From The Dirt Up - When Disaster Strikes

By: Anthony Analetto
Originally Published in AutoLaundry Magazine

Are you prepared for a disaster? I recently had the opportunity to speak with Marcus Kittrell, owner of Marc-1 Car Washes. Last month, an F-4 tornado severely damaged his flex-serve wash located in Prattville Alabama. Fortunately the manager closed the wash and left about 10 minutes before the tornado hit and no one was hurt, but it forces every operator to stop and ask the question; am I prepared for a disaster?

Marcus entered the car wash industry in 1983 working at a full serve wash before opening several self-serve locations. In the mid 1990s he went to work for a car wash distributor, going on to buy his first full-serve tunnel in 2001 and converting it to flex-serve in 2002. In 2003 he purchased a 35 year old full- serve and converted it to one of the first express exteriors in the Southeast. In 2006 he built another flex-serve from the ground up, but it was his first location that was hit the tornado. Still in the middle of working things out with his insurance, below are some excerpts from a conversation where Marcus shares some insights on being prepared for catastrophe.

ANALETTO: People often comment that they pay too much for insurance, how much is enough?

MARCUS KITTRELL, OWNER, MARC-1 CAR WASH: It’s not that simple. First, I would recommend viewing a rehab and new construction differently. Second, there’s a lot more to consider than just the amount you’re insured for. I originally bought this location for 900K and have spent 300K in upgrades. Unfortunately I was way under-insured at only 700K. The policy automatically adjusted up by a fixed percent each year so after 5 years it’s at 777K but that’s still far less than I wish I had knowing what I do now. The insurance company has estimated it will cost 402K to repair and 419K to completely rebuild the structure. Our estimate is 588K to build brand new because of the electrical, plumbing, and slab/pit work. So you can see the difference in their numbers and mine. Fortunately we can salvage most of the equipment. If we had to replace the equipment we would come up way short on insurance money.

ANALETTO: It sounds like your coverage is reasonably close to your damages, why are you recommending having more insurance?

KITTRELL: This was a devastating tornado that knocked out a Walmart, K-Mart, bank, and nearly 800 homes. The problem is that my insurance company is looking mostly at the building, but in car washing, the big money is in electric, plumbing, and pit work.  Also, it has been determined that the property is over 50% destroyed. In our city that means everything has to be brought up to meet today’s standards. This location was built in 1993.  Upgrades to meet new ADA requirements and earthquake building codes alone may involve digging up the original footings and easily add on another hundred thousand dollars or more.

You don’t think about it, but each year adds more ordinances and potential upgrades you might have to do if something like this happens. We actually had damage to our parking lot. You may think that you’ll always have your slab – but it’s not true. Once the building shifts, you might have cracked footings, or even cracked water and sewer lines that you won’t know about until you reopen. Make sure you’re covered from the dirt up. In the future I plan to insure for 50% more than what I think total replacement will cost, just to make sure I’m covered for everything that can go wrong underground. Building and Business Personal Property insurance is relatively affordable. You overlook how little it is because the insurance bill is so huge, but some of that is coming from liability. I can’t recommend upgrading your property coverage enough. You might be fine, but why risk starring at concrete being pulled out with no way to pay for it.

ANALETTO: What about loss of income, how does this coverage work?

KITTRELL: Fortunately we had a policy for loss of income for 12 months. Even more fortunate is that we had very accurate financial records for the insurance company to use in determining payout. The insurance we have only pays for expenses including some salaries, but not profit. When something like this happens, the insurance company pulls your financial records and compares for the last 12 months. If your bookkeeping isn’t accurate, then you got your work cut out for you.

Another point I want to make regards real estate. In my situation, I have an LLC that owns my buildings and properties, with each wash operating as an S-Corp that owns the equipment but rents the location from the LLC. This is a pretty common structure for many car washes. It’s also normal for the Holding Company to make a profit on what it charges the Car Wash for rent. For example, if the Holding Company pays an $8,500 mortgage payment, the Car Wash might pay the Holding Company $15,000 in rent.  The reason I’m pointing this out is because it’s the Car Wash that holds the insurance policy, but you want to make sure that the policy names the Holding company as “additionally insured”. This extends your coverage to the Holding company so that in this scenario, you’d receive $15,000 instead of $8,500.

ANALETTO: Does your building and business personal property policy cover your equipment and signage?

KITTRELL: Equipment falls under our building insurance because it’s attached, basically, anything fastened down is covered. Our auto sentries got destroyed but since they’re bolted down they will be covered too. Signage, at least in my experience, functions differently. Our general policy has a very small allowance that wouldn’t even come close to replacing what we had. Luckily we have a separate sign insurance policy that will cover us. I’m sure this kind of detail varies greatly with the different insurance companies out there, but I recommend everyone check exactly what coverage they have. I know guys out there spending 80 to 90 thousand or more on their signage, it’s worth making sure your coverage matches the investment.

ANALETTO: Have the government and insurance companies been helpful; are you able to access any catastrophe funds?

KITTRELL: No, although there were 800 houses involved, I’ve heard that 95% were insured and that there is no FEMA money available. The SBA is supposed to offer some assistance program but I haven’t heard any details yet. So far, the insurance company has been responsive and put me in the right direction. The city has also been helpful and put us on a fast track plan that is part of their catastrophe program to bypass most construction bottlenecks. Everyone involved seems to realize that we have a shared interest in moving past this event and re-opening as quickly as possible.

ANALETTO: What recommendation would you make for other operators out there?

KITTRELL: Get with your insurance agent. Check your coverage for loss of income, signage, and make sure coverage extends to your holding company if you’re using this structure. Then, determine when you’re building was constructed and calculate from the dirt up, not the slab up, to rebuild using today’s building codes. Prepare for rising costs and don’t forget to account for possible sewer and water line upgrades.  Insure for the right amount, make sure you have good financial records, and you should be in good shape.

ANALETTO: What are your plans for the future?

KITTRELL: To be washing cars in 12 months or less before the insurance runs out. Since I got the property, the population has grown significantly, and a lot more retail has opened up in the area. It’s a more desirable location than when I first bought it, and the land has appreciated in value significantly. Selling the site is almost tempting. I’m definitely going to be shy on coverage. To rebuild the way I want is going to take an out-of-pocket investment, but long run, I think I can make more money washing cars. I’m trying to look at it positively. In a way it’s like taking a mulligan, or getting a do-over where I can change everything to take advantage of new trends and things that I’ve learned. This site will reopen as a pure express exterior with free-vacuums. It’s a great opportunity to explore new trends and formats to maximize the profitability of your property. Not exactly how I would have wanted it to happen, but I guess you have to take what you get and make the most of it.

Houston, We Have a Problem - Keeping Customers Happy When Computers Fail

By: Anthony Analetto
Originally Published in AutoLaundry Magazine

Every time some computer hiccup threatens to wreak havoc on my day, the famous quote from the aborted 1970 Apollo 13 lunar landing mission, “Houston, we have a problem,” pops into my head. If it’s related to my car wash, that thought is immediately followed by a deep breath, and a reminder to myself, that no matter what happens, don’t annoy the customer. Unfortunately, this simple logic is tragically forgotten by Fortune 500 corporations, and small independent business owners alike, whenever things hit the proverbial fan. Just last week I experienced two such failures back to back. The first, a delayed flight due to technical difficulties, was handled reasonably well, provided I assume it wasn’t caused by a failure in preventive maintenance procedures. The second however was a perfect example of what not to do. Late for my departing flight, I used my local airports valet parking service. Already 3 o’clock in the morning when I returned to pick up my car, I was told their computers were down. Unable to take a credit card or print a receipt, I paid the attendant cash. He gave me a handwritten receipt with an apology and I drove away. When I handed it to the girl at the exit, she said she couldn’t accept a handwritten receipt, refused to open the gate, and actually scolded me for not getting a proper document thus delaying me getting home by an additional 30 infuriating minutes. Would your staff have acted differently if they weren’t sure what to do?

