Yes I closed... details

[Kevin Reilly]

Doug,
I am really saddened to hear of your closing, especially because you are such a fighter and have that entrepreneurial spirit that makes the country go.

In my 44 years I've been through a few downturns and been able to battle through them, but this one is a bhitch. We are now down to 5 self-serves and are running with a minimal crew and so far are surviving.

God bless you and help you through these trying times.

 

[Ben's Car Wash]

Thank you gentleman.... as they say "I'll get through it with God's help". It was a hard decission, especially when looking at the employees. But I have kids to raise and time is short.

I hope that I can get the bank to work with me as the appraisel is higher than the loan amount. If not.... it's a possible bankruptcy... never been there. Oh well..... another chapter to be written. My kids are well, my wife got good news about a breast mass that turned out to be benign... for that, I'm thankful. The rest is only money.... at lot of it... but I'll make it back.

I kept my detail equipment so at least I can clean my own car... and damit.... people are coming to my home to get water sucked out of thier car (left the window open in a Florida rain shower... we get 1-2 inches an hour). Maybe my son will make a few bucks cleaning cars.

I'll check in in a few months (after the ELECTION)!

I'm starting to doubt if car washing has a long term future without some major changes. Fluctuation in economic cycles shouldn't drive business down 40-50%. Instability in oil markets might be too much of a driving force in consumers purchasing habits, topped with dropping home values and weak job markets in the Tampa bay area.... it's the "perfect storm". I know of others holding on.... I pray they make it.

good luck guys... keep a fighting spirit (and your facts straight with lots of links to prove it)!

I just want all this to pass so I can get a good night sleep. My town just lost 14 (many were PT) jobs, $3/4 of a million in revenues, tax base and a business that did a lot of charity. It will be missed. I wish I had more to offer my employees... it pains me deeply.

Cont. (damit Bill I still can't write a short post)

 

[Ben's Car Wash]

If I ask one thing... that is to call and met with your politicians... don't send E-mails but demand personal introductions and demand that small business have their interest heard. If it's lower taxes, health care (personally I think any business owner should get health care benifits provide to them as encouragement to start a business... use the VA), stricter adheasion to laws (enforcement of laws by others that make us lower our prices to stay competitive). Whatever your issue are... make these politians responsible to us... not the multi-nationals that are sucking us dry. This is what created the great depression... small business couldn't get credit, they couldn't stay open... we are too close again (my opinion).

This nation runs on people like YOU! No mater if I agree with you politics... your great people who are dedicated to business... that's AMERICA! No wearing a flag pin...No speaking well before 200,000 Germans.... building the AMERICAN DREAM is what we ALL BELIEVE IN. And if we lose this...if it become out of reach for us, the average citizen... we then... we lost what being an American really is... at least for me. It's what we have in common here on ACF, sharing our knowledge of business and car washing and our freindship....politics aside.

I wish you all a dirty tunnel (for all you tunnel operators) and full trash cans and muddy bays for all you SS guys!

Peace.

 

[wood]

unfortunately, it sounds like another operator who exaggerated his volume.

 

[rph9168]

I am not that familiar with Doug's operation but I am sure that he operated as best he knew how and with the best of intentions regarding his business. The fact of the matter is that no business is really thriving in these times. I know this seems to be the worst we have had it in a long time and it might be. Each time this industry has gone through this the operators that survive come out stronger and better and those that were marginal operators to begin with who did not make it.

There have been many discussions and recommendations made on this forum that could make the difference between survival and failure. Is there something that can be done to reduce your debt service? What better marketing could be done? Am I keeping the place clean? Do customers get the best value I can offer? What am I doing to keep current customers and getting new ones? Could I raise pricing or add a service like a "super sealant" or automated tire dressing and increase revenues? Are my chemical costs in line? Is my equipment doing a good job? Can I save on utilities by using more efficient lighting or setting timers for night lighting or reduce water and sewer costs by reclaiming RO reject water?

