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$5 Per Gallon Gas

denduke

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Unfortunately, it looks like $5 a gallon gas may be in our future. What effects do you think this will have on your self-service car wash and what, if anything, will you do differently to promote your wash when the time comes?
 

Buzzie8

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Not sure how to plan for it. But I know that the last spike in gas prices in 2008 was the only time my wash suffered badly through this latest economic downturn. It scares me more than any other factor (possibly including weather) when it comes to my overall performance at my washes. I might suffer more than most because of the demographics in my market area. More specifically low to middle income homes.
 

Whale of a Wash

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As the states run out of money, i can't imagine if more protests happen in large cities like in wisconsin, we may be in for a rough year. Protests, high gas prices, high unemployment, we are already seeing higher food prices here and the talk is for food to go 30% higher, due to australia's floods. It seems like it is hard to change the world so that we can get a couple bucks at the wash. For me i notice the tunnels lost business to me, when gas prices were high and i lost customers to the driveway or not at all washing. So i wasn't affected too much. Due to record snowfall we have another big flood coming in april, so i can already rip that page from the calendar. I think i'll spend the summer painting, and fixing.
 

CRHAMEL

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5.oo would break America apart...
It would be the event that would rip apart the middle class
with the unemploment at 9.5 NOW....
The only thing that could be worse is if the Mexican drug cartels got to be buddies with the Taliban and then crushed our border. Then we got BIG BIG problems.
Untill then
WASH THE PLANET!!!

Chris
 

rzeavy

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I have noticed that when the price of gas was $4.50/gallon in So. CA., (2008) people washed more but traveled less, so I think that since people want to keep their cars clean, they will have this pattern going until the price of gas will prohibit both Albeit unemployment was less than today.
 

robert roman

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Prior to the last spike in gasoline prices, some energy analysts believed the tipping point of gasoline was about $3.00 a gallon. The tipping point is supposed to be the price of gas that once exceeded would bring about a decrease in total vehicle miles traveled.

According to FHWA/DOT, higher gasoline prices in 2008 caused a drop in total VMT of about 7.0%, nationwide.

Arguably, a sharp increase to $5.00 would cause shocks and have a sobering effect on many business sectors.

Of course, you can't do anything about this.

What you can do is run a tight ship and demonstrate to consumers the value of your wash and how using it can help them save time, effort and money.

As for marketing, you may want to consider targeted marketing including reaching out to the 40% or so of households (according to ICA) that continue to wash vehicles in the driveway.
 

Randy

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Any increase in the price of gasoline is going to hurt the car wash market. It did the last time prices went over $4.00 a gallon.

I just got an E-mail from a customer in Southern France and he said that Gasoline is $2.12US per liter and Diesel is $1.85US per liter. It takes 3.79 liters to make 1 US gallon. You do the math.
 

TurboJet

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When gas goes up, people feel their cars are gouging them.

They delay oil changes and tire changes, and unfortunately car washes because they are not a necessity.

I noticed a correlation between gas price spikes and wash business revenues last go around.

But people don't give up their $4 lattes. Sad but true.

When the economy crashed in '07, I thought SS washes would be marginally affected because we provide value - wrong.
 

Doug P.

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I operate SS and inbays. When gas went up my car wash sales went down. There seemed to be a poor weather pattern in my area for carwashes that year so that could have been part of the reason.

Doug P.
 

JJJakubowski

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Hip, Hip, Hooray!

Hey, $5 (and higher) gas will be great! That's exactly what this country needs. How do I know? The Obama tells me so.

Surely, this gawdawful hot winter has convinced you that “global warming” will kill us all! So be thankful that O and his Lib cohorts in Congress (abetted by the Media) have purposely stopped oil exploration and refinery builds, and they have intentionally and self-admittedly worked to make energy costs “skyrocket”.

Yes, my friends, the turmoil in the Middle East is actually an added blessing — an accelerant to the process the current powers-that-be insist you need ... whether you believe it or not.

There. Feel better?

JJJ/SSCWN
 
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pitzerwm

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I hear on the news this morning that Obama's Interior Dept. is in contempt of court for not allowing the drilling in the Gulf. This administration is also making all drilling on all federal lands off the table. Bankrupting our country seems to be the agenda.

Since he said in 07 that he would join any union picket line, look for him in WI or OH any time. If the governors of those states, told the Whitehouse that they would no longer be providing security for the President on any visit, that would surly change some dynamics. Of course, they would just threaten to cut off federal funds.
 

madscientist

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As our esteemed colleague has proclaimed for some time now, Raise The F%#$ing Price! (Emphasis added).
 
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