Adding a Second IBA...Expectations

[bigleo48]

All,

I find that my 8 SS bays are way underutilized and my IBA is maxed out on busy days. Last year I could have used an extra IBA 187 days (from my records).

So aside from finding new ways to increase usage in the SS bays, I believe I will convert one SS bay to an IBA. So now I'm in the process of due diligence for this project. I'm just unsure how much more revenue I can expect from adding a second IBA. Sure there are those great spring days where we are lined up into the street...but on a day to day basis, I'm note sure I will add that much more as I am not sure how customers will react to shorter to no lines ups. (BTW, I will likely add RFID tagging to sell subscriptions.)

Anybody else added a second IBA after the original build? If so what happened?

Big

 

[robert roman]

Your question is no different than asking - what is the highest and best use of my property as a carwash site.

In solving this problem, I tell people I work with to begin by pretending their wash doesn’t exist.

This forces people into a reality check - today, markets are generally more DIFM than DIY.

I believe this is the root cause for express success rather than low price or free vacuums.

As for long lines, most veteran conveyor operators will tell you a long line means you are losing business today that you can’t make up tomorrow.

For these reasons, I believe multiple in-bay format has more potential today as compared to ten years ago.

If you have the site location to support it, a successful 4 + 4 would be a good problem to have.

 

[ted mcmeekin]

We converted one SS bay to add second IBA and added two additional bays at the same time--went from 3/1 to 4/2. We were told by some operators that they picked up another 50 % use from 2nd IBA. That did not work in our market, we only got about 20-25%. Adding the one additional SS bay was a better investment. On the other hand, having the second IBA takes a little pressure off repair time.

Good luck.

 

[bigleo48]

Thanks Robert...good advice as usual.

I have and continue to look at the best possible ways to use my site. To that end, I have many services/options. I do believe that most people are not DIY's anymore...too busy I guess and likely unsatisfied with the results of a SS bay (don't know how to wash) or at home. The other big reason in my area is an aging population. Many of my customers just can't physically do it.

Beyond eliminating lineups and drawing in more, a second IBA would give me redundancy. Even though I maintain my IBA to a high level and it has been very reliable...I'm always on edge during a busy day, in fear that something unexpected might shut my IBA down...thus losing revenue, but more importantly, sending my customers to my competitors to get washed. So with a second IBA, I feel I would be less frantic when one goes out of service.

 

[madscientist]

I agree with what's been shared already. I also know the "on edge" feeling on busy days with one IBA. Without the experience of adding a second IBA, I will make a suggestion. Add something that is different than your current IBA, with the same high quality of course. That way you won't just be catching overflow from your first IBA. You will be able to build up a new customer base. Theoretically you should end up with two groups who each have their preference of IBA's. You should also have a third group who doesn't have a preference for how their car ends up clean, so they can get in either line.

The down side is that you won't have total redundancy and will now have increased your "on edge" feeling two-fold.

I have no data to back up this plan.

 

[robert roman]

What is more attractive; a $2.5 million wash with a store conversion rate of $26 or a $1.5 million wash with a store conversion rate of $26?

Conversion rate is sales dollars divided by traffic count.

 

[Buzzie8]

What is more attractive; a $2.5 million wash with a store conversion rate of $26 or a $1.5 million wash with a store conversion rate of $26?

Conversion rate is sales dollars divided by traffic count.

Interesting... what do you consider a good conversion rate?

 

[robert roman]

“Interesting... what do you consider a good conversion rate?”

Conversion rate is an evaluation tool. So, good or bad are relative terms.

Here is the equation if you want to play around with it.

Conversion rate = (sales dollars / 1,000) / (traffic count / 10)

The result is a percentage, I misspoke as dollars earlier.

Examples,

CR = (600,000 / 1,000) / (25,000 /10)
CR = (600 / 2,500)
CR = 24%

CR = (400,000 / 1,000) / (15,000 / 10)
CR = (400 / 1,500)
CR = 27%

CR = (175,000 / 1,000) / (15,000 / 10)
CR = 12%

 

[briteauto]

With a second IBA, you will never be totally down for repairs (highly unlikely both would go at the same time) Also - if you go with the same machine as your first, you will have parts for two machines available at all times.

 

[bigleo48]

With a second IBA, you will never be totally down for repairs (highly unlikely both would go at the same time) Also - if you go with the same machine as your first, you will have parts for two machines available at all times.

Brite,

Yeah that's part of the plan. Only problem is that I will need to get a used machine (PDQ M5) as they no longer make it. I see a few available online...will cross that bridge when I get closer to needing it.

 

[JustClean]

Brite,

Yeah that's part of the plan. Only problem is that I will need to get a used machine (PDQ M5) as they no longer make it. I see a few available online...will cross that bridge when I get closer to needing it.

We installed a Washworld Razor (all stainless) next to our brush machine. I was fighting 5 years with my customers to get them into our brush machine. I always got told: too scary, scratch-o-matic, rips stuff of cars and so on, etc.

