Lets Get Some Positive Ideas Here

[pitzerwm]

John Crisculo of AE Styles, called me and was talking how the media is telling us that the world is coming to an end and suggested that while some areas of the country and some industries are suffering, a lot of us are figuring out how to survive no matter what is going on around us. So it brought up the thought that we needed an area where you had the opportunity to share what decisions that you have made or what ideas you are trying. We have all read about people that had horrible things happen to them that we thought we would not have survived, yet they did. At anytime you have the option to throw in the towel and go Chapter 7 or figure out what needs to be done to keep you from going under.


So lets hear what you are doing in light of the fact that gas is $4+ a gallon and the cost of everything is and will go up, and for anytime in the future isn't going to reverse. The Forum has helped most of you and your ideas will continue to help others.

Put what part of the country you are in too

 

[bigleo48]

Bill,

There are all kinds of tumultuous things going on all the time and we are constantly bombarded with them in the news. It's easy to get down on the current state of things. However, long term planning is what gets you through the tough times.

For example, I have acquaintances that both worked at the same local factory, nice house, 2 cars, vacations every year, couple of kids...but never seems to think about the fact that they both had their eggs in the same basket. I guess they believed the gravy train would go on forever...well it didn't. The plant is shutting down later this year. I feel bad for them, but you got to take responsibility and plan for such things...a plan B is you wish.

Perhaps it’s the way I’m wired, but I’m always thinking of “what if”. What if I lose my job, or smaller things like if the car breaks down, or we loose power for a few days. So I work on those things little by little to solve them. Some are big and others are small, but the point is that you keep improving…little steps at a time and eventually, it amounts to something.

When the company I was working for went Chapter 11 (you could see it coming), that's went I built the carwash. I could have sat back and had another beer, but that does not help my family. Building a wash overnight took my whole life to prepare for (like savings and experience). So those little steps eventually built me a successful business. That and you need to have the ability to recognize an opportunity and do something about it.

From time to time I get the "Man you're lucky!"...to which I respond with the old saying...the harder I work, the luckier I seem to get.

I guess this is not the kind of response you were looking for, but there are very few quick fixes.

BigLeo

 

[Waxman]

I love what I do. I have since I was 15. That in itself sets me apart from competition. I enthusiastically accept every detail and carwash job I can and more and more keep coming my way, even in tough times.

I have been through many up and downs in business and I have survived and even grown. I'm always trying to improve efficiency and lower costs while providing a high level of service and professionalism. Sounds simple but it ain't easy!

I built a modest wash and now a new detail shop. That helps keep overhead in check.

I also live on less. I do not have a lavish lifestyle or fancy cars. I live in a modest home and drive a $500 Saab. My wife is very thrifty and knows how to save. I put a little aside twice a month for retirement. I see the carwash business as doing what I truly enjoy, serving people while investing in the real estate for the long term.

I'm also a part-time musician which brings in extra money. Not much, but even gas money helps!

 

[robert roman]

In April, I participated in an educational session at the NACS SOI Summit in Chicago. One of the key messages was that no industry is recession proof. People who will be the most successful will be those who pay attention to the basics like reducing/controlling expenses as a % of gross and those who look for ways to move the business ahead rather than hunker down. Another key message was the need to look at innovation as a way of coping with the economy and creating a competitive advantage. I wrote a column about this which is in the July issue of Auto Laundry News.

Controlling costs is prudent but you cannot grow a business through cost reduction. How can operators innovate? In self-service, this could include credit card/bill acceptors; a dryer; canopies over vac islands; an economical friction IBA instead of a chem/H20 gobbling touch-less; express in-bay or mini-express exterior; the notion of flex-serve with express detail and so forth. Innovation also means looking for non-traditional approaches such as internet website, charity washes, loyalty program, pricing strategies to increase economic rent and so forth.

Unfortunately, some operators are their own worst enemies. For example, in the self-service forum, I suggested that operators could widen their audience by reducing price from $1.50 for 3 min to $0.50 for 1 min and then sell time for $0.50 a min. I was literally laughed off the forum. I also know self-service operators who scoff at the idea of internet websites. Some said they tried it and it didn?t work. In most cases, the ones who did designed and built their own websites to save money and ended up with a ?pretty? looking site that doesn?t attract any visitors.

Innovation also means taking the initiative to break out of one?s safety zone to try new things. If you don?t, the competition may eventually do so and pass you by.

Hope this helps.

Bob Roman
www.carwashplan.com

 

[Earl Weiss]

A relative of mine used a spray Tan Booth at a resort. You think we could adapt it to the Self Serve bay. Heck, they get $5.00 a spray. Don't think we would get much business in the winter up north.

