Can self serves survive a recession?

[Debra Gorgos]

Have any of you owned a self serve during a recession? How did it do?

 

[tdlconceptsllc]

Not so good alot of operators lost there tail. In the dark years of 07-2010 and it still has not recovered 100% and probably never will but it has made a major improvement and made operators stronger and pay attention better to there business. You can look at older post on this form about this topic. I was involved 3 years prior and October 2007 was like someone turned off the light switch. No cars where on the highway riding around didn't have to dump the trash bc nobody came to wash just blow leaves off the parking lot and keep everything working perfect. Now I would say the vandalism and BE's where more no matter how nice of a wash you had was greater. You focused on how to have enough income to pay all the bills and taxes and mortgage if you had one. Many people lost there washes. A awful time. Remember people can do without a carwash but there always going to have to have a roof over there heads housing, gas, groceries and a drivable car, besides that everything else is a want not a need.

 

[mac]

The ones that did survive the last recession mostly had the mortgages paid way down or gone. They also ran a good operation. There is a reason that a lot of banks will literally ask you to leave if you want to borrow for a self serve. When the next one hits, and trust me, it will, I suspect most of the washes that die will be the new express exterior washes going up. These places have a cost of around 3 million and need 100 cars per day to survive. Won't be pretty.

 

[robert roman]

Have any of you owned a self serve during a recession? How did it do?

Effects of last recession on self-service were not even across the country but they have been long lasting.

According to ICA data, number of self-serve locations has dropped by 22 percent whereas its share of the total available market has dropped by 68 percent.

However, according to industry journals, it appears self-serve revenues and in-bay car counts are now trending positive. I attribute this to economic growth and consumer confidence more so than decline of the space.

Perhaps the biggest threat to self-serve is growth of express exterior washes and industry consolidation. The exception would be self-serve is rural areas.

Almost 20 years ago, over half my business was helping folks plan to build new self-serve washes. Now, I can’t remember the last time I worked on a new self-serve.

Today, most of my clients with self-serve are looking to upgrade or add an express wash or retrofit in-bay to mini-tunnel or express in-bay.

 

[soonermajic]

tell me this , guys: I am planning on buying 2 washes, one is 5/SS other is 5 SS/1 IBA (Ryko OHD). There are NO other washes in this town of 7k, except an IBA @ the oil lube place.
What would I need to do, to competition proof my washes (outside of "keep it clean & working")?
What could I do to trend it towards an Express Exterior, w/out spending much money (or is that feasible)? I will inherit a VERY good, reliable, honest, hard working prepper, Mon--Sat. There is another guy whom helps him some, for tips.

 

[Greg Pack]

What would I need to do, to competition proof my washes (outside of "keep it clean & working")?

Let me know when you figure it out. The better you run your wash, the more customers you get. The more customers you get, the more investors take notice and try to steal your customers from you.

 

[Earl Weiss]

I have been in the tunnel business as an operator since 1987, Worked for the family business before that. Became an SS Operator in 2006 or so at a location that had an 8 bay and EE. As far as I am concerned the effect of the economy has been nominal (notable exception gas shortage of the 1970's) compared to effects of weather.

 

[Debra Gorgos]

Why do you think that is? (in regards to the effect of the economy being nominal)?

 

[Debra Gorgos]

Do you think (or have seen evidence of) customers sticking with self serves if another recession were to occur? I know people need to keep their cars maintained when a new car is not on the horizon... or do you think they would turn to DIY-driveway washing?

 

[Debra Gorgos]

I am researching when the next recession will hit for the cover story of Self Serve Car Wash News. When you say "good operation" what does that entail?

 

[Debra Gorgos]

Sending you a private message....

 

[robert roman]

Do you think (or have seen evidence of) customers sticking with self serves if another recession were to occur? I know people need to keep their cars maintained when a new car is not on the horizon... or do you think they would turn to DIY-driveway washing?

Build a express exterior with $3.00 base price near a self-service wash and you will find out where most people go. Everywhere I see this occur, self-service is wallowed out.

Certainly self-service is going to survive as most of the damage has already occurred.

Nevertheless, I believe another major recession would have the same affect on the segment as the last one with exception the bankruptcy cycle wouldn’t be as severe.

 

[cebo]

My deviation during the recession was not significant when factoring in weather. In the SE we had a bad drought in 2007 and had a outlying high year. I'm thinking of converting a couple of bays to drug & liquor drive through. It appears that's about the only thing left the big box people haven't infiltrated.

 

[Earl Weiss]

Since my EE and SS are on the same property the effect of an EE nearby is already established.

https://www.youtube.com/watch?v=xf2Vj0TXcKo

When I acquired this location i was disappointed that the SS #s were a fraction of reported industry averages. Veterans said what do you expect with the SS right there. Also they told e that the more bays you have (8) the less likely you are to hit the average. The place had been badly beaten down. Of course first task was to clean up and make sure everything worked. Next was to try to add stuff like Bill and credit card accepters, Superbay, Bonus Time, and just now in by dryers. Slowly numbers improved. I think there is and will be a market segment for DIY with the car wash. They want a clean car and the $3.00 DIY option is still attractive vs Driveway hassles The economy won't have a huge effect unless it's something major like being a company town and the company goes under resulting in a huge loss of population / drivers.

 

[soapy]

One of the main advantages of owning a car wash of any type at this time is that it is a service business. With record number of stores closing due to Amazon and internet related stuff we are lucky that the internet can't ship you out a car wash. Sure they can sell related products but not the actual service. There will always be a place for self service car washes probably not in the numbers that there used to be however. Eventually demand will catch back up to the ones that remain and give us a opportunity to charge more money due to supply and demand.

 

[Randy]

The Self-Serve car wash business is a slowly dying business model. The glory days of the self-serve car are fading fast. The cost to build a self-serve car wash have made them unprofitable, high land costs, debt load, sewer and water tap fee’s etc. have driven the costs to build a car wash to the point of making them unprofitable. The last car wash we wanted to build the city put up every road block they could to the point that it became unprofitable. The majority car washes that have been sold in our area have all been torn down and something else is built on the property. Look at the public’s perception of the self-serve car wash, I can tell you its pretty low. The public seems to think that it’s Ok to dump their garbage, wash out the bed of their pickup truck or wash disassembled greasy auto parts. A friend of mine just returned from a 2400 mile road trip. He stopped at numerous car washes along the way both self-serve and tunnels. He couldn’t believe the run down, dilapidated car washes that he came across in small town America. Most were charging $1.25 to $1.75 for 5 minutes. Dirty bays, overflowing garbage cans, broken equipment was the norm. When the public sees this they think this is how all car washes are run and that’s why they don’t go to car washes. Can a self-serve car wash survive the next recession, your guess is as good as mine.