Raised the wash membership four dollars and got fewer complaints than the coffee change

Rob Mackenzie· Owns a three-bay car wash; two small businesses sold before this one· Open, Automotive·

I have owned this wash two years and sold two businesses before it, so I am reasonably hard to scare, and I still put off raising the membership for five months.

Unlimited monthly went from $24.99 to $28.99 on the first of last month. Existing members were grandfathered ninety days and told twice by email and once on the sign at the entry. I braced for a bad week. We lost eleven memberships out of about six hundred, four of them from people who had already stopped coming, and the phone rang maybe six times. Two of those callers wanted to tell me the vacuums were down more than the price bothered them.

For contrast: in March I switched the free lobby coffee from a pod machine to an airpot to save about $90 a month, and I heard about it for three weeks. Somebody left a note.

People will tell you about the thing they can see, not the thing that costs them money.

What I did do carefully was tell the staff first, with the reason, and give them a line to say that was not an apology. The one guy who was sheepish about it got the most pushback from customers.

If you are sitting on a price increase - what is actually stopping you? Mine was a story about my customers that turned out not to be true.

4 replies

Miguel Alvarez·

The coffee thing is painfully real and I am not even open yet. My version is the parts matrix. Dad charged a flat markup on everything and defended it like scripture, and half the shops I worked in used a sliding matrix where cheap parts carry a higher percentage than expensive ones. I have built mine on the matrix and I am already dreading the first customer who prices the part online and asks why mine costs more.

The answer I have settled on is that I warranty it and the internet does not, and I am going to have to say that without sounding defensive. Did your staff line work like that?

Rob Mackenzie·

Exactly like that, and the shorter the better. Ours was one sentence: the price went up in April, it covers the equipment and the crew, and the membership is still the cheapest way to wash here. No apology, and no explanation of our costs, because the moment you explain your costs you have invited a negotiation about them.

Your warranty line is good. Practice it until it is boring to say. The customers who leave over a parts price were never going to be profitable, and you will spend more energy keeping them than replacing them.

Tom Reilly·

Saving this whole thread. I am pre-launch and I had already written my detailing packages at what I now realise is the number I would be comfortable paying, not the number the work is worth. Basic, full and a ceramic option, and the basic one is priced so low it is the one everybody will pick.

The thing I took from your post is the grandfather window. Ninety days and two emails is a lot more respect than most price changes get, and it probably bought you most of those six hundred people staying. When I do raise prices, that is the version I want to copy.

Cheryl Dunn·

Bookkeeper's view: the eleven you lost are worth less than they look, because four had already stopped washing and were sitting there waiting to churn anyway. The number I would watch over the next two quarters is not member count, it is revenue per active member and how many new signups come in at the new price without a complaint.

On the parts matrix above - whatever you land on, write it down as a policy rather than deciding car by car. The shops I keep books for that price by mood have the messiest margins, and they can never tell me why a month was bad.

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