tobaccofarmer
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Hello everyone I was wondering what others have experienced when a $3 express wash opened in their area?
Impact of $3 express wash
- Thread starter tobaccofarmer
- Start date
Depending how close it is and if it is in the same traffic pattern as your wash it will make things difficult. You will need to be proactive. Make sure your wash is doing a good job and the site is in good shape. A lot depends on how well they operate.
robert roman
Bob Roman
It depends on the situation.
Most self-service operators tell me the impact can be as much 30% to 40%.
Some of my clients have taken as much as 50% from their competitors.
The real question is what to do about it.
Most of the suggestions I have read about what to do are pretty lame.
If you want to get the customers back and more from the driveway, you have to become more like Mike.
This means changing the business model.
Otherwise, you may want to consider getting out of the car wash business and seek salvation with a dog wash or selling water and ice, etc.
Most self-service operators tell me the impact can be as much 30% to 40%.
Some of my clients have taken as much as 50% from their competitors.
The real question is what to do about it.
Most of the suggestions I have read about what to do are pretty lame.
If you want to get the customers back and more from the driveway, you have to become more like Mike.
This means changing the business model.
Otherwise, you may want to consider getting out of the car wash business and seek salvation with a dog wash or selling water and ice, etc.
Greg Pack
Wash Weenie
It will take a couple of years to see the full effect. It reduce your auto market to mostly those that prefer nothing touch their car (if you're touchless)
I would do my best to try to beat them to the value punch. Start offering better value/ freebies NOW instead of waiting for them to get close to opening. But if it is well run by a good operator (as opposed to investor run) it blows a seriously big hole into the side of most everyone's business plan I know.
3.00 express is not a hugely profitable model unless there is some serious volume going through the place (10K cars). Most around here are 5.00, and goo-goo has their base wash now at 6.00. But looking at your user ID I'm guessing that you may be dealing with a fellow from Atlanta. I'd heard that he was developing North Carolina, and 3.00 base has been his model.
I would do my best to try to beat them to the value punch. Start offering better value/ freebies NOW instead of waiting for them to get close to opening. But if it is well run by a good operator (as opposed to investor run) it blows a seriously big hole into the side of most everyone's business plan I know.
3.00 express is not a hugely profitable model unless there is some serious volume going through the place (10K cars). Most around here are 5.00, and goo-goo has their base wash now at 6.00. But looking at your user ID I'm guessing that you may be dealing with a fellow from Atlanta. I'd heard that he was developing North Carolina, and 3.00 base has been his model.
Waxman
Super Moderator
express evasion fandango
i have a 10 year old 6/1 ( with touchless:lasr). considering upgrade-- i have reason to expect an express wash to locate in my area within next couple of years.(new 100 million dollar hospital being built half mile from me {and more housing, restuarants, etc are expected to follow}.i am currently unattended & have a covered vac island( located in front of ss bays).idea of going with a new radiantz by w world ( with new bldg:not converting ss bay) is appealing but i perceive that that would entail hiring an attendent.the idea of me putting in an xpress wash is kinda demotivating.( i have another job with significant responsibilities).
my town has population of 60k and already has 2 express washes( one operates via $4 wash / free vac model --- stays Busy). my location is 2 miles from the closest xprees... average household income is about 45k,,, ---economic base of community is mix of medical/ industry/and a 12k student university.we are 90 minutes from the closest major city, thus repair expeneses can be problematic.... thnx, kemp
any thoughts anyone?,,,,,
i have a 10 year old 6/1 ( with touchless:lasr). considering upgrade-- i have reason to expect an express wash to locate in my area within next couple of years.(new 100 million dollar hospital being built half mile from me {and more housing, restuarants, etc are expected to follow}.i am currently unattended & have a covered vac island( located in front of ss bays).idea of going with a new radiantz by w world ( with new bldg:not converting ss bay) is appealing but i perceive that that would entail hiring an attendent.the idea of me putting in an xpress wash is kinda demotivating.( i have another job with significant responsibilities).
