May Business Boom

[eda]

So after today this will be my best May since I have been in business.
Trying to determine if it is the weather, a turn for the better in the economy or just good old fashion work and service paying off.

I opened in 2007. 6 months ago a $3 wash opened 2 miles away. He is doing good, but it seems that my business has grown too. A year ago I revised my pricing knowing that he was gonna open.

It is hard to imagine, cause one would think it would cut into the car wash market pie. However, could it be like a car dealership row, or restaurants grouped together it seems to have educated people or they take more of an interest in car washing, and business grows.

Is this wishful thinking? Is it mainly the favorable weather in the Midwest?
Has the economy turned?

Not boasting as that is not my style, just curious on your expertise/thoughts.

Eda

 

[rph9168]

There could be several reasons. I think that the new wash may have increased the market size by possibly adding customers that did not previously use a professional car wash and may have extended the area where people will go to get their vehicle washed. I have also seen situations that if they are too busy their overflow adds customers to existing surrounding washes. Another possibility is that your wash outperforms the new wash.

In any case be thankful for the upward trend.

 

[Washmee]

The mild winter combined with lots of sun and no rain has made this month a real winner. I think the economy is coming back slowly, but nothing drives the wash business more than sunshine and blue skies.

 

[semocarwasher]

Ditto on the weather. April was the best month for me since I have been in the business and May is looking awfully good as well. However, you have to put in all the hard work, etc. to be ready when these times come so you are obviously doing something right.

 

[dewey9876]

eda - you said you revised your pricing knowing he was opening up. What were your prices and what did you go to, if you don't mind me asking. Did lowering your prices help increase your volume? Volume is great but are you bringing in enough $ at your new prices?

Pollen season was great here in the north east, we have recently had some rain that washed some away. Over all pretty good spring!

 

[eda]

Thanks for the replies/comments. Collectively I think all your views are accurate.

Yes, at the end of the day weather trumps all. However, prepping and towel drying every car, we certainly deliver a better product out the door, which probably also helps. I think his big sign, marketing, getting people into car washing at a professional establishment helped me grow too. He got people interested in washing for $3.

My wash and towel dry pricing went from $5.75/$7.75/$9.75 to $3.99/$6.99/$10.99. I feel with his price point led to getting old and new people to start washing more. Next, they realize we do a better job. Then I feel they rationalized for another $1 we remove bugs, touch up, towel dry, manually apply tire shine we are worth it.

My business is up 31% for the year, which coincides with his opening and my new pricing. My average ticket went from $7.65 down to $7.17. Overall total revenue is greater. My labor is only an additional 7%. Simply, on a year round average I had 3 1/2 employees a day probably doing the job of 3 men. Now, generally speaking I have 4 guys doing the job of 4 guys.

In my opinion if you re-format your pricing with a lower package also add a higher wash so the revenue per car doesn't take as big a hit. My top package which increased in price has actually gone up 2% of sales.

Also, if you are an old fashion exterior like me and actually have people do things other then load and push a button let people know. I have added a whole marketing campaign centering around "we do more".

I have a lot of respect for what Sonny's and the others have done for the industry as far as eliminating/reducing labor and adding online products to assist. HOWEVER, 2 sets of wrap arounds at 150 an hour line speed will NEVER clean as well as 1 set of wrap arounds and prep and towel dry at 100 cars an hour. And don't even compare an online tire shine vs a hand applied tire shine.

There are many more points I could elaborate on as far as what has worked for me and how to take the $3 wash format on, but I think you see what can be done when you get a $3 competitor to light a fire under your a--! The most important thing I realized is don't wait for him to open, then it will be to late. The day a shovel goes in the ground make your move. It gave me a 4 1/2 month head start to get my program going. I thought I was gonna be done in for, now, HONESTLY it has helped my business grow.

Eda