Here is a quick example of how you might model car wash pricing based on average daily traffic, time of day, and customer demographics:
First, gather data on the ADT at your location. This can help you to estimate the potential number of customers you might serve and the revenue you might generate. You can use traffic counting devices or data from local transportation agencies to gather this information. Alternately you can use IdealSpot's near-time traffic analysis tools to pull reports regularily.
Next, analyze traffic patterns to identify times of day when demand is likely to be higher or lower. Download the file into a spreadsheet and create pivot tables around hours. For example, if you notice that traffic is heaviest during the morning and evening rush hours, you might consider raising your prices during these times to capitalize on the increased demand.
Consider the demographics of the area in which your car wash is located and the specific needs and preferences of your target customers. IdealSpot provides separate demographic data split across residents within your catchment area (ie., locations close to you by drive-time vs. distance) and workers / commuters into your catchment area. For example, if your car wash is located in a neighborhood with a high concentration of commuters, you might consider offering a discounted price for a quick exterior wash during the morning rush hour to attract these customers.
Look at the pricing and services offered by other car washes in the area. Put your boots on and drive around. Talk to employees of other locations as you are testing their services. Ask them if customers complain or like the prices. This research is cheap and fun! This can help you to gauge the level of competition and to determine whether your prices are competitive.
Use data on customer demand and traffic patterns to inform your pricing decisions. For example, if you notice that demand is higher on weekends, you might consider raising your prices on Saturdays and Sundays to maximize revenue. On the other hand, if you notice that demand is lower during certain times of day, you might consider lowering your prices during those times to attract more business.
By considering these factors, you can model your car wash pricing in a way that is tailored to the specific needs and preferences of your target market and optimized for maximum revenue and profitability.
Kevin James has over 20 years of combined experience in commercial real estate, retail, software, and machine learning. He is a data nerd -- He is passionate about turning data into actionable insights so that customers are empowered to make better decisions.