As a car wash owner, what do you worry about when you consider offering unlimited or monthly car wash passes?
Do you think that you will lose money, or even that it might destroy your business?
That seems logical, but it’s incorrect.
Offering monthly or unlimited car wash passes can actually help your business succeed.
And make you more profitable than ever.
Monthly or unlimited car wash passes can create bigger profits
Say your current “loyal customers” are coming in once a week to wash their cars and giving you $10 a pop. Then, you decide to offer a monthly discount program or unlimited car wash passes for $19.75 a month. By doing so:
You create more loyal customers
You’ll actually create more loyal customers by doing that. That certainly makes sense, doesn’t it? Everybody likes a good deal.
You’ll make more per customer on average
“But wait,” you say. “That still won’t make me more money. If my customers still come in every week, I’m actually making less than half of what I was making before.”
Not exactly.
Taken on its surface, it seems true, yes.
But keep in mind that many of your new customers may only wash their car once a month. Even though they have the best intentions of doing it every week or even every other week. If those people sign up for a $19.75 a month program, you’re actually getting $19.75 for a single wash, instead of the $10 per wash you were getting previously. That’s nearly twice the profit, and it comes from a larger customer base.
Customers spend more when they think they’re getting a deal
These discounts work for other reasons. You’re increasing your customer base, and you’re increasing your profits in other areas, too. Your loyal once a week customers will likely decide that they’re saving “half” of what they were spending before. But they will still spend that money (and more) on other services. Win-win for both of you. Customers actually spend up to 60% MORE once they’ve joined one of these plans than they did previously.
Offer to just existing customers?
Some suggest that you offer these discount programs only to established customers. This ensures that you’ve got a loyal customer who likes what you have to offer. Hopefully they will only become more loyal, not less, once you start giving them a price break.
Or to everyone?
However, if those loyal customers are talking up your unlimited car wash passes, you don’t want to disappoint, do you? Because of that, or it’s a good idea to offer these discounts to anyone who wants to walk in and sign up.
If someone signs up for monthly unlimited car wash passes so that they’re committed to pay you $19.75 a month, you’ve got ready business. And great word-of-mouth, as well.