# The Car Wash BLOWOUT!!!!

## After all you put your car through, don't you think it deserves a day at the spa?

Could you use an extra \$144 this winter season? So, why wait!! Buy the Seasonal Car Wash Pass today and SAVE up to \$144.

The offer is valid for using the services, for up to 90 days, from January 1st, 2015 to March 31st, 2015.

This winter season, Splash 'n' Dash brings you two exciting car wash plans to keep your car spick and span.

Plan A - Buy a Seasonal Pass for a one-time fee of \$270, for up to 90 car washes

Plan B - Pay \$90 now, and only \$3.60 for every car wash, for up to 90 car washes

Let 'y' represent the Total car wash cost (\$)

Let 'x' represent the Number of Car Washes.

Plan A: y = 270

Plan B: y = 3.6x+90

## Algebraic solution to the point of intersection

Let 'y' represent the Total car wash cost (\$)

Let 'x' represent the Number of Car Washes.

y = 270

y = 3.6x + 90

270 = 3.6x + 90

= 270-90 = 3.6x + 90 - 90

= 180 = 3.6x

= 180/3.6 = 3.6x/3.6

= 50 = x

CHECK

Plan A: y = 270

Plan B: y = 3.6(50) + 90

y = 180 + 90

y = 270

270 = 270

Hence, verified.

## Pick the best plan for yourself!!

The solution to this linear system reflects that for 50 car washes, the total cost of the car wash services would be the same for both the plans offered. Plan A is beneficial to the customers who intend to use the car wash services for more than 50 times in a period of 3 months. On the other hand, Plan B serves to be more cost-effective for people who need to use the car wash services for less than 50 times. This is demonstrated in the above table and graph, which shows that with the increase in the number of car washes beyond 50, the rate at which the discount percentage increases is more for the users of Plan A.

These Discount Plans are being offered by the Car Wash owner to make it attractive for the existing customers to choose one of these plans and also to increase the volume of new customers. As the total customer volume increases, economies of scale start to accrue to the car wash service owner. The fixed cost of the car wash setup (land, electricity, equipment, manpower cost and taxes) is spread over a larger number of customers, thereby bringing down the unit cost of each car wash. This increases the owner's profit margins, per unit and overall.

## Splash 'n' Dash

Wash.Polish.Wax.Shine.