There are probably many other questions to be asked but I think it is time for all of us to really take a hard look in the mirror and rededicate ourselves to the business. There are many elements out there working against us that we have little or no control over but there are some things we can change. The first might be to question all we are doing to make sure we are doing all we can to survive now and prosper in the future.

 

[Sequoia]

my wife got good news about a breast mass that turned out to be benign... for that, I'm thankful. The rest is only money....

You said it all right there. Good health dwarfs any type of business problem or issue. Good luck you-- you've made a decision so now you can get along with moving forward in a new method and area... and I'm pleased your wife's health is OK.

 

[Patrick H. Crowe]

Dear Doug:

I begin with the opinion that of all the posts on this forum, your posts, bar none, were by far the most painstakingly documented of all of them

My compliments to you kind sir.

Moreover, though vastly out numbered by name callers, irrational opinions and sheer crap, you hung tough. You patiently responded to amateurish and unfounded claims which, in my view, did far more to expose the ignorance and bias of the poster than to build a logical and/or persuasive case.

My compliments to you kind sir.

I wish my experience with politicians was as positive (or was it?) as yours. While OPRAH is the exception in my opinion a disproportionate share of these folks may claim to listen to what you say/write but go on doing as they have been doing.

We have an economy in ruins, a very costly war based on "stockpiles" of weapons of mass destruction, assurances that we will "create a Jeffersonian democracy which will spread across the Middleeast. Add in the deaths of tens of thousands of humans and the wounding so many more and the hundrends of thousands of folks who ledt their homeland. Then consider the war In Afganastan. It seems to me almost any small business is apt to be at risk under these conditions.

My best to you and you family.

Patrick H. Crowe

 

[Earl Weiss]

unfortunately, it sounds like another operator who exaggerated his volume.

Don't know if he did or not, but I believe he mentioned 40,000 cars a year. I hope that was not an exageration.

 

[Earl Weiss]

Good luck on your future path. Many need to realize "Ther ebut for the grace of the heavens go I.

I appreciated your input into various topics.

 

[robert roman]

Doug,

Hold your head up man. You didn't do anything wrong over there other than not being able to withstand Florida's poor excuse of an economy.

With the exception of some hot spots like Jacksonville, Naples, Orlando and Miami, this state is going to hell in a hand basket.

How bad is it in this part of Florida? About a month ago when the Ray's were in first place they only drew 8,000 fans for a night game. As you know, the investment hotshots that wanted St. Pete to help foot the bill to build a new baseball stadium recently threw in the towel. Go figure.

As for help, don't look to state or local governments anytime soon. Most are suffering from eroding tax revenues and are reducing staff levels and cutting services across the board. I heard a rumor last week that the City of Tampa may cut the size of their police department's vehicle fleet by 2/3's.

To make matters worse, we now have major employers here who are trying to hold local and state government hostage by threatening to leave the state unless they get major concessions and tax breaks.

Boy, when things get tough, the whores really come out of the woodwork.

I wish you the very best in your next endevor.

Bob

 

[rph9168]

Just saw a list of the 10 fastest economically declining cities. Four were in Ohio and two were in Michigan. Others were in PA, NY, and WV. None were listed in Florida.

A slow economy and population shifts affect all businesses in an area. I know Florida has been hard hit with natural disasters and the economic downturn. Property valuations have significantly declined, it is losing population in the coastal regions and insurance rates for both private and business properties are ridiculous. The government can't bale some out without affecting or including others. Seems like it is a time when a serious evaluation should be done to decide whether the decline in your business is just a reflection of the current situation or an ominous sign of the future. It's not an easy decision to close as Doug did or to stay and weather the bad times. Either decision must be done as carefully and intelligently as possible.

 

[pitzerwm]

Anyone can get into business and anyone can be successful, until the crap hits the fan, then the test begins. Remember the Hawaiian airliner that the roof pealed off and the pilot was able to get it back to the airport. A number of us are pilots, but probably none of us would have been able to pull that off.

