New Car Wash Competition

[soapy]

I read a interesting article in Automotive News today. As automotive dealerships are being consolidated into larger groups with fewer owners it is making sense for them to build their own car washes. They are setting them up as stand alone profit centers to not only clean the cars they sell but also to introduce new customers to their dealerships. They typically offer free car washes for a number of years if you buy the car from them. Dealerships have been washing cars for years at the dealership but this is a new service that is setup off site in direct competition to private car washes. One dealer with 18 new car dealerships has already built 2 washes with more planned in the future. They also offer detail services. I can see this becoming common place in large communities. I think this will hurt the Express wash industry harder than the typical SS wash industry. One thing I know about car dealers is that they all copy each other worse than any other industry I can think of.

 

[rph9168]

I have seen several car dealers do this and fail. The main problem as I saw it was that the washes were not well run and management was left to employees either on the way up or down. In addition it is much like the free maintenance that some offer. If it is convenient for those customers that live in the area but others really don't drive out of their way to wash their vehicle. If they can correct those issues they might succeed but I am not sure it is a profitable venture for them by the time they build the wash and try to run in as a profit center. Time will tell but I doubt it is cause for concern at this point.

 

[Car_Wash_Guy]

My friend owns a fairly large and all new Toyota dealership. They just completed installing a touchless ( A PDQ if I recall ) in his dealership. For now, he's only going to be using it to give customers when receive service a complimentary wash, but he did mention the idea, by both he and Toyota corporate, to expand the wash.

 

[Earl Weiss]

Several local dealers offer free washes for life to those who purchase a new car from them. Between those washes and washing cars they service they really cannot accommodate any more retail so while it's a ding in demand, it's not a huge ding. One also offers free breakfast on Saturday mornings.

 

[robert roman]

One of the objectives of consolidation is market share. Market share is a function of customer attraction rate and customer loyalty rate.

So, dealerships work hard to attract and keep customers from going elsewhere, just like carwash operators do.

How does factory judge how successful dealerships are at this? Sales volume and customer satisfaction index (CSI).

Stand-alone facility makes sense because it often incorporates pre-delivery inspection, used car reconditioning, aftermarket installation, express oil change, etc.

Who it hurts most is incidental.

Recall how many carwash operators were put off when ICA presented “Car Care as an Additional Profit Center” at the 2004 NACS show.

ICA’s rationale – making convenience store and gasoline retailer’s better car washers is good for the carwash industry overall.

I’ve worked with over 20 new car dealerships including acquisition of full-service, building exterior express, multiple profit center development, repositioning strategies, etc.

These owners are top notch, formidable competitors, very successful.

Of course, it’s not for everyone. It takes space and commitment.

For example, I know several dealerships that would like to get into carwash. They just don’t have enough available land to do it.

 

[soapy]

As all have pointed out most dealers do have a on site car wash. This concept I am is a separate wash in a location away from the dealership. More in a high traffic area of retail sites. Time will tell if it pans out for them.

 

[6t7gto]

Chevy dealer, here, offers free manicures while your car is in for service.

 

[Randy]

We have one up here at a high auto dealer. They have 4 automatics. It’s free for anyone who purchased a car or had their car serviced at the dealer ship, they give you a wash code. It’s open to the public, credit cards only.

 

[mac]

I have some experience with this, and at this point I doubt there is much to worry about. The vast majority of the washes I see at dealerships would fail if ran as an independent wash operation. The equipment is mostly outdated junk. We are talking about Broadway and NS machines designed in the 70s. I mean mitter curtains instead of a top brush !!??? Just how many of those do you see on automatics at real washes. The cloth material I see down here in FL literally has mold, fungus, and sometimes plants, growing on it. Chemicals are a joke. And a bad one at that. Competition will always be there, and it will always emerge as something different. It's no different than the washes a C stores. How many of those have you seen that produce a clean, shiny, and dry car?

 

[rph9168]

The problem with any wash that is run as a marketing tool or perk rather than a profit center is the quality is never maintained. I have seen several c-store chains prioritize their washes and do very well with them but they are the exception rather than the rule.

 

[Earl Weiss]

I mean mitter curtains instead of a top brush !!??? Just how many of those do you see on automatics at real washes.

I don't know if you are referring only to IBA or tunnels. FWIW few new tunnels in Chicago use Top Brushes. I have one left and was happy to get rid of last 2. (I am aware that some tunnel operators luv them)

 

[WikiWash]

I don't know if you are referring only to IBA or tunnels. FWIW few new tunnels in Chicago use Top Brushes. I have one left and was happy to get rid of last 2. (I am aware that some tunnel operators luv them)

Hey Earl

Why don't you like top brushes?

 

[Earl Weiss]

Hey Earl

Why don't you like top brushes?

I know others have different opinions but having to be concerned with the Large Taxi rooftop ads, (Lots) and pickup beds roof racks etc., my tunnels with triple mitters or the one where I took out 2 top brushes (had them for about 25 years) and replaced with 2 Sonny's 901 mitters does just as good a job without the hassle.

Still have one Foam AVW top brush (+ 2 mitters at this lcation) and if the opportunity presents itself to get a good used mitter it's gone

Here's a vid of my old Slant unit replaced about 3 years ago. rear hanging brush did a great job washing the hind end at speed but it was temperamental.

https://www.youtube.com/watch?v=BPxHw_2mqlk

Location with AVW unit

https://www.youtube.com/watch?v=hJ8z5Klq2W4

 

[mac]

Mutters work sort of OK at tunnels because if someone sees bugs all over the front they hand wash them off. That simply will not work on an in bay auto, which is what a lot of auto dealers use. With kick butt chemicals and the autos I sell, I can get them off every time.

 

[Earl Weiss]

Mutters work sort of OK at tunnels because if someone sees bugs all over the front they hand wash them off.

We do not use manual labor at all. Chicago does not have a bug problem like some areas. I don't care if it's mitter, top brush or whatever. If Bug Guts, Bird Poop, have cooked on for a long time the only safe thing that will get them off is plenty of dwell time.