Express Wash Impact On Existing IBA/SS

[GreatWash]

I recently refurbished a 6 bay SS / 2 IBA car wash. We have been open about 10 months and things have been steadily increasing business wise. I just found out that a new express wash is going in right next door to me. Trying to figure out how much that will impact my business. I'm sure others have been in this situation so just looking for some solid input on what I should expect to see and some possible solutions to combat the new competition.
We have credit cards on everything and accept bills in the SS bays as well. Have looked at doing some type of wash club on the IBA's but have not taken the leap on that as of yet. We have both a touch free and a friction IBA so my initial thoughts were that the SS and the touch free business wouldn't be impacted by much and assuming that the friction IBA will suffer the most.

 

[Islandwash]

Being in a similar situation that happened over a year ago. Look over your whole operation & improve it. Start marketing now before the other opens. You will lose customers, but how many you lose depends on your efforts. As always, there are only so many cars that need washing in an area. Wash clubs for the In Bays may help retain existing customers

Good Luck

 

[GreatWash]

Being in a similar situation that happened over a year ago. Look over your whole operation & improve it. Start marketing now before the other opens. You will lose customers, but how many you lose depends on your efforts. As always, there are only so many cars that need washing in an area. Wash clubs for the In Bays may help retain existing customers

Good Luck

When this happened to your wash how did it impact your numbers? Do you have an percentage or some type of reference you could share?

 

[traveler17]

I’ve talked w 2 different multi-site owners and their advice was the same when I asked them. They said don’t try to compete w a tunnel, that’s not who you are. Offer what you offer and like mentioned previously , update , make things look new and keep your name out there. One of this guys sites has a building w 2 IBAs that are touchless , express came right next door and bumped him 30 percent. Another guy and his partner own 12 SS sites and he said the worst he got bumped was 50 percent and he said he blames himself for not being pro active. I have 2 washes. My busy site is going to experience the same eventually. I am there constantly getting to know people , showing them they are not a number and if / when there is a problem im
Easily accessible. Join the chamber and get the word out you support local and small businesses. I’m hammering that home on social media. I’m doing all this and they haven’t even broken ground. As soon as they do I’ll probably offer monthly memberships. Some will stray but I think most will stay loyal. “ I hope”

good luck and keep us posted

 

[Islandwash]

I chose not to share that. What can be said is the result is not good for the existing operator. Until your market expands in 10 or more years there is only so much market.

 

[traveler17]

I chose not to share that. What can be said is the result is not good for the existing operator. Until your market expands in 10 or more years there is only so much market.

You chose not to share what? A percentage? Why?

 

[Rfreeman]

I personally have not been in that situation but I have heard rumblings that a group is looking close to one of my locations.

My second wash I purchased was a under performing 7 bay ss only with a tunnel less than a mile around the corner. The tunnel was on the main street I was on a cross street between the two streets far inferior location. I improved the soaps, fixed everything, changed everything to LED lighting so it was bright at night, and was present or my guys were. Bottom line I increased revenue by 30%!

I know of operators that take about 30 to 40% hit when the tunnel first opens. The net result as those customers slowly come back was 15 to 20% net loss of revenue. Demographics I think play a lot into this equation as well though.

If you have a touch less I think your positioned well maybe even think about going to both iba's touchless

 

[traveler17]

I personally have not been in that situation but I have heard rumblings that a group is looking close to one of my locations.

My second wash I purchased was a under performing 7 bay ss only with a tunnel less than a mile around the corner. The tunnel was on the main street I was on a cross street between the two streets far inferior location. I improved the soaps, fixed everything, changed everything to LED lighting so it was bright at night, and was present or my guys were. Bottom line I increased revenue by 30%!

I know of operators that take about 30 to 40% hit when the tunnel first opens. The net result as those customers slowly come back was 15 to 20% net loss of revenue. Demographics I think play a lot into this equation as well though.

If you have a touch less I think your positioned well maybe even think about going to both iba's touchless

Agreed, I talked to a single site owner that was killing it. He said at first he took a hit. He said he even went there to get a free wash but eventually leveled back out

 

[traveler17]

I personally have not been in that situation but I have heard rumblings that a group is looking close to one of my locations.

