TIME TO RAISE PRICES = BECAUSE ALL OTHER INDUSTRIES ARE?

[PWT3TIME]

We are newbies to the car wash business, we purchased our fist IBA 1 year ago. Prices for labor, parts and supplies are going up. Everyone knows prices are rising and the consumer will understand the price increase.

I would be curious to hear your opinion and how much you think prices should go up (if any)?

If you were to buy or sell a wash would new construction costs have an impact in how you value an existing wash or would you only value the wash based on gross sales?

Thoughts?

 

[MC3033]

I say up those prices! It is easy to be afraid of but unless you have unlimited I would not think twice about a price increase unless you have abnormal circumstances.

If you plan on going up well above market I would look at some sort of value adder for your customers (ie spend $.20 and charge $2 more to justify)

I would say most are going to look at revenue/ebitda for value but construction cost may have an influence

 

[Waxman]

The price should be as high ad the market will bear. My new Razor will be priced at $15-20. Sounds high to me! However, if the competition is already there, why go lower?

in the past I have agonized over price increases and put them off. However, once I pulled the trigger on the increase I enjoyed the benefits of more money while no customers complained.

It's important to remember with pricing that it's not really your opinion that matters it's what the customer will pay. My detail shop raised its prices too, and I think the price of a detail is more than I would pay as a customer. But I am busy in the detail shop. Currently we are booked up until July.

 

[water guy]

Hold on where the Hell is Everyone From and what is Your Car Count and Your Demographics

 

[Randy]

Ervery time I've raised my prices one thing happened, I made more money and got no complaints. We charge what the market will bear. I know a lot of car wash operators who are afraid to raise there prices because they fear they are going to loose customers. I call that "stink'n think'n".

 

[washnshine]

There are so many extra services these days, it’s hard not to have your top package bumped up to $20+ , if your market will bear that price bracket. I think where a lot of operators miss out is by under pricing the lower washes. Doesn’t make sense to me to have a top wash priced at $20 and a basic at $7. I’d compress the range and have smaller increments in the pricing. Build it from the top down. It you want the top at $20, set it there's and then strip away the extra services as you see fit to get to your lower prices. Like $20, 18, 15, 13.