Gas Prices, Rain have Dried my Bays

[rph9168]

As I mentioned in a post a while ago, Robert Ringer in his book "Winning Through Intimidation" made what I feel is a profound statement when it comes to business. He said that one must plan based on reality rather than what you think or would like it to be or your plans will automatically work against you.

Our industry, like many out there today, is not as robust as it was several years ago. If your wash or sales numbers are down like most of us you already know this. This is not the time to sit back and complain about it. It is time to act on what is happening (reality). We can choose to b*tch about the causes or we can work to make things happen at our own operations.

There have been many good suggestions here to get started on. Many seem to require more effort on our part rather than money. So instead of dwelling on the past or complaining about today, we need to act on the situation and do things that will make us survive now and be stronger in the future.

 

[Ben's Car Wash]

Doug:

It really befuddles me that you haven't really advertised in a year. How can you complain about slow business when you do not advertise?

I probably run ads more than I should and I have no concrete proof that advertising works. But I know that NOT advertising does NOT boost sales.

Dave, I didn't say that I don't advertise... I said that I only advertised in the last year on special days... not on the routine like I use too. Yes I had TV ads, weekly New print ads in the past. Last year was down 7% over 2006... that's a far cry over most in Florida. This year is different...most are off over 20-30% and up to March I was off 15%. That got me back to some advertising again. Word of mouth is the best... the cheapest. Still everyone is off and even the news papers are off in their budgets! Complaining.... Hell I'm stating FACTS that effect our business directly.... looking through ROSE COLORED GLASSES does not change the facts... car washes across Florida are down 30% on average. I don't know about detail shops in New England.... But Florida I do know about!

Hell Bud Abrams will tell you (repeatedly) that over 80% of customers say that they stopped at a car wash because the saw a sign! Not because they saw your Ad! Advertising is not you best money spent is CAR WASHING! Reputation IS! And that is exactly what I posted about... clean uniforms, clean cars, honest business, doing charity and being a business leader.... I alway Tout these things REPEATEDLY! But the economy IS WHAT IT IS... $hitty! I haven't seen a contractor on my lot in 8 months! That was 15-20% of my business.... I KNOW MY BUSINESS LIKE MY BACK OF MY HAND! There is NO CONSTRUCTION in my county! Forsclosures are hitting record highs! Is that COMPLAINING ofr a STATMENT OF FACT?


Cont.

 

[Ben's Car Wash]

I am acting.... I advertised... I flyered thousands of cars and businesses. I'm picking up cars at the hospital (renting out my wife basically having her wash cars... fill up gas tanks) and I'm washing more cars than my comp. who has twice the car count! But again business is what it is.


I've had a business since I was 16 years old. I've had 4 sub chaper S corps.... none have ever failed... none have ever faced the struggle that this one presently faces in this market! I'm telling you FROM EXPERANCE that this economy is in trouble... the industry is in trouble... it's not the car wash owners lack of advertising, not the lack of planning or enthusamium as a whole. What wash once a profitable business is now a marginable business that requires great skill to navagate, business experance to survive and perserverance to suceede in what at one time was taken for granted! This is what has happened to the CAR WASH INDUSTRY.... It's not a "build it and they will come" business. Todays market will weed out the week owners...period.

dispite what Bill says... the last recession begain in March 2001 and is well documented. 84% of American now say that we are "currently in a recession". The March 2001 recession was not listed or recognized as a "recession until 18 months AFTER IT WAS OVER! "Perception" is what maters to the consumer... if they feel that they can't afford a car wash today... they won't get one!

 

[soapy]

As for me it seems that the weather is the biggest factor in slower business here in the Pacific Northwest. Here it is APril 30 and as I look outside it is snowing with about 3 inches of new snow on the ground tonight. The weather people have confirmed that we have had the second coldest March in history, the coldest overall spring in 40 years all this on top of the highest snow fall in over 15 years here. A local ski resort had over 600 inches of snowfall this year. The economy might be bad but it is too cold here to even crack open a Al Gore global warming book. Instead we use it for the fire place to try to keep warm.

 

[Ben's Car Wash]

Soapy,

Check out this video.http://video.google.com/videoplay?docid=-2058273530743771382

GLOBAL DIMMING I never new of it before yesterday.

 

[robert roman]

Marketing has several elements; advertising, pricing, promotion and publicity. In order to make it work, you need to develop a strategy starting with the mission statement. The process is to identify where you are (i.e. sales volumes, average revenue, expenditures, economic conditions, etc.), where do you want to go (goals and objectives) and how do you intend to get there (tactics, budget, action plan).