My second wash I purchased was a under performing 7 bay ss only with a tunnel less than a mile around the corner. The tunnel was on the main street I was on a cross street between the two streets far inferior location. I improved the soaps, fixed everything, changed everything to LED lighting so it was bright at night, and was present or my guys were. Bottom line I increased revenue by 30%!

I know of operators that take about 30 to 40% hit when the tunnel first opens. The net result as those customers slowly come back was 15 to 20% net loss of revenue. Demographics I think play a lot into this equation as well though.

If you have a touch less I think your positioned well maybe even think about going to both iba's touchless

Did you add a touchless to your 7 bay SS during your improvements?

 

[Rfreeman]

No just self serves. It was a great site as well.

The tunnel was a good operator as well. The area was a good ss area and the location was great! This was a shanty looking wash... all metal construction. I cleaned it up with acid and people noticed right away when I took over.

I eventually sold it to the Tx Dept of Transportation that made me an offer I would be stupid to refuse otherwise I would still have it.

 

[Greg Pack]

More than once I've heard the number of around a 30% reduction to a well run wash. More if it is neglected. I'm getting one built near me and expected to take a pretty hard kick to the groin when it opens.

 

[traveler17]

More than once I've heard the number of around a 30% reduction to a well run wash. More if it is neglected. I'm getting one built near me and expected to take a pretty hard kick to the groin when it opens.

Yeah we are all gonna get it at some point. Guy I know had got hit the first couple months because of free washes then he said it leveled back out.

 

[soapy]

IN the last 10 years I went from having 2 tunnels in my town to 9 with another being built right now. I did take a hit on automatic washes over 50% but my SS bays have held out strong so everything is good. It is funny to see now the first express washes that were built and took off are now being decimated by the newer ones. I don't think the new ones are any better than the old, just new. People flock to new stuff. The market is a town of 60K and I can't figure out how any of them really pay for themselves with the 5 million plus it took to build each of them.

 

[I.B. Washincars]

I use an express in the area that I relocated to. About a year ago, I signed up for $17.95 per month for the cheapest wash, additional vehicles were $8.95, so I added my wife's car for another $8.95. So, I was doing unlimited for two vehicles @ $26.90. I stopped in a couple of days ago to add my 3rd car, only to find out they have discontinued family plans and that I would have to pay full price. Makes me wonder if the panacea of memberships, free this, free that, may have reached its limits.

 

[traveler17]

I use an express in the area that I relocated to. About a year ago, I signed up for $17.95 per month for the cheapest wash, additional vehicles were $8.95, so I added my wife's car for another $8.95. So, I was doing unlimited for two vehicles @ $26.90. I stopped in a couple of days ago to add my 3rd car, only to find out they have discontinued family plans and that I would have to pay full price. Makes me wonder if the panacea of memberships, free this, free that, may have reached its limits.

I hope so, it’s so odd to me that car washes are competing to try to give away as much as possible when other businesses of the like keep going up!!

 

[Eric H]

A $3 and free vacs opened a mile from my 4 bay SS about 10 years ago. That location took a hit plus a bunch of losers like to hang out there which didn’t help.
I made sure my Vacs were the best around! I get compliments on the vacs almost every day. If the express is giving the vacs for free, it will be a benefit to you. They don’t pay as much attention to them as they should. What do you expect for free? Keep it clean and make sure everything works 100% of the time.
The “3 and free” just increased price to $5 and now offers an unlimited for $20/month. It will be interesting to see how that affects my other locations with Razor IBAs.

 

[washnshine]

I use an express in the area that I relocated to. About a year ago, I signed up for $17.95 per month for the cheapest wash, additional vehicles were $8.95, so I added my wife's car for another $8.95. So, I was doing unlimited for two vehicles @ $26.90. I stopped in a couple of days ago to add my 3rd car, only to find out they have discontinued family plans and that I would have to pay full price. Makes me wonder if the panacea of memberships, free this, free that, may have reached its limits.

I’m not sure if the monthly membership will go away, but the family plans are probably excessive for operators to justify - especially on the lowest priced packages.