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POST: V-Blog #44—Disruptive Innovation

Uncle Sam

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The Forbes magazine covers a multitude of subject matter and a recent issue had an article about how very small companies can use new technology and ideas to create cheaper, simpler and unexpected products that can humble the largest of corporations. We have all seen it happen over the years, but we had no name for it. It is now called “disruptive innovation” by professors in our business schools.

The mainframe computer companies were “disrupted” by the personal computer development and the old telephone systems were “disrupted” by the cell phone development. The new smart phones will give both the computer and old cell phone a difficult time. The “postal service” has been “disrupted” by email and the internet. We see it in the car wash industry where the old full serve washes and older IBA washes have been “disrupted” by the “Express Exterior” washes creating value and clean cars for the car wash customer. Halo Booms brought bypass booms and Etowah Valley brought retrofits for the old Rowe changers and Hamilton ACW’s when bill acceptance was very poor and stringing got so bad.

Car wash vending at a wash, if any, was done by mechanical drop-shelf vendors that were easily vandalized or worked unreliably. The revenue generated by these was not significant and some operators thought vending was hardly worth the time involved. This business model was “disrupted” by the electronic computer-controlled merchandiser with a window and guaranteed delivery that rewarded operators with high montly sales when they installed them in the vacuum area of the wash. Vending revenues from these machines can equal the revenue of a car wash bay or from all the vacuums on a wash site. The merchandiser allows the customer to select from up to 51 car wash items and/or purchase drinks and sodas too. The new merchandisers are getting cheaper, are more secure, guarantee delivery, and can accept payment using coins, tokens, bills, and credit cards.

Uncle Sam :)
 
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