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Monthly Packages

1 reply created 15 days ago
posted by Cgking114 15 days ago

We are considering doing an Unlimited Wash Program at our wash. We have 3 otherFull Service washes like us in our town and they all offer an unlimited program. We are part of a franchise that discourages unlimited programs and says that it will reduce revenue and profits. We also have a full detail center and the franchise companiy also says it will hurt ticket average. For those of you who have started offering unlimited packages after not having them, what has been the impact on you? Do you regret doing it? What has the impact been on your bottom line? Thanks in advance.

Replies

reply by Robert Roman 14 days ago

Franchise is a chain of retail outlets that share brand and central management, and usually have standardized business methods and practices.

That’s why chains usually hire managers that understand the value standard methods and practices and are willing to follow them.

For example, if you were a manager at a Papa John’s pizza store, you wouldn’t last very long if you decided to make pizza with generic sauce purchased locally from a cash and carry store.

Besides, only “exterior-only” washing makes sense for unlimited.

I could illustrate but math would be tedious here as well as assumptions.

Generally speaking, adding an exterior-only lane to entrance of full-service wash increases total volume and lowers average per car revenue.

Adopting unlimited exterior would further increase total volume as well as lower average revenue. How much depends on take rate, pricing, and visits per month.

Another consideration is hourly capacity. Full-service usually isn’t designed for high volume like 125K CPY express.

So, if tunnel isn’t long enough, exterior-only washing and unlimited may out strip hourly capacity causing exceedingly long waiting line and waiting times for both full-service and exterior customers when busiest.

And so forth.

Hope this helps.

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