Self Service increase by credit card?

[kleenzcars]

As a part of some upgrades being considered in several of my locations over the coming year, I am really interested in discussions about sales increases that operators have realized from installing credit/debit card readers in Self-Service wash bays. Installing new meter boxes with credit card readers is expensive and I am interested in the pros and cons!

 

[MEP001]

Cons: Equipment cost and merchant fees.

Pros: Customers spend more money each time, may come to your wash over the competition that doesn't take cards in the bays, less cash to deal with and less use of the changer, most systems can be marketed with fleet services...I'm sure there are more I haven't thought of.

 

[Ric]

I just completed the installation of credit cards in my bays a couple days ago. I installed an external box next to my coinboxes rather than new coinboxes.

Here's a link to a video:
http://www.youtube.com/watch?v=Le5OX5A-47Y

 

[Ghetto Wash]

I don't have credit card acceptance, but what I see around me is no increase in sales, just more convience for the customer. Hard to justify the expense.

My other concern is that the meter counts in seconds, not $$. If I were a customer I wouldn't care how long I have been washing, just how much I've spent. When I purchase gas I pay attention to the $$, not the gallons.

 

[pitzerwm]

IMO I and I think most people at the gas pump, want to filler up. I know its expensive, but I only come in when I'm about empty.

 

[sparkey]

I have a small wash in a small town. I put credit card readers in a year ago. I get very few credit card swipes per month on the selfserve bays. Some months the cc service cost more than the income I make from the bays. On the other hand my automatic cc sales are good.

 

[MEP001]

I don't have credit card acceptance, but what I see around me is no increase in sales, just more convience for the customer. Hard to justify the expense.

It's difficult to track an "increase in sales" with a credit card system unless you can track the per-customer amount spent. I used the surveillance video to count the cars washed and compared that to the actual amounts spent in cash and CC and see that they spend about 25% more with cards.

My other concern is that the meter counts in seconds, not $$. If I were a customer I wouldn't care how long I have been washing, just how much I've spent. When I purchase gas I pay attention to the $$, not the gallons.

Some systems can display either, or both.

Some months the cc service cost more than the income I make from the bays.

That's going to depend more on the merchant service than the equipment. Some don't charge a monthly fee or have no monthly minimum. Some have a flat percentage charge and no transaction fee.

I wouldn't do CC acceptance in the bays in a low income neighborhood or in an underperforming wash.

 

[bigleo48]

As a part of some upgrades being considered in several of my locations over the coming year, I am really interested in discussions about sales increases that operators have realized from installing credit/debit card readers in Self-Service wash bays. Installing new meter boxes with credit card readers is expensive and I am interested in the pros and cons!

Kleenzcars,

I struggled with the same. Up here in Canada we have $1 and $2 coins and I have an ATM on site. So people could just go to the ATM and get $ for the SS bays.

But in the end, I didn't want to stop customers from giving me money. It's nowhere near the usage I was looking for, but CC users do spend more (over 20% more. Also, I can now offer gift cards and commercial accounts that can use my IBA, SS bays and petwash under the same system.

My system counts up in both time and cost.

Here's a couple of pictures

I use Mercury Payments with the Unitec equipment and internet CC clearing. I find their fees reasonable.

Big

 

[cantbreak80]

I was an early adopter…installed the system in 2003…SS bays only.

Average CC sale is nearly $8…I’m guessing the average cash customer spends $5.

After two years, CC sales accounted for 25% of total bay revenue. This year, it’s about 30%.

Pros:
Customer convenience
Less changer and acceptor maintenance
Less money handling
Automatic daily bank deposits
Remote monitoring and control via internet
Pre-paid and commercial card sales

Cons:
Large capitol investment
No appreciable increase in revenue
Processing fees average 5% (could be less if I dropped AMEX and Discover)
Accounts receivable for commercial accounts

But, I’d do it again. Just yesterday, my changers were hit by a change buyer…three $20 bills in less than one minute, in both changers! Fast feed shut down engaged for 5 minutes…A customer called to report both changers were out of order. I apologized and advised him that we accepted credit cards. He thanked me and I heard him talk to other customers…he said he and the three other customers wanting change would use their credit cards. Four saved customers???

 

[mac]

Here's something to consider when thinking of adding credit cards. Can you think of ANY other business that doesn't have it? Drive around your town and try to find someone that doesn't have it. Come on, you can even get air in your tires now at Circle K with a credit card.

 

[Greg Pack]

I've collected, and plan to do a report after I receive Decembers' bank statement with one full year of CC operations.

My average CC SS income is 1k/month

Average ticket is about 5.50 per customer, or 2.5 cycles

There is no noticeable increase in total SS revenue

My new "partners'" (bluepay processor , etowah valley terminals) fees plus phone charges approach 10% of CC sales

It would not take a noticeable increase for the system to pay for itself, so the jury is still out until I have all the numbers. I just caution anyone who thinks this is going to be a real boost to their bottom line to not be overly optimistic in the projections.