my town has population of 60k and already has 2 express washes( one operates via $4 wash / free vac model --- stays Busy). my location is 2 miles from the closest xprees... average household income is about 45k,,, ---economic base of community is mix of medical/ industry/and a 12k student university.we are 90 minutes from the closest major city, thus repair expeneses can be problematic.... thnx, kemp
any thoughts anyone?,,,,,
raisetheprice
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We just had one open up within 2 miles at $5+. I've had some customers come back already claiming it damaged their vehicle. I've never seen it lined up even on a Saturday. They even had just 1 side of their vacs running last Saturday, a wonderful weather day. People still want a good touchfree wash. Use an attendant to get to the few spots where a touchfree is weak (windshield, wheels, grill) and you're turning out a great car. We recently added more coin vacs and give our wash customers tokens to use in the vacs for free. That's really their only draw against you other than a cheap price. We all know that 75% choose the top wash which is higher than yours I bet, so beat them to the punch with free vacs somehow. In our scenario the best part about the token is they can use them anytime. With the tunnel, they have to use the vacs at the time of their wash. Most of the time, people don't have time to vacuum right then, but want a wash only. The token gives the customer the freedom to vacuum on their time & terms. Or get a large bag of ice at our site. We are only offering the token on the $10 wash currently.
Waxman
Super Moderator
Seems like only in certain larger markets would the $3 express model work well.
Another idea is to add a fast friction machine to compete better. You could knock a base wash on your touchless down to $5 or $6 to proactively compete w/ an express, too.
Some operators here offer brushes a customer can use to prep their own car prior to an IBA wash and/or a free towel dry station.
Those 2 things can create loyalty.
Knowing what little I do about this business, I would convert 1 ss bay to a friction wash that can wash the car in 4 min. or so and keep the price point lower than my IBA and let the chips fall where they may.
Another idea is to add a fast friction machine to compete better. You could knock a base wash on your touchless down to $5 or $6 to proactively compete w/ an express, too.
Some operators here offer brushes a customer can use to prep their own car prior to an IBA wash and/or a free towel dry station.
Those 2 things can create loyalty.
Knowing what little I do about this business, I would convert 1 ss bay to a friction wash that can wash the car in 4 min. or so and keep the price point lower than my IBA and let the chips fall where they may.
i dont know wat u get for $3 xpress but there is a new ryko softgloss ( in a new glass bldg)across the street from a $4 express with free vacs in my town... for $6( i bought gas, possibly got cwash discount?) i got : brush , presoak 2x, spot free, and dry--very nice wash / very inexpensive
Waxman
Super Moderator
I'd talk to the ryko owner and ask his experience. sounds like the perfect scenario you want to study.
tobaccofarmer
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Looks like his $3 is a presoak, friction wrap and spotfree, and dry since dryer never shuts off in tunnel.
Tom Thumb
Active member
Have a $3.00 Express opened Jan . 2009, located about a mile from my 2/4 and it has had a 20-25 % effect on my wash, I really do not know if the change is because of the new wash or just the economy/new wash. The thing that I do not understand is how they can operate with 2/3 employees and open only 8a.m to 7 p.m. and make a profit, just their investment on the land and building not including the equipment is around 1.2m.
The most cars I have seen at the wash at one time is 4 waiting to enter and five at free vac.and this was on one of the better days this month.
The way I see some of these $3.00 washes the only person making any money is the salesman who sold it.
The most cars I have seen at the wash at one time is 4 waiting to enter and five at free vac.and this was on one of the better days this month.
The way I see some of these $3.00 washes the only person making any money is the salesman who sold it.
Greg Pack
Wash Weenie
Tom, most expresses in this area try to develop at somewhere between 1.5-2 million, so the costs are in line with the model if the volume is there.
Some tunnels start off like gangbusters, but it seems most in this area take about 2 yrs for the business to peak.
Most express base washes do a very respectable job if set up properly. Some try to run their conveyor faster than their equipment package should allow and the result is skunk stripes on the back and some other missed spots, but in general they will out clean any touch free. It is much easier to beat the dirt off a car.