To be fair, whether it’s expecting the computer to turn on when you flick the switch, or your phone to ring when someone calls, most of us are so consumed with completing our daily work when all the technology systems around us are functioning, that it’s hard to plan for unscheduled disruptions. You can’t plan for everything. Having lost my fair share of pictures because I forgot to back up cell phones I’ve broken, I certainly can’t stand on any soap boxes. But when it comes to your business, you have to prepare. When things fail unexpectedly, your staff can get frustrated. If you allow that to happen, your customers will become frustrated – and fail to return to your car wash. Below are some common best practices in place at most car washes. Let’s take a look.

Create Redundancy
Before I go into the nuts and bolts of keeping your gates open for business and a smile on your staff’s face when things are failing all around you, I’d like to first spend some time on bypassing that need in the first place. Most car washes have tremendous redundancy built into their equipment package. Items such as secondary air compressors and excess hydraulic power pack capacity are able to keep things running in an emergency. Within the wash, the convention is to have redundant equipment able to continue washing cars at a slower chain speed while repairs are performed overnight. Whereas most operators I encounter have both redundant wash and support equipment, very few have created redundancy in their payment systems. Fortunately this is simple to do and costs very little.

It’s hard to believe the world operated before the internet, but it did, and you can too. But most credit card processing systems these days require an internet connection, and when it goes down, which always seems to happen on a busy Saturday, it can cripple your revenue potential for that day. Securing a redundant internet connection however is very simple. Many operators maintain a cellular internet hotspot device available from their service provider at very low cost. Alternatively, most smartphones can function as an internet hotspot in a pinch. Stories abound of operators rescuing the day by running to an electronics store, securing a cellular internet service, and scrambling to figure out how to port it to their POS or gated entry system. My question is why would you do that? The model for success is to select a redundant internet service connection today, when nothing is broken. Configure everything in advance and create a documented procedure to switch over to it. Train your staff to make the switch, and prepare a schedule to operate off the redundant internet connection at least once per month. Before moving off this topic, if you don’t already have a redundant credit card processing terminal, I’d also recommend searching online for “smartphone credit processing.” There are several vendors you’ll find offering free dongles that attach to your smartphone, process the credit card, and deposit the money to your bank account. Fees vary, but this is another affordable way to help secure your business when technology fails. Just imagine, if the airport parking service had a redundant credit card processing service in place, and trained the attendants to use the system, I would never have thought of writing this article!

Maintenance, Spare Parts, and Backup
Sure we know to keep bearings greased, but computer components need preventive maintenance too. Digital signage, automated attendants, camera systems, these are all often computers in some form or another. They all need scheduled maintenance like any other piece of equipment at your site. I’m not talking about software, but the hardware itself. Review your owner’s manuals. I’m not an IT expert by any stretch, but there are four things I’ve learned to do over the years. First is to have someone who knows what they’re doing physically open all computers, especially those in an outdoor or dusty environment, and clean gently with compressed air at whatever frequency is necessary to keep dust from building up. Second, most computers have simple fans that run constantly, and are affordable replacement parts available at any computer store. These can be easily replaced periodically for very little money, and ensure expensive components don’t overheat. Third, if a particular electronic component or board ever fails, try to keep a spare on hand. This could be a purchased replacement, or occasionally you can find a local shop able to refurbish the failed part as a spare. Last, but certainly not least, is to backup all data as if your business depended on it, because it does.

Practice Running in Manual Mode
Collecting cash and sending cars through the tunnel isn’t the problem. Making sure it goes smoothly and you get all the cash you’re supposed to, that’s the problem. Automated pay stations and POS systems are one of the greatest things that have happened to professional car washing. But the day after a lightning strike knocks everything out isn’t the time to train your staff to work manually. Be prepared. Create a complete cash reconciliation process with cash bank, necessary change, aprons, windshield markers, receipt pads, cashier reconciliation sheets and everything you need to process customers manually. Train staff in handling cash and reconciling their cash bank at the end of the shift. On slow days, turn off the technology, and run the wash manually. Not only will you be prepared if a computer hiccup threatens to wreak havoc on your day, your staff will be ready to handle whatever challenges come their way, with a customer satisfaction winning smile on their face.

Georgia Saves Water - Interview with Zeev Josman Car Wash Services of Georgia

By: Anthony Analetto
Originally Published in AutoLaundry Magazine

Are you a part of the solution? I recently had the opportunity to speak with Zeev Josman, a vocal member of the recently formed Georgia Coalition of Car Washes, about their activities to protect the interests of professional car washers during the ongoing drought in the Southeastern United States. With over 50 counties enacting a level four drought response that prohibits most types of residential outdoor water use, many operators face complete shutdown. The coalition, in partnership with the Southeastern Carwash Association (SECWA), Below Zeev outlines some ideas you can use to help government officials understand the carwash industry, and hopefully, protect your business and our industry as a whole in the event of a drought.

ANALETTO: What is the main initiative of the Georgia Coalition of Car Washes?

JOSMAN: Our overall focus is to establish a self-administered car wash certification program in conjunction with the Georgia Environmental Protection Division and local municipalities. Right now, our most urgent task is working to change state legislation to specifically exclude professional car washes from general restrictions on outdoor water use. Having only started a few months ago, much of our initial work has been to assemble resources to help professional car wash operators defend themselves. Being highly visible consumers of water, we’re often easy targets for municipalities to single out for closure.

ANALETTO:  What resources have you put together for operators?

JOSMAN:  Mainly the coalition has compiled data proving that the restriction or elimination of car washing will not result in any measurable water savings, but will cause significant economic damage to the small business owners and the thousands of workers who depend on our industry. Overall we’ve documented that the entire car wash industry in Georgia uses approximately 1.8 million gallons of water per day, just 0.14% of the amount consumed per day for public use. Compare this to the City of Atlanta’s estimate that 15 million gallons per day are lost and not metered. That’s more than 8 times the amount of water our industry uses in the entire state.

ANALETTO:  So the coalition recommends taking a proactive stance with local governments?

JOSMAN: Absolutely. The goal of the government during a drought is to conserve water while minimizing any economic disruption. Although there is often a knee-jerk reaction to criminalize car washes, the numbers don’t justify singling us out. For example, did you know that, based on conservative data, it’s estimated that a restaurant consumes 5 to 10 gallons per meal served, and if you multiply that by the total number of meals, it indicates that restaurants use 10 times as much water as car washing does. The industry associations are working at the national and regional levels, our coalition is working at the state level in Georgia, but the truth is that local communities sometimes seem to interpret the law as they see fit. As hi-profile water users, we have to bring the fight all the way down to local government, which means proactively educating town officials.

ANALETTO:  What does the coalition envision the certification program you mentioned above looking like?

JOSMAN: The certification program we’re working to create mirrors a similar program that a coalition of car washers started in San Antonio during a drought 10 years ago. That program is a remarkable success, led by car washers, which contributed to per capita water consumption declining by 40%.

ANALETTO:  Can you provide an outline of what operators will have to do to gain certification?

JOSMAN: Car washes will have to adhere to a set of guidelines for water conservation and recycling based upon the type of car wash facility. For example, conveyor type car washes must recycle at least 50% of their water to meet certification requirements. The requirements are stringent, will be independently inspected, and must be met annually. We also have penalties to promote compliance. Once underway, car wash facilities can become certified only when drought restrictions are not in place. Once restrictions are in effect, non-certified washes must begin to reduce hours of operation.

ANALETTO:  Are you getting strong support from operators?

