The success of the subscription business model is through its ability to provide significant value for both the business and the customer.

The car wash industry lends itself to the subscription model as it provides a service which is regularly accessed by individual customers. It is a service that customers use because it is convenient, time saving and affords them a level of cleaning that they may not be able to achieve at home.

A monthly car wash package lets the customer pay once a month to get their car washed for as many times as they need, saving time and money, and providing better care for their car.

Car Wash Subscription Ideas

The type of packages than can be offered by a car wash business will depend on the available resources, but here are a few ideas:

  • Unlimited Express Washes
  • Soft Touch Wash
  • Towel Dry
  • Free Vacuums
  • Platinum Wash per Month
  • Best Exterior Wash
  • Towel Dry
  • Tyre & Wheel Shine
  • Dash, Door and Seat Shine
  • Floor Vacuumed

You could also consider incorporating a deal into the offering. For example, members automatically get 10% off all other services, such as a drive through, oil change, and car detailing.

Benefits for the Business

The greatest value of the model for business is derived from the ability to predict sale’s revenue. The recurring revenue provided by a subscription model also adds significantly to the value of the company as it provides guaranteed income to any potential acquirer.

Other positive aspects of having a consistent revenue stream through subscription is the ability to calculate the lifetime value of a customer, to manage inventory and to offer simple pricing.

Service subscriptions give businesses the ability to provide different types of services, not just deliverables. This also benefits the customer, as they always know that resources will be available to them as their needs change. It gives the option to change their objectives on the spot and adjust their planning month by month.

Importantly, a subscription business model allows service providers to grow a relationship with customers and cater to their needs as they change. It builds a substantial level of trust since the customer knows that the company has their best interests at heart and understands what they are looking for. Moreover, with a subscription, the goal is to continue to provide value over time. Businesses should always be pushing for innovation and exploring ways to make a greater impact. The subscription business model encourages companies to be proactive rather than reactive.

Benefits for the Customer

The value of a subscription model for the customer lies in the convenience it affords. Firstly, there is the simplicity of subscriptions that relieves the customer of purchase decision making. Furthermore, subscribers never have to remember to reorder every month, which gives them the reassurance that they will have whatever they need before they actually need it. Beyond this, subscriptions offer a flat rate which helps customers stay within their budget. Finally, subscriptions often bring added value to the customer through bundles and favourable pricing.

Strong customer relationships are at the core of the subscription business model. Without them, there can be no sustainable recurring revenue growth. As a company’s customer base gets bigger, this becomes one of the most important keys in the entire framework. Acquiring new subscribers is critical, but in the subscription business model the vast majority of customer transactions consist of changes to existing subscriptions: renewals, suspensions, add-ons, upgrades and terminations.

Pricing

Subscription pricing strategies can be tiered according to functionality, discounted to incentivise bulk purchases, metered according to usage levels, or optimized to reward loyalty. They can be based on the time of day the service is used, term-based to lock in long-term commitments, or even adjusted in cooperation with partner promotions – it’s also worth considering overage charges, free trials, virtual coupons, early bird offers etc. It is perhaps best to start simply with two or three basic pricing tiers, and adjust them over time as you learn from your customers. If a business has an ideal price point, it is a good idea to set another price above it to make it look more attractive.

Marketing the Subscription Model

Unlimited car washes have gained in popularity and can be promoted in many ways. For example, it can be suggested to potential subscription customers that there are many benefits to keeping a car consistently clean with one of the most important ones being to protect an investment.

Another important benefit that can be pointed out is that keeping a clean car reflects favourably on the owner. It can be pointed out that, like it or not, our cars help us make good impressions or bad ones as some people will pass judgement on us based on how good or bad our vehicles appear. So, even if a customer drives an old car, something positive can be said by keeping it clean inside and out. Stopping by a car wash and keeping a clean car helps protect the investment, increases the car’s value and improves the owner’s image.

Club Membership can Provide Better Value for the Business

A recent study showed that a decreased price for subscription club members not only improved membership, but also lowered the monthly usage per washer. Monthly usage dropped from 4.6 washes to 3.1 with the new price. In summary the researchers said “It’s like a buffet. You get charged £15 for a buffet, you’re going to eat and eat and eat and waste it. But if they charge you £8, you just eat what you need and don’t waste it.”

Learn More with PSD Codax

There is little doubt of the value of a subscription business model to the car wash industry. As service providers whose customers regularly use their facilities, car wash businesses have a ready market for a subscription based members’ club. They also have the advantage of being able to provide different tiers of service from the unlimited car wash package to comprehensive valeting services or discounts off other services the business provides. This may be particularly relevant if the car wash is part of a garage offering mechanical services.

The constant revenue stream provided to a business through its subscribers puts it on a firm financial footing. It also provides an incentive to maintain and improve the standards of customer care, while at the same time encouraging innovation in the development of new packages for its members and in anticipating their future needs.

For the customer the subscription model allows them to have a guaranteed service on tap which they don’t have to constantly think about organising. It also gives them better value for money and often the opportunity to access other services, some of which the business may decide to make exclusive to club members.

Overall, the introduction of a subscription business model will provide a constant in the business which will help to build a large and loyal customer base.

Get in touch with us here at PSD Codax to learn more about how we can help support and grow your car wash business.