Holding Off on a Haircut to Buy a New Car

[scout]

It is normal for spending on goods to bounce back faster than service spending during a recovery, but this time around, the disparity is especially stark.More---

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http://online.wsj.com/article/SB10001424053111904491704576574901552964000.html


Single best article on why car washing is having a bad year--

 

[Greg Pack]

I too have modified my habits to reduce personal spending. I get haircuts less frequently, eat out less often, attempt to travel more efficiently by combining trips, etc.

I have also talked to customers who visit my place less frequently because of similar goals. This could be especially troublesome for operators who have touch free units. I can clean a car that comes in every two weeks, but if they reduce washing to once a month the success rate drops.

I think another issue affecting us to some extent is the explosion of portable electronic devices. I think America's love affair with cars is waning as they devote more time and energy to their iphone.

 

[Waxman]

iphones will get boring just like the computer gets boring.

car sales are positive.

quit whining. focus on the positive.

 

[MEP001]

Discussion of a problem often leads to a solution. We're struggling to get the bills paid this year. There's no "positive" in the foreseeable future unless we figure out something to do differently.

If you're doing well, great. That doesn't give you the right to judge those of us who aren't.

 

[copperglobe]

Agree

I agree that people are doing things differently in the societies where we live. Their spending habits are different. Don't know the reasons as I'm no expert on habits but they are doing things differently. This year, and the past couple years for that matter, have been a challenge to say the least in the car wash business. I've been in the business now for 22 years and I've never been so frustrated with what my results have been in the business. It's hard to keep the positive attitudes up and not loose confidence in the industry as a whole. I really feel for those owners that have come into the industry in the last few years and are paying huge debts and interest along with the other bills that are associated with the industry. I don't know how they're doing it.

At one of my washes we had a promotion where we offered completely free automatics for a week's time. Totally free. This occurred during a great week weather wise. The results? The ratio of that wash's numbers compared to my other wash remained the same as the past 22 years. Even though we offered free washes people only came in at the same ratio as the other wash where we were charging full price. Habits are different. Don't know what those habits are, but they're different for sure.

 

[Waxman]

"Stay positive and quit whining" aren't judgements.

Some things you could do: look at other businesses; used car sales, rental properties and car detailing. All have potential to add to cash flow and profits if done properly.

Reduce expenses: recover r.o. water, install cold water rinse, shop around on chems, get cfl lighting, etc.

There are ways to survive. I am not setting any sales records this year and it is a struggle for me to stay positive, too. I also have a tough time with all the bills, but I'd rather focus on the plus side and keep my eye on increasing sales while decreasing costs.

I sent 2 carwash brushes back to a supplier today because he had them at $18.95 each and Kleenrite is $9.95 for the same brush.

I just don't see a benefit in complaining about consumer habits. They are as they are! Our focus is to promote ourselves as best we can, offer high quality service and be diligent about income/expense.

And p.s.; My wife has been cutting my hair for years!!!

 

[rph9168]

There is no denying that our industry is down. Manufacturers have cut back on production and on field support. Distributors are not selling any new equipment and only those with a good customer base that they can provide goods and services to will have the best chance to survive. Most operators are experiencing reduced volume and revenues. In my over 33 years in the business I have seen many bumps in the road but none that have lasted this long and created so much hardship.

I think it is important to maintain a positive attitude and look to see how you can improve your operation and marketing as best you can with the limited resources at hand Things will get better eventually. Those that survive and have planned for the future will be stronger than ever. Unfortunately there have been and will be some casualties at all levels.

 

[Waxman]

Thanks Ron. It's good to hear someone say "things will get better eventually".

I invested heavily in my carwash and detail business right before the recession and I am, as they say, 'all in'. Maybe that's why I stay positive whenever possible; I intend to be open for business when things do improve and stand ready to realize great profit that I feel my company deserves.

 

[bigleo48]

quit whining. focus on the positive.

IMHO, Waxman's could have put it a little better. I think what he was saying is that whining gets you nowhere and try an see more clearly.

However, I think all of us during difficult times go through something like the grieving process, where we go from hurt, anger, blame, frustration and eventually we start to see clearer. It's important to go through this, see it for what it is and not make a decision until we feel clear and balanced. So at times "focus on the positive" can prevent you from seeing things for what they really are...especially if they are bad. However, we also must to overreact and realize what's important "family, friends, etc). At times I feel Waxman's is too positive and swings the balance to the positive. For me that would swing the pendulum to far on the positive side and thus be further away from the realistic point that I like to live.

 

[Waxman]

In real life I get negative and bitchy and all of that just like you guys. And rest assured I am a realist when it comes to business, money and finances.

However, money is just a tool, nothing more or less. It's meant to be circulated, not hoarded. I refuse to focus too much on the negative side of anything because what you focus on is what expands.

I know Bigleo and I accept his opinion of me even though I don't fully agree. I see solutions to problems and feel that owning a business is a game. A game I fully intend to win at.

As far as others, complain all you want, but I will call you out on it if I feel like it is warranted. That's just me, looking at the glass half full because I need to, personally and professionally.

If I did, in fact, thinks things were always fine, would I be continuously tweaking my operation for efficiency and profit, like all of you are? No.

 

[pitzerwm]

My approach is to focus on solutions rather than stewing about the problem. Crap happens everyday. There will always be something effecting your income.

 

[washedup]

Brother I don't think your whining. I think your dealing with reality and I'm with you. The struggle continues.