Do not confuse short lines at an express with no customers. These are not IBAs. Most can do 40-50 cars an hour with virtually no line. If they are stacked big time (10-12 cars in line) they are probably washing 80 cars an hour. Customers however, quickly learn they will be washed pretty quickly, with the line moving continuously and less than a minute per car wait. These are rough estimates by me for the typical southeastern express tunnel model, a tunnel of less than 100 ft and an 80-100 car/hour chain speed. Occupancy of vacuum spaces however, should tip you off to how busy a place is. Five cars at most at the vacs is not enough! I have a friend who does about 8K and he almost always has five cars vacuuming even weekday mornings. On weekends he has 15 cars or more under the vac canopy.
Another rough rule of thumb is that due to customer upgrades ticket average is roughly $2 over base, so a $3 express is averaging roughly $5 per customer, maybe a little bit more.
There are a handful of $3 express washes doing 15K cars/month and this in large part has been what set the industry off. Many of the me-toos are doing much less volume, but with a $5 base and a 5K/month average the numbers usually "work". At $5 base and 7K/month you have some happy owners. In my region new investors have turned away from SS/IBAs and look almost exclusively at express wash projects.
Some tunnels start off like gangbusters, but it seems most in this area take about 2 yrs for the business to peak.
Most express base washes do a very respectable job if set up properly. Some try to run their conveyor faster than their equipment package should allow and the result is skunk stripes on the back and some other missed spots, but in general they will out clean any touch free. It is much easier to beat the dirt off a car.
Do not confuse short lines at an express with no customers. These are not IBAs. Most can do 40-50 cars an hour with virtually no line. If they are stacked big time (10-12 cars in line) they are probably washing 80 cars an hour. Customers however, quickly learn they will be washed pretty quickly, with the line moving continuously and less than a minute per car wait. These are rough estimates by me for the typical southeastern express tunnel model, a tunnel of less than 100 ft and an 80-100 car/hour chain speed. Occupancy of vacuum spaces however, should tip you off to how busy a place is. Five cars at most at the vacs is not enough! I have a friend who does about 8K and he almost always has five cars vacuuming even weekday mornings. On weekends he has 15 cars or more under the vac canopy.
Another rough rule of thumb is that due to customer upgrades ticket average is roughly $2 over base, so a $3 express is averaging roughly $5 per customer, maybe a little bit more.
There are a handful of $3 express washes doing 15K cars/month and this in large part has been what set the industry off. Many of the me-toos are doing much less volume, but with a $5 base and a 5K/month average the numbers usually "work". At $5 base and 7K/month you have some happy owners. In my region new investors have turned away from SS/IBAs and look almost exclusively at express wash projects.
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Completing against an EE with a touch free automatic is difficult. The majority of EE's do a good job of cleaning the exterior of a vehicle including the tires. Almost all offer tire shine and do a very decent job of producing clean, dry cars. In our area and in most of the others I have seen less than half the customers use the vacs so I wouldn't rely on how many are vacuuming to estimate their car count. In most cases they need to average at least 6,000-7,000 cars a month which is why many that build in a bad location struggle. Another drawback I often see is a poor layout on a small plot.
For any IBA to compete they need to perform at an optimum level. Touch frees need to be especially fine tuned to produce the best results. In some cases it might be advisable to have someone do prepping at peak times. One advantage most IBA's have is extended hours and usually the convenience of being easier to get in and out of with the appearance of less traffic . Competitve pricing is also important. Many in our area are going up to $4 and in other areas up to $5. Not only is this an indication that they are not getting the volumes they need to survive but it tends to make competitive pricing more feasible.
For any IBA to compete they need to perform at an optimum level. Touch frees need to be especially fine tuned to produce the best results. In some cases it might be advisable to have someone do prepping at peak times. One advantage most IBA's have is extended hours and usually the convenience of being easier to get in and out of with the appearance of less traffic . Competitve pricing is also important. Many in our area are going up to $4 and in other areas up to $5. Not only is this an indication that they are not getting the volumes they need to survive but it tends to make competitive pricing more feasible.
