Need Advice: getting whipped by Competitor's SS....

[Waxman]

I think the mistake many business owners make is becoming absentee. When the recession hit, I went to 7 days a week to make it go. Now I have cut back to 6 ( wednesdays off ) because I feel I can. Am I right at my wash all day every day of these 6? No. I'm out at the bank, hardware store, insurance company and another car dealer's I work with. I'm at the car auction picking up used cars sometimes or working at my 8 plex apartment building. Point is, I am available and nearby when not right at the wash. I am still detailing cars, buffing scratches and polishing headlights, giving estimates and working in my business. I don't check functions every week; I check them several times a day. I keep the lot clean, the soaps rich and the customers happy. Someone has a problem, we are right there. I get hit up for change at 7:30am on a Sunday; no problem. I take calls about someone who has a problem in the auto wash and help solve the problem.

This is a service business and when you get the reputation for being on site, available and accountable, the customers adopt your wash as their wash.

 

[mac]

I have heard many operators say what great deals they get from KR chemicals because they are the cheapest ones out there. And every one that has said that is hurting. They don't know what they are doing. Look at it this way: Would you like to eat at a restaurant that gets its products the cheapest way it can? Just sayin.

 

[rph9168]

Years ago I was at a wash that was about a mile away from a very busy wash. He seemed to be doing everything right but couldn't seem to make things happen. I asked him what he thought was the biggest problem the other guy had that he could do better. He laughed and said that the guy was so busy at times that it took customers a long time to get a wash. I suggested that he use a slogan I had seen in another city "Experience Waitlessness" and make sure that people could get in and out without waiting very long. Within a month of his marketing his volume picked up. I went there a year later. He said his business was doing well and was still growing.

I think the key here is to offer something the other guy doesn't offer that customers will like and market it. Maybe it would be to accept credit cards if he doesn't. Maybe it is to offer towels for drying if it is feasible. Maybe it is increasing chemicals for a better show or performance. I have never been a fan of marketing on price but if you really feel that is the difference maybe try that. Personally I like the idea of having an attendant if you can do it without breaking the bank. Anything that makes your wash easier to use and help customers do a better job is a positive. Whatever you decide to do make sure customers know what the difference is with some marketing. Sometimes just an attractive sign will do. Sometimes an ad in a local paper. In a small town maybe you can put several signs out in some of the businesses. Bartering with some free washes can often accomplish that. Just make sure that whatever you choose makes a real difference in your customers mind.

 

[Waxman]

I have heard many operators say what great deals they get from KR chemicals because they are the cheapest ones out there. And every one that has said that is hurting. They don't know what they are doing. Look at it this way: Would you like to eat at a restaurant that gets its products the cheapest way it can? Just sayin.

I'm buying Simoniz from Kleen Rite; not exactly generic soaps. kleen rite is cheap because of their business model not because the products are inferior.

i am sure many businesses get the best price on products that they can; that's business 101. we get cars cleaner than ever using soaps that i pay 1/5 as much as i used to. i don't find merit in any of your points here.

 

[Kevin James]

Here's the whole scenario : town only has 2900, down from about 6000 , 15 yrs ago. Many businesses have closed, & many folks with the means have moved. Competitor's wash is much newere, nicer looking, & Larger. Mine does have the better location, as I'm in middle of the town, & he's on the outskirts. I hear so many folks go out there because he's a $1 & I'm $1.50. Too much explaining to do, to show them how our prices are the same, & mine is less because of 40 secs/qrtr vs. 30 secs/qrtr. Both of our washes are clean & everything works.
Has anyone tried to lower prices to compete, & if so, how'd it go? Kinda nervous, but feel like I need to do something.

I don’t think most of you guys are getting the whole picture of what soonermagic is up against or you’re not reading the whole scenario. He’s in a town that is in nowhere Texas. It’s a dying town, population is down from 6000 to 2900. Soonermagic what town in Texas are you located? The area is a low income area, is it important to have a clean car in a low income farm area that your car is going to get dirty on the way home, dirt and gravel roads, I don’t think so. We’ve had several under performing properties and they are no longer car washes on site. A small town self-serve car wash, you can’t really promote them, it is what it is. The self-serve car wash business is a dying business, has been for years. There is almost no growth in the business. I think about the only thing you can do is match the other car wash pricing.

 

[rph9168]

Kevin I am sure you are successful in your business ventures but I would have to disagree with your assessment. I was fully aware of his situation as he described it. While neither you or I know his exact situation I have encountered it many times in many different areas of the country. Do I think he has a gold mine here - no. Can it be a reasonably profitable wash in relation to his situation - yes. The industry as a whole is somewhat stagnant as far as new locations and in some cases it suffers from over growth in the past. While few self serves have been built in recent years there are still some very profitable self serves out there that will continue to do well. Small towns like this one offer a decent opportunity for a self serve/automatic or self service only wash as long as one doesn't over build or over pay as long as the competition is limited.

 

[soapy]

2900 people in the town. How many SS bays total are there? A old rule of thumb is that you need 1500 to 2500 people per bay to be viable. The town may simply be not have enough population to support 2 washes.

