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Lowering prices while increasing revenue with loyalty program

Roland Bartels, owner of Tiger Express Wash, read a Cornell University study that taught him why lowering prices was the right way to bring in more profits.

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An article in the Columbia Daily Tribune explained how the owner of Tiger Express Wash Roland Bartels, figured out lowering the price for his loyalty program would bring in more revenue.

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A study by Cornell University, that Roland Bartels, owner of Tiger Express Wash, read noted the story, showed that a decreased price would improve membership, and also lower the monthly usage per washer. Monthly usage dropped from 4.6 washes to 3.1 with the new $20 price. “It’s like a buffet,” Bartels said. “You get charged $20 for a buffet, you’re going to eat and eat and eat and waste it. But if they charge you $7.50, you just eat what you need and don’t waste it.”

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The wash has two different lanes, one for members, and one for non-members. The single-wash lane has one or two clerks working it, while the other lane has an RFID sticker for quick use for members.

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There are additional amenities at the wash, including a pre-tunnel power washing, free self-serve vacuums and mat cleaners, and free towels to clean the inside of vehicles for members.

The loyalty program started with 400 members and has grown to over 8,000; the four Tiger Wash locations are expected to generate $4 million in revenue in 2014.

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