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Opinions needed on price increase

fastlx

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I have a nice 2 Bay SS and a IBA ( older WW HV ) nice Simonize soaps, Triple Foam, Dryers, etc.. The prices have been the same since I bought the location over 5 years ago. Right now the top wash is 12 then 10, 8 and 6. Thinking about raising the prices? Closest tunnel is 5 miles away and top wash is $22.
Just want to get input? The main $12 wash is what most people choose and then probably the $8 or $6. I never really get any complaints on the cleaning quality. I don't give free vacs.

Thanks for everyones input.

VW
 

Waxman

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I had the same pricing as you in 2018. In 2019 I had a problem with my sewer and was shut down for one month. When I reopened, I immediately raised prices to 10, 12, 13, and 15.

I'm installing a new razor now and my pricing will be 15, 17, 19, 20. My competitors are friction rollovers and they are also charging $20 for their top package.

If most of your customers get your top package it tells you something; you should raise your prices. Don't be afraid to do it.
 

washnshine

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I think last 5 years has seen large increase across the board on expenses.Increase accordingly and you won't have to play catch up.
Yes. Always tougher to have to ask for 2-3 cycles of price increases at once rather than in shorter, smaller increments.
 

washnshine

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I'm installing a new razor now and my pricing will be 15, 17, 19, 20.
Nice price points. With the $19/$20 packages, no one will get the $19 and they will all be driven up to the $20. I know you know this, but one thing you do have to watch out for is undervaluing whatever you increase in the top package. Say you add ceramic on that package. You are basically charging $1 for that, when many operators bump up $4 for a service like that. But if you have built that increase into your lower packages, and the $19 is basically “overpriced” so the move to $20 reflects an overall increase for all of your premium services.
 

fastlx

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Thanks. I'm thinking ( raising $2.00 per wash) $14, $12,$10 and $8.00. With the older WW HV I can only offer a few options. I just did add the dryer to the bottom wash, so I might have to keep it. Since people now expect it? And most people don't choose it anyway..

Pollen time is coming here in the south and it will be my busiest time. I think just raising $1.00 per package could be a waste of time?? So $2.00 just sounds better. Thanks again for all the input.

VW
 

Waxman

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try $15, $13, $11, nine dollars instead. Instead of thinking two dollars per wash , you should be thinking in terms of the customer experience. People that pay cash are going to pull out a 10 and a five for your $14 wash. I don't think it's that important for the customer to get those 4 Quarters back in change. With my strategy, you get to keep that extra dollar. That is the magic of raising prices. You multiply that extra dollar times cars washed per year and you get a significant amount of money.
 

chaz

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I’m at 8, 10, 12, 14

I’m raising my 12 & 14 to 13 & 15.

I’m either going to raise my 8 to 9 or drop to 3 choices (my lower wash has no dry)

I’m torn on what to do with my 10. I’m afraid if I raise to 11, my cash customers will go with the 9....but likely not happy with no dry. I’m seriously considering... 9 (unless I drop it), 10, 13, 15

thoughts..???
 

washnshine

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I’m at 8, 10, 12, 14

I’m raising my 12 & 14 to 13 & 15.

I’m either going to raise my 8 to 9 or drop to 3 choices (my lower wash has no dry)

I’m torn on what to do with my 10. I’m afraid if I raise to 11, my cash customers will go with the 9....but likely not happy with no dry. I’m seriously considering... 9 (unless I drop it), 10, 13, 15

thoughts..???
I’m a huge fan of 3 options. I like the 10,13,15. You could go 10, 14,15 and pretty much get all the cash customers dropping in either a 10, or a 10 and a 5.
 
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Kramerwv

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What pricing has anyone done with new EE competition moving in? Anyone lowered to combat? Stay put longer than you want? Can’t see an increase working until the chips fall into place for a while.
 

Waxman

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I think that you can use 4 options ( instead of 3 ) as a way to increase your average ticket per car. Customers appreciate having more options; look anywhere in retail sales and you can see this fact.
 

MEP001

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I think that you can use 4 options ( instead of 3 ) as a way to increase your average ticket per car. Customers appreciate having more options; look anywhere in retail sales and you can see this fact.
I have to disagree in our case. Fewer options means less time for the customer to decide. With four options you're usually going to have at least two wash levels that are only separated by one function like trifoam polish or blow dry. With three options, only two will have dry, only two will have trifoam, neither will be the basic wash, so you've left only two choices for them. I know from experience that the majority of customers don't want a basic wash, and there's always one option that gets very little sales. I know one operator who installed a Hamilton HTK so he could offer eight choices believing customers wanted the options and would like the touchscreen. He ended up replacing it with something simpler because so many people would pull up, sit there for five minutes looking at all the options, then just leave.
 

washnshine

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I have to disagree in our case. Fewer options means less time for the customer to decide. With four options you're usually going to have at least two wash levels that are only separated by one function like trifoam polish or blow dry. With three options, only two will have dry, only two will have trifoam, neither will be the basic wash, so you've left only two choices for them. I know from experience that the majority of customers don't want a basic wash, and there's always one option that gets very little sales. I know one operator who installed a Hamilton HTK so he could offer eight choices believing customers wanted the options and would like the touchscreen. He ended up replacing it with something simpler because so many people would pull up, sit there for five minutes looking at all the options, then just leave.
Agreed. That’s pretty much what I do with my menu of 3 choices. I don’t even have a basic or express stripped down option. My cheapest has what others might consider extras, but it is priced that way too. Then, my top wash is loaded and the middle wash doesn’t have the value for the money, so it pushes people to the top. Most people are really choosing between two washes. Eliminating the very bottom doesn’t allow me to advertise a super low entry level price like some of my competitors, but like MEP said, I don’t think a lot of people want that anyway and no one has ever asked me why I don’t have an “economy” option.
 

Chris7406

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I was looking back at some old paperwork and pricing for our iba is the same now as it was in 2006. I think it's time to go up.
 
Etowah

Car_Wash_Guy

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I was looking back at some old paperwork and pricing for our iba is the same now as it was in 2006. I think it's time to go up.
I bought my wash in '15 and I've never increased prices and I assume they are the same prices as when the origano owners opened in 07/08.

My IBA prices are 7/9/10/12 looking to go to 12 /14/15
 

fastlx

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Bought mine also in 2015. 6,8,10,12.. Decided on 8,10,12,14. Will change this week and Let's see what happens. Didn't want to remove a wash and have to change all the signage. PITA. so I'll keep 4 .
 
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