 

[I.B. Washincars]

2900 people in the town. How many SS bays total are there? A old rule of thumb is that you need 1500 to 2500 people per bay to be viable. The town may simply be not have enough population to support 2 washes.

I agree, a town that size will only support one wash.

 

[soonermajic]

I'm really thinking about adding Cryptopay. How much is it for a Single bay? Should I add it in all 3 SS bays, or just start with one? I am also thinking about adding Air Shamee. I saw some one on here built one for about $700. Can't remember who...I've also got a newly refurbed Doyle Fresh Impressions Quad vac coming. Don't have the potential to hire a full-time attendant.
I also recently wrapped my overhead bridge, ony LW4OOO, added an LED lightshow (RGB & BlackLight for Glow in the Dark 3x foam ) + new MEI Bill acceptor. Hopefully these things will help

 

[Car_Wash_Guy]

As a newbie to the car wash business, but being in business since I was 18, I'd say:

Add CC definitely - 70% of my sales are CC
Build a towel station - My customers absolutely love it.
Consider lowering your prices - People look at the $$ amount.

 

[Earl Weiss]

I have heard many operators say what great deals they get from KR chemicals because they are the cheapest ones out there. And every one that has said that is hurting. They don't know what they are doing. Look at it this way: Would you like to eat at a restaurant that gets its products the cheapest way it can? Just sayin.

1. On all my SS and on some Tunnel products I use KR because it is best price.
2. I am not hurting
3. Customers want the sizzle and the steak or in this case Bubbles and a clean car.
4. No one cares "What Brand" of Steak they get in the restaurant. Only that it tastes good.
5. Plenty of people eat at McD's I don't think they pay suppliers top dollar.
6. IMO with noted exceptions of "Rain X" and perhaps Armorall, there is no retail marketing value to carrying a higher priced soap that does not work any better because it has a name like Turtle Wax or Simonize. (I think the "Rain X" Name for the protectant value has more to do with people having an idea what it does as opposed to a quality issue.
7. Yes there have been KR products I was not happy with. Found something else they sell. (For the tunnels - sometimes another brand. )

 

[Whale of a Wash]

I can't imagine being in such a small pop. Base. I think going to cc's will help, maybe try a higher min $$ with cards with more time.
You didn't mention if this is a part time job, or have a full time job besides. I know of one small operator near me that has a zero- turn mower and makes a lot of money doing lawns, and the car wash helps supplement. Usually a small town has only few people that can make any money, or even find a job.

 

[robert roman]

“….thinking about Cryptopay….Air Shamee….refurbed Doyle Fresh Impressions Quad vac coming…. added an LED lightshow (RGB & BlackLight for Glow in the Dark 3x foam ) + new MEI Bill acceptor….”

Like many SS operators, you look to equipment solutions to solve problems instead of marketing.

“Don't have the potential to hire a full-time attendant.”

Between you and part-time person, full-time coverage can be provided. This would probably make more of a positive impact on the business than the improvements you mentioned.

Also don’t look for janitor or former greeter at Wal-Mart.

You want someone with people skills, willing to “work” and “interact” with customers like Waxman does.

 

[JamboWash]

In Reality the word "FREE" is very powerful in attracting attention from people and is an eye catcher , i learned this from a business webinar . my High Velocity IN BAY automatic started suffering when the new express tunnel was put in 2 miles down the road, so i put the word FREE in Use this i did

1 . Installed a token dispenser on my ACW4/5 and put a large Banner saying FREE Vacuums this only doubled my in bay washes just in a month and steadily going up , they can use the tokens for vacuum , self serve or use it for their next wash. customers are loving the free tokens to use , plus for marketing purposes i had my tokens custom designed with my wash name and address.

2. Things i am working on getting my change machine to dispense token and will advertise as follows " Free Tokens with every $5 dollar purchase, i am going to dispense 6 tokens for every 5 dollar bill , 12 tokens for 10 dollar bill and 24 tokens for 20 dollar bill " i have seen this working very well at a 14 bay self serve wash 10 miles from me who is also competing with 4 express washes in town.

 

[Sequoia]

Incredibly interesting dilemma. Shrinking market with two competitors when there is only enough revenue to support one. I agree with RPH: "I think the key here is to offer something the other guy doesn't offer that customers will like and market it."

My opinion is that I would NOT lower your wash price. Too many bad things flow from that. The hard part is finding something where you can be unique, that also promotes the wash business. Something like adding a vending machine might be nice, but that doesn't necessarily promote the core wash business.

One way to promote your business is to hold events. Participate in Wash for Wishes, do the Veterans' day promotion, etc. You could have Law Enforcement day, or Public Safety day, etc., and pledge all the day's proceeds to go to support the local group. Market it in local newspapers and promote it heavily with signage and banners. Present the money afterward, get a photo, write a small news story, and send both to the local paper. They will likely use it. You have the superior location-- which IS unique compared to the competitor-- so rev up the budget for banners and make that location work for you. I have found in a small town these events build tremendous good will and value.