Successful people are those that can figure out what to do when things go South, or the few that never have anything go South.

IN the mid 80's here they closed the construction on 5 nuclear plants and 1/3 of our population left town almost overnight. A lot of people that I thought was really smart were going Chap. 7, many of my friends were also filing Chap. 7. I had no idea what to do as I have never experienced a downturn. I made a decision and made a bunch of changes, turned out to be the best decisions that I probably ever made, but it took 7 years to realize it.

I play Texas Hold'um at the casino all of the time now and I see a lot of things that are like business. Guys that have played all of their lives and are a lot better than I am, are getting knocked out of the tournaments before I am, because of that one decision and just luck for the other player.

I feel bad for Doug and anyone that go under in business because I know how difficult it is to stay successful. I think that continuing to educate yourself in any and everything helps a lot, accounting, legal, how to weave baskets will come in handy someday. It is not a 8 hour day, and can't be done from a bar or casino even with a cell phone. The only way to look at mistakes that don't kill you is that "you are smarter than you were the day before". Write the check and go on.

 

[Washmee]

Don't always believe what you read

Just saw a list of the 10 fastest economically declining cities. Four were in Ohio and two were in Michigan. Others were in PA, NY, and WV. None were listed in Florida.

My wash is in one of those four Ohio cities that some hack writer decided were headed for disaster. Here in Canton, our largest employer, the Timken Company just posted its largest profit ever. They are in the process of upgrading their operations with hundreds of millions in plant improvements. Our other large employers are doing well also and there is lots of new retail and manufacturing under construction also. A journalist can use statistics and anecdotal evidence to write anything they want, but it does not make it the truth.

 

[Bob Koo]

I've got a Wash that is located in the town next to where Doug's washes was located. I never met Doug personally, but exchanged some e-mails with him since he lived in our town and commuted 15 miles north to his wash. I'm a 5/2 facility and built a year before Doug in 2001. Everything I heard locally, Doug was a good operator and shared with others, especially on this forum. I know the last "Big" year we had in Central Florida was in 2006. It was record year for my facility. That year everything happened right. Dry Spring, two pollen seasons, and two heavy localized Love Bug seasons. The washes were close enough that both the washes benefitted, eventhough we were not competitors. We haven't matched 2006 results since, but I always thought that year was an anomoly. Gross sales were down 15% in 2007 and seem to be tracking the same this year. I think overall, Florida wash volumes are down, some more than others. But, it's not only localized to Florida. We are all experiencing change in 2008, but I am optimistic on a rebound. We may not wash volumes like in the past, but we will have to increase pricing to our customers like every other sector of business has. I just know riding around town, traffic is lighter (high gas prices?) and there a lot more dirty cars on the road. In the past, the majority of cars were clean and shiney. Today, they stick out from all the dirty cars on the road.

I hope the best to Doug, it was a personal decision he had to make for himself and his family. I think something many don't realize is the town that Doug's washes has been known as a traditional Retirement Community to locals and I would assume many of the residents were on fixed incomes, so as prices went up, luxuries had to be sacraficed and that meant car washes.

 

[rph9168]

My wash is in one of those four Ohio cities that some hack writer decided were headed for disaster. Here in Canton, our largest employer, the Timken Company just posted its largest profit ever. They are in the process of upgrading their operations with hundreds of millions in plant improvements. Our other large employers are doing well also and there is lots of new retail and manufacturing under construction also. A journalist can use statistics and anecdotal evidence to write anything they want, but it does not make it the truth.

Jon, I totally agree. My point was not to suggest that these were not good locations for a wash but rather that one be aware of what is going on around them when making a business decision. Canton was one of the cities listed (I believe the data came from the trend in property evaluations and vacancies from Century 21) but as you are aware, industry seems to be doing well there. This definitely goes against what the author suggests. You are obviously an established wash but based on the decline in real estate do you think it would be a good idea to build another one there?

