How to restructure my wash labor

[tw1012]

I own a 2 bay Laser wash where we prewash the vehicles and hand dry after. I have owned my wash since May and have learned a lot of lessons the hard way. My income was pretty strong until it started to cool down and my business has dropped off with sporadic rain and colder weather.
I have tried to step away from the wash and give myself weekends off but in doing this I only leave two workers at the wash during our busiest times. They can handle the exterior washes but when a customer wants a wash and vacuum or quick detail the workers frequently have to tell them that they are too busy and can’t help them.

I am sure I am alienating customers and that is part of the reason for my decreased revenue.

I am thinking about hiring an experienced detail guy. Cash flow is tight so my idea is to pay him $50 per day Thursday through Sunday and let him keep half of the detail revenue. He would also be responsible for motivating the other workers and doing quality control on the exterior washes. He would share in the tips giving him an extra 20-70 a day in tip share and the workers would help him with the details when they have the time.

Please let me know your thoughts on this plan.

The main obstacle on my detailing is that I don’t have a waiting room. I built a small deck but when the weather isn’t perfect people don’t like to wait.

 

[Earl Weiss]

I have tried to step away from the wash and give myself weekends off but in doing this I only leave two workers at the wash during our busiest times. QUOTE]


One of my mom's favorite stories is running into another car wash owner's wife in a department store. She asked what the lady was shopping for. The lady said "a rain coat" . He only takes off when it's raining.

 

[smokun]

Upgrade & safeguard

It sounds like you are essentially offering a hand-carwash... with a Laser wash & rinse, correct? Air dryer... with hand-finishing?

I invite you to share (privately, if necessary) more information about your site and surrounding marketplace. If the demographics and market information is feasible, you should consider repackaging your operation into a HAND-CARWASH & DETAIL CENTER, and upgrade your capabilities.

I DO NOT recommend simply hiring an experienced detailer unless you utilize an employee agreement that safeguards against putting a fox in the hen coop. In many instances, detail employees that are trusted to split the revenues wind up as BAD & COSTLY MISTAKES. Use caution when allowing your customers to be exposed to potential competition at your own site. It happens quite often, and many operators foolishly overlook putting safeguards in place to protect their clientele.

Do you have numerous cameras equipped to view via the Internet? How much time do you currently spend at your carwash?

How much do you know about detailing? Do you have any skills in that area? Would you consider learning more about detailing?

I invite you to contact me privately for a candid discussion if you are not inclined to share publicly. I will also provide you with a sample Employee Agreement. My advice will be extended as a professional courtesy, my compliments.

 

[tw1012]

Thanks for taking the time Steve. You are correct about the wash structure. The surrounding marketplace is an upper middle class market. People are well off but they work for their money and are pressed for time. My wash is small and only has 4 vacuum bays that are self serve and also used for the detailing services.

When I first bought the wash my idea was to maximize the detailing revenue. I started to generate some business and it was gaining momentum but what I learned was that the added revenue was not equaling the added labor costs needed to do the work properly. I also found that even when I was there and checking the vehicles the workers were still missing things and I was having to finish off each one.

I assume you mean they generate business at the site and do the work offsite pocketing all the profits?

My detailing revenue has steadily decreased and is minimal right now, we probably do 3-5 quick details a day ($20 service). My thoughts are that if I bring a detailer on some revenue is better than no revenue. I would require him to run every detailed vehicle through the automatic bays and then he and I would split the revenue above the cost of the wash. (I keep the $12 from the machine and he and I split the $8 on top) that way I can keep track of how many cars he does by comparing the receipts to the video footage

I do have a security camera system in place and I can view it from my Iphone. I watch the wash constantly when I am not here

I know very little about detailing and even though we offer full detail service at the wash we use spray wax and don’t use buffer etc. If I don’t hire a professional what do you recommend? My guys are pretty good with the vacuum and wiping down the interior but they don’t have the desire or the skills to effectively detail a vehicle.

I don’t mind being here for quality control but I don’t have the passion for detailing the vehicles myself. I am usually here Monday through Thursday and then I drop by a couple times over the weekend.

 

[Waxman]

Why not take a couple days off during the week, so you can be there on Sat. and Sun.?

My slow days are Mon., Tues. What are yours?

I would avoid putting a detailer in charge. A manager would be better. Maybe wage plus incentive pay?

If you offer full details you can offer pickup/drop off service. I have very few customers wait for anything above an express detail, though I do have a nice (but small) waiting room.

There is money to be made in detailing but it is a different business model from a carwash and should be treated as such in order to make any money at it.

 

[smokun]

Re-Invent Your Operation!

There is more value in packaging your operation as a meticulous hand-carwash & detailing service. And hand-carwash customers are a wellspring of business for hands-on after-care (detailing) services.

