing this primarily to offer the infrequent washer a way to get their car clean without road film issues. I'm also hoping it will help minimize the impact of yet another express tunnel that is entering the outskirts of my market area. I've used this combo wash before and although it is painfully slow, it cleaned as good or better than most express tunnels I have been through. I'm purchasing this used unit for less than the cost of a new friction-only unit. So although technically it is a combo wash, I don't feel I HAVE to use the touchless capacities if it doesn't benefit me.

I'm trying to get opinions on how to best price the wash packages and utilize this equipment. Current pricing on touch free 5,7,8,10, with the ten dollar wash applying Rain-X type product(and is the most popular). I currently have four IBA packages I can sell but understand an upgrade is available to offer as many as eight packages on the combo. I's also like to take the opportunity to go up a little on my wash prices.

My current concerns is customer confusion on "which unit does what?". Also a single line forms for both units. If a preference is made for one machine or the other a traffic issue could indeed develop on busy days.

I initially thought I would offer on my menu the two most popular washes in either a touch free or combo version, with the combo being $2 more.

I have had one operator suggest just run the combo unit as a friction unit and price identical as touch free with four friction options.

Another possibility is run the unit as a touch free with the same four menu choices and same pricing and then offer an "upgrade" to combination wash for an upcharge of perhaps $2. This will allow touch free customers to use both lanes and help pay for the slower throughput of the combo. I like this option if it's not too confusing.

And, then there's options I hope you guys here will suggest.....

Finally, just to throw another factor to consider, the current plan is to rip out my other touch free unit in about five years and install a mini express package.

Anyway, just looking for help thinking this through. Any input is appreciated.

 

[robert roman]

“…..my current philosophy is most customers just want a clean car.”

While, clean car, is true, most motorists have more needs than this. A great number of gas/c-store operators with carwash as well as self-service operators have found this to be true over the last several years.

Typically, retailers believe that it is always better to offer consumers choices.

Because of this conventional wisdom is to offer low-price, middle price and premium price. However, when offered three prices, most people choose the middle.

When people are not well served by good/better/best, the result is a low average ticket.

Operators with low average sales often spend considerable effort, resources and time to change things to get to a place where the result is higher average sales.

Some give free stuff, other juggle prices and some may add another wash selection or several to get a better middle. This can work but the results are usually small incremental gains.

In working with owners, we find the cause of low average ticket is not price but rather the value proposition of the business.

When value is structured appropriately with customized solutions, we find the results are robust, say, average sales of $10 rather than the typical $7.00.

When this proposition is leveraged, the results are even better, $12.00.

Furthermore, we find all of this can be achieved with only a very slight increase in expenses.

 

[Waxman]

I would change your touchfree pricing to: $8,9,10,12.

I would run the combo unit as friction only and charge: $4,6,8,10.

Why? Touchfree costs more to operate in soap, water and power. Plus I feel in some markets it has a higher perceived value than friction (regardless of cleaning results compared to friction).

See if you can set up the friction to be a bit faster than 'painfully slow' so you can make up the lower price on more volume.

I raised my prices recently and it was overdue and a good move for me (touchfree). I am at what I suggested to you for touchfree pricing and most of my customers (over 90%) were buying my $10 wash.

It would be nice to offer a $4 friction wash if you could profit at that level. However, as we know, the $4 will not be your most popular wash package.

 

[rph9168]

Whatever you settle on do not have separate pricing. I have been at several sites that offered both friction and touch free. Customers received a code that was valid at either type of wash. Almost without exception the customers chose the wash that had the smallest line. People are not as aware of the different types of washes as some would have you believe. They want a clean car.

 

[briteauto]

Whatever you settle on do not have separate pricing.

Ditto - not a good idea to make one more expensive/less expensive than the other.

We regularly condition our customers to understand that they "get what they pay for" A basic wash is just that, a super wash, which costs more, does wheels, wax, foam polish, sealant, underspray etc.

It doesn't matter if the touch free basic wash costs twice as much in chemicals than the friction. The reality is that the friction unit will clean better - so don't charge less for it. Why make them pay less for a better product. You'd be cutting right into your own profits. The customers that see the friction washes better will use it regularly, and if you are charging less for it that means they get a good deal at your expense.

