Car Spa's Product Price Philosophy
Car Spa product prices are based on market conditions, competitive business landscape, and recent minimum wage laws established by city of Albuquerque (COA), county and state government. In the full- service car wash industry, wages consume between 40- 43% of revenue. It is a high leverage, labor- intensive business. Car Spa product prices are driven by wages and market conditions of Albuquerque and surrounding counties. Car Spa’s product prices will continue to rise slightly as a result of city ordinances that mandate wage indexing, triggering inflation. Any increase in labor and/or supplier costs warrants a corresponding increase in product price.
Car Spa operates in a business environment where COA has mandated setting of minimum wages along with indexing (by tying the set minimum wage to the increase in the National Consumer Price Index(CPI). Wage indexing ultimately drives inflation and the increased costs of all goods and services. Historically, minimum wage and the federal role in setting it have played a less-than role in product & service price because of its fixed-period nature as opposed to annual increases (acceleration). Through mandates we are seeing a perpetually increasing role of small and local businesses carrying the burden of government- designed safety net social costs. Rising wages and product costs also improve gross receipt tax collections as a factor tax. Gone are the days of performance and merit-based product and service costs.
Car Spa will continue to comply with all mandates of city, state and federal law. However, we will not absorb such costs against our expected net business margin. We will make every effort to control costs to our mutual benefit without sacrificing product value and delivery. Outstanding product value for price will remain our focus.
Thank you for your patronage & loyalty,
Price Comparison Notes:
- All car spa prices include GRT of 7.875%
- Competitor prices for unlimited monthly have been adjusted to include GRT of 7.875%
- Car Spa & Competitor include wash with details
- Competitor has 2 waxes, represent detail pricing difference Exec 1 & 2
- Car Spa complete detail is equivalent to Exec 2 prem wax
- Competitor has onsite developers hand wax versus Car Spa manfacturer Best in Show
- Car Spa Full Service is thorough Hand Dry & Crevice Blow Out
- Car Spa offers two models (2) tradition full/ Express Service, (2) Flex Service- Full/Exp Service, Exp lane & free Vacs
- Car Spa Flex Uses Spot-Free -Rinse( R/O Systems) for all washes