If you run an auto wash business, or are contemplating setting up one, making sure you know the pricing structure of your business is essential to your business’s success — and ultimately, your bottom line. Five crucial factors to consider when creating your pricing structure are the characteristics of your business, cost per car wash and the amount of items required, demographics and the location of your business, as well as upsell possibilities as well as membership offers.
Making the right choices for your car washing services could make or break the success of a business, therefore it’s crucial to find the ideal balance for your pricing. If your prices are too excessive, customers could decide that your services aren’t worth the investment and you’ll suffer a loss in the business. Setting prices that are too low may mean you don’t earn enough profits over your expenses for business. How do you determine the best pricing structure? Certain elements can help determine your pricing choices and help you decide the best option for your company. Take this as your guide for getting the best car wash costs for your business.
1. Review the Characteristics of Your Car Wash
One of the most important aspects to take into consideration when setting your car wash’s prices is the business’s characteristics. The three most important aspects to consider include convenience, quality, and process. Let’s review of these characteristics.
- High-Quality: Perhaps the most important factor that determines what price to charge is the quality of the products and services that you offer. Customers are more inclined to spend the most money for high-end products and services. Check the cleaning products and equipment you employ with the standards of your industry. It is also important to consider your facility’s condition as well as your commitment to providing excellent customer service. Do you provide a basic drive-through service, or a full-service exterior and interior detailing service? Do you offer any distinctive features or additional services? They can all add to your service’s overall quality.
- The convenience: Another essential factor to consider when pricing is the convenience of the services provided. Customers could also be willing to pay to get options that will help them save the time as well as money. This could be in the form of memberships and pay-ahead plans along with a full-service menu as well as other features that make the washing experience for your car more enjoyable for your customers.
- Method Methods used for your car wash is another important factor in determining the price. Do you mostly utilize brushes, touchless spray systems mobile services, or some other method? Each of these could have different prices and different expectations of customers.
2. Calculate the Cost per Car
The calculation of the cost per vehicle is a crucial aspect of the process of determining the price you will charge. In the end, you’ll have to understand the amount of your equipment as well as other expenses contribute to your services in order to determine how much of the cost is profit and the amount you’ll require to cover your costs. When making your cost-per car calculation one of the most important considerations is volumetrics, that is, the precise quantity of cleaning chemicals that are used for each car wash.
The cleaning chemicals employed are among the largest costs and resources associated with running a car wash. However, you’ll probably purchase these in large quantities. So, how do you determine the amount of money that goes into every car wash? The best method for determining the amount of cleaning chemicals you use are methods like the graduated cylindrical method and the digital scale method in addition to dividing cost of the material.
- Gradually cylinder method: This version for measuring volumetrics is reminiscent of the chemistry class. This method requires filling up two cylinders cleansing fluid before attaching the other to the pump. You can run multiple vehicles through the systemgenerally speaking four cars is the best number to use for this. After the cars have gone through, fill the second cylinder until it is full of the first one, and then divide the remainder with the total number of cars to determine the exact quantity of chemicals required per vehicle.
- The digital scale technique: A faster and more precise measurement is achieved through the use of an electronic scale. The container is placed on a scale that is digital, and set the TARE to ensure you can accurately measure the product’s usage. Once again, run several vehicles through the system, and then divide the amount of use in the system by how many cars and you will get the result.
- Dividing the total cost of materials The most popular and most efficient methods is to determine the amount of products that is used at any given moment by the number of vehicles washed over the same time. This method might not be as precise as other methods however, it will provide a fair estimation of the amount of cleaning chemicals used for each car.
No matter which measurement method you pick the best method for you, you can use this information to calculate your car’s cost. Be aware that cleaning solutions are just one of the factors that contribute to your car’s cost. You’ll have to take care of this with every chemical, which includes waxes, detergents, and special cleaners. There are likely to be several other business expenses which impact your financial results. Think about your mortgage or rent payments on your home along with utilities like electricity and water, the cost of employee wages and marketing. The cars you wash at the car wash should pay for all of your business costs, and give you enough money to make the profit. Make a budget that is accurate to assess if the price is in the right place to be.
3. Check out Your Market
Your location could have a significant impact in determining the fair price. Customers who use car wash services living in more wealthy and higher-income region might be more prepared to shell out more. This is especially true when the other shopping areas or major roads are located near the car wash, adding to the convenience factor. Car wash companies that are difficult to reach areas or in low-income communities may not be in a position to charge the same amount in the price of their products.
Your location is crucial also. Costs of living and costs for services and goods differ from city to city. In general, big, populated cities will have higher prices of living than isolated towns and rural areas and businesses may be charged higher prices in areas with higher costs. Take a look at the area you live in and also the surrounding neighborhoods around your current or potential location. To get an idea of what’s fair for your particular market, study the cost that living costs in the area as compared to other parts in the country. You can also investigate the other car washes that are within the region are charging.
