Labor rates

[C-Ray]

I currently operate my two sites (self serves and IBAs) without any employees. I keep running numbers to determine if I want to build a tunnel. With 11-13$ an hour it might make sense but I see 18$ right around the corner for entry level wages. The local restaurants are already at 15 starting for teens, entry warehouse is at 20, Amazon is at 22. The labor shortage isn’t going away.

Can most tunnels stay competitive without raising membership fees with these labor rates? Does anyone have any models that have taken rising wages into account? Hesitant to jump into this model given this factor.

 

[I.B. Washincars]

I wouldn't touch this model with a ten foot pole. There seems to be very little ethics involved and the business model appears to be to just build right on top of a wash that looks to be successful. Not to mention the cut throat pricing and all the free stuff. The canaries will stop coming out of the mines soon (actually I think it's already started) and you should be able to pick one up for pennies on the dollar. The industry finally pretty much killed off the gas station freebie wash, and now it's turned on itself.

 

[OurTown]

(actually I think it's already started)

I agree on everything you said except I'm not sure about this part. What makes you think it has already started?

 

[C-Ray]

I agree on everything you said except I'm not sure about this part. What makes you think it has already started?

What I see to support that is non stop advertising for help wanted and managers working nights and weekends to cover. Just a matter of time before they increase prices to cover higher wages so they can recruit competitively. I just don’t think 40-50$ Monthly unlimited memberships are digestible over the IBA prices.

 

[I.B. Washincars]

I agree on everything you said except I'm not sure about this part. What makes you think it has already started?

A Facebook post a few days ago on Talkcarwash. Someone was parting out their express wash because someone built a new one directly across the street.

 

[I.B. Washincars]

I just don’t think 40-50$ Monthly unlimited memberships are digestible over the IBA prices.

I recently retired and now use an express myself. I pay $17.95 per month for my first vehicle and $8.95 for the second one. $26.90 keeps my vehicles washed all month. There is also another express just 1/4 mile away.

I think they look at any major intersection as the potential for 5 express washes, because eventually someone will build a two-story wash...

 

[MC3033]

I’ve watched numerous express washes up wages a few bucks an hour in the last year. Every area is different but I’d expect $13 to be the new $10 within a year. If you want okay employees that aren’t all in high school and less hiring issues at least $15. If you want solid people your going be $17+

The bigger question is if you want to put tons of time into managing and hiring employees as well as working at the wash when someone quits or doesn’t show up.

The market is accepting higher membership prices. $40 plans aren’t that rare, even among major players in the unlimited game.

The competitive building is the biggest risk. People are only getting riskier and dumber.

All that said, if your willing to put in the cash and the time an express is highly rewarding. If your willing to work your ass off I recommend it