I bought my wash in 2005 and immediately installed a token dispenser. I began to dispense $1 tokens. One of the best improvements I made. I have always opposed "token promotions" such as 12 tokens for $10, as I believe it "cheapens" the impression about the token as money. However, in your situation, which is unique, I believe this is something to consider. This might be a ticket to being unique and promoting your wash business at the same time. Here is a potential scenario:

a) install a changer and dispense dollar tokens. Keep your price where it is.
b) Do a limited time token promotion that is aggressive. You need to decide on how aggressive, but something like 6, 7, or 8 tokens for a $5 bill.
c) Name this the "summer promotion" or "fall promotion" or whatever, but the idea is that it is a limited time temporary thing that does eventually come to an end. If you were very aggressive and offered 8 tokens for $5, when the promotion ends scale it back to something like 6 tokens for $5. That's the ugly side of token promotions-- once you lure customers using that technique it is clunky to make it go away entirely.
d) Figure out what target expenditure you want from each customer. If your timers support it, provide free bonus time only if the proper startup money is inserted. Something like $X - xx minutes.

When I bought my wash, I counted cars, divided the money up, and figured out the average customer spent $3 in the bay. The price at that time was $2 for 4 minutes which I had raised from $1.50 for 5 minutes. I wanted to move that average to $4. So I marketed the bay / timer pricing as "$4 - 10 minute MegaWash" (LED 7 timers.) It took some time, but it moved revenue up. My average customer now spends well over $4 (startup price is now $3.)

Good luck to you. It's a hard challenge but if you keep at this I'm sure you can improve the situation a bunch. The three most important things in real estate are location, location, and location. You have the superior location. So you should win the war.

 

[loewem]

This has been a very interesting thread. Seems that every time I think I'm getting a handle on this business, those with experience help me to realize that I have a lot to learn.

One thing I lucked into might be something to look into. A local High School has a program named, "Occupational Course of Study". The students are required to work a certain amount of hours for credit towards their High School Diploma. During the school year a teacher takes two or three students out to my wash for two hours two or three times a week. The students pick up trash, empty the trash, wash down bays, shine stainless steel, spray customer's tires prior to entering the auto bay, etc. These are the regular tasks. I find larger tasks for them such as filling cracks in the parking lot, painting, landscaping, etc. I also have them help with some more important tasks like greasing the automatic, checking tire pressure on the automatic, etc. They did a car wash fund raiser at the wash on a saturday morning that turned out pretty good.

Some good things come from this. The students learn to work and take pride in something that they are associated with. The program establishes an option for the students to work the hours required towards graduation. The program can earn some money through the fund raiser and the students can do the work to earn the money. Parents of the students and teachers from the school use my wash before using the other washes in the area. It is good for me in that on the days that the students clean for me I can focus on something else like repairs/improvements and making sure that everything is working correctly.

I'm not expected to pay the students, but I give them at least $20 each once a month.

If there is a program like this at your local high school it would probably work great for your situation. Help the students, help the school and make you a part of the community as opposed to being one of two car washes to choose from.

One thing that Sequoia mentioned that worked well for me was giving free washes to Military on veterans day. I gave about 30 free washes from noon to five pm. I gained a few regular customers by doing this and will do it again next this year.

Somewhat unrelated, but following on a couple of comments about chemicals....I've tried some Kleen-Rite chemicals and was disappointed. They did an okay job, but the pre-soak and the triple foam gelled and made a complete mess of my systems. I had to spend about six hours cleaning out the holding tanks, manifolds and lines for my pre-soak and triple foam. Randy warned me about this, but I had already purchased five gallons of the KR concentrates so I tried to use them. I guess my wife is right, I don't listen.

 

[Earl Weiss]

.................. They did an okay job, but the pre-soak and the triple foam gelled and made a complete mess of my systems. I had to spend about six hours cleaning out the holding tanks, manifolds and lines for my pre-soak and triple foam. .

Had this too and since I used the low PH products in my Tunnel I use the same for the PS and HP soap. No gelling with those and now I inventory less stuff.

 

[Waxman]

You can use 2 products together to make many of your car wash soaps.

Simoniz Correct powder combined with Simoniz Foam Additive and hot water. I use these 2 products for IBA presoak ( 1st and 2nd pass), HP soap on self serve and foamy brush. The cleaning power is amazing and it is very cost effective. I also use the same 2 products for my detail shop wash jobs ( soapy water in bucket and wash brush to prep) and in my self- service prep bucket we keep at the entrance to the auto bay.

Now that I am using these products my c.o.g.s. is at an all time low, I am putting out nice clean cars and I feel like I am finally able to make a little money with the car wash.

 

[rph9168]

You have to be very careful about mixing products even within the same brand. Not all products even within the same product category are compatible. Best to test a small amount of any mixture you decide to create before doing it with a lot. Make sure you give it some time also to make sure it stays in solution especially when mixing a powdered product with a liquid product. There is a good chance for super saturation causing either cloudiness or powder residue in the mix.

There have been some excellent suggestions to market your wash. I really like the idea of getting into community related promotions especially in a small town setting.

 

[2Biz]

While you're at it, don't forget about Soft Water. Using soft water will save lots of $$$ in chemical costs... It all adds to the bottom line.