The Creative Community Car Wash

One of the principles I work with in business is that of front-end and back-end revenue with customers. For example, in the software world, the rule has been that the front-end revenue is the initial software sale (or, more properly, "license"). The back-end revenue is the annual maintenance fee (commonly software upgrades and technical support).

So what does this have to do with the community car wash? Well as with many other dynamics of society, car washes are changing with the times. These fundraisers are vital to non-profit groups. And it turns out that the good ones have learned this front-end/back-end revenue concept and can show you a trick or two -- not just for your non-profit but your business as well.

The recipe has been fine-tuned; you may have noticed. The first level was "By Donation Only" because someone figured out that donations would average more than a posted price.

The second method is more creative, essentially a variation on the walk-a-thon/jog-a-thon. Here's how it works: Community members go out beforehand and sign up pledges for cars washed (e.g. ten cents per car). The car wash is truly free, but of course donations are accepted [front end]. The goal is to get a LOT of cars in, because that way the bucks roll in with the pledges [back end].

Here is an example from the Boy Scouts of Northern Californa:
63 Boys
X 51 Pledges =
3,213 Total Pledges
X .04 Per Car *
$ 128.52 For Every Car Washed
X 262 Cars Washed
$33,672.24

Pretty attractive pocket change, eh? What can you learn about pricing strategy from the local soccer team on the main corner this weekend? Probably more than you give credit for!