what's wrong with the car wash industry

[parsonii]

1. there's no standardization and so very little if anything is evidence based.

2. everything is gimmick and lacks authenticity. the height of it all are the bubblizers. half that stuff doesn't even land on the car. let's stop putting food coloring in the triple foam and let's stop the manipulation of the customers. they're smart i promise you.

not meaning to flame and not meaning to be provocative but interested in people's perspective and where we go from here.

 

[MEP001]

If they're so smart, why are they still jamming quarters in the credit card reader?

 

[robert roman]

I don’t believe there is anything wrong with carwash industry.

There are only best business practices to rely on because the industry is unregulated.

For example, evidence-based medicine works because the health care industry is regulated. This allows for collection of good data and its analysis. Ideally, the outcome is problem solving based on objective evidence rather than political influence.

Unless a carwash business is publically traded, secrets surround the business. Consequently, there is much less opportunity for evidence.

However, there is objective evidence available. It’s just difficult to obtain.

Hot wax works as a product. Its delivery via bubblizer and lava effect is good marketing. If only half is landing on car, delivery system wasn’t installed properly and/or the product is not in proportion.

“why are they still jamming quarters in the credit card reader?”

Because you still haven’t made it easy enough for the customer not to do so.

As an operator, it’s up to you to determine where the carwash industry goes from here.

 

[Earl Weiss]

If they're so smart, why are they still jamming quarters in the credit card reader?

And nickels dimes and pennies where it says "Quarters Only" (uh oh I hear a dollar coin post coming)

 

[Earl Weiss]

Scary to say I agree with RR. I don't know that there is anything wrong with the industry. Like most there is usualy room for inprovement. It's like comapring it to the restaurant industry. There are good operations and some ... not so much.

Give customers a value for their $, you can make $ assuming of course unlike lots of retail you can get a break from mother nature.

 

[JeffM]

Standardization is difficult to achieve when individual markets will allow for different variations of the "same" service to be offered at various prices. I know that I wouldn't want to have my customers think that I should be offering a $3 exterior wash because a wash 2 hours away does so. There are some evidence-based facts found through empirical studies which provide insight on the industry; Brown Bear's "Fish Toxicity" and University of Texas & Technical University of Munich's independant study on dangers of home washing.

The "Gimmick" of things like triple foam still exist because there is a consistent demand for these items and customers feel good buying them. If they didn't, we wouldn't be offering them. Earl is right on target by saying that giving value will allow you to make good money. The better the value customers percieve, the more they are willing to pay for a product or service. If they like gimmicks, then that's what you should be giving your customers.

 

[rph9168]

I have to agree that there is little wrong with the so-called gimmicks. Customers like a little "show" as far a colors and foam and since in most washes customers are able to smell the products fragrances also enhance their experience. Early on in touchless washes many customers felt cheated because there was so little foam in the products used in the cleaning process. They thought all they were getting was water so manufacturers began putting more surfactants and in some cases fragrances in the cleaning products to show there was more than water involved. Most customer complaints almost disappeared. Perception has a lot to do with customer satisfaction and anything that can be done to improve a customer's perception will produce positive results.

 

[Waxman]

I have to agree that there is little wrong with the so-called gimmicks. Customers like a little "show" as far a colors and foam and since in most washes customers are able to smell the products fragrances also enhance their experience. Early on in touchless washes many customers felt cheated because there was so little foam in the products used in the cleaning process. They thought all they were getting was water so manufacturers began putting more surfactants and in some cases fragrances in the cleaning products to show there was more than water involved. Most customer complaints almost disappeared. Perception has a lot to do with customer satisfaction and anything that can be done to improve a customer's perception will produce positive results.

I agree with you.

Colors and scents are part of many many industries and don't indicate a problem or a gimmick.

Scent is very powerful. Bubbles are awesome and copious quantites of thick, lathery, bubble-gum scented foam indicate to the customer that they are getting their money's worth!

I'm as jaded as the next guy and I love and will only use products with a good scent and color and foam. It's one of the main factors in my pruchase decision as well as unit cost/overall value.

If 'show' is so gimmicky, why invest so much time effort and money into visual appeal like keeping the wash nice and clean and tidy? It's all a part of the carwash business model; convenience, value, perceived value and filling a need.

If the soaps and waxes and polishes did little more than provide 'show', there would be feedback from the customer (lost business). Just like in touchfree cleaning if there is no show, the customer sure does give feedback!!!!

Customers want the show and experience. When I buy shampoo and soap for my shower at home, I want SUDS! I want great manly scents!! It's the same concept and doesn't indicate anything broken in the industry.

 

[Earl Weiss]

It's great to deliver the "sizzle" so long as you deliver the "steak".

 

[mac]

Well, let me stir the pot a little. While our so called industry has made improvements, there is still a lot that needs changing. For instance:
1. Almost anyone can be a distributor. All you have to do is talk nicely to most manufacturers, tell them you have a couple of units sold, and voila', you're a distributor. That's changed some because some of the larger people have done away with distributors.
2. There are really no standards. Even I get confused when I try to explain to someone the differences between wax, protectants, drying agents, conditioners, and super sealants. There seems to be no glossary of standard terms.
3. Anybody can install this stuff. Think about it. When you have a wash built, everyone involved in the project has either a degree, a state certification, some type of license, or some recognized rating that makes them capable of dealing with their involvement with the project. That is everyone but the guy selling the equipment. Can you say Barry Boyd? Then when the wash is close to done some guy, who might have received his tech training fixing toaster from Sears, shows up to install everything and make the entire project function.
4. Lack of business acumen. I travel fairly often and stop in washes when I get the time or opportunity. The percentage of self serve washes that are terrible to look at, have weeds growing in the cracks, and have poor equipment and/or chemicals is amazing. Most guys have a hard time picking out socks that match their pants, much less putting together a nice functioning design, layout, and color.
Before you guys here lambast me for saying some of these things, keep in mind that you are in the minority of operators who do care about your business and know how to run it.

