Gas Prices..

[CarWashBoy]

Hi, How do you guys/gals feel about the impact of High Fuel prices will affect the Car Wash Biz?

 

[mjwalsh]

My memories of observations when gas prices have skyrocketed in the past ... people drove less ... which in turn made for less car washing. Less discretionary spending funds left over ... also comes into play. Also IMHO ... credit card debt eventually does catch up with some of the automobile owners .... sorry I could not resist!

 

[Randy]

With regular gasoline at $4.79 and diesel at $5.69 we are already seeing a decline in the car wash business. I think it’s going to get worse once the motoring public get there credit card bills and see how much they are spending on gasoline. The high price of diesel is going to hurt the trucking industry, everything is trucked to the stores so the truckers are going to have to raise there delivery prices to make a profit. It’s almost planting season the farmers are going to have to spend more on diesel fuel for their farm equipment and pay more for the fertilizer. So your food costs are going to be going up. It’s not going to be fun times.

 

[Eric H]

With regular gasoline at $4.79 and diesel at $5.69 we are already seeing a decline in the car wash business.... The high price of diesel is going to hurt the trucking industry, everything is trucked to the stores so the truckers are going to have to raise there delivery prices to make a profit.

Remember “fuel surcharges” from the last time prices were this high? Expect that charge to come back!
To the OP, now is the time to start looking at ways to become more efficient. Can you move your SS spray tips to an 06 from an 07 and save some money on your water and sewer bill? Can you move to a powdered soap to save on shipping costs? Can you switch to a high efficiency boiler for your floor heat? (If you haven’t done this already you are letting A LOT of money go up the chimney) Some costs are out of your control so you need to tighten up where you can.

 

[Wash4Life]

I would have to think it'd be a negative. Less driving means less washing.

 

[MEP001]

Remember “fuel surcharges” from the last time prices were this high? Expect that charge to come back!

When did they go away?

 

[cantbreak80]

I bought a Duramax in 2003 when fuel was <$1.00/gal. IIRC, fuel prices doubled 2 months later. Grrr!
I just bought a new truck in Dec. It doesn’t like regular gasoline! Grrrrrrrrr!

My service call fee includes travel and the first 30 minutes of diagnosis and repair.
I’ll be adjusting that to 15 minutes soon.

If business slows…well, OK. It’s almost golf season.

 

[washnshine]

This is where the C- stores and operators that cross-merchandise gasoline sales with washes can leverage their wash. Offer discounted washes with gas, or gas discounts with a wash and they can pull in people during these times that might not be their regular customers. It doesn’t offset $6/gallon gas prices, but it can be an incentive.

 

[Dirt]

So if all of these prices are going up, should the price of a carwash go up ?
My prices have remained the same through numerous water and sewer rate increases.
Leave them alone, or blend in and charge more, like everyone else is ?

 

[washnshine]

So if all of these prices are going up, should the price of a carwash go up ?
My prices have remained the same through numerous water and sewer rate increases.
Leave them alone, or blend in and charge more, like everyone else is ?

I’m my opinion, since we are not “as necessary” as gasoline, raising prices in the middle of all of this would not do us any favors.

 

[Randy]

I was going to raise my prices but decide to hold off for another 6 months and see were things go. This week has been absolutely beautiful here in the Pacific Northwest, not a cloud in the sky and business is down about 20-25%. Washing the car isn’t a top priority when you’re struggling to put food on the table for your family.

 

[washnvac]

Last time gas went above $4 in Delaware (August 2007), the business took a straight decline downwards for the next 5 years. This time is a little different, as there is not a banking and housing crisis. Anyhow, with the cost of everything we need at the car wash increasing we have decided to go ahead and raise our auto prices $2. This will put us at $12, $13, $14. Self serves I do 30 minutes bay time, we are raising that to $8 from $7. Not going to worry too much about losing car counts, as the revenue should stay the same or increase. Less wear and tear on equipment, and same or more revenue sounds good to me.

By the way, gas here just went down 10¢ today to $4.19 for 87 octane (regular).