JOSMAN: Conveyors and self serves in the areas hard hit by drought have driven our progress, but we’re actively seeking pledges from all over the state. Most of the guidelines are things that a lot of operators are already doing. What politicians don’t know is that car wash operators treat water with a great deal more respect than many other businesses, because for us it’s a direct expense. They don’t realize that we’re computerized, reclaim water, can measure a car, and turn on only exactly what we need. We have to fight public perception. For an independent operator it can be a hassle just keeping up with what they have to do to comply with restrictions as they are enacted. Supporting the coalition gives them an opportunity to help establish standards, be recognized as a good corporate citizen, and self-police compliance. I think a lot of operators realize the benefit of the coalition, have seen that is has worked in other regions like San Antonio, and are willing to do what it takes to make it work here in Georgia.

ANALETTO:  What would you say is an acceptable number of gallons of water to wash a car?

JOSMAN: We encourage people to stay away from using gallons per vehicle (GPV) to measure conservation because there are so many variables, especially among the different wash formats. It’s more important to look at the percentage of water that is reclaimed and what percent is put back into the sewer system instead of being lost to evaporation or carried out. Personally, I’m trying to get my washes down to 20 GPV. The important thing is to know what your average GPV is off the top of your head before you ever experience a drought. Identifying water usage spikes should be part of your preventive maintenance. You should also know statistics on carwash water usage in general and what the industry as a whole is doing to help conserve water. Much of that information can be found at our website www.GaSavesWater.com.

ANALETTO:  What would you recommend to operators looking to use the information you provide when working with their local governments?

JOSMAN: First, make sure you understand who makes policy decisions on drought management before you invest a lot of time targeting the wrong people. Once you do find the right person, realize that this is going to be a learning process for them. It’s likely they have a preconceived notion that a car wash wastes a lot of water and pollutes the rest. Turning them into a carwash advocate who looks to you as a leader in water conservation will probably take a good amount of work. The single greatest recommendation I can make for anyone reading this, who is not already in the midst of a drought, is to build a coalition and create a certification program before it happens. The best time to educate is when there is no threat at all.

Adding Value to Your Top Package

By: Anthony Analetto
Originally Published in AutoLaundry Magazine

After all the years of being so focused on eliminating manual prep labor from the car wash, I’m struggling to embrace the latest trend. Not because it doesn’t work, but because, well, I’ve spent decades of my life trying to educate against what’s fast growing in popularity, albeit in a different way than ever before.  I suppose it had to happen. Express-exterior operators, already approaching $20 top packages based solely on premium online pay wax services, are hungry for the next growth opportunity. Not willing to invest in the labor and complexity of a flex-serve, but eager to increase their average ticket, they’re beginning to offer hand-prepping as a paid a-la-carte extra service.  The numbers are impressive. Without doubt, customers perceive greater value when a human being interacts with their vehicle. Before you run out and start prepping cars, however, there are some subtle aspects to understand and some not so obvious pitfalls to avoid – let’s take a look.

Pitfall: Beware of Bugs

More often than not I’m seeing the extra hand-prep service being offered as a “bug-prep” for $3 to $4 a-la-carte and included in the top packages. Keep in mind that the goal here isn’t to get bug remover applied to the front of the car. Plenty of online activated equipment exists to do exactly that. Equally, the goal isn’t to hit the front of the car with high-pressure blasters – again equipment is readily available to perform the task more effectively and consistently. The objective is to provide a value-added service and personal attention to customers willing to pay for the experience. It’s powerful. Seeing attendants scrubbing the front of their car with a hogs-hair brush dipped in foamy bug remover makes a strong statement. Associating it with bugs, however, presents a potential pitfall. Few customers appreciate that as an insect decomposes it produces enzymes that can etch the paint. Fewer still understand that removing bugs will often require clay, polish, or other professional detailing procedures that will then require wax or paint sealant. Those customers with severe bug problems, unless educated, will be absolutely dissatisfied with the result of a “bug-prep” service. So what’s the solution? I don’t have an answer. Personally, I’m still a fan of offering self-prep areas with bug remover and brushes where customers can treat their own car before entering the tunnel. While considering offering the service at one of my washes I played with some alternate names. Unfortunately, “hand-prep” doesn’t carry nearly the same impact as “bug-prep,” especially when accompanied by a little icon of a bug with a red line through it on the menu. If you have any ideas please send me an email or grab me at the next tradeshow.

Pitfall: Signage

It’s human nature. Nobody likes to think somebody else got something they think they should have gotten. The first rule of offering a paid hand-prep service is to make it crystal clear that it’s a special service that has been paid for. Most locations are using a confirmation sign that lights up to tell a customer that they paid for the extra service. When lit, this sign also alerts attendants to prep the front of the car. Provided your menu board is very clear, this should be sufficient. Problems arise in some markets, however, where customers are accustomed to full-serve washes that prepped all cars as needed. That customer, if they don’t notice the signage, will assume they should have received hand-prep as well and feel cheated. You can turn this to your advantage. Simply add a second, brightly lit confirmation sign positioned in front of the next car entering the tunnel. Change the wording to indicate that “The Car in Front of You Purchased” and list all extra services purchased. Any confusion will be eliminated and that next customer in line will be more likely to buy your premium services on their next visit.

Pitfall: Labor

Don’t fool yourself. No matter how you look at it, offering a paid hand-prep service will add labor and management complexity. The hallmark of the express-exterior model always has, and always will be, about delivering an absolutely consistent service in a consistent amount of time. Operators offering a paid hand-prep service report that there is a relatively small increase in labor. On slower days, the existing guide-on attendant is performing the hand-prep service. On busier days, they’re adding additional attendants at the front of the tunnel to perform the application from both sides of the vehicle.  Although easily justified by the increased revenue, it’s a dramatically different level of responsibility for an attendant to safely guide customers onto a conveyor versus being responsible for the quality of the wash. Plan to train staff extensively. Don’t assume common sense. Attendants must understand and practice how to process each car consistently without slowing production. Equally, they must be trained to never, under any circumstance, perform the service on a car that has not been paid for. You’d be amazed at how easy it is for attendants to get into a rhythm where they start looking for bugs and prepping everything they see. At a traditional full-service wash this is a good thing. Here, however, it will undermine the value of your hand-prep offering. On a side note, if your climate experiences seasonal bugs, it is still a good idea to include an automatic bug removal applicator to ensure consistency.

Pitfall: Safety

Without careful training and management, adding manual labor to the wash process is a potential recipe for disaster. Customers, in their car, have just been instructed to take their foot off the brake and put the car in neutral. Attendants, racing to speed through those safety instructions in order to begin prepping the front of the car, are less likely to notice a customer’s confusion. Although outfitted with long handled brushes, the temptation for attendants to step in front of the car to work faster will be strong. You must ensure that the attendant you put in this role is physically capable of prepping the car, and if single staffed, from one side. Whatever you do, do not allow attendants to cross the front of the vehicle with a customer behind the wheel. Traditionally manual prep work was done with foaming applicator guns sometimes followed by a high pressure gun. This approach, although allowing attendants to remain away from the vehicle, lacks the perceived value of a foamed brush gently scrubbing. There’s a lot of evidence coming in that offering a paid hand-prep service with a foamed brush covering the front of the vehicle and even the windshield is a powerful way to increase your average ticket. If you’re not prepared, however, to make the necessary investment in labor, management, and training, to do it safely – it is money that’s best left on the table.

Safety First Developing a Risk Prevention and Counter Measure Plan

By: Anthony Analetto
Originally Published in AutoLaundry Magazine

Last month I talked about avoiding physical accidents at your wash. This month, I’m going to step up to the pulpit and preach about material and equipment handling procedures. Most operators I know fall into one of three categories. The smallest group implements clear procedures and documentation for every person on their site. Then you have the largest group, those that are forever planning to create the procedures, training, and documentation, though few seem to get it done. The third group consists of operators who develop excellent programs for their staff but seem to feel that they and their trusted managers are exempt from such time consuming inconveniences. Sadly, I have the destroyed eyeglasses, clothing, and numerous stories of nearly tragic accidents that force me to admit being a member of that third group for most of my career. The fact is that most of us have an opportunity to improve upon our commitment to safety for our staff, customers, the environment, and ourselves. With that said, let’s move on to the basics of developing a risk prevention and counter measure plan.

