Economy affect on Car Wash

[Rons]

non-existant volumn

Ladies and Gentlemen,

As much as I hate to share this, we just experienced our worst Nov. in 32 yrs. here in s/w Ohio. Absolutely ECONOMIC/WEATHER are the culprits. How is everyone else getting along. Care to share the good and the bad?

Better days ahead!
Ron

 

[Jimmy Buffett]

Bill,
I wasn't trying to show how smart I am. I'm living proof that any dumb a$$ can get into a prestigious university.

 

[Reds]

After a strong 2007 I added a second IBA. My SS sales are down but IBA sales are up. In dollars SS is down about the same amount as IBA is up. In % SS is way down and IBA up about 10%. I had a real strong Oct & Nov. compared to last year. I keep weather statistics and am convinced that at my location the weather made a big difference in Oct. & Nov. sales and turned my comps positive. I should end the year slightly up, maybe flat. But expenses are definitely up quite a bit, so the bottom line has suffered.

 

[raisetheprice]

I think it's a combination of the two. The new HEB is extremely busy, it's on a main highway with good traffic lights for safe entry/exit, and they market the wash in the store and at the gas pumps (which, on top of everything else, usually have the cheapest gas). They also give a dry for every wash level, and I've started getting complaints that "the dryer didn't come on" with the cheapest wash because of them.

Checked one today...not the one across from us, but another HEB. Sign up that says buy 1 get one free on the top wash...holiday special. The machine looked like another post said it might with these big chains...dirty and run hard. A dry with every wash...outstanding!

 

[rph9168]

From my experience with big box operations if you can hang in there it will turn out okay. After a year or two of neglect the machines start to break down or run poorly and in many cases they either limp along or close the wash. Distributors get fed up with supplying them for very little profit and a lot of headaches so their service slips. Eventually the big box people learn that there is more to it than simply putting it up and they can make more money doing what they do best - retail sales.

 

[lag]

We had to compete with an express tunnel that opened 2 years ago,and attached to a local gas station chain.

It closed down 6 weeks ago. Not sure why ,but I do know they did not produce a clean vehicle ,or did they care.

 

[lag]

For us it is the weather that is driving down traffic. I also have noticed that more of our customers were buying down when gas prices went up. Now that prices are down ,we are seeing an increase up on the sale averages.

 

[raisetheprice]

I sure hope you're right...they can't be making any profit at all having to pay for every little hiccup to be fixed by our slum lord. Knowing HEB though...they probably dictate to the sl what they'll pay for the whole mess. I would think it would be a major pita for the store manager to have to keep up with too. Damage claims, p!ssed off dirty cars, a big store with deep pockets...bullseye for many sue happy people.

I just ran a week newspaper ad and a month of radio spots advertising $2 off our top wash with prep job with any of their receipts. I'm having someone stand at their entrance pointing our direction with a sign for the $3 wash all day this weekend. What the he!!...why not go after them right when they are trying to open it?

 

[Ben's Car Wash]

god bless all of you... good luck.

 

[raisetheprice]

Thank you Doug, He and I have been speaking alot more lately. All of this is probably my reward for running a business on Sunday.

 

[Ben's Car Wash]

Thank you Doug, He and I have been speaking alot more lately. All of this is probably my reward for running a business on Sunday.

Well, Biblically speaking Sunday is not the Sabbath but I won't argue that (it was changed about 6th century to draw in Pagens). We beat ourselves up, no need to think that God has anything to do with it! I can say, seeing that I was served forclosure papers a few days before Thanksgiving, that losing my business has made me focus more on my family... and that IS WHAT IS IMPORTANT... and that is what I think GOD want us to do in times of trial... draw closer to him and your family, not the material things.

We faced more difficult things (or decissions) than losing or closing a business in our life. I know what you are going through... I just did it! I'm not a failure... neither are YOU! We have never faced a time like these in the histroy of the US since 1929, or the Civil war! Today a record 600,000 job losses in November (highest in 35 years) 1.25 Million jobs lost in 3 months! This is not OUR FAILURE... it's a record failure of the US ECONOMIC BASE that is eroding from under us. Yes our industry over built, yes some markets over saturated, or I might have not picked the best market or location. However in another economic times, even in light of other ecomomic recessions, you and I would fair fine... just not this time.

fate my friend has delt us a difficult hand.... you have to know how to play your cards and your running low on chips. "I fold"

Again... God bless.