 

[Ben's Car Wash]

Thanks Bob Koo. I noticed things are slower in LakeLand and I spoke to 3 operator in Lakeland who own tunnels who are just hanging on. One wash in Plant city has closed and is in bankruptcy, other are out there too. I'm still working with the bank and a few tire kickers.... most are sitting on the sidelines waiting to swoop in after the foreclosures and the banks get tiered of sitting on these car washes (wait another 6 months... here in Florida there be over 20 available). Suppliers are now getting very thin, from what I hear they are "treading water". We have had 6 weeks of rain almost every day.... and a lot of it. My closest comp is doing the same downturn that I was doing (except he has made the decission to say in the game). I am making the choice to get out now without putting in more money.

According to my numbers, I am were I was when I opened in volume. In 2002 I had to inject $73,000 to pay the bill (mostly in staffing before all the upgrades and the steep learning curve involved in car washing). I project that It would cost me $50,000 -$70,000 this year to carry this wash wit hthe present state of this area's economy. And I;m not betting on it returning next year for another $50-70K investment. So... as Snaggle tooth said "exit stage right". It's a business decission based on a gut reaction and my best guess that this is not short term for us... here in this region.

Oil and gas will go back up soon, that my best guess, and if the snowbirds don't come back and spend $$$$$ I'll lose a lot more than $70K if I stay in. So I need to get out now. People aren't spending.... still. My competition is even saying it. I'll take my lumps and learn from it. Hell, we got 2 more tropical stoms lined up off our coast! That's not helping my friends down here.

 

[ted mcmeekin]

Doug I am sorry I missed your post or I would have responded sooner. I was in between two back surgeries when you posted. Hey I wish you the best, take care of your great family. I am sure something will spark your business interest and at the right time you will jump on it.

Ted

 

[Dean Taylor]

Bob, (and Doug)

Sorry to hear you guys are closing up shop. Things are pretty rough in Florida's car wash segment. Price of gas, insurance, property taxes, banks holding off on loans...the list goes on.

If you find you are taping a dollar bill to every car that goes out of your wash, something has to be done.... Ya gotta do what ya gotta do.

I'm sure the pendulum will swing back to the positive in the future but who knows how long that will be...

Best regards, I wish the best for both of you...

 

[Bob Koo]

Bob, (and Doug)

Sorry to hear you guys are closing up shop. Things are pretty rough in Florida's car wash segment.

Best regards, I wish the best for both of you...

Dean,

Thanks for your sympathy, but my facility is not closed. Infact, I am cautiously optimistic. My automatic volumes, although lower than normal have remained strong. The largest drop I have seen are in my Self Service bays. Surprisingly, with the wet weather we encountered, the Vacuums have remained consistent to prior years.

I didn't mention in my previous post that two years ago, I had a newbie open a facility less than a mile from my site, so I know that accounted for some of my volume drop. What can I say, he was a Real Estate Developer. I got to know him a few years ago, because he was a regular vistor to my site every Saturday morning for quite a while. I have to say visitor, because he was never a paying customer, rather a regular looker that just took up space.

His honeymoon is over because now we are both mature facilities. His biggest problem is the fact he opened across the street from a Full Service Tunnel that just changed ownership, so it has been Newbie vs. Newbie. I lost a little volume, but I am getting it back, eventhough volumes are down. We are playing Operator versus Newbie now. My site is seven years old now, so it is time to make it new again, so the Newbie will be competing against a new wash next year. We'll just have to wait and see... Interestingly as gas prices have stablized and drop in my area, the Self Serve Bays have seen more traditional volume. I'll have to wait and see... Just saw my first Love Bugs for September, hope they keep coming and cars are splattered with the little pests.

Doug had to do what was best for him and his family and he atleast shared the story with members of this forum. I have to respect him for that.

 

[Dean Taylor]

I'm sorry Bob, I misread your previous post. Glad you (and your wash) are hanging in there! I'm sure a lot of has to do with your experience in the industry.