Material Safety Data Sheets (MSDS)

Even with the best of intentions, mistakes happen. In a world where it’s possible for a doctor to accidentally leave a watch inside a patient – it’s hard to argue against the possibility that a detailer can leave a bottle of some cleaner, with a sweet fruity scent, in the back seat of a car within reach of a child. This scenario is only one of a thousand possibilities that demand instant knowledge of the danger, handling, and treatment for every chemical at a car wash. Quickly knowing what to do in an emergency is the purpose of Material Safety Data Sheets (MSDS). Whether it’s your customer, your son, daughter, or customer who walks by a hose that bursts, you can’t afford to ask the question – what should we do – without knowing where to find an answer in a matter of seconds.

It all starts with having the MSDS for every chemical on your property. According to federal law, manufacturers and importers of chemical products must produce an MSDS for each hazardous chemical they produce or import. This law also requires U.S. employers to have a MSDS in the workplace for each chemical that they use. An MSDS explains the hazards associated with the product, as well as what precautions to take to avoid those hazards. It also includes first aid and emergency contact information in the event of an accident.

Getting the MSDS for each chemical and putting it in a binder isn’t enough. Each employee must know what it is, where to find it, and how to read it. MSDS training should be part of your new hire procedure as well as an ongoing program to reinforce its importance. If you don’t already have an MSDS center hanging on your wall, turn to page 2748 in the new Grainger catalog, number 397. There you will find wall mounted kits, training booklets, and everything else you will need to comply with OSHA requirements.

Don’t overlook secondary containers. Having perfect MSDS documentation at your site would be useless for the parent of the child in the back seat of the car I mentioned above. What could they tell paramedics or a doctor if the bottle had no label? Often, chemical suppliers can provide you with labels to apply on secondary containers that include all emergency information. Some actually sell pre-labeled bottles for supplies commonly transferred. However you go about doing it, don’t take the risk of not maintaining strict labeling procedures for all secondary containers.

Personal Protection Equipment (PPE)

It’s not only common sense to use proper PPE, OSHA standards require that all “affected” employees and contractors utilize proper PPE. What specific devices you need varies depending on the chemicals and services offered. The first step is always to do an assessment of the entire workplace. There is a lot of literature available to assist you in performing your workplace assessment, but a good place to start is at www.osha.gov. The workplace assessment should be updated annually. This complete walk through of your operation will identify every occurrence where an employee can come in contact with a hazardous condition. Things that you should look for are low clearances, location of flammable substances, hazardous chemicals, excessive noise, and moving machinery. Once each hazard is identified, you must document it along with a specific PPE that must be used to eliminate the hazard. The most common PPEs found at a car wash include eye goggles, drum dollys, back braces, face shields, nitrile gloves, ear plugs, rubber soled shoes, warning signs, burn sleeves, barrier cream, and aprons. It is critical to be very specific in your documentation. Never indicate something generic such as facial protection, be very specific with the actual PPE that must be used.

Documenting all hazards is relatively easy. Providing an effective PPE for each situation is usually affordable. The real battle is making sure PPE is properly used and maintained. Often it will require extensive training and retraining. You will need to hold safety meetings. Posters, handouts, and signage should be incorporated to constantly remind all affected employees of company procedures. Implementing an effective program involves more effort than bolting a first aid kit to the wall, but is vital to providing a safe environment for your employees to work in.

Emergency Response Plan

OSHA guidelines also direct employers to implement an emergency action plan. The importance of doing this cannot be over emphasized. Benefits include reduced workman’s comp rates, improved employee moral, and decreased employee down time from injury. Creating your plan will take some time and consideration. It will include emergency contact lists and procedures, as well as plans for evacuation, fire prevention, readiness and focus, hazardous material release response, medical emergency, and overall site organization. Each car wash represents different considerations, but an excellent place to get started is with the free resources found on the OSHA website.

Lock Out / Tag Out

If you don’t already have a lock out / tag out kit at your wash, buy one, it will be the best hundred dollars you can spend. If you’re not sure what one looks like, I’ll again use Grainger as a non-industry specific supplier. Turn to page 2720 in their new catalog, number 397. You will find numerous options and most kits include a training guide. Select a kit with the proper quantity and type of locks and tags for the equipment at your wash. In addition to all wash components, you will also want to make sure you have supplies for air compressors, conveyors, pumps, air lines, and hydraulic lines. Make sure you communicate a policy for immediate replacement of any item in the kit that becomes unusable.

Basically lock out / tag out dictates that any person servicing machinery or equipment must physically disable the item before working on it. Whenever possible a lock must be used to keep the item from being re energized. If it is not possible to lock out an item, then it must be tagged out. Only the person who has locked or tagged out the item is permitted to re energize it, unless that person has left the property and passed authority to another according to the plan you have put in place. Under no circumstance can an item ever be re energized before the lock out / tag out is removed.

The concept is simple, and the required supplies affordable. Like PPE, the difficulty lies in ensuring that procedures are adhered to always, without exception. It demands a formal, well documented training policy. Affected employees must understand both the use of locks and tags, and the need to use them no matter how quick they think the service will be. Training is not a one shot deal. At minimum all affected employees should be re-trained on an annual basis. In addition, training must be administered whenever an employee is reclassified or placed into a position requiring the use of electrically energized machinery or equipment.

Summary

An ounce of prevention saves a pound of pain. It’s a lot of work to write manuals, create forms, and deliver training programs. Don’t lose site of the fact that the rewards for implementing a thorough risk prevention and counter measure plan go beyond reducing financial liabilities to your business. It’s the right thing to do for your customers, employees, the environment, and you. I hope everyone joins me this year in not only requiring our staff to follow procedures, but to take the few extra seconds ourselves to put on gloves, aprons, and face shields, even when no one is looking. I’m sure I’m not the only one who has probably pushed luck farther than it should be and decided that a few extra seconds has got to be less painful than an injury.

A Smile and a Hug

By:Anthony Analetto
Originally Published in AutoLaundry Magazine

Last month, my daughter, a junior in college majoring in child education, volunteered to spend five weeks in rural South Africa. She lived with a host family and worked at an elementary school. While showing us over 1,500 pictures of her adventure, she repeatedly expressed regret that she couldn’t pick up much of the local language. When I asked her how she managed to communicate with the children, I was surprised when she answered “Dad, a smile and a hug mean the same thing in any language.” It’s amazing how such a simple expression can be so powerful – which of course got me thinking about how it applies to car washing. I started jotting down ideas. What things do successful car washes do that’s the equivalent of giving a smile and a hug to their customers? What visual cues let customers know that you care about them, and the appearance and safety of their vehicle? So often these activities are framed in terms of marketing, branding, preventive maintenance, customer service, employee management, and property maintenance. And too often, when business is slow, we postpone these expenses or change our service level in an attempt to lower costs. Maybe I’m just inspired by my daughter’s recent excursion. But maybe, there’s something more to this idea. Maybe in order to maintain customer loyalty and engagement, it’s better to think in terms of what we’re doing to give them a smile and a hug. Let’s take a look.

