How to restructure my wash labor

[tw1012]

There is one tunnel near me but its quality of service is poor and their most basic wash (including vacuuming) costs $17.

I have been talking to some car wash people and they are telling me that their regular wash services only help them break even on their overhead and that it is the detailing that puts them over the top and makes the profit for them.

I was doing fine this summer (averaging 1400 cars per month) and making a decent profit but now that it has slowed down with the winter I am basically breaking even.
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[Earl Weiss]

100 cars at $8 = $800.

120 cars (Bud's example of 20% increase in volume) at $5= $600.

Plus more water, chemical, electricity etc. costs for the extra 20 cars in the example.

Maybe certain circumstances warrant a decrease in price, but it'd have to be alot more than 20% increase in volume to make more money.

Me thinks there was just a mess up on the math. $5-$8 is a 60% price difference, so obvioulsy you woud need a 60% so you would need a 60% jump in volume to hit the same revenue, and as you not this is still not an equivelent bottom line due to incremental costs.

 

[robert roman]

Here are major points you have brought to our attention.

1) My business has dropped off
2) I have tried to step away from the wash and give myself weekends off
3) I am alienating customers
4) I am thinking about hiring an experienced detail guy (an outsider) and making him responsible for motivating workers and quality control
5) I know very little about detailing
6) I don’t have the passion for detailing the vehicles myself
7) I am thinking about hiring an experienced detail guy as a consultant (what does he know about the car wash business) or partner
8) I know that there is a major operator in my area that is looking for sites to open near me
9) I would really like to get my business up and cranking fast so that I can establish loyal customers before the new wash opens

Before you can tackle number 8, I believe you need to put the horse before the cart.

For example,

1) Consider strategies to maximize the property as a car wash site before dabbling in detailing of which you have no passion or skills
2) Weekends have always been the bread and butter of the carwash industry – indifference is the number one reason customers don’t come back
3) Developing a business model is usually the first step in building a business. The model should describe how an operator intends to attract customers, deliver value to customers, get paid for doing so and profit. The loyalty business model is the foundation of the industry. It is based on the notion that quality of product or service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability.

 

[tw1012]

I have started working more at the wash including weekends. My business dropping off is due more to the colder weather and rain days. We are still slammed on sunny days and the wash quality is still good. With a couple days a week of no business due to rain and people checking the weather and not getting the car washed if rain is coming the volume has fallen off. Every time I am at the wash people tell me how much they like it and how great the service is.

I am not trying to be defensive I just truly believe that we are doing a good job on the exterior wash part of the equation.

Where I need help is in the added services and how to restructure my wash. I know there is a high end market out here and if I could switch my wash to a hand wash and high quality detail shop (and preferably keep my current laser wash customers that want a quick 10-12 minute wash.

I know everyone is warning me against bringing in a partner but I still have not gotten solid reasons why this is a bad idea, please enlighten me.

Here are my current thoughts:

Establish a baseline revenue, what I am currently making on the wash.

1. I am paid that amount over expenses each month before the partner makes anything.

2. Establish a split on any revenue above that amount. (70%-30% 60%-40%)

3. He would have an interest (30-40% of the business) not including the real estate value after a 5 year period.

4. We would establish a work schedule and required number of hours until we got the business up and running and then would establish time requirements that each of us has to perform (certain number of hours per week, etc.) to maintain the higher quality.

5. He would have a noncompete in the area where he would not be able to establish any type of detail or wash service for a certain number of years.


The other option is to hire him as a consultant but have no idea how much that should cost.

He is more than just a detail shop they do hand washes (high end) as well along with a monthly wash one price for unlimited as well.

 

[Waxman]

Do not enter into a partnership. It's a poor business idea for this type of business. I speak from experience.

Run everything yourself. Learn detailing and train staff. There are several ways to go about this.

In business, carwash and detail especially, you want to have control over all aspects of the business where control is possible. It is better to have sole decision making ability. Detailers will try and run the show: "I don't like these chemicals, tools, lights, rags, dirty cars", ETC. They need the owner or manager to make all pertinent business decisions.

 

[soapy]

I would do the 3 following things at the wash you have. 1. I would put a self service prescrub bucket in front of each automatic. A 30 gallon barrel works well. Use a small Wheels wizard brush on a fiberglass handle. The people who like clean wheels and tires can get out and prep themselves. 2. At the exit end of the automatics put out some self service towels that people can use if they desire. You can pick up some at Sam's or Costco. You can wash the towels at the wash in a stack washer and dryer. I have done both of these things for over 15 years. It has eliminated me having to pay all the extra help you are talking about. 3. I would also drop my prices so that $10 is your high price point and $5 at your low point. People will see the value you offer. Very few people abuse these services in my experience. A wash doing 1400 cars per month will loose around $100 per month in towels which is a lot less than the labor you are talking about.

 

[robert roman]

“I still have not gotten solid reasons why this (partnership) is a bad idea, please enlighten me.”

Some of the reason(s) are contained in the five points you outlined above.

Experience has shown these types of arrangements usually fall apart very quickly. Then what? Apologies do not build customer loyalty.

Gobs of research shows people want more convenience and value for their money today, regardless of social status.

In many areas, the “quick” 10-12 minute in-bay wash has given up considerable share to the “quicker” and “higher quality” 4-minute express wash service, having an average of 8 minutes total guest time on site with use of free vacuums.

A 15 to 20-minute express detail service is a good fit with an express wash service, keeping total guest time on site to 30 minutes or less. Express detail can be learned quickly.

However, because about 50% of your customers will be women, you will need a clean waiting area and clean bathroom. Otherwise, people may not wait.

Tom Hoffman, Jr., a very successful car wash owner, once said success in this business is 20% splash and equipment and 80% how you treat customers.

As the property owner, I believe you have more to gain by maximizing wash volume and determining how to best fit detail services in rather than depend on a detail guy to tell you how to best run your car wash business.

 

[tw1012]

So how do I learn detailing? We do a pretty good job but the windows are never as clean as I would like them to be and I have no idea how to use a clay bar or buffer.

for that matter I don't even know the best way to apply the wax

 

[Waxman]

Start with this.

http://www.autodetailingnetwork.com/detail-in-progress/

There are now more resources than ever for learning any trade. I apply paste wax with an air-powered random orbital polisher. Clay treatment is easy to learn. The skills required in detailing are basic. The important part is developing a process that you can use on most every car for each operation (interior detailing, waxing, headlight restoration, etc.), then teaching detailers your methods.

 

[pitzerwm]

If you do it, get the divorce in writing before you start. That way everyone one knows what will happen if things change and someone isn't happy. Remember you have all the risk, he has almost none.