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New Self service option

MEP001

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bighead said:
you know what they should do: install some sort of LED light in the applicator...
They make them for faucets:

 

Earl Weiss

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I’ve been tracking various industries since 1995. My estimates are pretty close to the following.

Today, average self-service yield (5-bay) is 25,000 CPY, down from about 35,000 in 1998.

Reportedly, there are 25,500 self-service locations, down from about 32,500 in 1998 and 24,000 conveyor locations, up from about 19,000 in 1998.

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I assume CPY = Cars per year, although most SS track cycles and not cars, what is the aveerage CPY for conveyors?

Another issue with SS as we know people like to play "Beat the clock" They plan to spend $X and get the job done. So, adding more functions or different functions may not equate to higer receipts as easily as the package system in Tunnels.
 

robert roman

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T is price - cost of material. If in-bay price is $7 and 8% cost ($0.56), T = $6.44 (7 – 0.56)

Add hot wax (cost $1.25) for extra $3. T = ($10) - ($0.56 + $1.25) = $8.19

$8.19 - $6.44 = $1.75 (opportunity of not selling). Apply to system and 20% of buy wax (typical).

T w/o wax = (15,000 * 7) – (15,000 * 0.56) = $96,600

T with = (12,000 * 7 + 3,000 * 10) – [(12,000 * 0.56) + (3,000 * 1.81)] = $101,850

$114,000 / 15,000 = $7.60 average with wax versus $7 without or extra $0.60/car. If you charged $4 extra, increase is $0.80/car.

Wand disadvantage is selling minutes (applesauce) versus in-bay selling discrete units (apples).

A wash is designed to handle peak so it can achieve potential. Reason is most money comes during busiest days of week and hour of day.

If average wand use = 10-min (8-min wand, 2-min other) = 6 cars/hour (CPH) or 5 wands = 30 CPH.

25,000 cars/year (CPY) = peak-hour 4 CPH/bay times 10-min = 40-min or availability of 20-min/bay.

Wand can make more money via higher price, more discrete visitors (attraction) and/or existing customers buying more (loyalty). Latter two consume available time remaining/wand.

It’s difficult for seasoned wash to increase counts without lowering price significantly or offering greater value added than other washes.

If you sell wash for $0.45, cost is $0.02, profit = $0.43; add $0.03 wax and don’t raise price, profit = $0.40

Since wand does not bill discretely, you hope for very high percent of customers to use wax and constraint = available time in bay.

Arguably, workable approaches are JBN concept (bill separately at higher rate), pay-one-price (discrete billing) or add wax and raise price/minute (across the board).
 

MEP001

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I'm seeing where some of your thought process lies now. Your math is based on peak usage of bays and COGS vs maximum income. The vast majority of the time, there are empty self-serve bays, so in that case the more time a customer spends washing the more profit is made as long as the service they're using is profitable bottom-line.

The hardest part of operating a successful self-serve car wash isn't maximizing the profit per hour by upselling services (or not offering the ones that cost the most to deliver), it's filling the idle time with repeat customers. Otherwise, we'd all just have soap and rinse.
 

Earl Weiss

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robert roman; If you sell wash for $0.45 said:
If I get where you are coming from I see a flaw in the above. Yes, the wax has a cost of .03, but in the SS except fro countup the extra cost wax function is being used instead of something else. So, the .03 extra cost is offset somewhat by the cost of the other function not being used. If it causes the customer thru count up or by adding money o use more time than its an addittional profit generator perhaps reducing average profit but increasing overall profit.

I have the same dispute with tunnel cost studies when they use a cost per car that includes costs of all extra services on an annualized basis. I think you need to figure nthe incremental cost of each addittional revenue item to see if that item is worth selling.
 

robert roman

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“Your math is based on peak usage of bays and COGS vs maximum income.”

The math in last example and spreadsheet considers these factors as well as available time to model and simulate conditions (static not dynamic) rather than analysis based on “one” carwash service.

True, many wands are underutilized except for busiest times. However, when wash attracts more business, it typically occurs around these times. Exceptions - something like early bird special; $2.00 off between 8am and 10am.

“The hardest part of operating a successful self-serve car wash.…(is) filling the idle time with repeat customers.”

Absolutely, however, it’s nice work only if you can get it.

So, I mentioned approaches like JNB concept, POP or creating value added and raising price.

Consider a SS with plain building with minimal bay lighting, industrial grade vacuums, drop shelf vendors, push button POS, no bill or credit acceptance, minimal advertising, low-tech in-bay and no amenities.