Self-Evaluation
I’ll start this section with the statement that not all customers are created equal. It’s easy to smile and give a mental hug to the 20% of your customers that are contributing to 80% of your revenue. Unfortunately, for many service businesses, we exhaust ourselves by catering to the 80%, and after time, no longer even see the top 20%. Step back for a second. Look at your customers. Do you feel like you want to give them all a smile and a hug while thanking them for their business? If not, pretend you can look out at your customers and see the top 20% in bright color and the other 80% in black and white. Can you at least smile at the top 20%? If not, you’re perfectly positioned to make poor decisions that can negatively impact your business; to haphazardly cut the very things that keep customers loyal; to make decisions that undercut the value of your service and pushes your best customers to your competition. I’m not saying you need to look at your customers and start humming a verse of Kumbayah – but if you’re not prepared to smile and give even your best customers a hug; it will corrupt your staff, disrupt the quality of your service, and slowly eat away at your bottom line.

Staff Management
The fact is that car washing is a cyclical business that changes with every weather forecast. Your job is to ensure that not only you, but your staff engage with your customers in a positive and consistent manner. That’s the root problem that must be solved. Car washing is an inconsistent and unpredictable business. As operators, we have to deliver a consistent and predictable customer experience in order for our business to grow, with a smile and a hug. I recently read an article discussing Starbucks multi-million dollar training initiative to instill reliable and successful customer service habits in employees. I laughed a little when I imagined if they had to deal with a prolonged rainy period that forced them to lay off most of their staff. Or if every customer came in with a different sized mug and the barista had to make sure the precise concentration of ingredients was automatically and proportionately changed for that particular cup. I’m the first to recognize that car washing presents challenges that a coffee shop couldn’t even imagine. But there’s a lot to be learned from initiatives such as Starbuck’s. The objective of training employees to give each customer the equivalent of a smile and a hug as an instinctual habit makes a lot of business sense. So how do you do that in the unpredictable world of a car wash? Simple – focus on your core staff. Develop incentive and training programs that provide a stable environment for this group that insulate them from the ups and downs of unpredictable cash flow while sharing in the overall success of the wash. That, however, demands meticulous planning. Too often I see operators design a compensation program that lets this core group share a little when the business is strong, and feel the pain when things are slow. Seems fair – right? Wrong. Face it,  employees will never appreciate your pain during a slow month. Don’t be so critical; neither will they reap the rewards of a record month. The pitfall is that you need this core staff to greet every customer with an involuntary smile and a hug. You need them to infect all other staff around them with their enthusiasm. Those two actions will improve the customer’s experience at your wash and contribute real revenue from more loyal customers to your bottom line. Both, however, are difficult tasks for the average employee when faced with perceived instability in their work environment. In a nutshell, creating an environment that makes customers feel welcome requires not only giving them a smile and a hug, but doing the same to your staff. Who would have thought this happy smile and hug stuff could become so complicated?

Property Management
Now that we’re extending a smile and a hug to our customers through our staff, what about the property and wash process itself? Before I talk about car washes, I’d like to talk about cars. Have you ever noticed when you buy a new car or truck, there’s plenty of money and time to buy accessories? To detail it obsessively? To perform all preventive maintenance on schedule?  Time passes and it loses its luster. You need new tires. You have unexpected repairs. You justify delaying preventive maintenance and detailing because there’s no time or money. With a car, it’s no big deal. Just trade it in. If you allow this to happen to your wash however, you’re potentially going to kill your business, or at least stunt its growth. This isn’t an article on facility maintenance. But ask yourself; are your nozzles in perfect working order? Do you recall the last time you pumped your reclaim tanks? Have you tested your water quality within the last month? Has all preventive maintenance been performed on schedule? Is your property clean and inviting? Is any equipment tied back, waiting for repair? Have you cut back on detergents, rinse, or drying? Is your landscaping and signage bright and cheerful? Basically, are you extending a smile and a hug to your customers through the careful attention to detail in their experience of getting a clean, dry, shiny car? Master that and you’ll be humming a verse of Kumbayah on your next trip to the bank.

Building Long-Term Success - Grass-Roots Marketing Delivers $10 Average Exterior Ticket

By: Anthony Analetto
Originally Published in AutoLaundry Magazine

Everyone loves a dramatic success story. An entrepreneur invents a new product, or way of doing something, and the dollars flood in. Although inspiring, true success occurs more often as the result of persistent trial and error, hard work, and attention to detail. Several weeks ago, while talking with a friend and colleague about his latest experimentation with a new automated cloth drying system, and looking at a picture of one of his 5 express-exterior car washes, I asked “Kelly, how old is that site?” Now anyone who knows Kelly Reilly, owner of Kelly’s Express Car Wash in central California, knows that he is a fanatic for maintaining his properties, but this picture showed something truly remarkable – it looked like a newly built location just about to open. When Kelly replied “I think we built that one in 1994, so it’s about 18 years old,” I realized I had a true success story that anyone in the business of washing cars could benefit from.

Kelly has always done things differently. One of the first pioneers of the express-exterior wash format, Kelly’s early struggles to remain one step ahead of bankruptcy helped shape the definition of what express really was, and is. Long shot gambles he took decades ago are now standard practice for most new express operators. Having recently broken ground on one of three new locations he has planned to build over the next 18 months, Kelly is at it again. Looking to leverage the latest innovations to deliver a unique customer experience, he agreed to share some of his plans for this latest expansion. Below are some excerpts from our conversation.

Analetto: “When did you first decide to enter the car wash industry?”

Reilly: “Decide? I don’t think my entry into the car wash industry was actually a decision. I was about 11 years old when my dad bought a full-serve wash. I was the window man – jumping over the tire-brush into cars rolling down the conveyor. I suspect OSHA must have been a bit more lenient back then. My time was split between working at the wash and at our shop where we also made self-serve equipment. I really enjoyed working in the shop and am, to this day, passionate about the nuts and bolts of getting a clean car. But, I suppose my first decision to enter the industry was in 1987 when I bought a coin-op.  After doubling the business in a year I was able to buy a 3-bay self-serve with a 60-foot conveyor. That, too, went well until I decided to replace the tunnel with the latest novelty, a touch-less in-bay automatic. It was a disaster. Volume dropped 75% and after 8-years it went to nothing. Fortunately, in 1992 I was able to buy another 60-foot conveyor. I got that running pretty well and was able to sell it a couple of years later to buy some land to build our first express-exterior wash with a 110-foot conveyor and 12 self-serve free vacuums.”

Analetto: “Even today, exterior washing hasn’t caught on in much of California. What inspired you to build an express-exterior in that market nearly two decades ago?”

Reilly: “During those first couple of years, pretty sure I was going to go broke, I asked myself that same question. But having started in full-serve, I knew I didn’t want to manage that type of business. I couldn’t reach the kind of numbers I wanted with the coin-ops, and the in-bay automatic I tried was a fiasco. Exterior intrigued me. Back then I was able to build the place for 1.4 million including land. That seems small compared to today’s costs, but it was a huge back then and I had everything on the line. I opened at $3.99 and in the first year only washed 49,000 cars. It was pretty clear the formula wasn’t working. People weren’t sure what I was. All I could do was search for something that worked. I decided to raise the price to $5 and started to towel dry. The wash is in a dry climate and I have lots of horsepower on my blowers. Towel drying required very little labor. What it really did was make the customer see more value in our service. Volume started to build by 3,000 to 10,000 cars per year and at $5, the numbers started to work.

Analetto: “Would you say that raising your base price to $5 and towel drying was the turning point for that first location?”

Reilly: “Not entirely. It was really a combination of factors. At the time, I was still using self-serve vacuums, and giving a free token to wash customers. In the beginning, that was lifesaver, bringing in $2,000 per month.  But once I was washing more cars, customers started to get ticked having to wait for a vacuum. At this point, the vacuums were only pulling $400 per month and I switched to a central vacuum to process cars faster.  Volume continued to grow and I changed very little until 2002 when I went to a $7 base wash.  I remember thinking we’d have a drop in volume, but it didn’t happen. Instead, both volume and our average ticket grew, and that year we built two more washes. There’s really no single event that I can say was a turning point. I remember, for example, when I installed the gated entry system there was a 20 cent jump in our dollar-per-car average. Again, incremental growth, but not a real turning point. Our growth has come from trial and error and constant improvement.”

