Season passes?

We have full service wash

we never had any Season Pass or wask books.

Every now and then I have som customers ask for it

is it worthwhile to have either the season pass or wash booklets? I mean does it add to bottom line in long run?

We are an exterior only wash but I think the same lesson we have learned and applied.

The key to monthly, quartely, or annual wash passes and wash books is that the discount (in the case of wash books) and the potential discount (in the case of passes) is that the savings be significant enough to mativate people to purcahse it. For example, we began selling 5 wash books some 9 years ago. We tried 10 washes for $50 but it was too hgih for most customers and the discount per wash was only a dollar per wash. Well, we split those 10 wash books in have and sold them at 5 for $25. Results more success (we went from 5-10 ten wash books a month to 50-150 depending on the month, but still just a drop in the bucket of annual sales. The the second year we had them we ran a cable commercial in June, july and August. The offer was for a 5 wash book for $20 or $2 off per wash. Well, the year before we sold maybe 150 for those same months. During the 3 month promotion we sold some 1,800 books. We've had a $2.00 per wash savings on 5 wash books ever since. in the summer we up that discount to $3 per wash on a single book and even $4 off per wash if they purchase 5, 5 wash books (25 washes) at a time. Book wash $$$s now represent 21% of annual revenues.

As for monthly passes, we began our Club Card 3 years ago during the worst January ever (a 4,000 car month vs. 10-11,000 car average) at $40. Currently it stands at $60 per month or 2 for $100. We do limit it to a single car per card and only one wash per day for the month. Customer usage averages right at 10 times per month and has since its inception. Now that does include the nutjobs, er uh customers who was their vehicle 18-20, up to 28 times a month. But even the mode is 9. I have quite adifficult time believing the stats from DRB that claims a usage rate of 2-3 times per month. If my customers buy them, they use them. The unexpected thing about the card is that some 50% or more of those that buy them own black vehicles.

The nicest part about book washes and monthly passes are that you are paid ina advance and you know you have them locked in. Yes, you give up some revenue for that privilege but you see them more often as well. And these customers' vehicles are the easiest ones you'll ever wash as a result of their increased frequency. And when neigbors, friends, or relatives ask them how they keep their vehicle so clean all the time, you get a referral -the best kind of advertising.

Bill

I see. Thanks for the info, Bill.

Only concern I have of starting the passes is that whatever gain I may get may be drained by the loss. In other words, would the gain in revenue from the loyal customers be sufficient to cover the losses of thoes same customer who would have come anyway? Or put it this way, After accounting for extra chemical and utility costs, does the bottom line look better? If so, is it a significant boost?

Bill...

Is your program based on a "Use It Or Lose It" value equation with hard-date expiration, or does the consumer simply buy a front-loaded discount bundle of washes?

Bill

In the case of books there are five (5) tickets to a book. They are sequentially numbered and are printed with an ink that makes scanning impossible - at least without being obvious. They are also printed on a paper that has shall we say a unique feel to it. We track the number sold vs. redeemed on daily, monthly and annualy basis. We do not track them or their use by customer, so they are like cash.

As for the Monthly Club Card, it starts the day you buy it and expires 30 days later. The days of the month are printed and are punched on each visit. It's currently $60 for one month or $50 each if two or more are purchases at the same time. The average usage is they key. $60 may seem like a lot except the average # of uses is 10 times a month! If you don't think you wash that much to take advantage of the card then we recommend you buy a 5 Wash Book which never expires. Even if the customer is a 1-2 tiems a month customer or even less, then best option is always the book to save money.

Another consideration is the virtual lock you place on each book or club card customer. They are not going anywhere else. Also, with increased wash frequency, you are presented with a vehicle that is the easiest car you will ever wash - and the best advertisement you don't have to pay for.

All I can tell you, is that despite this recession and being in one of the highest unemployment counties in Ohio (Cuyahoga) we were only down .007% in revenue for the year. Heck if we could have gotten just one more good wash day in Fenruary, we could have shown a revenue increase. I conider ourselves to be very, very fortunate. I also know that I could not have pulled this off without the 28$% and 3% of revenue from Book Wash and Club Card sales respectively. Still, there are the inevitable questions. Did the sales of Books and Club Cards more than make up the income loss (i.e. what they would have spent for a car wash if not for those programs) and increased utility and soap costs? You can second guess yourself all day. On the other side you have to ask, "Would they have even come to you or even been loyal to you if not for those programs?" Would they have gone to a competitor? Would they have washed it in their driveway instead of spending full price at your car wash?

It takes effort to run the program (at least for us as we do them without a POS system). But the increased wash frequency, ease of cleaning them and lock on customer loyalty, and the after the fact advertising value are worth it. Oh and we laminate the Club Cards.

Bill,
How do you keep track when they have visited the wash? When your not their, how do you keep your employees honest and not just take money from the till and say someone came through? You punch their card when they come through and give it back to the customer, but what do you keep that shows they came in?

We have a sign in sheet for Club Cards. It requires the attendant log in each club card #, the customer's name, license plate #, and time of day the card is used so that they match and can be spot checked via the video cameras at the entrance and above the cash drawer. Trust but verify.

We likewise have a log for all free washes ( and a short list of those able to receive it) as well as re-washes that require customer name. license plate number, phone number, time of day and specific reason for the re-wash (bugs, birds crap, wheels, etc.). My office manager then follows up with each re-wash customer to find out if the customer was satisfied. She also logs each re-wash into a customer database so we can see a re-wash customer history to see if its a one time thing or if there is a trend - like asking for a re-wash every time.

Early on in our Club Card program, we discovered a Club Card customer who was washing their vehicle 16 times a month and tried getting re-wash each and every visit. I put a stop to that quickly.

Every car is accounted for and we can spot check the employees anytime we feel there is a problem. Plus my attendants have been with me a long time. They know we look closely at these sheets and account for each and every car that goes through the wash. Is it possible/probable that there is room for abuse? Of Course, but we try to take precautions against it. Requiring information be entered each time a club card is used or a re-wash goes through gives us the ability vis the video to catch them.