New Tunnel Coming...

[washnshine]

So what’s the point of your counter argument post? That the express model is profitable? That’s bloody obvious.

No not at all - I think most operators realize the well-run locations are very lucrative.

I was offering suggestions for the OP, who runs a self serve IBA to compete with one.

Right - and if he has the capital, space, land, resources and ability to twin or triple his touchlfree automatics that can help him. If that is not feasible, then he has no choice but to live with the throughput of the machine he has. Not a criticism, just a reality that we all have to live with. The cosmetic and paystation upgrades, however, are helpful if he has not already done so, but cannot improve his volume.

I never said it was on par with full serve but express wash labour isn’t anything to scoff about. It’s huge compared to the IBA express model and only climbing higher. I was projecting annual costs of 400-500k in labour for a tunnel project. You need an on site manager, assistant managers and a ton of part time labour and always hiring for when they leave you in a lurch. It’s an all consuming lifestyle

Yes - and that shows you the profit that they are turning - even with those costs.

clubs aren’t exclusive to express washes either.

Absolutely true - I think the washes, both tunnel and IBA, that do not offer the club option are the perfect and logical choice for customers who do not want to be part of a club. Most IBA operators I personally know do not opt for the club options due to the throughput limitations. We will see if this changes as more club members emerge from the boom of EE's.

did your post aid the OP?

I was not offering specific advice, as I had seen he had received quite a bit already. On this forum, posts consist of questions, answers, advice and just general discourse over the topics that are posted.

I have read the responses to many of the members with similar posts - operators who are encountering the builds of anywhere from 1-10 express exteriors on their turf, over the course of just as many years. Virtually everyone I have read, and what I have experienced personally, is that good-quality express wash competition will eat into your customer base by (insert number)%, as it varies from location to location.

Just in this post alone, I think Diamond Wash, Greg Pack and Rfreeman hit the nail on the head - not to discourage, but be aware that it can be tough if the competition is of good quality. I'm certainly not saying to roll over and play dead - not at all - he should do all he can to compete, but depending on the OP's limitations, site potential, and the quality of the new EE, he should be well educated on the potential impact on his business.

 

[fastlx]

Thanks for all the posts. The new location for the tunnel is not exactly on the main road, it's behind a Burger king. I'm on the main road, and I own the property.I know i'll lose some IBA customers but I will still get the customers who don't want a friction wash and I have the 2 SS bays. I'll let everyone know who it is coming in when I find out myself. I heard a company out of Chattanooga,TN? Any ideas?

 

[soonermajic]

Good advice on here

 

[Islandwash]

The maddening part about this is the distance from you. There are so many great locations without existing carwashes nearby. The big factor which will affect you is the distance, from your site. Investment groups are blind to that issue assuming their operation can overwhelm any competition even that of other Express Washes.

One quarter mile is not good at all. Two years ago, a new express wash with free vacs opened 1/4 mile away from my 4 bay self serve & conveyor. My bays are down about 15% and the conveyor over 30 % down. My Vacs are up because I redid them with new. It is possible to survive, but much of the fun is gone. The only answers are to improve operations, appearance and marketing. You will be working harder for less money, but surviving. Change as always happens, and our measure is how we adapt.