Is the self serve dead or dying?

[Mach1]

I'm closing on a small 3-bay car wash on May 1.

I have people telling me to back out because the self serve is dead and dying especially since my location has no possibly to add an in-bay automatic due to space and zoning.

Sales are down 20% but I attribute that to the owner running down the place (equipment break downs + keeping it messy)

Nearest competition is: same road 2 miles West 5 bay ss + old touchless, 2 miles West run down 4 bay SS and an underwhelming $3 mini tunnel 35 foot 2.5 miles North West.

Main road 40MPH, Traffic count approx. 35,000

Discuss!!

 

[ibspuds]

I'd try taking out 1 hand bay and installing an automatic.

 

[I.B. Washincars]

I wouldn't say it is dying, but I do think there is a "righting of the ship" going on. Through the 90s and into the early 00s, everybody and his dog built a wash. IMO, many distributors duped rookie operators into building washes that should never have been built. Most didn't perform anywhere near as well as they were represented and only the strong survived. Numerous washes in my region have fallen by the wayside and many others don't look like they can turn a profit.

In a nutshell, I believe the demand for the SS is as much as it ever was, but the demand for so many SS washes was never there.

 

[Mach1]

ibspuds: Nearly impossible due to zoning. The SS wash itself is grandfathered.

I.B. Washincars: Do you think 3 washes in 4 miles on the same road to much?

 

[wash4me]

ibspuds: Nearly impossible due to zoning. The SS wash itself is grandfathered.

I.B. Washincars: Do you think 3 washes in 4 miles on the same road to much?

You say impossible but the zoning has an appeals process and improving something is a worthwhile reason to request an appeal. Rules are made by people and those same or the next group of people can just as easily change the rules to something that makes more sense at that time. Until you have gone through the process you don't know this is impossible. Long term you can support different city council candidates etc.

 

[I.B. Washincars]

I.B. Washincars: Do you think 3 washes in 4 miles on the same road to much?

That's hard to say, just too many variables. My washes are all in pretty much rural areas and that's what I am familiar with. I don't feel qualified to make a call on one in a more metro area.

 

[Kevin James]

I really hope you didn’t pay more than tax assessor land value for this car wash. If you hang on long enough you might see the value of the land go up, don't expect to make boat load off money. I think I know where this wash is at. Is this 3 bay on Indian School road?

 

[rph9168]

I would agree with most of what I B says. SS were definitely overbuilt but I would add that too many bays were built in locations that were not conducive to SS. I owned a detail and car wash chemical distributorship in Denver in the 80's when they were building them on almost every corner. Many failed and were knocked down by 2000.

As far as three washes on the same street within four miles would be an example of over building. Two on each end of four miles might be okay depending on demographics and traffic count. In most cities zoning approval can be a real crap shoot. Vocal local opposition can kill it as well as any competitors in the immediate area. That being said I have seen them built almost on top of each other in a few localities.

 

[Mach1]

wash4me: I agree that anything is possible but zoning requires specific room for cars to line up and wait. 4 for automatic and 3 for self serve. Right now it is barely 2 spots from the street to the front of the wash. Wash built 50 years ago so pretty much everything about it is grandfathered including landscaping, set-backs, signage etc etc

How much of my success depends on being able to add an automatic later?

 

[Earl Weiss]

Discuss!!

IMO not enough 411. Seems like too much competition but if the price is low enough it might be worthwhile.

 

[robert roman]

“Is the self serve dead or dying?”

According IBISWorld, the U.S. carwash industry was wrecked by recession but wash revenues are now expected to grow at 2.5 percent annually.

Self-service and washes at convenience stores and petroleum sites were especially hard hit.

Today, self-serve category is often described as in decline and needing innovation or re-invented.

Benchmarks tend to support this.

Since 1999, wand-bay average price per minute charged has increased by four percent annually as wand-bay sales volumes have declined by two percent annually.

However, it would be a mistake to evaluate decision to close on wash based on industry statistics.