4. Don’t be afraid to increase your sales
The power of upselling is tremendously beneficial to car wash business and is a must to think about this when setting the pricing structure. This method of selling is used to convince customers to choose add-ons or pay a little more than what they originally planned. Many car washes offer multiple options ranging from the cheapest to higher-end services. Although you can count on some customers choosing the standard wash no regardless it is, you’ll be more likely to increase your sales to them when the various price points are close. For instance, if your standard wash costs $5, you’ll be able to attract a lot of customers, but you’ll have difficulty selling them on a more expensive $15 wash. If your lower-end pricing ranges from $10 to $15, your customers might be more inclined to choose an upgrade, as they know that it’s just adding a few dollars to the cost.
5. Earn Revenue Through Memberships
The carwash memberships you pay for are well worth the cost when it comes to your bottom line. They’re a great option to boost your number of customers returning and increase your overall earnings. They’re also a sought-after choice for car wash businesses. Benefits of offering memberships are returning patrons, guaranteed monthly revenues and introducing customers to additional services, separating businesses from competitors, gathering data about customers and giving customers an exclusive gifting opportunity!
Let’s dive into each one to see the benefits.
- Customers who return: With your members returning business, it’s nearly a certainty. They’ll return again and time again to utilize your services.
- Guaranteed monthly revenue If you bill your customers monthly automatically you’ll earn a profit that you can anticipate frequently, even for customers who don’t make use of one of your services that month.
- Introduce your customers to additional features: With unlimited membership services your customers are more likely to test the premium services and add-ons they might not otherwise have access to. Even if they decide to cancel the membership they might be more inclined to purchase the services that they received when they were members.
- Get your business to stay away from the competition: Your members are much more likely to remain loyal and you’ll end up receiving more business that could be going to competitors in the past.
- collects information about customers: With your members’ information stored on file, you are able to direct market to them with new deals and promotions, as well as new services, and other information. You’ll learn more about your customers, too and you’ll be able to customize your services according to your customers’ requirements.
- Memberships make excellent gifts: Offering memberships can allow you to tap into a different market — the gift buying. Your customers who have been with you for a while may want to purchase a gift membership to a teacher, friend or a neighbor. Customers who are loyal can recommend your products to new customers as well as increase your monthly income.
You can now consider how offering memberships are the best option to any auto wash company. However, determining the right price for these memberships can be a bit tricky. You must provide the most value to your members and also make memberships appealing to buy, therefore you need to set the price keeping this in your mind. It is also important to think about what memberships include. Are you offering a particular amount of cars washed per month or unlimited services?
An ideal starting point is to provide unlimited membership at two of your top-tier washes. Certain customers might require over two washes of premium a month, and the profits you earn from the members you offer them will be lower. But, the majority of your customers will require less services. A stable customer base is worthwhile, as it helps offset any losses due to customers who visit your car wash frequently.
6. Beware of Undercutting
Naturally, when making your pricing decisions it is important to provide an excellent value to your customers as well as remain competitive in your marketplace. But, you shouldn’t overdo it and make yourself look cheap. Subscribing is a standard practice of offering services that are priced lower than those of your competitors. And although it may result in a lot of clients, you’ll be harming your profits or perhaps too much. Be aware that your expenses for business as well as your price per car are two of the most important factors that affect pricing, so be careful not to undercut excessively.
What is the average cost for a Cost of a Car Wash Cost?
If you’re still unsure the best way to rate your car washes or would like to have a better understanding of typical car wash costs, here’s a close look at some national averages for different service providers. Keep in mind that prices may vary a bit based on location, the services provided and other variables. So, how much will an auto wash cost?
- Simple wash Basic wash: automated, drive-through car washes typically employ sprays of water and soap or using a touchless method or by using a set of towels and brushes to wash the vehicle. For a basic wash the prices range between $5 to $10. Additional services like a spray wax application or an undercarriage wash could cost $1 to $2 per.
- The Deluxe Wash: A majority of automated car washing firms offer different levels of services, which include two or three packages that go above and beyond the standard wash. These can be described as”premium” and “the work” and range from $10 to $20. They may include some of the same options for add-ons as the lower-tier wash options or even include them as part of the overall cost.
- Full service wash This kind of goes above and beyond the most luxurious drive-through packages and can include additional services, such as hand-drying, vacuuming and cleaning the interior and washing the tires, cleaning dashboard, windows, and doors and even incorporating the option of a fresh scent. For these additional services, customers can expect to be charged around $15 to $30 dependent on the specific service that are selected.
- Detailing A step above a typical full-service wash. Detailing is an elite service typically performed by hand. Detailers will clean the car both inside and out with greater care and consideration. Services can include hand washing and waxing, as well as complete cleansing of the interior, washing surface cloths, tire cleaning and cleaning of the dash, doors and console and light scratch removal additional fragrance, and so on. The average price for detailing services is between $80 to $200 for premium detailing services. Prices typically increase for larger vehicles.
- Mobile car washes: A relatively new car wash service Mobile car wash businesses are available to you. The level of service and the add-on options can vary greatly however, mobile detailing costs generally range from $20-$50, and even more for more thorough services.
With this price list, you will be able to examine your prices to determine whether your costs and services are affordable.
Car Washing Equipment From JBS Industries
We hope that this will answer the question that is asked all the time “How much will an auto washing?” and helps you find the most effective pricing for your company. For many years, JBS Industries has been an industry leader in high-quality car wash products, offering everything you need to run a car wash or another professional cleaning services. Contact JBS’s experts JBS today for any queries or to start looking for the ideal products for your car wash.