Many companies are forced to raise prices to stay afloat. However, after such actions, there is a threat of losing customers. To prevent such a scenario, the owner of the car wash must develop in advance a special price increase strategy that is suitable only for his company. However, there are some general recommendations for pricing in uncertain times. By following them, the car wash owner will be able to retain his audience and even introduce some new services like ceramic car coating or polishing and buy new equipment by Fortador.
Smart Price Rising Strategy
1) Prices should be increased gradually
If the price has risen by no more than 5%, the client will most likely accept it. However, the rise in price by 15-20% will certainly be noticed and condemned. Some regular customers will leave you without any doubt. There is another delicate way to increase profits: introduce a fee for optional services (for example, ceramic auto coating). Customers who have never used this feature will not notice anything. Other customers will most likely agree to pay more.
2) Raise prices for luxury services only
In cases when an increase in prices for all services can turn into a disaster for business, you can try the following recipe: create a hierarchy of services (from basic to expensive). Then raise the prices for the services of the expensive category, and leave the prices for basic ones the same (i.e., cleaning, washing, auto ceramic coating). If your “luxury services” are excellent and in some ways unique, rich customers will still be willing to pay as much as you ask for it. For the rest, nothing will change.
3) Offer your customers “service packages”
It is convenient to combine services into so-called “packages”. In this case, the client pays for the entire “package”, regardless of how many services he actually uses. For example, it may contain several services of interest (car wash, interior cleaning, ceramic paint protection), which separately will cost more than the entire package. The client has no choice but to pay for the “package”, which includes unnecessary services.
4) Notify customers of price changes
It is a good practice to inform customers about upcoming price increases. This must be done in advance. Customers will be disappointed if a trusted company raises prices without even informing them. A good way to maintain the loyalty of regular customers is to offer them ordering services at “pre-crisis” rates for a short time after the increase.
5) Offer a reasonable discount policy
It would seem that discounts are not the best idea in times of instability. But numerous examples prove that the right promotion can really be of great benefit. Of course, it is not very wise to drop prices for the entire range of services. However, introducing discounts on selected services like ceramic coating for cars will help attract new customers and retain old ones.