In terms of how to set up your Coleman hybrid, you can utilize some HP functions on the machine as an auto-prep. Maybe just wheels/rockers or something like that. Then follow it up with the friction. You can put out a stellar product, and this will most likely be the type of wash your customers will be getting when you install your EE down the road - a hybrid with some HP and some friction.

 

[tobaccofarmer]

While we are on this pricing topic, I would like to add a couple questions myself. I have been accustomed to 4 wash packages with prices of 5.50 7, 8, 9 with an average ticket of $8.10. I recently opened another location and for whatever reason decided to eliminate one wash option and only offer 3 washes priced 5,7,9. Although its early, Its looking like with this price structure my average ticket is less with what seems to be more 5 dollar washes purchased? Does anyone know the advatage or disadvantage to a 3 wash package compared to a 4 wash package? I am already thinking I made a mistake with 3 compared to 4 packages but I wanted to eliminate the wash I made the least profit on? Maybe there is allot more to this pricing than first glance? Hope this post hasnt hijacked the original post?

 

[Greg Pack]

Thanks for the input. As far as price, I definitively don't want to go down on price. I have been at current pricing since installing these autos in 2006 and would like to take the opportunity to go up to maybe 6,8,10,12. I also plan to install token dispensers and give away a vac token on every wash. Local express washes seem to be trending towards a $6 base wash and their better packages without tire shine ( but a premium CCP like rain-x) are at $12. I feel once I offer the vac tokens I will have decent justification to price my washes similarly. I am not directly competing with one in my immediate area but would like to offer comparable value where I can.


My main concern is that if I give more functions on the combo unit for the same price, that observant customers will form a preference and line/throughput issues will develop. Charging for a brush "option" would at least help compensate for the slower throughput. But as RPH suggested, perhaps that is not as big a deal as I thought for most customers.

Are there any combo unit owners out there running both touch free and friction options? If so , is there still a decent demand for touch free in the unit?

 

[rph9168]

From my experience most combo washes are viewed as a friction machine by customers when they see the cloth on the unit. In addition most combo units do not do as good touch free wash as a traditional touch free machine for several reasons. They don't get as good chemical coverage and the high pressure rinse is not as powerful and effective. Most combos that I am familiar with do more friction washes than touch free by a large margin.

 

[Greg Pack]

From my experience most combo washes are viewed as a friction machine by customers when they see the cloth on the unit. In addition most combo units do not do as good touch free wash as a traditional touch free machine for several reasons. They don't get as good chemical coverage and the high pressure rinse is not as powerful and effective. Most combos that I am familiar with do more friction washes than touch free by a large margin.

Thanks Ron. I have also seen many combos that are anemic at touch free washing. My understanding is the fusion X is essentially a water wizard with added brushes. It has a Cat 3535 on board and all the same nozzles. So I believe I can offer a touch free comparable to the current unit. But as you mentioned, customer perception could be the real issue, not the true capabilities.

We're beginning the install in a couple of weeks. Hopefully I will figure some of this out before then. I'm praying for a little clarity.

 

[txheat]

Depend on your touchfree stacks. I feel if customers have to sit and wait why not use the combo unit as combo (touchless and friction). That way customers are happy .....have 2 tier brush and 2 tier touchless.

 

[txheat]

Finally, just to throw another factor to consider, the current plan is to rip out my other touch free unit in about five years and install a mini express package.

Anyway, just looking for help thinking this through. Any input is appreciated.

if you gona do that i rather put in the xpress then combo unit. Because if your customer base change preference to friction. its gona be long line with that combo unit being slow. read the stacking on my unit. frustrating for customers.

 

[JustClean]

However, when offered three prices, most people choose the middle.

Hmm... I've got 3 washes: basic, good & best. It is 15%, 30% & 55% for the top wash. It depends what you offer with your washes. If it makes sense for them to upgrade they will. But the more choices you give the customer the longer it takes for them to decide which will reduce your throughput.
I would reduce them to 3 options. But I must say I like your idea with the friction "upgrade" add-on.

