Unwashed Vehicles Save Costs and the Environment
Tom Diaz, Frontline Performance Group (Khoury Consulting)
Research finds that a large percentage of energy consumption in our industry comes from water used to clean cars. With this program, customers get $2 off their daily rate, capped at $6 per rental, if they elect to rent a car with an unwashed exterior. The discount can alternatively be structured as a percentage of the daily rate.
Studies have shown the average cost to clean and prep a vehicle is about $7. The total cost to clean a 100-vehicle fleet (chemicals and labor only) is $6,000, assuming 3.5 days average length of rental and 857 transactions per month.
A 50-percent customer uptake on the discount will result in $3,000 in savings. (Jucy, a car rental company in New Zealand, reports 75 percent uptake for the discount on new bookings.) Approximately half of the savings will be shared with the customer as a discount.
The savings are not only attractive for the renter, but the RAC can position itself as an environmentally friendly company. Fewer washes results in less water and chemicals used and lower utility costs. Fewer washes also minimizes damage and injury risk from the wash process.
This "green" initiative can be marketed in several ways. A coupon can be added to the Web site, along with statistics on approximate gallons of water saved. It can also be built into an offer when disclosing price for upgrades.