Champ, this past weekend I was helping my kids with their first lemonade stand. (Meaning, I was providing most of the labor and all of the supplies, but realizing no revenue — just like when I started in car washing!) It struck me that while they advertised a price of 25 cents, they averaged closer to $1 per sale. Now, while I know that most of this is due to the fact that we had lots of neighbors taking pity on my children on a hot day, it got me thinking about my car wash. Since you’re so smart, what might you take from this observation?

Porter, Forrest City, Ark.

My first reaction: would an advertised price of $1 have gotten you $4? Maybe you’ve found some type of wrinkle in the Retail Revenue Continuum! (A term now trademarked by yours truly — and available for licensing.)

As you note, your kids’ results were surely influenced by factors that aren’t in play for most businesses — perhaps entirely influenced. But, this example can still create some thought-provoking questions. Actually, it’s not too far off from some of the logic found in the Pay What You Want article found in this edition. Some businesses have proven the ability to maintain, and even increase, revenues with no posted price.

In the car wash, average ticket is influenced by your pricing mix. The average ticket can be increased by increasing the base price, moving more customers to a higher price or both — to the extent that volume changes allow. But, the wrinkle your children found does in fact exist in some car wash environments … think about full service. Your kids were essentially getting tips. In a full-service model, customers are influencing the ticket average twice: by their initial purchases and by their tipping. Depending upon how you are handling your tips, you may or may not have a view into your total average ticket — but that total view may influence how you look at your advertised prices and your revenue potential per customer.

That being said, if you are considering extending your COGS-free lemonade business model and can maintain your results, we should talk.

One of the ways I want to differentiate my car wash from my competition is through customer service. (We operate three tunnels with free vacuuming on the front end; all customers exit the vehicle.) What are some of the foundations of customer service that you think we should be implementing?

Coralie, Sabula, Iowa

Have you ever thought about the lemonade business?

There are lots of ways to organize, plan and improve customer service. I’d start by looking at four key components. The first is consistency; the customer needs to be getting the same level of service on every visit. The second is that it must be intentional; you have to know what you are delivering and work toward maintaining or improving it. Third, as you mention, focus on differentiation — whatever you are doing, make it unique compared to the other offerings in the market. Finally, you have to make sure it is recognized and valued by the customer. There is no reason to wipe cars down with 800 thread count Egyptian cotton towels if they don’t do something special.