However, profitable hand-carwashing requires that the process is not simply washing a vehicle, but rather distinguishing your operation by embracing the THEATER OF HAND-CARWASHING! Mounds of soapy foam combined with meticulous washing. Staff must demonstrate positive body language and a friendly professional demeanor. It's not only WHAT YOU DO... but also HOW YOU DO IT!

If hand-finishing is required, it becomes an optional meticulous After-Care service. If no air dryer is used, the drying & finishing process is priced as part of the meticulous hand-wash & hand-finishing.

Yes, there can be extra services, too... combined with After-Care. The upgrade is easy and extremely worthwhile.

That said, I recommend that YOU become knowledgeable in some aspects of hands-on rapid-delivery detailing. That doesn't mean that you become the detailer, but rather you become knowledgeable and skilled enough to do what you expect others to do. If YOU know how to do something hands-on, it eliminates an employee blowing smoke up your nose. It empowers you! You know how to do it and have specific expectations of what can be achieved. It's an easy but incredibly important process. It's a simple training activity, and the tools to effectively accomplish excellent results are inexpensive and safe.

If you choose to have a manager who also has detail skills, the same weakness and potential of creating either a prima donna or a secret partner require that you protect yourself. A manager creates another layer of overhead, and in turn requires even closer oversight.

I recommend a simpler approach to clients that sidesteps many typical operational problems, but all require that the owner understands and establishes the standards... and makes them achievable. I am also a strong proponent of frequent strategic bonusing. My clients consistently make greater NET profits because the mission is refocused on customer satisfaction & retention.

Once again, if needed, contact me via this website or directly for more candid discussion.

 

[buda]

TW

It sounds like you have a car wash machine that does not clean the car nor dry it???

If you want to eliminate labor you have to have a machine that first washes the car and a dryer that dries it adequately.

That aside, what do you charge for a basic exterior wash? If it is more than $5.00 it is too much, in my opinion.

What I would do is adjust your chemical so that it washes the car, or get the distributor or manufacturer of the equipment out there to get your machine cleaning the cars without prepping.

Then I would lower the price of the basic wash and offer ONLY an exterior wash.

In your 4 bays with vacuums offer other services at an extra price:

a. Hand dry; touchp
b. Hand dry, touchup, vacuum & windows
c. Floormat clean or shampoo (with automatic machine)
d. Quick Hand Wax
e. Quick Carpet/Mat Shampoo
f. Tire Dressing

Just a thought contact me direct for more information


Bud Abraham

 

[tw1012]

My current pricing is $8,$10,$12 for exterior wash.

I am talking to a well established detailer in a nearby market (downtown) he has been around for over 20 years and only does high end washing and detailing. We are discussing several scenarios were he would come on as a partner in my business or would work with me as a consultant and help me restucture my wash.

Here are some of our ideas:

1. Add a full service hand washing option (customer would have the option to use the laser wash at the current pricing or recieve a hand wash for a premium)
2. Make the wash Hand Wash only
3. We also plan on ramping up the detailing services and offering a variety of packages.

How would you structure a partnership if it were your wash?

I could take the time to learn and incorporate the detailing services, and am not afraid to learn, what is the best way to learn? My current detailing takes 2-3 hours per vehicle and that is using spray wax instead of hand wax.

I know that there is a major operator in my area that is looking for sites to open near me. His model is 100% hand wash and detail. I am thinking that I need to his the ground running with my restucturing and detail services and I don't have the time for 3-5 year learning curve that im sure it takes to really become an effective detailer. I would really like to get my business up and cranking fast so that I can establish loyal customers before the new wash opens.

 

[buda]

TW

At the risk of being too absolute, first thing I would say to you is:

a. Your prices for an inbay automatic car wash are much, much too high
b. I would not take in a partner unless it was your wife
c. I would never partner with someone in the detail business

If you want to hire a consultant hire someone in the car wash business, that is your major business not detailing. They will give you far more meaningful suggestion.

If you want to talk contact me directly. I am not a consultant, but will be happy to give you some thoughts based on my 40 years in the industry.

Regards
Bud Abraham

 

[Waxman]

TW

At the risk of being too absolute, first thing I would say to you is:

a. Your prices for an inbay automatic car wash are much, much too high
b. I would not take in a partner unless it was your wife
c. I would never partner with someone in the detail business

If you want to hire a consultant hire someone in the car wash business, that is your major business not detailing. They will give you far more meaningful suggestion.

If you want to talk contact me directly. I am not a consultant, but will be happy to give you some thoughts based on my 40 years in the industry.

Regards
Bud Abraham

I agree with points b and c but not a. My prices are similar and it depends upon marketplace, wash quality and perceived value. Pricing needs to be a function of many things: all costs related to performing the service, both fixed and variable. Price is also a function of what the market will bear, and market conditions vary widely. So actually your answer may be correct for his market but not mine or someone else's.

