Is the game over?

[1carwash1]

Recently, there seem to be a number of foreclosed car washes coming onto the market. Most all are SS, SS/auto, or just stand alone automatics. The prices are/seem attractive too. Normally, i would not hesitate to acquire one of these assets, however, the market here ( Atlanta) is flooded with express washes. Some operators seem to think the era of SS or automatics is over others say the market will come back. I have several questions. Is it possible for a stand alone touchless automatic to survive in close proximity to an express wash? How about offering both touchless & friction automatics in close proximity to an express. I guess i am asking if, in general, it is possible to compete on any level with an express? And if it is, what would be the best marketing strategy?
By the way, i have been out of the game for the last couple of years due to the sale of my washes.

Thanks

 

[Red Baron]

I don't buy into the theory that express is better than full serve is better than IBA is better than...the car wash industry seems to want to make it that simple but I don't think it is. As with most businesses, the biggest factor in the success is the way you're running it - are you doing a better job of running it than the competition is.

I also think creative marketing can overcome slow economic times. You can sit around and belly ache about how bad it is, or you can find a new angle.

If the economy was the biggest factor, why are some car washes still experiencing growth while others in the same area are bk?

 

[Whale of a Wash]

I agree with red, with the theories of success, but you sold for a reason , which was probably a good price, before the market got really loaded. I am not sure why someone would want to compete with a close by express. I my area the highest price I have on a IBA is $6 as the expresses are $6. Getting back in may be the way to work harder for less money, Unless the prices are really too low not to take them.

 

[Red Baron]

I agree with red, with the theories of success, but you sold for a reason , which was probably a good price, before the market got really loaded. I am not sure why someone would want to compete with a close by express. I my area the highest price I have on a IBA is $6 as the expresses are $6. Getting back in may be the way to work harder for less money, Unless the prices are really too low not to take them.

The guy who makes my signs has a quote I really like: I learned a long time ago that every person who walks thru my door doesn't have to be my customer.

I think car wash owners have brought this on themselves. If more car wash owners ran their business the way Pitzer ran his (Leave the bay cleaner than you found it...) the general public would not have learned that anything goes at the local car wash. It annoys the heck out of me that a few hillbillies think their 6 quarters entitles them to do whatever they want with the wand. When one of them cops an attitude about "this is a car wash, ain't it?" I explain it to them this way: Look, every business you go into has rules. The Dairy Queen across the street won't let you go in without a shirt, the bank next door won't let you go in with a concealed handgun, the fitness center next door won't let you go in smoking a cigatette - all businesses have rules, and so does this car wash.

The sooner I can **** off the hillbillies, and have them tell their like-minded hillbilly friends what a jerk I am and they should never go to my wash, the better off I am.

 

[rph9168]

I live in the Atlanta area and would answer your questions with the following.

Is it possible for a stand alone touchless automatic to survive in close proximity to an express wash? It depends on the area the wash is in and the location of the wash in regard to the express washes.

How about offering both touchless & friction automatics in close proximity to an express. If you can afford to do so that would be a plus.

I guess i am asking if, in general, it is possible to compete on any level with an express? Yes, depending on some of the factors I have already touched on and how you intend to operate.

And if it is, what would be the best marketing strategy? That would depend on the specific site you would have and the local resources you could tap into.

It is tough to give you answers without more specifics.

 

[smokun]

If you're considering an express wash, I seriously suggest reading this:

http://www.moderncarcare.com/articles/management/carwash-analysis-express-exterior-flex-serve.html

 

[Greg Pack]

A well-run express is tough, tough competition for any SS or IBA

We have pretty high priced SS bays where I'm at. 2.00/4 minutes is the norm around here. Expresses prices start at 5.00. Look at it from a consumer's perspective: An express is faster, and (if set up properly) will clean much better than most customers can washing it themselves in three cycles. A well run express outcleans any touch-free IBAs. Plus, around here they get free vacs. It is simply the best value in washing, and customers are looking for value now and in the forseeable future.

Having observed the entire express cycle which started here over five years ago, I would caution people to be careful when buying existing SS/IBA washes in metro areas. I don't anticipate any sort of "swing back" to these formats if a good express is nearby. Buy based on the numbers they are doing now. Good operations might indeed bring some business back in, but you shouldn't pay the previous owner a premium based on that, that should be your reward for hard work.

Some of you guys will take great offense to this. But I don't the SS biz ain't coming back with a roar. It might as well be 1970, and we're a group of drive-in movie theater operators.

Having said all that, I will still buy a SS/IBA if the price is right. Building a new one is pretty much out of the question, though.

 

[robert roman]

?Is it possible for a stand alone touchless automatic to survive in close proximity to an express wash??

The short answer, for stand-alone in-bay, is yes.

??.if it is, what would be the best marketing strategy??

First, you have to understand the competition?s value proposition to the motorist.

This includes faster process time; less time in waiting line; high quality basic wash & dry; on-line extra services; free vacuums; and lower price (e.g. $3 or $4 base price).

How can stand-alone in-bay automatic be more like express exterior?

1) Make the process faster. For example, this could mean using better, faster and/or more machines (carwash system and POS), changing the process layout (e.g. convert from standard to express in-bay format) and having an attendant/manager on-site to provide a more customer-centric operation (e.g. answer questions, educate customers, solve problems, support customer loyalty program, etc.).

2) Touch-less doesn?t ?clean, shine and protect? as well as a hybrid system that is equipped with material that cleans wheels/tires and shines the paint while the vehicle is being washed.

3) Provide more services (total body, rust inhibitor, wheel cleaning, tire shine, etc.)

4) Provide enough vacuums to satisfy the demand for ?free.? For example, a dual in-bay that can wash 30 cars an hour should have 7 to 8 vacuum stalls.

5) The more production capacity you can provide the lower the base price point you can support.

6) Offer a strong base carwash service (e.g. no wet-wash). After all, you are competing against a high-performance conveyor not other in-bays.

7) Market to your strengths. We offer everything they do plus we are open 24/7, the other guys aren?t.