 

[Earl Weiss]

How about this. Taylor Blvd V US. Taxpayer got got all employment taxes assessed abated. Seems the people were not employees but "leased Space" from the business owner, and derived income from tips retaining all $ rec'd. These people payed rent each shift, and collected directly from the patrons. Basicaly no $ flowed from the business to the worker. It was vica versa.

So, treat any curent After care employees the same way. Charge them rent and let them collect from the customers. Have a "Lease" or license agt. Make them agree and post after care prices. The license agt is day to day and terminable at will. (If they don't work out terminate the agt or don't renew it. )

No more employment overhead. But you trade your variuable incl=ome for a more fixed rent stream.

Oh by the way, the Taylor case was a "Gentleman's club".

 

[I.B. Washincars]

Unfortunately, some operators are their own worst enemies. For example, in the self-service forum, I suggested that operators could widen their audience by reducing price from $1.50 for 3 min to $0.50 for 1 min and then sell time for $0.50 a min. I was literally laughed off the forum.

Oh, bull$#!+! I went back and checked that discussion. No one laughed at you or made fun of you, just virtually no one agreed with you. You stormed off with your knickers in a twist and evidently they still are. Get over it, not everyone is going to agree with you, and heaven forbid, you may need to accept the fact that you could be wrong.

 

[rph9168]

I saw that also. This forum contains many ideas, some good, some not so good. It is the prerogative of all to accept to reject any of those. Don't take it so personally Robert. Sounds like you haven't recovered yet from being questioned.

I guess that must be a great burden to carry to always be right and know that those that disagree simply aren't as smart as you are and are foolish not to take your ideas as Gospel.

 

[Greg Pack]

Seems to be that all the talk of carwashes being recession proof missed something. If high gas prices stay, the love affair with the car is in jeopardy. We'll all be driving practical ugly little cars because they get great gas mileage.

I have thought about going to 1.00 startup in SS bays. The "dollar store" philosophy if you will. Credit card usage as percentage of revenues in autos has increased quite a bit over the past year. Now, CC revenues account for over 70% of auto wash sales. I am awaiting arrival of CC acceptors for SS bays. Hopefully I can have both a low price cash startup and CC acceptance for a higher startup.

These things may be my "Hail Mary" before I give up on the SS industry altogether. I've been in the SS biz for close to fifteen years and have seen no real increases in average bay revenues since my entry into the business. If I see no improvement in SS revenue my SS bays may be retail space soon.

 

[pitzerwm]

On rph's comment, I would add that an idea that don't/won't work for you may be perfect for the guy down the street or across the country. When asked why Thomas Edison continued to try to invent a light bulb when he had failed 7500 times, he stated, that he had not failed at all, he had found 7500 ways that didn't work. I'd suggest that you assume that all ideas are good, just how good they will work for you is up to you to find out. Until you try it and it fails, you will not know for sure and then of course it might be you and not the idea. That is why a guy/gal will buy a going business, they think that they can do a better job running it than the present owner.

 

[pitzerwm]

THE BUZZARD:

If you put a buzzard in a pen that is 6 feet by 8 feet and is entirely open
at the top, the bird, in spite of its ability to fly, will be an
absolute prisoner. The reason is that a buzzard always begins a flight
from the ground with a run of 10 to 12 feet. Without space to run, as is
its habit, it will not even attempt to fly, but will remain a prisoner
for life in a small jail with no top.

THE BAT:

The ordinary bat that flies around at night, a remarkable nimble
creature in the air, cannot take off from a level place. If it is
placed on the floor or flat ground, all it can do is shuffle about
helplessly and, no doubt, painfully, until it reaches some slight
elevation from which it can throw itself into the air. Then, at once, it
takes off like a flash.

THE BUMBLEBEE:

A bumblebee, if dropped into an open tumbler, will be there until it
dies, unless it is taken out. It never sees the means of escape at the
top, but persists in trying to find some way out through the sides
near the bottom. It will seek a way where none exists, until it
completely destroys itself.

PEOPLE:

In many ways, we are like the buzzard, the bat, and the bumblebee. We
struggle about with all our problems and frustrations, never
realizing that all we have to do is look up!

 

[Bioshine]

A customer of mine in the Youngstown Ohio area has taken on a project that may be of interest to some. He has a self serve wash consisting of 1 in-bay touchless and 4 wand bays. He is in the process of converting two of those bays into a drive-through beverage and walk-in c-store with coffee bar, etc. The idea is that when people are waiting to get their cars washed, they would send someone in to buy a loaf of bread, milk, whatever. During the colder months they may want to buy a hot cup of coffee while they wait in line. One would compliment the other. The place has been under construction for several months now and he hasn't experienced any loss of revenue.

