Economy affect on Car Wash

[Excel]

Just thought I would see if the rest of you are doing as poorly as me lately. I have two washes a 5/1 and a 5/2 both were doing very good at the beginning of the year. Just reviewed deposits from October and November and confirmed what I already knew .. revenues down 40% from last year. How about you? I don't think it has anything to do with how well I keep up with the washes or my customer service. I just think people are keeping their money in their pocket.

 

[washnvac]

I'm in Delaware. Unfortunately, I am with you. Sales way down, operating costs way up. November was the worst month since I opened in 2000; times four washes. It is not happy times right now. Did someone say bailout for car washes?

 

[CleanStreak]

Same in So California - car crazy as we are.

I'm only open for four months, but the last month was not fun...

 

[Earl Weiss]

FWIW I tink the stinko weather has hurt us more than the economy except for when gs was $4.00 / gallon plus gas sales were down 25% which meant less driving and washing. With lower gas prices volume has returned. Unfortuneately the weather has not cooperated. Just snowed. Come on Sunshine........

 

[Waxman]

Carwash down slightly, detail up a good amount, so I am up overall. Plus, all of the cost reductions I've implemented really help net income. Cash flow could be better, but I just finished a new detail shop and there were cost overruns that I had to pay.

 

[dewey9876]

Income is down 13% thru Nov. compared to last year. Expenses are up almost 4%. I am in New England, have not had a great weather year so far so hoping for salty roads this winter!!!!

 

[MEP001]

We're down a bit, but I also think it's more weather-related than economy. When it does rain during the week it's always at night, so cars get rinsed for free and the roads get cleaned, and on top of that there's been rain or a forecast of rain most weekends.

 

[Waxman]

I know one thing; when the cars are dirty and the weather is nice, I am busy. If it's a good Winter for carwashing in New England, I predict I will be up over last year, which was a very poor Winter for carwashing weather here.

 

[Axxlrod]

We were even through April of this year, then gas hit $4.00 per gallon and biz dropped off about 30%, and stayed that way through summer (which is my busy season here in CA). Then just as gas prices were receding, the economy tanks. We'll prob end up down 30% - 40% for the year. But 2009 looks just as bad.

 

[washnvac]

Has anyone had car washes around them close? I have had two in my area close. One was very near me (1/2 mile), and I did not even see a pop from that. That is pretty sad when you don't even notice (sales wise) that a competing wash has closed.

 

[Thomas3599]

Just about read to give it up.

I have been in the buz for 10 yrs and added 2 autos to a self 4 bay wash. I have a 3/2 now. 2 yrs ago I started putting a soft touch in along with the touchless one I already had in and running for 2 yrs. Doing pretty good small town and only one quick lube with auto in town. Then as I was breaking ground on the soft touch it happened. I new guy from big city who sales equipment drop a nice 4/1 right on top of me and then gas prices and factory and job lose. I am a few months from closing it down. I don't know what to do yet, banker is good friend but maybe not for long. Maybe some snow with come and get us through 6 more months and maybe things will start looking up. My wife and I have said no more personal money is going to car wash. I've put 40,000 plus in it the last 2 years. I've been looking for just a little light at this long tunnel. Good luck to all.
I know it sounds bad but I'm still up, I know a lot of others have it a lot worse than me and others here. We still have our freedom and a Great Country. God Bless.

 

[MEP001]

HEB (a powerful grocery chain) is opening across the street this week

There's a Laser less than 100 yards from our 6/1 that hasn't given us much competition, but HEB with their new G5 about 2 miles away has hurt us quite a bit.

 

[raisetheprice]

There's a Laser less than 100 yards from our 6/1 that hasn't given us much competition, but HEB with their new G5 about 2 miles away has hurt us quite a bit.

I'm attended full time now and we give great prep service. I went to $3 on my bottom wash and plan to match them on the other washes. Prepping and same price, the customers can't ignore that. The only thing I can't really control is the discount for fillup. I might advertise, $2 off with ANY HEB receipt, not just a fuel receipt. Advertise less waiting with 2 bays. Running a month's worth of radio advertising the attendants, etc and the morning show is giving away a month of washes everyday to callers in the AM. One glimer of hope in this goat's ass is that the Valero next door at the corner kinda hides the wash from the main flow of traffic. You can only really see it if you're at the HEB gas station.

 

[Mitch]

I know of two locations where Ingles (grocery chain) has installed two G5's DIRECTLY across the street from double Laserwash 4000's. Where is PDQ and their loyalty to thier existing customers? I would like to think that my manufacturer would not do that, but who knows.

 

[Chiefs]

Thinking that you will get loyalty from a manufacturer or their distributors is simply wishful thinking. They could care less about whether you succeed. Its all about making the sale. Even if you got a non-compete agreement from either your manufacturer or distributor, it would not prevent others from building near you. Unfortunately, its often the one with the newest facility that produces the best wash for the best value to the consumer - and has the deepest pockets, that will win out.

 

[Excel]

Just had to let my clean up guy go after working for me for 4 years. Just barely making enough to pay mortgage and utilities now. Three - four months out from pollen season..(thats peak time in Georgia). I really hated to let my guy go just before Christmas but no money left.. I will probably be working for free the next couple of months.. good thing I still have that full-time job.

 

[Greg Pack]

Through November I'm down 13% vs same time 2007. Expenses are up- utilities close to double digits. I hate to figure the net. I hope that a reduction in fuel prices will eventually stabilize business. I'm afraid the recession is just getting ramped up and have no hope for significant recovery until at least 2010. But perhaps lower fuel prices will help the wash business.

 

[madscientist]

There's a Laser less than 100 yards from our 6/1 that hasn't given us much competition, but HEB with their new G5 about 2 miles away has hurt us quite a bit.

do you think it is because it is a g5? or because it's at an heb?

 

[rph9168]

Most of our operators are down at least 15% or more over last year and last year wasn't exactly that great. I went through a somewhat similar situation but not to the same extent in Denver in the 80's. Things got pretty rough but most of the better operators made it through. It was a lot harder on the newer washes since they had higher overhead and less experience in dealing with the problems they faced.

Obviously none of us have gone through times like now and I wish I or someone had the answer how to survive. I guess the only way to go now is to keep costs in line and don't panic.

 

[MEP001]

do you think it is because it is a g5? or because it's at an heb?

I think it's a combination of the two. The new HEB is extremely busy, it's on a main highway with good traffic lights for safe entry/exit, and they market the wash in the store and at the gas pumps (which, on top of everything else, usually have the cheapest gas). They also give a dry for every wash level, and I've started getting complaints that "the dryer didn't come on" with the cheapest wash because of them.