BTW I am actually in the same boat as I am thinking of getting a touchless in addition to my friction. I will do the same pricing on both machines. I also have a ticket paystation. If they accidently bought the wrong ticket it is not a problem as it can be used on both machines.

 

[Greg Pack]

if you gona do that i rather put in the xpress then combo unit. Because if your customer base change preference to friction. its gona be long line with that combo unit being slow. read the stacking on my unit. frustrating for customers.

This is a lifestyle decision for me for now. Plus, I'm not planning on biting off any more debt. I will be looking for used mini tunnel equipment on the cheap, starting in about three years. But I do agree with your concept. I would certainly opt for a 300K express rehab before I spent 150K on a new auto.

I guess I will know more soon. We should be running in three weeks or so. It may be a mistake, but I am leaning towards trying the brush upgrade route if I can get enough wires pulled to the wash select. Still interested in other operators' thoughts on this or pricing.

 

[txheat]

I guess I will know more soon. We should be running in three weeks or so. It may be a mistake, but I am leaning towards trying the brush upgrade route if I can get enough wires pulled to the wash select. Still interested in other operators' thoughts on this or pricing.

na you doing the right thing, offering customer more options like friction wash. Like i said it would depend on how much you do on touchless, meaning the car stacks. I think if you wanted just a friction only you would be better off with an Efusion. Use the unit as a combo see how it does then adjust to your customer preference. Pricing as combo unit having 2 tiers for touchless and 2 tiers for friction. for each tier one low end price and one high end price. OR 3 tier friction and 1 touchless (the one they use most on your touchless unit). The idea is introducing your customer that this unit can do both touchless or friction. That way your customers wont be in shock "oh i didnt know this is touchless too!" moment. You can always change the unit to friction only later on.

 

[rph9168]

I have seen operators try a two tier on the combo units but never when they also had another touchless beside it. I am not sure how the programing works on your equipment but most of the combo washes I have seen offer two or three packages that can either be touchless or friction and a combo wash with both friction and touchless applications. Since you are thinking about having 6, 8, 10, 12 on the touchfree it might be difficult to do the same on the combo. If you stick to the four washes and decide to add a fifth combo wash on the combo I would be tempted to go to $15 to see how that goes. Looks like you have some tough decisions to make.

Part of the decision might be based on how well the combo does a touchless wash. I know you want to offer the best wash possible to your customers. If it does not do as well as your touchless unit I would be inclined to just operate the combo as a friction unit. If it does a good job with the touchless wash you could look at offering both a touchless and friction wash with the combo.

 

[robert roman]

“However, when offered three prices, most people choose the middle.”

“Hmm... I've got 3 washes: basic, good & best. It is 15%, 30% & 55% for the top wash. It depends what you offer with your washes.”

The reference about choosing the “middle” doesn’t come from me or from the carwash industry but rather from a well-known marketing guru. Middle means usually, not always.

For example, you are at 55% for top wash. Yes, this does depend on what solutions you offer customers. By solution, I am referring to value proposition not good/better/best and prices.

Look at it from another perspective. The “best” is the best we have to offer, good means something less than this and basic means even less than this. Is this how you wish to be viewed by consumers?

In other words, I would suspect that you would want all of your wash selections to have high perceived value by customers.

There are many ways to create murky water; friction versus touch-less versus hybrid; three versus four versus five selections, etc.

For example, the vast majority of express washes use hybrid or combination washing; friction plus high-pressure components.

I have several clients that have built express with touch-less washing, no friction at all. One, in a decidedly blue collar market priced at 6/8/10/12. He reached an average of $10 within months. We leveraged his value proposition and now his average is nearly $12. The industry benchmark is about $7.00 and some owners with $3.00 washes are known to be struggling to average $6.00.

You dice and slice this anyway you want but the fact remains there is a big difference between $7 and $10 and an even bigger difference between $7 and $12.

 

[tobaccofarmer]

Very interested in seeing these touchless expresses! Im assuming you won't post locations on here? Maybe I will call you Robert and we can discuss?