Then I gave up and bought the touchless as there are many pick-ups I just can't wash in the brush.
I am now in the position to offer something different: One auto with guide rails, brushes and dryer - the other auto with a clean floor, touchless and no dryer but the same wash prices. And no more panic if one auto breaks down.

End result: Some of my SS customers, some of my brush machine customers and some new customers use the new machine. It is too early to say but so far I would guess a 25% increase in total turnover. I am glad that I did it.

 

[MEP001]

I do believe that most people are not DIY's anymore...too busy I guess and likely unsatisfied with the results of a SS bay (don't know how to wash) or at home.

Maybe your wash would be a good candidate for a campaign to educate people in the proper use of self-serve bays. I've had the thought for a while to post instructional notices in each bay that I can move around easily, and use a QC code customers with a smart phone can scan to watch a YouTube video. I've done an early test video and will either rent or borrow a nice, late-model car to do one for every function.

http://www.youtube.com/watch?v=YaY4vygsxAQ

 

[Ric]

So if you had a touchless and were going to add a second iba would you:

A. Add another of the same since maintenance, parts inventory, etc. would be simplier.

B. Add a friction machine thinking you may tap into a new market of customers but knowing you will be facing an increase in "claimed" vehicle damage, additional parts inventory, additional learning curve, etc?

Thoughts?

 

[bigleo48]

Maybe your wash would be a good candidate for a campaign to educate people in the proper use of self-serve bays. I've had the thought for a while to post instructional notices in each bay that I can move around easily, and use a QC code customers with a smart phone can scan to watch a YouTube video. I've done an early test video and will either rent or borrow a nice, late-model car to do one for every function.

http://www.youtube.com/watch?v=YaY4vygsxAQ

MEP,

Absolutely. We routinely help customers but that is simply not enough.

I made a real quick unprofessional video that I really didn't like. I have since kept it as it has over 200K views as makes me a little money. I also made one for my petwash. Both are really bad and I need to spend a little time making new ones. I also made QR codes to access them.

I plan on installing outdoor monitor(s) since they are so cheap with a rolling video on how to wash, along with promotional and other info on our facility.

I guess it will be part of our revamp including another IBA, extended detailing services, subscriptions additional ss option, etc. 2013 will be busy, but good.

 

[bigleo48]

We installed a Washworld Razor (all stainless) next to our brush machine. I was fighting 5 years with my customers to get them into our brush machine. I always got told: too scary, scratch-o-matic, rips stuff of cars and so on, etc.

Then I gave up and bought the touchless as there are many pick-ups I just can't wash in the brush.
I am now in the position to offer something different: One auto with guide rails, brushes and dryer - the other auto with a clean floor, touchless and no dryer but the same wash prices. And no more panic if one auto breaks down.

End result: Some of my SS customers, some of my brush machine customers and some new customers use the new machine. It is too early to say but so far I would guess a 25% increase in total turnover. I am glad that I did it.

Yeah...I like some of the brush machines, but the older population here would not go for it. I too wash a lot of bigger trucks. I also want to standardize and make both wash the same so there are no preferences. A clean look is also important...this is my current IBA;

 

[bigleo48]

So if you had a touchless and were going to add a second iba would you:

A. Add another of the same since maintenance, parts inventory, etc. would be simplier.

B. Add a friction machine thinking you may tap into a new market of customers but knowing you will be facing an increase in "claimed" vehicle damage, additional parts inventory, additional learning curve, etc?

Thoughts?

A. For the reason mentioned above, but also, I plan on operating the site remotely (with local support) and keep the 'Unmanned' idea alive. One of the reason I have a full time attendant on site 7 days a week is the automatic. If something goes wrong, I need to address it fast in order to stay open. With two identical IBAs, that rush is somewhat mitigated as I can remotely arm a wash at the other IBA and make plans to fix the problem.

 

[Hoser06]

Clean bay is right, holy FRP batman! or Extrutech perhaps? Nice job.

Where did you get those wheels spinners Big? How do they compare to the standard T-bar undercarriage?

 

[Ric]

A. For the reason mentioned above, but also, I plan on operating the site remotely (with local support) and keep the 'Unmanned' idea alive. One of the reason I have a full time attendant on site 7 days a week is the automatic. If something goes wrong, I need to address it fast in order to stay open. With two identical IBAs, that rush is somewhat mitigated as I can remotely arm a wash at the other IBA and make plans to fix the problem.

Nice looking installation! How long is the bay? I've been running those spinning side blasters for about 5 years now. They knock off a lot dirt.

 

[Fatboy769]

Yeah...I like some of the brush machines, but the older population here would not go for it. I too wash a lot of bigger trucks. I also want to standardize and make both wash the same so there are no preferences. A clean look is also important...this is my current IBA;

bigleo48, very nice looking auto bay, what is the maximum vehicle height that you can wash in your auto?

 

[bigleo48]

bigleo48, very nice looking auto bay, what is the maximum vehicle height that you can wash in your auto?

Thanks...7'4" I believe...