Starting a car wash business is an exciting venture that can be both profitable and rewarding, but developing a profitable and rewarding car wash business requires setting up a membership program to ensure a steady income stream.
"A new car wash owner should embrace the subscription revenue model," says Mike Stern, Vice President of Sales at EverWash. "Why? Members are worth more than single-wash retail customers. Your goal should be to build your recurring revenue business from the start."
Here are some steps to help you set up and manage a successful car wash membership program.
Conduct Market Research
Before launching your membership program, it's crucial to conduct market research to determine the potential customer base and the services in high demand. You can survey potential customers and research similar programs competitors offer to understand the market demand.
Determine Pricing and Benefits
Once you have a good understanding of your market, decide on the pricing structure of your membership program. Consider offering discounts for customers who sign up for more extended periods or refer friends and family.
"Setting up your packages will be the key to your success," says Mike. "If you price your packages too high, you will see fewer conversions, and usage per member will be higher."
Next, determine the benefits that members will receive, such as unlimited washes, priority service, and discounted rates for other services. Finally, consider offering tiered membership levels to offer customers various options and price points.
Develop a Marketing Strategy
To promote your membership program, create a targeted marketing campaign that includes social media, email marketing, and local advertising. Use customer testimonials and before-and-after photos to showcase the value of your services. Consider partnering with local businesses and events to increase visibility and offer special promotions.
Implement a Tracking System
Establish a tracking system to keep track of members' usage and ensure they receive all benefits and services. This will help you identify any issues or areas for improvement and provide a better customer experience.
Manage Memberships
To manage memberships, collect payments, and send reminders about upcoming payments. Address any concerns or complaints from members promptly and professionally. Consider providing a customer service hotline or chat service to answer questions and provide support.
Partner with a Business Vendor
Once your car wash business and membership program are set up, it can become a good source of passive income. This is especially true if you partner with a business vendor that can manage the operational and marketing side of your membership program. With the right vendor partner, you can focus on other aspects of your business while they handle the day-to-day operations of the membership program.
Establish a Culture of Sales
Memberships won't sell themselves. Are you maximizing your attendants' potential with the proper tools, training, and resources? Your employees shouldn't think of themselves as car wash attendants, but as car wash membership sales representatives.
"Incentivizing your sales attendants is an incredibly important part of growing your subscription base," adds Mike. "Offering a commission, making sure your attendants are continuously trained, and focusing on membership sales conversion targets will be critical to meeting your goals."
Remember that membership success is possible at In-Bay Automatic and Self-Serve locations too! If you operate an unmanned location, look into adding part-time help during busy times to boost your membership program's growth.
Review and Improve
Continuously review your membership program to identify areas for improvement and adjust pricing and benefits accordingly. Collect customer feedback to inform future revisions and ensure the program meets their needs. Consider offering seasonal promotions and discounts to encourage sign-ups and retain existing members.
In Conclusion
Overall, a car wash business with a membership program can be a profitable and rewarding venture. By following these steps, you can set up a successful membership program that provides a reliable source of passive income for your business. With the right strategies and vendor partners, you can create a loyal customer base that provides a reliable income stream for your business.
