The Numbers Guy looks at the Automatic Recharge Module®.

Pass Customers Average 1.85 Monthly Visits At This Full-Service

The Quick Overview

This full-service site washed over 10,000 cars in March. About 60% of this traffic was from monthly pass members. Monthly pass holders visited an average of 1.85 times in March. Based on what these customers paid for their monthly pass plans, this averaged out to $23.70 per visit for monthly pass holders. The site’s total revenues from the sale of pass plans in March was $143, 805.35. Slightly over 6% of the wash’s monthly pass users (202 customers) dropped out of the plan in March. On the other side of the coin, 335 new customers enrolled in the monthly pass plan during that period.

Here Are The Numbers:

Wash Profile Full-Service in Mid-Atlantic Market
Length of Time Offering Unlimited
Passes
About 3 Years

Number of Active Pass Holders
as of 4/1/08

3,279
Recharge Method Passes Recharged First Day of Month
Total Cars Washed in March 10,601
Total Unlimited Pass Redemptions
in March
6,066
March Pass Plan Sales
(new and recharges)
$143,805.35
Average Visits Per Pass Holder
in March
1.85
Average Per Car For Pass Holder
Visits
$23.70
New Pass Plan Enrollments
in March
335
Pass Holder Terminations
in March
202
Net Gain of Pass Holders +133
   

Unlimited Monthly Pass Plans Offered at the Site Studied By Numbers Guy:


 

Plan Price Percentage of Pass Holders
ARM VIP Super Recharge $46.90 0.2%
ARM VIP Full Recharge $44.90 19.1%

ARM VIP Mid Recharge

$43.90 30.7%
ARM VIP Reg Recharge $39.95 50.1%
     

The Bottom Line From The Numbers Guy

In this case at least, offering unlimited monthly passes didn’t lead to customers abusing the program. With an average of under two visits a month, customers certainly aren’t “over using” their passes. The moderate return rate of monthly pass holders has resulted in a relatively high dollar per vehicle average of close to $24 for monthly pass customers. These customers apparently don’t mind paying a premium for their monthly passes, since only about 6% of them dropped out of the program. The rate of new customers entering the program was about 1.7 times higher than this dropout rate.

Apparently, customers value the benefits of monthly passes enough to be willing to pay more per visit. What are those benefits? First, there’s the sense of control that comes from knowing they can get their vehicles washed whenever they want. Second, there’s the freedom of never having to worry about having enough money on hand when they visit the wash. And third, there’s the convenience of not having to remember to renew their pass plan every month.