Cars, Car wahses and the internet

[soapy]

The AP had a interesting article about car driving habits in the local paper. In 1983, 69% of 17 year olds had a drivers license and by 2008 it had dropped to only 50% who had a drivers license. The article goes on to state that the internet is replacing face to face contacts. Social networking is leading to decreased driving especially among the younger crowds. Getting a drivers license used to be the right of passage for gaining independence but now it is being replaced by gaining their first cell phone. There are four common factors in countries that are experiencing less driving among young people.1. They are wealthier, 2. higher share of the population is older 3. High share of the young population live in large cities and a high share of population uses the internet. Car makers have known this for over 5 years and is one reason they are looking for growth in developing countries and not developed countires. We all know that SS washes main customers are younger people. This may explain some of the reason for slower sales at our self service bays.

 

[robert roman]

“Social networking is leading to decreased driving especially among the younger crowds.”

Social networking is an effect and not the cause of people driving less. There are several causes that lead people to drive less and to stay away from self-service bays.

People are keeping their vehicles longer and people tend to wash less frequently as their vehicles age. The number of cars on U.S. roads has declined and is expected to decline at an annual average rate of – 0.6 percent. Since 2000, the relative carwash purchasing power of consumers has dropped by over 12 percent.

Between 2001 and 2009, household real income for age brackets of head of household mostly likely to use self-service declined by an average of 7.4 percent.

The percent of self-service users with annual household income of $39,000 or less has dropped by over 12 percent.

Consumers 18 to 30 years old are increasingly cashless. Over 80 percent of their purchases are paid with plastic. Less than 50 percent of self-service accept plastic.

There is solid evidence that higher gas prices are causing people to drive less.

The average cost to own and operate a motor vehicle has increased significantly.

These are some of the causes that have driven younger people to spend more time in the virtual world. Social networking, cell phones, pads, mobile applications, gaming, surfing/shopping online, etc. is part of that world.

However, consider that less than 20 percent of self-service carwash sites have an internet website or can sell stuff online.

Also, people have become less patient and no longer want to wait. A modern wash can deliver service in under 4-minutes with virtually no waiting. Less than 20 percent self-service have a fast in-bay.

I believe this may explain some of the reasons for slower sales at self service bays.