Compare this to one with contemporary building, bright lights and signs, premium vacuums, multi-vend, air-dryers, rug beater, touch-screen POS, high-tech in-bay, swipe card, loyalty program, plenty of wand functions, great products, etc.

Of these two washes, which one do you believe would have higher customer attraction and customer loyalty rate and, therefore, the greatest share of a market?

Similarly, which one would have the potential to command higher price points?
 

robert roman

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Earl, I understand the metrics. However, my estimates indicate hot wax is three times more expensive than SS soap based on application rate.

So, it would be great for SS if it attracts new customers and/or convinces a high percent of existing customers to use it.

“I have the same dispute with…..cost studies….cost per car (inclusive)…..of all extra services on an annualized basis.”

I don’t because the results have use for benchmarking peers as well as trend analysis.

Are they good for establishing cause and effect? I agree, no.

There are other tools for this purpose. One example is the partial throughput accounting shown in attached spreadsheet. Another is benefit/cost.

For example, there are online Javascript programs that allow for what-if analysis. Inputs include total fixed cost, variable unit cost (must be derived) based on expected price and unit sales.
 

JustClean

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You can do all theoretical mathematics in the world to figure out, if or how much a product in the self serve bay might or might not cost. In the end nothing beats a trial.
Can't wait for Soapy's results. In the meantime has anyone tried to "bubble-up" Rain-Ex or similar and use it through the brush?
I like the idea of applying "wax" with the brush and then rinsing it off. It feels more "valuable" than through the gun (plus it takes longer to rinse it off).
 

Earl Weiss

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“I have the same dispute with…..cost studies….cost per car (inclusive)…..of all extra services on an annualized basis.”

I don’t because the results have use for benchmarking peers as well as trend analysis.

Are they good for establishing cause and effect? I agree, no.

.[/QUOTE

Like all tools they work best if used correctly. But when you are at a show Guy1 says my cost per car is X and Guy 2 says my cost per car is X- and guy 1 beats his brains out trying to figure out how to lower his cost not realizing he is generating more revenue because of more extra service sales.

Had a guy on this forum (now out of business) who could not believe how low my extra service sales percentage was compared to his. However he never factored that by March 1, I had washed more cars than he would the entire year. Everything needs to be judged in context.
 

robert roman

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“Everything needs to be judged in context.”

Earl, absolutely.

“You can do all theoretical mathematics in the world to figure out, if or how much a product in the self serve bay might or might not cost. In the end nothing beats a trial.”

Absolutely, so try it yourself, all carwashes are not created equal.

Although you may shake a stick at math all you want, I would sooner trust it more than divining rod, lucky horseshoe, rabbit’s foot or four-leaf clover.

For example, it is suggested God helps those who help themselves.

So, I would trust in driving 300 miles to safe zone rather than standing under a tree holding a bible during a hurricane.
 

JustClean

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FYI today I put a bit of my Blendco Durashield that normally gets diluted on a rag and rubbed it on my car. Fantastic! Absolutely like a hand wax. If we had somehow an applicator for the SS bays that would be a fantastic new option. I'm going to do my whole car with it.
 

MEP001

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JustClean said:
If we had somehow an applicator for the SS bays that would be a fantastic new option.
Just before this thread began I ordered an Erie cloth "brush" to try out - I'm not too impressed with the fact that it's assembled with a single, white nylon zip tie, but otherwise it seems like it would be an ideal choice for applying such a product in a self-serve bay since it's the same material that follows the application of the product in a tunnel.



I didn't order the "gentle" version:

http://www.kleen-ritecorp.com/p-36584-erie-brush-gentle-foam-master-blue.aspx
 

johnny

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soapy;good idea
anybody have any ideas for anything new for ss.
no matter how far off the wall they are.
sometimes pieces from one thing added to another work out.
exp,how about a led light in a f/b handle at the brush head
[in a tough short plastic tube]
it will not help clean a car but will look cool when water and soap are going through it
 

Earl Weiss

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Tire inflator air in the bay.

Mr. Hoffman added a compressed air boom for blowing out nooks and crannies. There is a post on the forum about it. I thing it's regulated to 60psi with a standard air trigger blower.

Seperate boom with a seperate tire / wheel foam brush. (I think Mr. Hoffman has this as well. )
 

soapy

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I finally found some donated product to test. Blue Coral came through with some. Now I just have to get some time to switch things around to give it a try.
 
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