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New Subscription Plan for SS bays

bigleo48

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So for a while now I've been wanting to roll out a 'conditional' unlimited washing program in my SS bays (I have a separate subscription for IBA) . However, the Gen 1 Unitec Washpay server wasn't able to do what I wanted. So about a year and a half ago, I started discussing what I wanted to do with Unitec. They listened and incorporated my ideas into their product. I now have the Gen 2 server and I have just rolled out my subscription plan. This is what I'm doing;

For $39.99/mth + tax, 3 month min (10% discount if after-hours is selected 6pm-6am), the person gets a card that allows them to redeem up to 10 mins of wash bay time, per day every day, in a selected SS bay (I choose the bay). Because of how the Washpay server works, I need to set up every SS bay as its own 'product', so that's why it can only be redeemed in a specific bay. But every customer can be assigned a different bay, so I don't load up one bay. This is fine with me as I can better distribute usage in my 8 bays and assign the program to the least used bays. Commercial vehicle prohibited.

Cards can be purchase & refilled online.

I haven't started advertising it yet, but it will be interesting to see how it does. As far as I know, I am the only carwash (with 1000 miles) that offers a subscription program like this. I have three competitors in my area, all are un-maned and none have the ability to do this.

One of the very important factors here is cost of delivery. As most of you realize, the cost of delivery is simply the cost of water, sewer, heat & elec, chemicals and finally equip wear and tear. Stuff, like lighting, floor heat, property taxes, etc are pretty much unchanged if you have customers washing or not. So I determined my cost of deliver and even if a customer uses the full 10min every day, I will still make a small profit. However, I would like to note that my switch to powered soaps (from $400 per 55 gal drum to $45) has allowed me to do this. Help from members like Waxman has helped greatly. Thanks!
 

bigleo48

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The other thing I would like to mention, is that I was able to do all this by myself. From installing and configuring the washpay server with my designed plans, to the signage. Make Gift card holders (like the ones you see at dept stores), all the forms and info handouts and finally the webpage payment (via embedding Paypal buttons). The paypal payment setup is really neat and I have used it many times. They charge 2.9% which is reasonable. I can also do reoccurring monthly credit card payments. It was really easy.

So the whole cost of roll out was maybe $2,100...$2000 of that was the washpay server upgrade.

So I can maintain a professional image, rollout programs like Big Oil companies...all from little old me. I do have too many tools.
 

Ric

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Good job. Keep us posted as to how it's working for you. I would also like to hear more about your switch to powder soaps...care to share?
 

robert roman

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“…..been wanting to roll out a 'conditional' unlimited washing….SS bays (I have a separate…for IBA)”

$39.99/mth + tax, 3 month min

“…..person gets a card….redeem up to 10 mins of wash bay time, per day every day”

10 minutes * 30 days = 300 minutes

$39.99 / 300 minutes = $0.13 per minute price

“I have three competitors in my area, all are un-maned and none have the ability to do this.”

I don’t see a competitive advantage. If I visit the wash once a week, my price is $10 (40/4).

I would have to wash my car 13 times a month for price to be $3.00 a wash. I would have to visit your wash 26 times a month for price to be $1.50 a wash.

Moreover, if it takes me longer than ten minutes, then I have to pay even more. Not to mention a minimum 3-month commitment. Most unlimited is month-to-month.

Business with low fixed cost and low variable cost per unit (wand) cannot win on price against business with high fixed cost, low variable cost (conveyor). The reason is former has far less capacity.

When you cannot win on price, profit maximization is good strategy to grow a business. With a combination self-serve, in-bay provides the greatest potential to do this.

However, making in-bay unlimited creates the same situation.

If you believe unlimited washing is the way to go, pay-one-price format is more consistent with express model.

However, over the last several years, I’ve found self-serves have more success using these tactics.

Redesign in-bay recipe, increase price. Offer higher margin products. Increase capacity of automatic washing. Reduce number of wands. Invest in impeccable landscaping, skin package for building, touch-screen, loyalty program, etc.

If self-serve market isn’t growing and most are not, the objective strategy would be to assimilate existing retail space. This means taking business from competitors in trading area.

If the capacity isn’t present to do this, the strategy would be to focus on capturing market share (dollars) rather than door swings.

Happy Holidays
 

robert roman

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Carwash certainly isn’t fast food but people are people and there are some analogies why self-server operators have more to gain by pursuing automatic washing rather than wands.

Checkers double drive-thru serves 38 customers an hour, average service speed is 45 seconds per customer and average ticket is $5.00. Same store sales are $900,000.

Chick-fil-A double drive-thru average service speed is 3.4 minutes but average ticket is $7.65. Same store sales are $1.4 million. The best reach $2.0 million. On average, stores have six cars waiting in line any given time of the day.

Why does Chick-fil-A thrive with QSR industry’s slowest service speed, longest wait and highest price?

You can eat mor chiken with in-bay.
 

bigleo48

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Robert,

Thanks for that...your insight is always appreciated.

I think your info is most relevant to large urban areas and express conveyor wash competition. I am in a small city (30K pop), with no express conveyors here, only traditional SS bays and IBAs.

BTW, I do have an IBA and a subscription plan for it.

My SS subscription is card based (not vehicle or RFID) and my goal is to lock up SS users, especially during the busy winter months. With 8 bays I have the capacity and availability to do it. The card can be passed around (usually with families). I have no competitors in SS subscription, so its something new that none of my competitors can offer.

Pricing...I'm in Canada and the average SS bay min prices are $.70 to $1/min. I think my pricing is good, but perhaps it will need adjusting down the road, time will tell. But the SS subscription is less that half the price of an average fillup here.

So I'm experimenting...and if it doesn't work...no big loss as just time invested.
 

bigleo48

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Bubbles,

The system is working fine, but by the time I actually had it all done and rolled out I missed part of the xmas shopping season. So sales have not been robust but with time I think I should do well.

Regardless, the roll out has not cost me much and it does provide the customer another way to purchase our services.

In the spring I plan on offering a 'Buy 3 Get 4 Washes' and a 'Wash Wednesdays' where all touchless washes are discounted a certain amount (TBD).

Big
 

Bubbles Galore

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Bubbles,

The system is working fine, but by the time I actually had it all done and rolled out I missed part of the xmas shopping season. So sales have not been robust but with time I think I should do well.

Regardless, the roll out has not cost me much and it does provide the customer another way to purchase our services.

In the spring I plan on offering a 'Buy 3 Get 4 Washes' and a 'Wash Wednesdays' where all touchless washes are discounted a certain amount (TBD).

Big
Please keep us updated as to how things progress, great job on innovating and keeping things fresh.
 
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