Experimenting with new menu options is a great way to make sure that your customers are getting what they want, and it’s also an effective way to drive more revenue at your car wash. However, when you are considering making changes to your menu, it is important to follow the right steps to make sure that you see positive results.
Step One: DETERMINE WHAT MAKES A TOP PACKAGE.
When adding a new package, it is best to create a package that will drive as much revenue as possible. Look for products or programs that customers are willing to pay extra for, like protectants or tire applications.
PRO-TIP: This is a great time to reiew any customer requests your wash has received. If those requests would fit well into a new top package, add them! This will help increase your take rate, and your customers will feel glad that you listened to them.
Step Two: Design your new package.
Once you have decided what to offer in your new package, take a moment to think about your package marketing. Instead of giving your new package a generic name, like “Ultimate” or “Platinum,” try something that conveys the value your new packages offers. So, if your new package included Rain-X® and Armor All Professional® Extreme Shine Wax, a name like “Shine and Protect” illustrates the value your customer will receive from this package.
Step Three: Test your new offering.
Now that your new package is ready to go, it is time to make it available to your customers. You don’t have to design a new menu just yet, though – start by offering your new package as a promotion or a Manager’s Special. You can showcase your offering with a cost-effective windscreen, and this will allow you to compare the new package take rates to your current offerings. Pro tip: A 3-8% take rate can be expected just by adding a new offering as an off-menu package!
Step Four: Evaluate your performance.
Once you have run your new package as a promotion, analyze the take rate of this offering. If your customers are purchasing this package at a good rate, it is time to add it to your menu.
Step Five: Add the offering to your permanent menu.
It is best to limit the number of offerings on your menu to three or four – this makes it easier for your customers to choose a package. If adding your new package bumps your menu to five offerings, it is time to eliminate an offering. To do this, examine the take rates of each package. Most often, the lowest take rate will be in the “middle washes,” where value can be confusing. If you eliminate a middle wash package, two-thirds of your customers will typically choose a higher-price offering, while only one-third will choose lower. So, when you select a package to eliminate from your menu, choose the middle package that has the lowest take rate.
Step Six: Wait six months.
Give your customers some time to get used to your new menu offerings.
Step Seven: After six months have passed, revisit your take rates.
Now that your new package has had the chance to prove itself, take a look at your package take rates to determine the success of your new package. If you still have more than three menu offerings, it may be a great time to revisit step five and eliminate another offering from your menu.
Step Eight: Repeat!
Adding new offerings to your menu is a great way to boost your revenue and keep your customers coming back to your wash.
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