Utilites are killing us

[toxc107]

Here are last quarters' numbers:

Total IBA Sales: $3213.75

Chemicals: $1574.30
Repairs: $ 621.31
Utilities: $4699.07

Net Profit: -$3680.93

Our machine is an old Autec Hybrid (actually a Powerain) that has no adjustability whatsoever. We probably only wash around 700 cars a month. Many are free washes with our oil change.

My question is what is a dependable IBA that costs the least to operate. I know much of that will depend on the distributor, but I HAVE to cut utility costs and repair costs. Any ideas? I'm in the DFW, Texas area if that matters. Thanks!

 

[Jeff_L]

Probably hard to calculate, but how many car owners get their oil changed at your place because you offer the free wash?

Maybe since the economy is the way it is, you could offer a car wash at a reduced price for oil change customers?

(I know you weren't looking for solutions on your pricing, but it's the first thing that came to mind after reading your post.)

 

[toxc107]

Probably hard to calculate, but how many car owners get their oil changed at your place because you offer the free wash?

Maybe since the economy is the way it is, you could offer a car wash at a reduced price for oil change customers?

(I know you weren't looking for solutions on your pricing, but it's the first thing that came to mind after reading your post.)

Basically we have washes priced at $3, $5, $7, and $9. Oil Change customers get the $5 car wash for free or $5 off a $7 or $9 wash. We only get car wash upgrades on about 10-12% of the oil change customers.

Here are the wash packages:

Works Wash $9
Double Hot Presoak
Double High Pressure Wash
Clear Coat Sealant
Sealer Wax
Triple Foam
Spot Free Rinse
Blow Dry

Deluxe Wash $7
Double Hot Presoak
Double High Pressure Wash
Clear Coat Sealant
Sealer Wax
Spot Free Rinse
Blow Dry

Super Wash $5
Hot Presoak
High Pressure Wash
Spot Free Rinse
Blow Dry

Express Wash $3
Hot Presoak
High Pressure Wash
Spot Free Rinse

 

[Waxman]

~ are you capturing and re-using your ro reject water?

~ are you utilizing a timer on your production boiler so it's not making hot water in off-peak hours?

~ have you installed more efficient lighting in and around the carwash?

~ there are also 'Y delta starts' you could install on big motors.

These are a few ideas.

 

[toxc107]

are you capturing and re-using your ro reject water?

Nope. Straight down the drain. How would I go about this?


are you utilizing a timer on your production boiler so it's not making hot water in off-peak hours?

Just heating the presoak.


have you installed more efficient lighting in and around the carwash?

There are 6 MH fixtures that are on a timer and only run for 12 hours a day.


~ there are also 'Y delta starts' you could install on big motors.

What is the cost on this? My machine is mostly hydraulic. The big motors would be my pressure washer motor and my 4 dryers. How much of a difference would this make and what does it do exactly?


Thanks in advance

 

[Jeff_L]

Capturing your RO reject water would help your water bill quite a bit for your automatic. I capture mine since it's been softened and dechlorinated already, so it's very clean water as it is and I use it for my rinse cycles.

Instead of piping it down the drain, it goes upstairs into 6 x 55gal drums all plumbed together. They then feed into the supply side of my automatics. In one drum I have city water tapped into it with a float valve that keeps the water level high enough for the autos in case I haven't made any RO in awhile.

 

[washtubman]

Is your utilities for just your IBA or for your entire operation? What is the breakdown for the utilities, ie, how much for water, etc? That sounds horribly high if its just for the IBA.

 

[Greg Pack]

It is hard to suggest anything with limited information. Your free wash to oil change customers skews the numbers. Knowing car counts/percentage of free washes, upgrades, etc. would be helpful. If 75% of the cars you're washing are freebies/loss leaders, there won't be much we can do to help you.

 

[JJJakubowski]

"WashTubMan's" question is the one that I gotta ask too --- whaaazzup with those utility costs?!! For a wash in Texas during the Fall months, they can't be all laid on the IBA ... or can they?!!

Of course if considering a new IBA --- going with one of the new foam/friction IBAs would cut operating costs (less water, less chemical, less/no heated solutions, less gas/electric, and a bit more thruput).

JJJ/SSCWN
------------------------------
The Poster Formerly Known

 

[toxc107]

The utilities are just through the car wash. It was well over $6k for the lube center and the car wash.

