Lowering prices while increasing revenue with loyalty program - Professional Carwashing & Detailing

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.

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.

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.

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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