We need innovation, any ideas?

[pitzerwm]

When people have money they will pay for convenience.

In another vain, I've been in a number of 3rd world countries, and most of the young people that I see have a cell phone min. and a lot of iPhones. Somehow they get the money.

When a car is a person's total net worth, they will spend money to take care of it. It will depend on your demographics.

 

[Waxman]

What I don't get is the lack of response to some really good ideas after ideas are solicited.


I resort to comments about pill popping out of frustration that the only true concept bantered about is unlimited/gated SS. That seems as hard to make work as traditional SS.

You know, I bet the express model isn't easy either! If you had a big nut to crack each month and the conveyor broke on a Thursday night preceeding a (wx predicted) bangin' wash weekend, you'd need something stronger than xanax!!!

It's not always a slam dunk for express, I'm sure. Some of them are in trouble, too. I don't think you can ever blame decreased revenues on any one thing in this business. My point is; why not work on things that you can control and look to improve there?

Sure, it'd be great to invent the next foamy brush, but to be honest, if I were thinking of that or similar I wouldn't give you or my best friend or even my lovely wife the idea to run with. It'd be the "Waxman 2000 foamy brush".

I understand alot of revenues are down. Mine are too. I am making less and working hard. But I feel the same as RPH in that carwash business models are varied and complex but sustainable under proper circumstances/business climates. There are opportunities created out of every problem if you have the right mindset. Do you?

 

[rph9168]

I don't think any sector of our industry is dying, they are changing. I am sure some of us remember when IBA's first came to popularity and many thought it was the end of the self service. EE's are another simply another format for a customer to have their vehicle washed. As Waxman brought up they do not run themselves and can be a financial disaster if built in the wrong location or are poorly run. I believe the pie of people using professional car washes is getting bigger while the pieces are changing in proportion to the percentage of people that use them.

While I doubt high volumes will return and the decline we have experienced in recent years will end, in most cases it makes the other elements of the business more important like increasing revenue through promotions, marketing or new services at your wash. It also means watching expenses a little more closely by keeping up with routine maintenance to make your equipment last a little longer, using chemicals efficiently and controlling energy and water usage as much as possible.

The whole country is in a slump and other businessmen and people in other industries are pretty much singing the same song as we are. I have seen many innovations in all the sectors and feel there are still some that will appear at some time in the future. In the meantime do whatever it takes to operate profitably until the economy starts to improve and the weather cooperates.

 

[Earl Weiss]

Perhaps because like most things, success is 10% inspiration and 90% perspiration.

And, perhaps the innovations are there, it's more a factor of whether operators implement them all. I know I don't . The reason I don't is that I don't see the cost benefit. But others do, more or less.

For instance I think Hoffman has 5 booms in his bays. How many do that?

Really, how many do it all?

The usual. Pre soak, HP Soap, Tire / wheel cleaner / engine cleaner, Foam Brush, HP Rinse, Spot Free Rinse, Wax.

The extras: Tri color spray on soap. Tri Color Foam Brush, Tire / wheel foam brush, Blo dryers - Hand Held, Blo Dryer - Drive thru, unlimited washing, Bonus time, . Bill acceptance, CC acceptance,

Ancilary sales - Vac Shampoo and fragrance combos, Tire inflation, other auto vending, General Vending - Snacks and Soda.

So, perhaps before the new next great thing, the old great things need to be implemented.

 

[bigleo48]

I agree with Waxman & RPH. When things don't go so well for me I'll wine and chew about for a while, then I'll get sick of listening to myself (as my wife and kids will too) and do something about it.

So even if this year was very good (economy here is better and the weather has been good for the 1st time in 5 years), I am always looking for new ideas. I currently have 4 or 5 that are not necessarily carwash related, but I'm always striving to make my wash better. So this is what I'm doing this month.

1- Putting RainX as a low pressure option in all my selfserve bays. I did some testing and price comparison and in the end it will cost me the same as my current CC protectant with Teflon.

2- I'm raising my startup price to $3. That may not sound like an improvement, but I feel it will raise revenues slightly, people will stop complaining that the 1 min beeper keeps going off. Hopefully it will keep away the dumpers/truck bed washers. Many in this part of the country have gone to $4 to start.

3-I have a 8'x10' room that is heated and air-conditioned. Currently it only has a small ATM machine in it. By the end of the month, I will have a skate sharpening and profiling business run out of it. Total investment will be less than $13k and should return more than $20k per year. The equipment is somewhat computerized and it's easy to train staff to use it. I have staff there all day. So I'll turn unused space into another good revenue center. I'll post pictures of it when I'm done.