Analetto: “I know you’re currently building another wash and have two more in the works. Have you considered any of the flex-serve models offering interior or express detailing services?”

Reilly: “Absolutely not. I got out of the full-serve business back in the late eighties and have no interest in going back. I like the express-exterior model. Like I said before, I really enjoy the equipment side of things. Right now we’re experimenting with some of the new application systems and cloth dryers that are coming out. I feel there’s still room to improve the value we deliver online. I know there’s money to be made with the flex-serve model, it’s just not for me.”

Analetto: “You have locations that are nearly 20 years old, how do you keep on top of maintenance?”

Reilly: “I believe in the McDonald’s theory of creating processes and procedures to deliver a consistent customer experience. All preventive maintenance is scheduled. Three times per year new flowers are planted. I paint every fourth year. Once a year I take an inventory of everything that needs to be done at each wash. During the rainy season I’ll order everything I need and store it at our warehouse. I then wait for a rainy stretch and pull all my managers to one location that we’ll attack for 1 to 2 days.

Everything starts with how you treat your employees. I treat my managers how I want them to treat their staff, and if you met one, you’d think they owned their wash. We have good pay, health insurance and profit sharing. In all the years I’ve been doing this, I’ve only had to fire one manager, and nobody has ever left.”

Analetto: “It’s amazing how fast the years seem to evaporate. If you could give a recommendation to a new operator of one thing you’ve done that has had a long-term payoff, what would it be?”

Reilly: “Actually, I have two. First is to never underestimate the customer. All I sell is a car wash. I have to constantly invest both time and money to make sure everything works properly every time. I’m always amazed at how quickly people recognize if even a single foamer isn’t working. What I’ve learned is that as long as I can keep things working and keep things consistent – the customer will keep coming back.

The second is to never underestimate your staff. One of my managers once came up with an idea to get a small counter display filled with cards that include our logo and a code to try our top $14 wash for $10. We worked out deals to put the displays at local restaurants, gyms, and other businesses. It’s really simple grass roots marketing, but the result has been phenomenal. We print an expiration date on all the cards but we let them run longer. Customers share the codes, email them to one another, and post on Facebook. Once I saw a kid enter a code that was expired. He immediately pulled out his phone, emailed a friend, and had a new code within seconds. I now have thousands of customers talking about my wash on a monthly basis, and I’m getting $10 per car! To take it a step further, when they buy the top wash, we print a coupon on the receipt that lets them get their next top wash for half price, only $7. What’s amazing is that I’ll see months where 40% or more of our customers are buying the top wash. Of those top wash customers, 50% are using one of the $4 coupon codes, and 10% are using the half-off receipt coupon.

My goal is to enter into a partnership with my customers. When I went to the $14 top package, I felt that I was moving above what a customer in my market could afford to spend on a car wash and still feel good about it. That worried me. But by giving that $14 customer a coupon entitling them to their next wash for half price, I’m providing a value they can’t match anywhere else with no strings attached. I believe that as long as I can do that, customers are going to enjoy the experience at my wash and keep coming back – a formula that, so far, has worked pretty well for the last 20 years.

Innovate or Die

 By: Anthony Analetto
Originally Published in AutoLaundry Magazine

Interview with Terrance Elder of Triple Play Car Wash in Attleboro, Massachusetts.

“Innovation distinguishes between a leader and a follower” Steve Jobs, CEO Apple, Inc.

Triple Play Car Wash in Attleboro, MA is one of the most impressive car wash facilities I’ve ever seen. Opened nearly three years ago by Terrance Elder, this 3.2 acre property is home to a 157-foot express-exterior tunnel, touch-less in-bay automatic, 7-MPD Exxon-Mobil gas station, 6-Bay Detailing Center, 3-Bay Valvoline Instant Oil-Change, and a 4,500 Sq. Ft. On-The-Run C-Store with a drive-thru Dunkin Donuts and Jay’s Deli. Under Terrance’s vision, leadership, and hard work, his overall business has experienced year-to-year growth of 20% with the oil-change business alone posting a 58% gain. And just as he’s positioned to relax and reap the rewards of his efforts, Terrance is doing the opposite. Over the coming weeks, Triple Play is applying everything it has learned so far to create an innovative new cross marketing system that leverages technology to build loyalty and drive revenue. Having already done the heavy lifting, Terrance agreed to share some of his insights to bring an already successful car wash to the next level. Below are some excerpts from our conversation.

Analetto: Your sales across every profit center have steadily grown – what are you planning to change and why?

Elder: Why - because there’s an opportunity to get more revenue from this property without increasing labor. I can only speak for my market, but in the Boston area land is expensive and construction is expensive. When I first looked to get into the car wash business, I heard all of the horror stories and felt nervous that I had to rely on the weather to make it work. So, to me, the obvious choice was to build a business that would feed the car wash, and I use gas discounts to make it happen. I opened with a soft 10 cent per gallon gas discount with a car wash. Now it’s 20 cents off Monday through Thursday and 15 cents on the weekend. I did that because I knew I wanted to be at 135,000 washes per year with an average ticket above $10, and that I needed the weekday volume to get there. The extra 5 cent discount during the week had an immediate impact. Volume moved from 250 cars per day to 350, and what’s more, the weekend business wasn’t affected. There’s a lot of emotion with gas prices and when a customer hits “yes” to a car wash, and the pump rolls back 20 cents, they absolutely love it. What’s amazing is that after so many years of conditioning customers to make a minimum gas purchase to get a discount on the car wash, when we first started doing it, I actually had people ask me if there was a minimum gas purchase. I would say no and watch as they pumped one gallon of gas for a ten cent discount on a $12 car wash.

My goal now is that instead of getting an extra $10 dollars from my gas customer for a car wash, I want to get $40. That’s why I’m re-inventing everything to teach my customers to buy in bulk and save. Our average fill-up is only ten gallons. So, in reality, we’re giving a $1.50 to $2.00 discount on the car wash. I could run coupons for $5.00 off a car wash all day long without the impact of the gas discount. The gas discount costs me a fraction of what a coupon on the car wash would, has a greater perceived value for the customer, and I don’t have to pay as much to promote it with direct mail or other advertising.

Analetto: How are you planning to move your customers to such a high purchase?

Elder: I look at it this way – if you’re going to invest thousands of dollars to advertise something, you have to make the offer strong. If you do that, and deliver a real value, you’re going to get new customers, increase sales, and build loyalty. My original goal at the quick-lube was to get to 1,500 cars per month. So we ran online coupons with my local cable company and supermarket register tapes for $12 off a lube and included a free $8 exterior car wash. Giving $20 dollars in value for a $39 oil-change is huge. But in one month we did 1,470 oil-changes with 550 new customers. I spent a lot of time training my workers to get customers into premium oils and other upsells like wiper blades and have been able to hold a $60 ticket. And once you’re averaging over 40 oil-changes per day, it starts to get fun and make some steam. We’re still averaging 400 new customers per month. My new goal is to average 1,800 monthly lubes in the next two years with gross sales the same as my car wash. It’s not as profitable, but it’s a big amount. What we’re working on now is to drive pre-paid car wash sales and express detailing business by reinventing how washes are sold both at the auto attendant and at the pump.

Analetto: By giving away a wash with the lube are you hurting your wash business?

Elder: There’s always a risk that the customer only gets a wash with the lube, but that’s not what we’re seeing.  An oil-change lasts three to four months and customers are often upgrading the free wash and visiting in-between to wash their car. Don’t get me wrong, I also have customers who go into the c-store with the ticket for the free wash trying to get a discount on gas, but that’s the exception. Basically, my competition can’t offer a free car wash so it’s my competitive advantage in this market. It makes the customer feel good and that will always work in your favor.

