Is this possibly the "New" thing that will turn the SS industry around?

[Greg Pack]

Hi guys, I Haven't been to the forum in a while. I'll make a couple of calls and try to get some updates.

There have been other conversions. I haven't spoken with the owners but I have noticed no one has converted back to traditional. The last time I spoke with the principals at Goo-Goo they were having a positive experience at their converted site in Auburn, Al. The general impressions are that net revenue increases and the hassles typically associated with a SS decreases. One wash has converted in my area and another is getting ready to convert.

As mentioned in earlier posts, this format is not for everyone. If you're one of the lucky ones with above average bay revenue this probably isn't for you. I could also see some difficulty with a small location. But we have many SS car washes operating the traditional way in this town that aren't grossing $500/bay

 

[Car_Wash_Guy]

Hate to resurrect a 5 year old thread, but there seemed to be quite a bite of information here along with some first hand operator experience.

I was just at the show and didn't hear a single mention of this format, and was wondering if it fell by the wayside? Seems interesting and was wondering how those that converted are doing 5 years on, and if anyone else has either converted or are thinking of doing so?

 

[robert roman]

I believe the format never caught on because it breaks with tradition and maybe more so because of the investment required.

 

[mmurra]

We are over 5 years in and are very pleased with the customer reaction and the car counts. The utility numbers are the same as prior, pretty much. The WAUW gated concept is much easier to manage as there are not coin / bill acceptors to cause problems. I would never go back to charging the old way. I am making a nice return on the investment, first time in decades! Mark

 

[robert roman]

That’s great, Mark, except it doesn’t help answer the question of why this concept hasn’t leached out into the fleet.

I see no articles on subject, no conversion equipment packages, no glowing advertisements of financial gain, etc.

Over last five years, I’ve done projects all over the country and have never come across one or heard of one other than two sites referenced long ago in a trade magazine.

Have any thoughts?

 

[Greg Pack]

There are four in Birmingham, Alabama.

The one that started this post years ago did a substantial cosmetic rehab when he converted. Revenue went from averaging around 50K to 150K, which is the highest grossing SS only car wash in the area. Before conversion, his best year never topped 100K. One is poorly run and is by all definition has continued to be a failure. i don't agree with what they did, they oversimplified the place and took a lot of the marketing pizzaz out of the concept: Combination vacs had their shampoo and fragrance options removed. They disconnected presoak, triple shine, and spot free rinse when they converted, but left those selections on the meter doors. even the HP wax doesn't work. The family is affluent and into other larger investments, and the wash has just turned into an unwanted stepchild.

I don't see this as a thing that will start a development or equipment boom, just a way for an operator with underutilized bays to try something different. If the wash is run well, the customers really seem to like the concept.

I have recently considered buying one and trying it as a retirement vehicle of sorts. I'm getting older and the SS only would be much simpler to run in semi-retirement than a wash with IBAs. Ten years from now you could probably accept credit card only at the entrance and not raise too many eyebrows. You could visit the site daily with CCTV. With aggressive PM and a good cleanup guy a once weekly visit would probably suffice.

 

[mmurra]

We charge $8 entry fee to our 6+2 WAUW and provide all services in bay (triple coat, etc), as well as free vacs, free scent machines, free air for tires, free carpet cleaning machine and use or terry towels to dry the vehicle when dry (we wash the towels). Once the customer is on the property, have at it! We do more than 50% of income in credit cards, growing daily. In a small, rural market, we do much better numbers than indicated above. The wash is attended every day. The only way to spend money once on the property is to buy a couple vended items for detailing the car. We very occasionally ask someone to find another wash due to overuse / abuse, but in general, it is not a problem. In fact, it is much more fun to deal with customers willing to pay $8 to play, than all the people who used to come onto my lot for free!

The concept is limited by lot size / location and by our industry's preconceived notions about how to structure a successful business model. Investors gravitate to what is happening in the industry. If nothing is happening in a particular niche, nothing is noticed. Lastly, necessity is the mother of invention and if you struggle long enough, no matter how fearful, you are motivated to act, as I was. I did, thankfully!

 

[Greg Pack]

Hey guys, just digging up this old post and updating. I try to do this so that this forum can serve as a bit of a knowledge base.

In March 2019 I started leasing a gated 5/1. An express tunnel was built across the street several years ago from this site and it cut revenues severely, so the owner converted it as a last ditch effort to make money. He became ready to retire so he sold this site to a friend who owns the tunnel across the street. My friend has no interest in SS anymore, so he offered it to me on a lease purchase. I took it over and am running it but my friend has since decided to eventually knock it down and build a strip center. So, I'm leasing it as long as cash flow allows. It's in a middle class community but has a large Spanish customer base. SS is $10, Auto is $10 or $11, with ability to use anything else on the lot.

My experience/observations so far:
1)I go during the week and the place looks dead- like "I'm losing my ass" dead while I'm there-maybe a customer or two on the lot.
2)Much less garbage than a traditional site
3)Mud at this location hasn't been terrible
4)You have to ignore the wastefulness of customers. Watching them wash cars drives me nuts. "Just look at the numbers" is what I tell myself.
5)Automatic revenue behind the gates is terrible, less than 10% of site revenue. At my other sites autos provide the lion's share of income.
6)You've still got to provide a decent quality product. I like the buffet example- An all you can eat buffet is only a good value if the food is good. Its the same with this. You can't expect customers to pay $10 for a product that doesn't perform. I think this may have been a problem for the previous owner.
7)In bay dryers are a bad idea at this type of site because they tie up a bay too long.

I currently spend about five-six hours a week there with two weekly visits. Pulling the money takes ten minutes out of two cashiers. I just pull the vending money out of the vault once per month.

Anyway, despite the wasteful customers you want to yell at and the feeling the place is dead we grossed $7500 in May. With a little patience and diligence I feel this will come up even more. I still maintain this could be an excellent semi retirement vehicle providing great supplemental income for very little work.

I do have a contract on a shut down 5/2 that's about ten minutes away. It will be interesting to see how that impacts revenue at this site when I get it open in a few Months. I'll try to let you guys know.

 

[Greg Pack]

More fun with youtube links on the new forum software Here's a video of a couple of guys stumbling across a $7 unlimited wash setup. They seem very pleased with the value. Which one of you guys own this?