As far as partnerships, I have found them to be good as learning experiences but bad business. Your wife winds up being a partner in whatever you do anyway, so to me that is a given.

 

[buda]

Waxman

Have been around this car wash business more years than I want to recall and have heard all of the arguments about price. One of the biggest arguments is cost and in Oregon and Washington we have the highest minimum wage in the country, I believe now at $7.50 and $7.90 yet in both states we are charging $5.00 for an exterior wash.

If I had a dollar for every guy that told me, "things are different in my area of the country or the world," I would be quite rich by now.

Value is a perception of the customer not the car wash operator. There are more people who will pay $5.00 more often than at $8.00 in my experience.

Of course, if TW is a roll-over his volume is limited. Never saw a roll over that was able to wash over 2,000 cars in a month. And if he has no competition can can wash 1000 to 1500 cars at the $8.00 base price, more power to him.

But in my experience an $8.00 exterior even in a conveyor wash is high.

Anyone I have advised who promoted a $5.00 exterior increased their business by 20% at a minimum

Regards
Bud ABraham

 

[MEP001]

If I had a dollar for every guy that told me, "things are different in my area of the country or the world," I would be quite rich by now.

Value is a perception of the customer not the car wash operator. There are more people who will pay $5.00 more often than at $8.00 in my experience.

If you're speaking purely in the experience of tunnel washes that may be true, but my experience with touchless auto (which is the primary focus of this thread regardless of the extra services) is as contradictory to what you said as possible. Our price structure is $4, $5, $7 and $8, and the $8 washes purchased nearly outnumber the other three combined. The number of $5 washes purchased is by a wide margin the lowest.

Shall I mail you a dollar?

 

[Waxman]

I raised my prices to their current level due to the fact that most customers bought my top package by a wide margin (far more than 25% and I have 4 choices).

I know there are many theories about price, but if your ideas were absolutely true, Bud, wouldn't my wash counts be far and away highest on my lowest priced package? I understand your logic, though.

 

[buda]

Maybe it is because they feel the only way they can get a clean car in a touchless rollover is to buy the most expensive package. (LOL)

 

[pcb]

Maybe it is because they feel the only way they can get a clean car in a touchless rollover is to buy the most expensive package. (LOL)

That suits me just fine. My wash runs about 65% on the top package of $10. It was the same at $9 so I went up and it stayed the same. I like it that way.

 

[buda]

Do you have much competition from conveyor washes in your market?

Either way that is fantastic to generate that kind of revenue per car.

But of course you probably don't wash 2,000 cars per month do you?

 

[pcb]

No competition from conveyor washes. This wash is located in a very small town. Just one other competitor. Fact is there's no sense in me giving the wash away if the customer will pay. I have a $6 base wash which is the lowest percentage of washes.

My theory on any type of rollover vs. a conveyor wash and the price per car is the time. No matter which wash you purchase at a conveyor wash the time for the wash is going to be the same. When you purchase a higher priced wash at a touchless or friction automatic the time goes up for every bump up in price. I think this allows the customer to feel like they are getting more. I have a conveyor wash as well and it's much easier to get a higher price per car at the auto vs. the conveyor.

This is just my opinion and we all know what they say about opinions.

 

[Waxman]

100 cars at $8 = $800.

120 cars (Bud's example of 20% increase in volume) at $5= $600.

Plus more water, chemical, electricity etc. costs for the extra 20 cars in the example.

Maybe certain circumstances warrant a decrease in price, but it'd have to be alot more than 20% increase in volume to make more money.

 

[I.B. Washincars]

I take Buda's opinion with a grain of salt. To my knowledge he has never owned an IBA. Over the years he has sold and promoted tunnel equipment, so expect "Tunnel vision". I've never understood the statement that I hear every now and then that "customers expect more from a tunnel wash"...huh??? They expect a clean car from any wash! They are often touted as superior to IBAs, but most prep and many use cut-throat pricing. Do they need to do that to compete? A tunnel is not superior, just different. They use the same basic components and chemicals and just move the car instead of the equipment. My $.02

 

[tw1012]

We are more than just an in bay auto. We prewash the vehicle before it goes in and dry it on the other side. The only wash that is cheaper than me in the area is priced at $6,$8 and $10 and it is an unmanned station.

What is the harm in bringing in a partner if I have automatic pay stations that the employees (and new partner) cant bypass? What is the danger in bringing in a detailer? I would have him sign non-compete contracts where he could not open his own business or do off site detailing.

He has a very successful detail shop about 15 miles from me (not competition) I would be bringing him on to integrate his detailing processes, and share in managing the quality control. He would not be given full control of the wash as I would be here most of the time as well.

What would a reasonable price be if I just hired him as a consultant? The quality of my washes is good (could be better) what I really need is help in the detail department.