 

[raisetheprice]

I will never fold...as long as I'm healthy and expect to be I'll work another job on top of my existing full-time job all night if I have to until we sell. Probably as a night stocker for the very store that's trying their hand at washing cars...lol. If I had to, I would. I don't think it will come to that. Today was much better...an actual line of cars for a few hours at drive time. Advertising does work, but it's not cheap. Oh and my grandmother calls it the Sabbath...so that's good enough for me. God Bless.

 

[mmurra]

40 years in business and never a time as tough as this in the Michigan area. Today was a nice day for washing and we did not do the numbers. It is almost scary, waiting for the blowers that are supposed to be coming on regularly and hearing nothing but silence! We have seen a couple of in-bays close but no boost for us. No one is doing the volume in our area. Vehicles are VERY DIRTY, nice cars coming in with two-four months of film / dirt. Worse than ever before. This will be around for a while.....

 

[Ben's Car Wash]

I will never fold...as long as I'm healthy and expect to be I'll work another job on top of my existing full-time job all night if I have to until we sell. Probably as a night stocker for the very store that's trying their hand at washing cars...lol. If I had to, I would. I don't think it will come to that. Today was much better...an actual line of cars for a few hours at drive time. Advertising does work, but it's not cheap. Oh and my grandmother calls it the Sabbath...so that's good enough for me. God Bless.

LOL... got to listen to Granny! New dealer coming to the table soon, hope your luck changes! I prefer to go to another table at some other time with a little money still in my pocket! I think the deck is stacked or they're playing with too many decks for me to count!

I'm getting calls from suppliers trying to supliment thier business by peddling my used eguipment! It's bottom of the barrel and we're in season? Only the highest traffic sites are doing well from what I am hearing. I got no vested interest anymore so why would I lie?

I miss my friends, but I'll be glad when this is over. It's like waiting for cancer to kill you! These banks SUCK! I had 7 years left on my loan...they told me they'd go interest only, then AFTER I CASHED IN $50K in my 401 they renigged! Now they don't want the property and want to work with me but make outragious demands that can't get done. So, I'm enjoying time with my family.

Living in Florida, we deal with hurricanes.... they pass and the damage is always temporary. It just takes time.

What our economy needs is some BIG NATURAL DISASTERS (without injuries)! That sparks job creation.

 

[Kevin James]

We run a clean car wash, put out a generous amount of soap and wax. Every thing works all the time, every system is checked daily, bays and vending. The car washing weather has been good, the price of petro is down, and we should be busy. But we are down a little less than 30%. All the other car washes are telling us the same thing that they are down.

 

[Mel(NC)]

My gross income is up 10% over the last two years but that is only because I have spent a lot of money on upgrades at my SS over that period.

My real job is a consultant in the automotive industry. I can't say that is going too well either.

 

[Chiefs]

I have to agree with Earl, our enemy has been the weather, not the economy. The last 6-7 weeks the weather has absolutley sucked. When it does break, we wash cars. We just cannot seem to string 3-4 days together. November alone was down 2,500 33% off) year to year but it must have snowed or rained 4-5 days every week. December hasn't started off much better despite the wintry weather, As my father used to say,"Live in hope and die in despair." Shorty is definitely in town. All you can do is pray and look to save wherever you can. If this winter continues the pattern of the last 6+ weeks, we are all going to be in serious trouble. The only silver lining is gas prices. I expect those will remain low or lower over the next 12-18 months given the global economy.This will help, but only if the weather strightens out. But when things turn around economy-wise, look for oil to rise significantly again. Those car washes who can survive this conflagration will come out even stronger with greater market share than before. But it is going to be a bumpy ride - regardless of how many promos you run, or if you lower prices. If cars are not dirty AND/OR the weather is bad, people will not wash their cars even for $3.00.

 

[stevie g]

Our Express Exterior washes here in Cincinnati are down around 30-40% when you factor in increased costs along with revenue being down.

November was gawdawful...our worst month in our four years of business.

While I do think that the economy has certainly made an impact (we are seeing a lot more of the "just give me the cheap wash" people), I'd have to agree that weather is the biggest factor.

It was pretty rainy here for a long time, and now we're starting to see snow and salt, only to be followed by...you guessed it, rain, which as we know gets the salt off the cars. I manage this company and the owner is a pretty rich guy, but I often wonder at my job security and how long he'll view this business as a liability before deciding enough is enough.

Anyway, best wishes to all and...LET IT SNOW!!!

 

[Bubbles Galore]

Weather is what is killing me too. I have had a ton of snow here in Michigan, but not one nice day to bring them in to wash. Best of luck to all!

 

[pitzerwm]

According to Al Gore, this is global warming, there is something that us mortals don't understand. It is probably a new type of hot snow. Take a lesson from Al, when your people get caught faking the numbers, just ignore it and keep talking.