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New location. Is my startup price too high?

APW

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I have been rehabbing a 3-1 I bought from the bank for the last 6 months. The wash has been closed for a couple years, and has been run down for the last five with a very bad reputation. Everyone in town knows it is being rehabbed with a new owner. I have gutted, replaced, and rebuilt everything from the equipment to the building. All the SS bays, have coin, bill and credit card acceptors. I really want to set the time for $3 for 4 minutes but I wonder if that is too high. The closet 4/1 is 30 minutes away and in another state. My logic tells me they will pay because there is no where else to go but I would to hear others thoughts. This is a small country town. The biggest industry is logging, so I predict a lot of mud.
 

Randy

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Where is this car wash located? A small town of how many people? I couldn't get $3 for 4 minutes in my market, my town has a population of around 6500 in town and 20,000 with in 5 miles. I'm the only Self-serve car wash within 10 miles. What is your market population? Try $3 for 4 minutes and see what happens.
 

OurTown

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I agree with the others but at that price make sure it is really kept clean and running perfect. One thing I want to point out that not many talk about on here is how much the total will be to wash. For example I spent $24.00 washing my truck at one of our competitors a few weeks ago going through most of the functions. They are $3/4 minutes. At ours it "cost" me about $16. It is just something to think about because some people might compare it to the cost of an auto wash.
 

APW

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The city population is 4800, the county population is 13000. The traffic count in front of the wash is 10,000. The median income for the area is $34,000.
 

BBE

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The city population is 4800, the county population is 13000. The traffic count in front of the wash is 10,000. The median income for the area is $34,000.
IMO, I'd lower the cost to start and do less time, maybe not necessarily deviate so much from the cost per coin, but lower start up time. You're in a small town, and also a fairly poor demographic. Yes, the wash is rehabbed from having a bad reputation, but in a small town, you will quickly gain your own reputation of being the guy who rehabbed the wash and then started charging outrageous prices because of it.
 

OurTown

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APW I'm curious what the price was when last open. People might have an issue if it was $.50 for 4 minutes and then it goes up six times that.
 

APW

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It was 1.50 for 4 minutes before.
 

OurTown

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That's not too bad thinking about doubling it. What about trying to start off with $2.00 and say it's a grand opening promo price? Then you could build business and feel people out for how high to go in a few months. Just another idea.
 

MudMoney

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Your start up price is a good place to start.I'm $ 3.00 for 4 min and going up this weekend. Yes you will get people that remember the old price but won't recall how rundown the old wash was.I wouldn't do a promo @ reduced price.Consider doing 2 days of free washes from 8 to 4 and in conjunction with a cola distributor to give away free product.
 
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