 

[Waxman]

It is a mistake to buy something with bad numbers and think you will quickly increase sales.

It is a mistake to buy an SS only wash with that many competing bays.

Pass on this deal.

 

[washnshine]

Back in the 90's, before I owned a wash, I primarily used self-serve bays for my own cars. A previous poster stated that many self serve bays went in during this time, and it seemed to me like most of theses new/newer operators were keeping the quality of their business at a high level. Just about any place I went to had hot water, ample soaps, waxes, spot free, tire/wheel/engine cleaners, brushes in good condition, and the sites were kept clean.

Today, most sites around me are using only cold water, have no real appeal to the chemicals, are not using weep, so they freeze up on the cold days and are closed, and do not look appealing to use (not kept clean and orderly). I certainly cannot speak for self serves around the country, by in my immediate area, there is not much being done by my competitors to draw in customers. If I did not own my own wash, I would not use any of the SS's near me.

 

[Greg Pack]

Ive got my own opinion and theories. I've been in the business for a little over twenty years and it has been good to me. But yes, I feel the self serve market share is declining and the golden days are over. The express has given a lot of people the option to get a decent, inexpensive wash very quickly, with minimal human interaction.

One thing I have observed is that kids today have a different view of their vehicle than my generation. When I was a teenager, a car was what just about defined you. I remember washing my black 79 Z28 a couple of times a week, and waxed it every Saturday. Kids today are more enamored with their phone. I watch frustrated parents from my generation force their teenager to wash their car on a fairly regular basis. Some kids today still like cool cars, but many are more likely to view a car as simple transportation, and washing the car as more of a maintenance thing.

Having said that, attrition of SS in my market has allowed my business to continue to do OK. My revenues are fairly stable and I plan to continue to be in the business for a while. It's a pretty good gig.

 

[rph9168]

I pretty much agree with cfcw's assessment. I am always surprised to see more people over 40 using the bays instead of those younger, especially teens and those in their early 20's. I also believe that those using an automatic are more concerned about convenience than the outcome of a wash than those that spend time in the bays. In my early years I used only SS and gradually migrated to tunnels and automatics as I grew older. Occasionally I go to a SS when I want to get really picky on wash results and gain the satisfaction of being an active participant in the wash. I doubt that SS will decline much more and there will always be a place for a combination of bays and automatics. I think SS only will mainly be confined to small towns and rural areas.

I don't have any statistics on how popular it is becoming but I noticed some of the Express Exteriors around here are offering interior cleaning and hand waxing similar to a flex serve. I think many feel the need for additional revenues beyond the wash pricing. As I have mentioned before near me there is an excellent hand wash kitty corner from a busy EE that always seems to be busy as well which I think demonstrates that there will always be a sector of the wash business that want a complete exterior and interior wash.

 

[Robert2181]

As a young buck.(30 years in the wash/lube/laundry/propane/storage/tire/rental world). You do not need to use weep(have not froze in 16 yrs) or that hot of water. Use a different chemical. You are washing plastic/metal/steel not clothes.

 

[6t7gto]

How do you not use weep?

 

[Robert2181]

Buy or build a blow down system.

 

[2Biz]

Robert,

I know this is a little off topic, but since it has been brought up! How cold does it actually get at your location? The Midwest can cover a lot of different weather patterns…

I have a very similar system, only mine is a semi-automated AIR/WF purge for those long cold spells. It allows me to purge 2, 3, or all 4 bays within a few minutes. BUT…When reopening the bays a few days later or even a week later, the inrush of water through the hose “Always” breaks crud loose and partially blocks a tip, distorting the spray pattern.
This is the only time I have problems with blocked nozzles. I never have problems when running weep and keeping the hoses full of water.

With your automated system, you ever have issues like this? This problem keeps me from completely automating the process to save on weep. At least I am there when re-opening a bay to unplug the tips.

 

[mac]

While some self serves are dying, and deservedly so, some are doing great. I have a customer in the Miami area with a six bay, no automatic. He does well over 200K per year.