Analetto: Increasing pre-paid wash and express detailing sales normally means training human greeters. How do you plan on accomplishing this from your auto attendants?

Elder: The technology is there, but you have to make it work for you. Measure what’s working and find creative ways to push it harder. I’ve put service advisors at my gates and instantly lifted detailing services dramatically. But I can’t afford to pay a service advisor to do an inconsistent job of up-selling my customer. I already have effective signs that promote oil-change to detailing customers, car washes to C-store customers, and detailing services to car wash customers – but a sign isn’t the same as telling the person the value of buying more while they’re in the middle of making a purchase, and then asking them to buy it. Even the best trained person can’t match the consistency of an automated attendant. The problem is that my auto attendants aren’t currently programmed to push the up-sell products and services how I’d like, but it’s not because they can’t. My software provider, DRB Systems, has been working with me closely to really maximize the potential of my payment systems, integrated across my whole property. That is what I’m working on right now. By having the multiple name brands on the same property, I have a lot of equity I can leverage.

Analetto: Can you share exactly what changes you’re making?

Elder: Big changes.  It’s almost like re-opening. Last year we sold 65,000 washes from the pump and when customers entered the code at the wash, the machine asked them if they would like to add a $2 tire shine or $3 body protectant. I offered the same thing to customers that bought a wash directly at the auto attendant. It didn’t work. Add-on sales were disappointing. Going forward, depending on the wash they bought at the pump, they’ll be presented with an offer to buy additional washes at a huge discount simply by clicking the “yes” button or decline by selecting “no thanks”. So if they buy our $21 full-serve at the pump, when they enter the code at the auto-attendant, the machine will ask if they’d like to save $8 and buy the next wash for only $13 – a 40% discount. The offer changes depending on what they bought and the graphics are real creative – it’s a lot different than anything I’ve ever seen. The promotions change for someone buying a wash at the auto-attendant to push express detailing and additional washes depending on what they bought. For example if they buy an exterior wash, the next screen asks if they’d like today’s wash for free if they buy three more. And when a customer enters the free wash code from an oil-change, it offers a huge discount if they add an express detail service. I’m excited. The offers are consistent and always appropriate based on what the customer bought, or where they entered my property. A human just can’t do that. I know some operators are doing well selling pre-paid unlimited wash programs. I tried, but it seemed every month I would sign up 40 members and lose 30. For me, discounted gas is my loyalty program. By changing how my auto-attendants work, I’ll reduce the time and labor I was spending on managing the pre-paid membership program and generate more dollars doing it.

Analetto: You partnered with a lot of recognized brands at your site – has the investment paid off?

Elder: Absolutely. It’s not only about appealing to customers, it also helps keep competition from coming in. We can have 1,400 cars going through on a Saturday. That draws the attention of investors looking for a proven market. Recently someone was going to build near us and decided to pull away. I think we have a strong location and solid business model, but the brands make a real difference. I’m not just discounting gas - I’m discounting Exxon-Mobil gas. I don’t just sell coffee, it’s Dunkin Donuts coffee with a drive-thru open 24-hours. My oil-change is branded Valvoline and includes a free car wash. And in our market, Jay’s Deli is a strong regional brand. Someone could build the same business in my market, but they couldn’t easily compete with the brands I’ve partnered with.

Analetto: Having been open nearly three years now, what have you learned that you would you recommend to other operators?

Elder: I believe you have to keep searching for ways to deliver more value to customers. More reasons to visit your property. Measure what works and be willing to stop what doesn’t to try something new. I finally got tired of asking people to buy $2 or $3 extra-services without any results, so I am shifting to stock-up and save discounts. This holiday season when someone buys a car wash, the auto attendant will ask them if they’d like today’s wash free with the purchase of a gift card – yes or no – and I’m investing in the technology to print the gift card for them then and there. I’m changing the whole experience for my customers. I know I have my work cut-out for me to educate them that if they buy in bulk they’ll save, but I never came into this business thinking it would be easy. It can be a grind to build your car wash volume, but it pays off if you keep working it. Take care of the customer and it all comes in time.

Back To School Basics - The Last One to Get to the School is a Rotten Egg

 By: Anthony Analetto
Originally Published in AutoLaundry Magazine

It’s the most wonderful time of the year”. I doubt I’m the only one who recalls the Staples office-supply store TV commercial a few years back depicting a smiling father plunking pencils and notebooks in a shopping cart, as he merrily anticipates sending his kids back to school, while dancing through the aisles to this classic holiday song. Recognized as a crucial period for most retailers, it often seems that few car wash operators specifically target their marketing to take advantage of the season. No, parents and students won’t be stocking up on car washes, but there will be a huge shift in their daily activities and priorities. With a little planning and legwork, there are a lot of opportunities that can help build your car counts during the coming months.

Fundraising

I expect a growing sense of urgency from schools and organizations looking to raise money this school year. Many areas will see decreased property tax revenue related to the housing slump. Fuel prices have spiked so dramatically that more than a few districts will be scrambling just to meet increased operating expenses. Budgets for sports and extra-circular groups will likely be scaled back; sending out veritable armies of students to raise money to sustain their activities with greater need than usual. The community car wash with strong fundraising programs, proactively marketed, stands to become their best friend. Do you have a brochure detailing the various fundraising opportunities you offer? When the band teacher types the word fundraising into a search engine, will they get an advertisement linking them to that page on your website? Have you scheduled appointments with the head of every organization in your community that could benefit from fundraising partnerships with your wash? Albert Einstein once said that “in the middle of difficulty lies opportunity”. Let’s look at some of the opportunities.

First, consider the old standbys. Hosting charity wash days with a percent of the profits going to the organization can both increase traffic and present a great opportunity for media coverage. Another favorite is for kids to sell wash books and keep a part of the profit. More recent fundraising programs leverage technology to improve performance. For washes with newer gated kiosks, it will be increasingly common for these units to have the ability for a customer to enter a code to donate a portion of their payment to a favorite charity. For example, you may negotiate with the local band that every time a customer buys the top package and enters the assigned code, you’ll give the band two dollars. If you don’t have one of these hi-tech kiosks and can stomach a chaotic lack of control, this can also be accomplished with printed and even electronically distributed coupons that you allow to be duplicated. Imagine all the students and parents sending out electronic coupons to friends and relatives across the social networking sites to buy your top package. Picture thousands of potential customers planning a trip to your wash to help the people they love. Grass roots marketing can deliver exciting results, but normally, only the first business in a community to do something new will reap the reward.

Get In Synch with Your Customer

Back to School means your customers drive and behavior patterns are changing. Parents are leaving for work earlier to drop off kids. College students are commuting to or arriving on campus. Summer vacation season has ended with many family vehicles in serious need of interior detailing. Look for small operational changes you can make to better align your wash with these new patterns. Evaluate your hours of operation. Maybe promote an early bird special on a sign promising a discounted wash. Try offering a free cup of coffee to go with an exterior wash where the customer drives through. Distribute free washes to new students at your local university. Promote interior detailing specials. Whatever you do, realize that your customer’s routines are in a state of flux. Failure to give them an incentive to make getting a wash convenient with their new schedule can lead to a slow couple of weeks. Your job is to show them how fast and easy it is to incorporate a car wash into their new schedule.

Have The Rules Changed?

I’ve run washes that every year experienced a drop in volume starting two weeks prior to the start of the school year that could last for several weeks. Student discounts were offered with flyers posted all over campus. Detailing specials were promoted on coupons for customers looking to get there car really cleaned after vacation travel. Despite tremendous effort, these and other promotional efforts seemed to have little impact. Maybe it was that customer’s routines were disrupted and it took a couple of weeks to return to the wash. Maybe budgets were simply too strapped from buying clothes and pencils. I know some operators that have written off this season and use the time to perform site maintenance and renovation to get ready for the winter. So why am I writing about building traffic during back to school? Am I off my rocker? Maybe. But maybe the rules have changed.