Big

 

[Waxman]

Kudos Bigleo. That's what I'm talking about! Action. Bravo.

 

[packerscw]

Price

I think something that we need to do right now during this hard time. Is we need to figure more ways to cut our cost of operations, because like everyone says people just dont have the money right now. No matter what we add to our washes people wont care because they just do not have the money. One way that ive been figuring out is that cutting my weep water will save me the most money the fastest. Less water and sewer and less floor heat will save a lot.

 

[bigleo48]

In business or in your personal life, you can increase $ by decreasing the $ that goes out or/and increasing the $ coming in.

You should ALWAYS be looking at the efficiency of your operation. That will minimize $ flowing out. A recent discussion by coinwash.ca on inductive lighting has peaked my interest with the idea of changing fourteen 400and 250W MH fixtures to 80W Inductive bulbs could save me a bundle without effecting customer's perception of the business. I will purchase one set of bulbs and ballasts, and retrofit a fixture, to test. I will also create a spreadsheet to determine the ROI if I replaced them all.

However, you can only go so far with cost cutting and saving. That's where increasing revenues come in. On my property, every little bit helps and so I do not hesitate at adding revenue generating items and services. In the last few year, I have added a touchless automatic, another shampoo /vac/frag machine, air machine, a windshield washer fluid dispenser, pop machine, pet vending, new SS and petwash options, and ATM and now skate sharpening. I like the skate sharpening because it brings in a different customer and is not weather related. So that will maximize my attendant's use and generate revenue on those dreary falls days.

So IMHO we need to look at both sides of the equation, reduce costs and increase revenue. Increasing revenues sometimes requires thinking outside the carwash box. Opportunity doesn't always knock, but it's always there, you just need to open the door.

Big

 

[robert roman]

If self-service is not obsolete, it is certainly being handed its hat in some markets.

I believe self-service needs to be turned on its head, and I am not referring to add-ons like hand-held dryers or dog washes.

To compete with the convenience, price and value of an exterior express conveyor, I believe the future of self-service lies with in-bay express or mini-tunnel. This means having a system that can legitimately produce 30 top washes an hour as well as having a minimum of eight vacuum spaces, per unit.

Other than a price increase, the only way to increase the pre-tax yield of a wand-bay is to increase productivity. The only way to increase productivity is to decrease operating expenses or increase throughput. This means building more wand-bays on a site or using something other than one-price, unlimited use.

Consequently, in my mind, something else or the next big thing would call for a radical re-design of the wand-bay system.

For example, would not the most efficient wand-bay system deliver all products through a single hand-held apparatus? A mini pay station would be located in each bay. An efficient and affordable forced-air dryer would be mounted overhead at the exit end on the inside wall. Services would be sold as individual packages and priced and timed according to the recipe of products contained in each service.

Of course, these things don’t exist. If they did, I believe self-service owners would have access to more retailing strategies that would help unlock the market and revenue potential of a wand-bay.

 

[thoffmanjr]

Here is a new idea
• “FREE VAC” loyalty card. You sell it to the customer for say $14.99 but you give them an extra 10% and put $16.49 on it. They can use it to buy services in your self service, in-bay automatic or tunnel wash. When they swipe it at your self service vacuums they get free time.
• They must use their credit card to buy it.
• When it gets all used up it automatically recharges because you have their credit card information. That’s a big convenience for the customer. They don’t have to find a machine, your employee or go on your web site to recharge it. They still get the extra 10% when it recharges too.
• Getting customers to use a card to wash in your bays will increase their average wash cycle by at least $2 per visit.
• Getting your customers to buy this card will lock them into your location.
• The free vacuum is a great bonus.
• They will probably visit more often.
• Installing credit card swipers in your bays and at your vacuums increases your business and allows this to work. It’s a win-win.

If you were to walk up to a customer about to put cash in a coin box and say to them “Buy this card for $14.99 and you get $16.50 in value and you can use our vacuums for free” I would think a fair number of them would buy it.

We are going implement this idea at a new wash we will be building.

 

[soapy]

I would like to try the new tire shine machines that are offered with some vacs and as a stand alone feature. From my detail shop I know a lot of customers look for that the most. I also see several customers bring their own tire shine chemicals. For under a grand Kleenrite offers a retrofit kit for vacs.

 

[Waxman]

I'll be checking the tire shiner idea out in PA at Kleenrite. Sounds good.

