Credit Cards Reduce Purchase Barriers Caused by Cash

We now live in a society where information literally travels at the speed of light. So, too, does commerce. Television commercials now make fun of people who pay with cash or a check. They are portrayed as being spanners in the wheels of industry. Nearly every business in America now accepts credit cards. Fast food, convenience stores, pay at the pump; they are all marketing the fact that they accept credit cards. This, combined with the advent of debit cards, has brought nearly insurmountable pressure to be a cashless society.

The carwash industry would be foolish not to pay attention to this trend and adapt.

A second, more psychological reason is that when a debit card or credit card is used, plastic puts a degree of separation between consumers and the idea of parting with their hard-earned cash.

Consumers no longer have to reach into their wallets to extract and count out cash during a transaction. That is a very tangible and significant difference for many consumers. In cash transactions, the actual buying decision is not finalized until the cash is handed over to a clerk. Consumers can change their minds right up until the second the cash is in the clerk’s hand.

With credit cards, many of these decisions and opportunities to change ones mind are eliminated. The decision-making process becomes very simple. “Do I want that good or service?” If so, consumers reach into their pocket, grab a debit or credit card, and swipe. It is an easier commitment. No counting. No feeling the nice crisp bills. Just swipe and go.

In a carwash environment, this is especially true! In an effort to provide excellent customer service, the carwash industry has created numerous opportunities to move customers toward buying/spending decisions.

The problem is that, in many instances, the onus to spend is squarely on the customer. When making a trip to the changer, customers are left trying to find a bill crisp and unwrinkled enough to feed into the bill acceptor. We have countdown timers and last coin alert buzzers. In some carwash environments, the customer is constantly reminded to make buying decisions during a single visit.

With Pavlovian regularity, customers reach for their pockets when they hear the last coin alert. Ultimately, though, the decision of how many quarters to drop is forced on the customer. All of these things create the potential for sales resistance.

Any successful salesperson will tell you that overcoming sales resistance is the most important part of selling goods or services. With most credit card systems, most potential points of sales resistance have been removed. The psychological implications of this should not be ignored. Even at a carwash, operators must overcome sales resistance.

Increased Spending

A third reason to consider credit cards in a self-serve environment is customers are more likely to wash longer and use all the functions on the rotary switch. Countdown timers and buzzers make the customer hurry through their wash. With credit card systems, customers tend to wash until they are satisfied. If they forget to press stop, the system will automatically stop once it reaches a preset limit.

To prove/disprove this assertion, I conducted an informal experiment. I first washed my car by paying with quarters, tracking my expenditures for two months. I then washed my car the same number of times paying with a credit card. I washed at the same wash and used the same functions with similar soil loads.

When I compared notes, I was surprised to see that I had spent 37 percent more when washing by credit card. And I know better!

When paying with quarters, I washed with quick efficiency, racing to keep that annoying beeper from going off. When paying by credit card, I moved at a more leisurely pace. I spent those extra seconds making sure I got all the triple foam rinsed off or trying to three-step my wheels with tire cleaner, presoak and high-pressure soap. I am keenly aware that the self-serve industry is in the business of selling time, but I lollygagged around nonetheless. I felt none of the sense of urgency as I had paying with quarters.

Given our troubled economic climate, many consumers will continue to use credit cards to pay for everyday items in an effort to manage their cash flow. Although it is an unfortunate truth that some consumers do not use their credit cards wisely or responsibly, their spending habits are not your responsibility. You have a business to run, and your job as a wash owner is to remove as many obstacles from the buying process as possible.

Considerations

As with any major upgrade or investment, there are many factors to consider when choosing a system for credit card acceptance. The foremost consideration should always be customer convenience. Is the display easy to understand? Can you provide receipts? Is it easy to use?

The quality of manufacturing and service after the sale are also important. The equipment should be designed to withstand the harsh environment of the carwash. Some of the more popular systems feature separate stainless