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Last good year---2003!

Ben's Car Wash

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markets have cycles, recessions & depressions don't last forever. And even good stable business and industry cease to exist (Ice houses, milk men). If we truely believe in a free market, then the market will choose who survives.... those who adapt and change make it (durring WWII GM switched to making aircraft).

Are the structures of our FED working... I think they are. But some policy, that refocuses or unfairly motivate others, has effected our industry:

1. Cheap labor available in immigrant (legal or illegal) increasing our NET
2. DEP, EPA standards
3. CLEAN WATER ACT

These are example that policy effect industry. Yesterday thousands of truck drivers voiced their concern that MEXICAN truckers now can use our roads. They blame NAFTA and say that Mexican truckers work for half the wages (25 cents a mile over 45 cents). This is how policy acts on free markets.
 

ted mcmeekin

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I just read an article about best states in which to retire . It rated Pa. and Wi very high because of the retirement tax advantages they now offer. They are taking some innovative steps to lure some back without taxing them to death (eg no tax on SS and no estate tax)--then they have the advantage of all that retirement spending to help the economy. They are no sitting back and watch the "no income tax" states continue to erode their economy. Tax breaks always impove the economy.

Ted
 

Waxman

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I'm just going by my own feelings, but BOY OH BOY do I love a clean car! It just makes me feel better. When I'm inside my nice, clean Honda CR-V, with vacuumed floors and crystal clear windows and the inside is organized and neat, my world is a better place. I'm certain other people feel the same way as I do. A clean car is a sanctuary!:D
 

Red Baron

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I would guess that 75% of my customers are blue collar, with a high percentage of them being near the poverty level. My business hasn't slowed a bit, not counting the effects of the wet spring we had. It bounced right back when it dried out.

I'm spending more than I should on marketing - around 6% - but maybe that's the reason we're not down.

I think it makes a difference to make yours a fun place to be. Things going on all the time. Last week we did our 3rd annual "Token Hunt," which always drives a lot of eyeballs to my website, where I can educate them and tell them about new things going on. My clues are still up at: www.redbaroncarwash.com

Twenty eight years ago when my dad was teaching me to sell roofs, he taught me that differentiation is critical. If your business looks just like the other guy's, price becomes more important than it needs to be. I think some of that works with car washes, too.
 

Waxman

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I like your ideas, Red Baron. I'll look at your clues for the token hunt later today!
 

MEP001

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It's been over a year since I've seen three cars deep waiting for bays. Our general economy has been stable, and I'd have trouble blaming anything but high gas prices. Hopefully when they remain at the $3-ish level for a while people will become accustomed to it and things will pick back up.
 

Red Baron

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I like your ideas, Red Baron. I'll look at your clues for the token hunt later today!
Well you may need to wait 12 hours!!! With no notice whatesoever, my domain name expired. Renewed this morning but will take up to 12 hours to reactivate. I chewed out the guy at Register.com about it. I told him, sheesh, you guys send me 15 spams a week promoting something or other, you'd think a high tech company like yours could send me an e-mail letting me know my domain is about to expire.
 

Ben's Car Wash

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http://www.washingtonmonthly.com/archives/individual/2005_05/006282.php

{snip}

"Under Democratic presidents, every income class did well but the poorest did best. The bottom 20% had average pretax income growth of 2.63% per year while the top 5% showed pretax income growth of 2.11% per year.

Republicans were polar opposites. Not only was their overall performance worse than Democrats, but it was wildly tilted toward the well off. The bottom 20% saw pretax income growth of only .6% per year while the top 5% enjoyed pretax income growth of 2.09% per year. (What's more, the trendline is pretty clear: if the chart were extended to show the really rich ? the top 1% and the top .1% ? the Republican growth numbers for them would be higher than the Democratic numbers.)"

"In other words, Republican presidents produce poor economic performance because they're obsessed with helping the well off. Their focus is on the wealthiest 5%, and the numbers show it. At least 95% of the country does better under Democrats."
 

Ben's Car Wash

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I would also like to point out todays JOB NUMBERS. A loss of 4000 last month when an expected 157,000 gain was projected...... not sound economic news. May, June and July's numbers were aslo revised DOWN 84,000 jobs.
 

Ben's Car Wash

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Well RPH,

Ted pointed out the thing about "tax cuts good for the economy".... a certian view of a certian political party that is not factual. And this thread is about the economic impact of the past 4 years on Jim's car wash and the net loss from 2003 - 2007.

I never bashed Bush on this thread, however when "tax cuts" are mentioned as an economic stimulus.... I want the facts posted about this recovery were are in, or this greater, never been better boon!

It just doesn't add up.... all sectors of car washes are trending down (except in high growth areas). Self service have trended down now for 5 years, Full service for the past 2-3 years. Yet we "top income earners", those of us making over $150,000 who own business are seeing a decline in our businesses because of "tax cuts" stimulating our great economy?