 

[robert roman]

Atta-boy on the Youngstown project. That's innovation.

Self-service operators should also consider the potential benefits of flex-serve and its ability to support high-margin/low-labor express detailing services.

Every market, including rural areas, has segments of consumers that need and want DIFM, value-added services like interior cleaning, hand-wax, etc.

You can capture these customers by leveraging your existing self-service facility. This can be accomplished with an in-bay automatic which produces a quality necessary to apply hand wax without hand or re-washing and converting one or several wand-bays into express after-care production cells.

Consider the possibilities.

Bob Roman
www.carwashplan.com

 

[Waxman]

Excellent point!

Perhaps every carwash will one day offer wash, as well as wax, vac, and shampoo- type aftercare services.

Mine does and you are right; the difm folks aree out there in even mid-low income areas.

The key is value!

 

[Danny]

On rph's comment, I would add that an idea that don't/won't work for you may be perfect for the guy down the street or across the country. When asked why Thomas Edison continued to try to invent a light bulb when he had failed 7500 times, he stated, that he had not failed at all, he had found 7500 ways that didn't work. I'd suggest that you assume that all ideas are good, just how good they will work for you is up to you to find out. Until you try it and it fails, you will not know for sure and then of course it might be you and not the idea. That is why a guy/gal will buy a going business, they think that they can do a better job running it than the present owner.

I believe you can learn something from everyone...even if it is what not to do!

 

[bigleo48]

Here's one along the lines of Roman's website...perhaps some of you are already doing this and can chime in with some experience and ideas.

One thing that I always wanted to get into, was gift certificates. To me (and perhaps I'm wrong), but I feel they would sell very well. The problem has always been "how to sell them". Since most carwashes are unmanned or lightly attended, you can't really be there to market and sell. Getting them into stores raises all kinds of other issues. Selling them in the vending machine is not great either (since it would be hard to sell a $100 gift certificate in a code for my IBA).

Today, my buddy showed me an ecommerce site he setup for his wife's small home based business. Using software called "Zen-Cart" and the hosting company I use for my carwash website...along with pay pal, I could fairly easily create an ecom site to sell these gift certificates, the customer would pay online and download and print.

My first step has been to created a password protected page that one of my customers (who buys dozens of washes at a time) can go to, download the washes and pay for them with his credit card via paypal. The cash transfers into my company account.

I like this kind of stuff, because it’s another way to sell that does not cost me much and stays within the “unmanned” carwash idea.

BigLeo

 

[rph9168]

A wash chain here also allows you to become a "club" member on line that receives e-mails for specials. I have been told they do quite a bit of business from those specials.

 

[bigleo48]

If the gift certificates work well...I would then plan to move into the retail chemical products via a relabeling program. From time to time I get the "where can I get this stuff", especially for the home detailer crowd.

Before you know it...I'll be bumping Bill Gate's yacht at the marina

BigLeo

 

[robert roman]

Selling pre-paids is a great idea and only the tip of the iceberg for a well-conceived website.

Based on my observations, some carwash operators with websites don't realize the true potential of marketing with this medium or, for that matter, e-mail marketing.

Gen-X consumers have become and Gen-Y consumers (70 million strong with $172 mil of annual spending power) are growing into the next generation of carwash users. Many Gen-Y will be potential self-service users. The vast majority of these young adults do not turn to newspapers, discount circulars or other traditional forms of advertising to do their shopping research, they are the internet generation. Successfully reaching these shoppers and appealing to their needs and wants has the potential to widen your base of customers significantly.

Bob Roman
www.carwashplan.com

 

[Sequoia]

Robert Roman-- regarding "I was literally laughed off the forum."

I don't believe this is accurate. You simply made a recommendation and there was a large volume of disagreement. I'm not sure what you saw that differed from me, but I didn't see anyone ridiculing you-- only disagreeing. It did not help that you got defensive and posted an emotional response.

Now, let's go one step further. All of use self-serve operators want ideas on how to increase revenue. You proposed a method, but didn't back it up with any data. For example, how many self-serve operators have you worked with and convinced to lower their time to a 1 minute, .50 cent startup? A few? A bunch? A ton? How many? Can you reveal an actual number?

Next, how many of these operators actually saw revenues increase, and by how much? And, how many operators saw their revenue decline. Or, perhaps more relevant, how many operators found their washes a *lot* more dirty either at the same, or maybe even lower revenues?

If you would post some data with your theories it would certainly go a long way toward convincing grizzled operators that have to live in the real world instead of theories. By posting stats and data, you could overcome just being a "consultant" with a theory and instead become a proven mentor with data to back up your successes.

What is missing is the data-- can you provide it? I hope so!