A Subscription Priced Car Wash
By
Staten Island, NY Posted: 12/10/2014 1:00:00 AM
He just washed his car. Doesn't he know the forecast calls for rain? Yes. He knows.
Weather is a blessing and a curse for a car wash.
A car wash does well right after bad weather, but even people who have a dirty car won't pay to get their car washed if there is bad weather in the forecast. In fact, many consumers skip the car wash entirely in the winter months, when they need it the most.
Because they want to get the maximum value for the price, they can't stand the idea that their car will get dirty in a day or two. Meanwhile the salt builds up.
A simple solution is subscription based pricing. It's good for consumers and the car wash.
The premise is simple, you pay a monthly rate, then get your car washed as often as you want.
Some of you are wondering if this would use too many resources or create long lines, but if you think of it, this is not too different from the way a lot of businesses run. Gyms charge a monthly rate. Some members come every day, others come less often, but they balance out. Netflix revolutionized the video rental business by using a similar subscription model. Once again, some used the service heavily, while others used it less often.
A single subscription price gives the business a steady cash flow, while giving consumers peace of mind knowing they can use the service as often as they want.
The first test for a new business idea is asking yourself, if such a service existed today... would you pay for it? When the answer is yes, then you've got demand. Business 101, where there's demand, it's just a matter of time before a business serves that demand.
The only question... how much is it worth? I'd say $15 - $20 per month would be a fair price. That guarantees the car wash will earn $180 - $240 per year from each customer, which is most likely more than they get now for any given customer, yet it's a low enough monthly rate for consumers to jump at the opportunity to have a clean car all year round.
Naturally, they would use the license plate to insure each customer is only getting one car washed, but it does open the door for an upgraded plan to cover 2 cars for just a few dollars more each month.
Joe Crescenzi, Founder
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