There are many forms of advertising and some work better than others. Flyers are a common form. They are inexpensive to produce and distribute but they have a very high "toss" rate which counteracts their relative ease.

The key to successful marketing is "message" first then form. The message is most important because it conveys your value proposition. The form may be great but if the value proposition is not what customers are seeking then the marketing will not be effective.

I had the opportunity to apply these principals last year and I can honestly say that I was able to help clients realize sales volumes gains of at least 30% in each case. A well concieved marketing plan can work if it is implemented properly. Otherwise, it merely becomes an expensive document that sits on a shelf collecting dust.

Bud may know a lot about the detail industry, but I believe his view of carwash is somewhat narrow. Yes, there is a percentage of people that you will capture on an impluse basis. Some will be first-timers who live within your area and others will be random pass-throughs that you may never see again because they don't live within your area. After the first visit, your wash will become a destination for people who live within your area. These people will become your most valuable customers and the ones on whom you should bestow the greatest amount of effort. As such, you will have at least two distinct segments to market to and each requires a different strategy and set of tactics.

I hope this helps.

Bob Roman
www.carwashplan.com

 

[Waxman]

Doug;

Your comment about 'rose colored glasses' misses the mark, I think. I'll let it slide.

It seems to me that your constant stating of facts about a poor economy closely resembles complaining and it's the same thing the news shows do. They could easily report on positive things, but rarely do.

It's great that you are developing your marketing more. You probably have more business experience than me and definitely more carwash experience, but here's what I have learned as facts in my own life: You create what you think about all day long. Need a primer on this? Check out Earle Nightingale's "The Strangest Secret".

All markets are different. Customers share similarities. If you experience tough times, you need to change your thinking and methods, which it sounds like you are doing. I like your observance of uniforms and employee behavior. I could use work in those areas and I plan to execute asap!

Thinking positively doesn't mean burying your head in the sand. It means focusing your energy on what you intend to create. We all have to work within the confines of weather and economy. I just think that by focusing on negatives attracts them and vice-versa with positives.

 

[bigleo48]

When I advertise, I give a discount coupon code that my Wash Select 2 can track. So I can see how often it gets used. During the coupon period, I see many new faces who are here to try the wash...and that's exactly what I'm looking for. I have the best IBA around (not BS), so I am confident they will be happy with the wash and will come back. These people usually stop and walk around the car and we are almost always there to greet them and go over the car with them. Attention to detail always pays off in the end. My competitors are just not willing to spend the time and effort to do this and in the long run will not get the numbers we do.

Big Leo

 

[Ben's Car Wash]

Bob,

I didn't mean to "plug" Bud and not you... lol! It was just an example. Advertising has many forms. I put out a sign in my wind master for the $3 wash.... BINGO... people can't resist it. I have a 2'X8' digital reader display that runs 24/7 too.

Dave,

This thread was not started by me, I did not "complain" about the economy. I plainly said how it is and how I am responding to it. People in our industry are struggling to bring in customers unlike ever before, at least that is what I am hearing. Maybe you are hearing differently or seeing it "half full", I'm looking for a "cause and effect" and trying to to prepare for how I can deal with it. So you or other don't like how I "pass it on"... I'll just stop posting (cheers in the background).

 

[Waxman]

Doug,

If you read my post back it acknowledges the changes you are making and observations about employees. These are great ideas. It seems silly that you'd say "I'll stop posting" because I criticize what I view as complainig. I'll admit it, I've gotta be a glass half full person. If that differs from your viewpoint, that's what makes this forum interesting, I guess.

I did notice that you glossed over the Earle Nightingale thing I mentioned, which is exactly why I think it's relevant.

 

[ted mcmeekin]

We do no advertizing and never have except to promote our free vet washes. Our position is a little unique in that we have the market locked up for 30 miles ,our average ticket is over 90 % of top end , and we provide excellent service so our only up side hope is to flush out new customers who do not routinely use car washes and this is a tough time to do that. Any one have any ideas or experience in pulling this off in these market conditions?

By the way I think this dialogue is healthy compared to the posts that everything new is always a great success--eg within the past few months have heard that CC in bays have produced huge double digit increases, rainex sales increases are over the top, advertizing results in transferring many customers etc, etc---It is refreshing to hear from those who share and acknowledge not so happy results.. The two most significant change we have made in the past years are increasing SS from $1.50 ti $2,00 and installing in bay bill acceptors. Hard to sort out exact results but believe thee bill acceptors have made little to no difference and price increase has been a net plus but volume is down.

This stuff is alot like looking for gas mileage imrpovement gimmicks where individually they sound unbelievable but yet most agree that gross way off. Sort of like your gas tank overflowing if you believe in all these.

Ted