I will get exact car count numbers to share with everyone as soon as I finish gathering information. Then we can look at percentages, etc.

What machine does a good job with low cost?

 

[Waxman]

Look at the 'How I made $ saving changes' section.

Lotsa stuff on ro reject reclaim there. I built my system and installed it for $500. Instant $$ savings with this idea. You can do it while you are researching machines, then adapt it to whatever you buy fairly simply.

 

[Waxman]

Well, I think as far as water/sewer and chems, friction units are less expensive to operate.

 

[toxc107]

Well, I think as far as water/sewer and chems, friction units are less expensive to operate.

Which friction unit do you recommend?

 

[MEP001]

Can you give a breakdown of the utilities? Our 6/1 costs far less than half yours to operate, and the auto alone does quite a few more cars per month than yours.

If your electric is based on peak usage, using the "y delta start" or variable frequency drives to start high-load motors such as the dryer will keep the peak down.

Your chemical costs are incredible. I get a pickup bed full of soaps at a time, costs about $2,000, and it will last at least two months. The auto will run about 45 days on a $700 barrel of presoak, and the rest (Drying agents and tri-color CCC) might cost about $100 a month combined.

 

[toxc107]

Your chemical costs are incredible. I get a pickup bed full of soaps at a time, costs about $2,000, and it will last at least two months. The auto will run about 45 days on a $700 barrel of presoak, and the rest (Drying agents and tri-color CCC) might cost about $100 a month combined.

Incredible good or bad?

I didn't think it was bad at all to run for 3 months on $1500 worth of chemical on probably 21-2400 cars. Thats less than 65 cents per car for an old touchfree.

 

[dclark3344]

I have worked with the electric company to change the way they did the billing and it saved me quite a bit of money. There are generally several different ways they can charge you. My meter is one of the new style that keeps a constant record in 15 minute intervals and determines an actual Demand Charge seperate from a Usage Charge. This is something you need to discuss with your electric company, and if they do not want to help then I would contact the corporation commission. I have 32 each 320 watt MH with 30 each 40 watt floresents 2 automatics and 8 self serves and my total utilities averaged less than $3,500 mthly for the year and I am one of the busiest in town.

 

[waright]

We need a breakdown of the utilities in order to help you more. I'm guessing you're paying about $950/ mo. water/sewer, $200/mo.gas, $350/mo. elec., $100/mo. misc. ($4,700/3 mo. equals $1500+/mo.) You can cut these some, but they're not what you need to focus on.
Your gross is $3200, your car count is 2250, so you ONLY average $1.22 per car. THIS is your major issue. How much increased revenue in the oil change business is genereated by giving $5 washes away?
What percent of your customers get the $3, $5, $7, and $9 wash.
What percent of the total washes are freebee $5? Take the freebee $5 percent and multiply it times the wash expenses. This amount is the dollars of which the oil change revenue must cover.
Next get rid of the $3 wash. you need to get the wash packages priced closer together. 5,6,7,9 might be a better alternative. You should work on getting the wash revenue higher.

 

[MEP001]

Incredible good or bad?

Opps, sorry, thought that was per month, not per quarter.

 

[Dirt]

Chemicals.
My Softgloss XS gets 4500 cars per 55 gallon drum of Fonic Wash.
10,000 cars per 55 gallon drum of HYB Shine.
Thats hard to beat.

 

[Greg Pack]

IMO, you're gonna have to get your percentage of full retail customers, and your ticket average of oil change freebies up. Already mentioned before to some extenet, but FWIW:

I think you should charge at least 1.50 per freebie wash as an oil change expense. It's not the car wash's fault it is being forced to work for free, and its' numbers should reflect that.

I would try to find a way to get the customers back on your lot between oil changes perhaps a coupon code good for thirty days for your top wash for $5.

Your customers must perceive additional value in the higher priced washes.

I would get the upgrades cheaper , in $1 increments

I would try a temporary drive in special- top wash for $5 or something. Try to get some business in off the street. You might even pick up a few oil change customers doing that.

I don't think there is any auto in the world that will save enough on utilities to make it a cost effective purchase. It's like buying a new hybrid car to save $100 per month on gas. A new auto is gonna come with a $1000/month payment. The numbers just don't work. If you can get your volume and ticket average up it might make begin to make sense.