Quick, some one tell Jim C just how fantastic those tax cut were for him before I puke!

Clinton (who I never voted for) had the largest economic expantion in US history... 112 months. A gain of 22 million jobs in eight years. Unemployement hit a record low of 4%. A decrease in poverty from 15% to 11%. A buget surplus of $240 Billion.

Bush, now into the 6th year of "recovery" and expantion is creating jobs at half that of the 1990's. Earnings are down to 2% from Clinton's 4%. And our budjet is now in a $200 Billion deficet. Poverty has risen almost 20% in 6 years from 11% to 13% as of late 2006. We have the largest government in history!

But that has nothing to do with Jim's car wash losses from 2003 - 2006. I wonder what Jim's numbers were in the 1990's?
 

asalsy

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Like waxman, I am new to this buisness (3yrs) Im not saying that its easy or anything like that. Just that staying positive, working hard is very important. If you are personly upset or unsure about what you do, then you will not be able to stop subconciously sp? displaying that to your employees, customers ect. Just human nature. Not politics
 

Eric H

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"Lord, give me the power to change the things I can and accept the things I cannot, and the knowledge to know the difference" (sorry, I can't remember this quote correctly)


I cannot change the price of gas/oil.
I cannot control tax rates.
I cannot control what my competition does.

I can control my use of gas/oil by being more efficient.
I can control my costs by shopping around and buying in bulk.
I must be the cleanest car wash in town.

I've been able to maintain net in spite of decreasing gross. I do need to work harder to do this, but it is what I need to do to survive.
 

Ben's Car Wash

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The Serenity Prayer
God grant me the serenity
to accept the things I cannot change;
courage to change the things I can;
and wisdom to know the difference.

Living one day at a time;
Enjoying one moment at a time;
Accepting hardships as the pathway to peace;
Taking, as He did, this sinful world
as it is, not as I would have it;
Trusting that He will make all things right
if I surrender to His Will;
That I may be reasonably happy in this life
and supremely happy with Him
Forever in the next.
Amen.

--Reinhold Niebuhr
 

scout

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Just as we are looking out from limited point of view-it is very possible and probable that events will cycle back. Their is a silver lining for gas prices in that 2008 may see a slowdown in gas use due to demand being reduced from high cost,ethanol production,and hybred,s. All we need for gas to go down is a trend to begin,then the trader,s will start betting on lower cost,s. Right now it it a sure bet that fuel will stay high. We need the argument and sentiment to be stronger for lower gas price,s.
As for doing my part to change the driver,s mind about their car, we are trying to make them feel guilty-----our sign today say,s " do you really love your car?" "day in day out your ride takes care of you!"
The current mercedes commercials do this by showing how their owners love this car---
 

Waxman

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I like Eric's and Doug's posts alot. This is the way I try and live and it has worked for me! Also, 'The Power of Intention" by Wayne Dyer was absolutely instrumental in taking my car wash plans from stalled to actualized. May sound hokey to some, but never the less true. Check it out!

That said, I think those of us on this forum who spend the most time at our washes, doing the work and talking to the customers and chem. suppliers ourselves, stand the best chance of reducing costs, keeping a nice wash and maintaining/growing our businesses.

Sure, alot of my optimism is cause I'm a new operator, but believe me, enough negative experiences have occurred since opening to make me jaded, disillusioned and burned out! And I'm not.
 

Red Baron

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Waxman, that's not hokey at all. When I started my sales career 28 years ago, my dad got me some Zig Ziglar tapes and put me through the Dale Carnegie course (6 times). Some of that stuff seems hokey now, but it taught me that salesmanship is involved in just about everything we do. Or, it can be.

We've had an extremely wet spring and summer and it hurt our numbers, but I never saw a situation made better by being negative about it. On the contrary, my experience is that people/customers migrate to where the excitement is - where it looks like things are happening. I never saw anyone do business with a guy because he said business is really slow.
 

Waxman

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Yep, absolutely agree. To that end, I'm holding a food drive at my wash this month, in conjunction with the local food pantry. The need is there. I support the community that supports me. My customers literally feed my family and pay my mortgage, so any chance I get to step up and help is my duty. I take this very seriously and feel that by being the place that has the highest level of commitment to the local population can is central to my company's mission. The side benefits are enormous and have a 'ripple effect' that last long after the event takes place. I do it for the community and absolutely enjoy reaping the tremendous payback I get.
 

Jim Caudill

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I thought it was appropriate to bring this back to the top. It is kind of interesting to look at what folks were saying 10 months or so ago. Also thought it would be easier for "dusovt" to find it, after his posting about "after the thrill is gone" in the IBA forum.
 

Chiefs

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What does your prepless wash process consist of?
 
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