Monthly Express Car Wash Memberships: Pros vs. Cons
One of the challenges express car wash owners face is keeping a steady stream of vehicles going through the bays. Establishing relationships with loyal customers can guarantee traffic, but how do you ensure motorists continue coming back?
A monhtly carwash membership program is a potentially lucrative option. Memberships give drivers with no previous car wash preference a reason to visit your bays. To determine if this type of program is a good fit for your business, consider the mechanics, advantages and drawbacks of implementing monthly memberships.
How Do Monthly Pass Programs Work?
Monthly programs have a basic structure you can use to offer customers an unlimited carwash membership:
- Interested customers pay a fee at the beginning of the month
- You issue a unique ID in the form of a membership card or RFID tag
- The ID is scanned every time the customer’s car is washed during the month
- Monthly subscriptions may bet set up to renew automatically via credit card
- “Multiple vehicle” options may include discounts for family members joining the program
Designating members’ vehicles with unique IDs allows you to keep track of how many washes each customer averages per month and gauge the profitability of memberships.
Why Does “Unlimited” Appeal to Customers?
The idea of anything unlimited suggests endless possibilities in exchange for a single payment, and this alone is enough to entice many bargain hunters. Customers are also more than willing to invest in convenience, and they enjoy the ability to cruise through an express wash bay whenever they wish without the need to stop and pay each time. The smoother the experience, the more attractive it is to today’s hurried motorists.
Regular cleaning prevents exterior wear to vehicles, including paint damage and rust. Purchasing a monthly wash membership saves your customers even more in the long run by preventing the need for costly body work. Customers leasing cars take particular interest in preserving body condition so that they can avoid added fees when it comes time to turn the car in.
Benefits of a Monhtly Carwash Membership
Customers aren’t the only ones who benefit from unlimited plans. By creating a membership structure, your car wash business can enjoy:
- Guaranteed sales at the beginning of every month
- Reliable cash flow
- A more balanced budget
- More non-member customers as the increased volume draws attention
- The opportunity to upsell additional services
- A reputation for affordability, efficiency and superior customer service
- Free word-of-mouth advertising from satisfied customers
The convenience associated with membership programs gives the reputation of your car wash a boost and builds a network of satisfied “brand ambassadors” around the community. Friends and family will want to know how your customers maintain their spotless vehicles and may start lining up to experience your services for themselves.
Dealing with Express Carwash Membership Drawbacks
Membership plans come with a few disadvantages you need to consider before setting up a program. The increase in volume, although a good thing in itself, puts extra strain on equipment and may lead to higher maintenance costs. You’ll also need to invest in tagging and scanning technology, such as RFID, to identify and track members’ vehicles.
As you look through data from the program, you’ll inevitably discover some people abuse their memberships by taking the concept of “unlimited” to the extreme. Such members may feel entitled to washes any time and expect your facilities to be open regardless of weather or need for repairs. Others may fail to update their credit card information, allowing memberships to lapse and decreasing your monthly profits.
How to Structure Your Carwash Membership Plan
The first thing you need to do when creating an unlimited wash option for your customers is to price out exactly how much each wash costs. Include equipment operation, general maintenance, chemical usage, water output and utilities. The number should be relatively low and give you a lot of leeway to charge competitive prices while still making a profit.
Using these figures, set price points for different packages based on the services available at your location. For example, you may have $20, $40 and $60 subscriptions, each offering express washes but with extra “perks” at the higher levels. These may include waxing, tire dressing or interior cleaning. Decide whether to handle payment via automatic renewal or through prepaid monthly passes. Advertise monthly payment options alongside prices for single washes to emphasize how much customers can save.
As with any loyalty program, an express carwash membership plan has its good and bad points. Consider the advantages and disadvantages in light of your current budget and business model before beginning to offer monthly program options. You’re likely to find the investment in new technology and advertising will bring a worthwhile trade-off in the form of increased profits and a reputation for reliability.