 

[ICEMAN]

Most washes are in bad shape because the owner has lost interest because most washes do not make good money. I have owned washes since the early 80's and I can tell you back then washes made money. Operators were highly involved and hands on. I have seen the same thing time and time again in this business, the town grows and some guy gets sold a bill of goods from some distributor with lofty numbers, another wash is built and your slice of the pie gets smaller. The problem with washes is that every year , if you are lucky, you make the same amount while expenses keep growing. In my area we now have c-stores putting in touchless automatics on every corner. These are not the c-stores of old that are always down, they are well run and very well maintained. Most self serves with auto will be hard hit buy these places. Like me i would think most operators depend on the auto while their self serve is dying. It is not a pretty picture in these smaller markets with these c-stores taking a big portion of the automatic business.

 

[robert roman]

Although greed has led to overbuilding certain markets, the carwash industry has undergone change due to economy, consumer preferences and technological developments.

Technological change, shifting consumer tastes, availability of competing offers and real estate values have made self-service business model less suitable for renting space and selling time in many areas of the country.

When any business model or product has reached maturity, it will eventually go into decline unless something is done to extend the life cycle.

Here, the industry’s response has been add-ons like hand-held dryers, coin-op tire shine, dog wash and ice machine.

This is rather feeble when you consider the competition that has sucked away 1/3rd or more of self-service business is equipped with $500K production plant that produces hand-finished qualities, faster for less cost.

Of course, you can step up for a mini-version of this but the expense is half as much. Plus, you have to reconfigure to provide adequate free vacuum capacity.

As far as bring self-service customers back, why invest in a business where 80 percent of it only has the potential for generating maybe 1/3rd of the total income?

If you are interested, there is a link on my website that discusses this.

http://www.carwashplan.com/reinventing_self_service

Hope this helps.

 

[Kevin James]

Mac you couldn’t have said it better. As far as we are concerned the car wash industry is pretty much a joke from the soap salesman who try to screw you on chemicals, the equipment manufacturers who make the shoddy overpriced equipment, the suppliers who tack on a handling fee to the already inflated shipping costs, to the service technicians who don’t have much of a clue about what they are doing. There are no training programs for a service technician because it is a LOW PROFIT BY GOSH BY GOLLY business that is full of charlatans. The studies on home driveway washing are the most laughable BS we’ve ever read. Where does the oil that drips off a car go? Where does the brake dust from the brakes go? Where does the rubber that is worn off the tires go? It all goes into the storm drain system. The guys we feel sorry for are the ones who buy these run down car washes, sink a whole bunch of money into them thinking they are going to make a boat load of money. Only to find out that it’s not in the cards. We aren’t in the car wash business, we buy car washes for basically land value and run them until we can find a better use for the property and then knock them down.

 

[rph9168]

To be sure there are some problems in our industry. There are some in every industry today with the state of the economy. You have chosen your way to make money in car washing through buying and selling properties. Some have done it by buying distressed washes and turning them around while still others build them from the ground up. Some people are better at it than others. Failures are common in any industry.

While recognizing some issues we currently have I still think that our industry has a good future for those that are capable of running a successful business. Bad times tend to weed out the less successful and in some cases dishonest manufacturers, distributors and operators. I have seen it happen in our industry before. Those that remain and become productive members in our industry will grow and become successful.

 

[parsonii]

interesting and varied comments .. somewhere between robert's "I don’t believe there is anything wrong with the carwash industry" and kevin's "business that is full of charlatans" probably is closer to the truth. anyway gentleman i appreciate all your opinions.

 

[robert roman]

The only joke in the carwash industry is the jokers (your charlatans). Every industry has them.

“….the service technicians who don’t have much of a clue about what they are doing.”

The more successful used car lots are those that were started by people with knowledge and skills in maintaining and repairing automobiles as well as salesmanship and love of cars.

People who own new car dealerships also usually fit this description. However, volume of store requires employees to sell and repair vehicles.

How can you expect to operate a carwash successfully if you don’t know the business?

People who complain about inflated costs, shoddy overpriced equipment, getting screwed by salesman, etc. are usually those who aren’t good shoppers.

“The guys we feel sorry for are the ones who buy these run down car washes, sink a whole bunch of money into them thinking they are going to make a boat load of money. Only to find out that it’s not in the cards.”

I know lots of operators that have made very good money from acquiring run down carwash.

Again, it’s usually a good idea for an owner to have knowledge of the business. Otherwise, as you described, you aren’t in the business and end up knocking it down to find a better use for the property.

Conversely, people that succeed with run down washes are those able to determine a higher and better use of the property as a carwash site.

 

[mac]

The one thing to keep in mind is that there is no magic to this. Some washes make money, and some don't. I've been fortunate to make money with every wash that I was involved with as an owner. Then I sold it. I've also seen people loose their life savings in a business they knew nothing about. I heard an ad on the radio recently about some type of exercise club. They described it as something that anyone could do. They said you could even be an absentee owner and still do well. So if this were true, why would they need investors? Just build it and they will come !

 

[cleaning up mud]

Ive never understood why morons would put quarter in my cc slots, it takes me forever to fish them out.

 

[cleaning up mud]

I think the first industry that started using colors, was the carwash industry. It must work, now they make gun stock indifferent colors and a lot of other things, people like that! and it helps the bottom line.

 

[dlc95]

Some of the freedom is what makes it fun. The guy down the street does his thing - I do mine. As a drummer, I taught my students to "play your show", do what they do based on their education and acumen. I love that I can do something creative with my show.