 

[pitzerwm]

Some of the European combo vacs, have a tire shine and fragrance with the vac.

BTW, in the event you keep customer's credit card info, you need to make sure that they are really secure, in the event, someone's info gets stolen and used, you are liable for $25K per incidence.

 

[kempape]

did i dream this or did i once see an air driven rotary foam brush for ss bays??....(or something akin to this),,,, at first glance sounds impractical , but, if perfected ,mite be a nice upgrade,,,,

 

[Waxman]

I had a revelation this morning as I was washing some cars in the SS bay. It was reinforced by my friend John earlier in the week. It is this: SS carwashing is never ever going away!!!

I was removing house paint from one car and vandalism (spray paint style)from another.

Bottom line is customers will always have a need for pressure washing their cars plus other things. We all know this is best accomplished at a well-equipped and functioning SS carwash and nowhere else.

This business model will always be viable in the proper markets.

SS carwashing is pressure washing and that is a valid and crucial service for the public.

SS carwashing is not like the payphone; it is like Coca Cola...here for good.

 

[rph9168]

I think at least some of the innovations will have to come from new technology. Right now it is hard to imagine a new service that can be offered. Hand blow drying has not really taken off but seems to work in some locations. Foam brushes and guns are almost a given at most sites. Some are having success with the super sealants.

Credit cards in the bay has been slow to catch on but almost all of those I have talked to like it. Maybe now that it seems to be working that can be expanded to offer other value added services like if you purchase so many minutes you get so many credits at the vending machines or if you make certain purchases at the vending machine you get extra minutes. Some credit companies like Discover offer 5% rebates on certain purchase like at restaurants. Maybe car washes could be included in that program.

I tend to agree with Waxman that self serves will not disappear but I also think that some innovations might help market them and make them more appealing.

 

[MEP001]

SS carwashing is never ever going away!!!

The demand will never go away, but it's already getting very difficult to make a profit at it. The two express exterior washes that opened nearby have hurt us a lot, especially in the auto and vacuum income (the closest one offers free vacs, and it's not gated). Bay income is down, but it's hard to say if it's from competition, weather or economy.

 

[Greg Pack]

Well, you guys could argue that drive-in theaters are not going away either, there are two of them within a 30 minute drive of me. Just because it isn't going away doesn't mean it is a healthy model that new investors are clamoring to get into. You're right, demand for SS will not completely go away, but seeing that 75% of my SS customer base just wants a clean car (and they don't care how they get it), and now they can do it cheaper and quicker elsewhere, there are serious problems with this model. Raising prices is not the answer if you are already the higher priced of wash options. Vending and misc things may help the bottom line, but we're talking about capital expenditures to add maybe 5-10% back to my gross, which 30% has been taken away. The math on construction a new SS/IBA will not work in most areas around me anymore.

You guys in smaller markets don't have to worry about them and will be fine. It's the wash in metro areas that have to deal with these. Express washes have wreaked havoc on some long time SS operators in my town. Many operators are not cash flowing. When enough SS operations fall off the cliff the remaining ones will be profitable. It is not all rosy for the express washes either, they are overbuilt and some are also hurting.

A field trip to one of several Southeastern cities might be an eye opener to how bad it can get.

 

[Waxman]

Well then maybe the focus in the SS segment of our industry should be on the cost saving side of the equation.

Many companies that carwashes buy things from (gas, chems, insurance etc)make healthy profits while owners struggle. Perhaps the focus needs to shift to ways to operate with less expense so the ones taking all the risk can reap better rewards.

Self Serve is a favorite of mine because I see it as a useful tool in prepping cars I detail. Just yesterday I washed a white Impala with so much grit trapped under the bodyside mouldings yoiu wouldn't believe it. No other carwash method besides SS will effectively tackle such dirt.

I understand markets vary and express is king in some. But I think SS will always be king of getting a car its cleanest. So the drive in movie comparison is not completely relevant, because a drive in is probably the place I least enjoy movie watching. I'm at the drive in for other reasons.

 

[pitzerwm]

Markets change and society changes. When people have more money they want to spend it to make their lives easier. We are paying for convenience. Life for us is always about taking calculated risk.

You will need to know when your model isn't working any longer and make changes. Just like we added foam brushes, pre-soak, tire cleaner and an IBA. Reality is that other people see something that looks good and jump on the bandwagon without thinking, it screws it up for everyone, but that is life, you have to plan for it and adjust for it.