There are a lot of things going on in the economy right now with unknown and unpredictable results. No doubt there will be difficult times ahead for some. But I keep coming back to Mr. Einstein’s quote that “in the middle of difficulty lies opportunity”. Maintaining the status quo may not be enough. Businesses that can identify and implement new ideas first are likely to find more success in these uncertain times. I have not yet tried the computer code fundraising program I outlined above, and welcome letters from anyone who has. Will it work? I can’t answer for certain. But I remember when I was in school we had a saying “the last one in is a rotten egg”.

Not Valid With Any Other Offer - Revisiting Your Marketing Plan in a Changing Economy

By: Anthony Analetto
Originally Published in AutoLaundry Magazine

Like most businesses scrambling to keep ahead of our current economy, the only rule that seems consistently true is that everything is changing. Your customers’ needs and the criteria for their choices are changing. Media companies are innovating new ways to reach customers, and in some markets, the cost of traditional advertising is plummeting. When taken together, a savvy car wash operator is presented with an opportunity to increase their market share.

In the words of Winston Churchill, “If you're going through hell, keep going.” Assuming you’re already delivering a clean, dry, shiny car with a reasonable amount of labor, “keep going” means dust off your marketing plan. It means aligning your competitive advantages with what your market desires, and advertising it to them. Here are a couple of ideas to get you started.

Get In Your Customers’ Shoes

Imagine picking up a telephone, randomly dialing a number in your community, and offering some quick reasons to the person whom answered why they should get their car washed at your business today. What would you say? If you were on the other end of the phone listening to your call, would you stop in for a car wash? Some customers may have recently lost their jobs. Others previously secure in their jobs, bonuses, or housing, may now be less certain. It’s unlikely that they are the same consumers they were when you first opened. When analyzing why a customer would choose your business, get in their shoes and evaluate the value proposition you deliver. Your entrepreneurial ability to match the quality and consistency of service, customer experience, and price with what your market desires is the foundation of any business. Dig deep and don’t start with price.  In fact, lately, more operators I know are adjusting their prices up slightly and changing their marketing and service offerings.

Standardize Your Message

Having established the quick reasons why customers in your community would feel compelled to stop at your wash, it’s time to create your tagline. These are those simple messages that you’ll see and think “why didn’t I think of that”? In the car wash industry, I’ve seen some clever examples that shape how a customer will feel, that promise fast service, that guarantee quality, and combinations of all the above. Most importantly, you must consistently and prominently place the tagline on everything you have that the customer will see. Even if you simply list some of your features such as “Clean, Dry, Shiny, Fast - Every Time” on every sign, advertisement, coupon, menu, and business card, you’ll put yourself ahead of an equal competitor who doesn’t.

Incentives and Coupons Work

In the business section of this morning’s newspaper there was an article titled ‘Use of coupons increases sharply this year’. On my desk, a magazine greeted me with the headline ‘Why Coupons Work’. And each day the popularity of coupon promotions is shown by the flood of offers filling my mailbox. It’s not surprising that during an economic downturn consumers are rediscovering the value of shopping with coupons. What does surprise me is when I talk to a car wash operator who hasn’t at least looked into giving consumers a reason to try, and buy, their services with coupons. You might be familiar with using local coupon packs and newspapers, but there are other options for distributing your coupons. Type “postcard marketing service” into any internet search engine and you’ll have offers from hundreds of firms that make sending your promotion as easy as clicking a button. Next, try searching for “e-mail marketing service” and you’ll find so many choices that they seem to be tripping over each other to offer you more features for a lower price.  If you do nothing else, you must do a search for “Google Local Business Center”. This absolutely free service takes only minutes to setup and does not even require that you have a website. What’s more, it has a feature where you can post online coupons for your business that customers can print and redeem at your wash. Imagine placing a coupon for your ongoing Wacky Wednesday right at the top of the page anytime someone in your community searches for a car wash. Even if you don’t use the internet to find local businesses, many of your customers do, and it’s free, so just do it! The other search engines offer similar services and you owe it to yourself to take advantage of them. Need help on creating coupon offers? Visit the International Car Wash Association at www.carwash.org and search couponing. You’ll find information on creating coupons, and while you’re there you can register online to attend the 2010 Car Care World Expo in Las Vegas.

Don’t forget Billboards

Some operators live by billboards. Others have deemed them too expensive for the amount of traffic that they produce. Regardless, you may find that circumstances have changed and their usefulness to you has improved. Contact your billboard sales representative for an updated quote. Some areas are reporting savings of up to 60% compared to a year ago without an extended contract. Savings are of course based on market conditions, but when the price makes sense, a well designed, correctly positioned billboard can really drive traffic to your car wash.

Street Signs

I would rank having a bright, inviting, clean location with a highly visible street sign higher than most other marketing activities at a car wash. Recently I stumbled across the neatest thing. Ask your sign company about updating your lighted wall, monument, or pole sign graphics with new 4-color print vinyl flex face. At a fraction of the cost of traditional plastic faces, it lets you update your sign more frequently so your message doesn’t get lost in the noise. I’m not sure how well they hold up over time but I encourage anyone with a long history of using vinyl sign graphics to please shoot me an e-mail with their experience.

Broadcast Media

Radio and cable television can be highly effective, but are often costly and hard to track. Most success stories I have heard come from operators with multiple locations and a recognized brand in a specific market. Regardless, while preparing your marketing plan you definitely want to evaluate these media. Like billboards, in some markets prices have dropped recently, making broadcast media more accessible than ever before.

Get Creative

Whether it be holiday decorations, a person waving a sign out front, or agreements with other local businesses to promote each others’ services, effective marketing is about getting the right message in front of the right customer at the right time. It’s not about spending large amounts of money. One car wash owner I know increased his car count 55% in one year with a lavish budget that included cable television, coupon mailers, and more. All of his advertising contributed to his success, but the one thing he felt was most successful was printing 30,000 post it notes with a clever promotion that he adhered to cars in parking lots near his wash. If you’re willing to get creative, you’ll discover effective marketing doesn’t have to break the bank.

Summary
With all the hard work it takes to deliver a perfectly clean car and manage your staff, it’s sometimes hard to accept that it’s only one small part of the job. People in the industry have been talking for years that the days of “build it and they will come” were dying, and the current recession has made it official. Navigating this difficult economy demands creating a unique customer experience, communicating it effectively, and cultivating loyal customers based upon it. When the sun shines, there are cars to be washed. The reality however is that your Marketing Plan will be as important as your service offering, if the customer is to choose your business on that first sunny day.

Put People First - Success Will Follow

By: Anthony Analetto
Originally Published in AutoLaundry Magazine

 Talk to Scott Blackstock, owner of Tidal Wave Car Washes, for just a few minutes and you’ll leave the conversation with a feeling that having a crew of enthusiastic and skilled employees is an easy to achieve, every day occurrence at a car wash. Having built his first 4 plus 2 in 2000 and first express exterior tunnel in November 2004, Tidal Wave currently operates 10 washes in 3 states with 2 more under construction, and 2 more properties under contract.  Scott employs approximately 70 people in the car wash side of his business but also has investments in quick lube, and self-storage locations that have influenced his approach to training employees for success.

Last month, Scott was kind enough to share some of his insights on maximizing the performance of his team. I’ve included a few excerpts from the conversation below.

ANALETTO: You’ve opened 6 washes in the last 12 months alone. With all that growth, how have you stayed on top of training your employees?

BLACKSTOCK, OWNER – TIDAL WAVE CAR WASHES: Staff training is one of our highest priorities, but I’ll be the first to admit that I’m not in the training business. While I focus on producing the best wash I can and on bringing in new customers; I recognize that training my employees to be competent, courteous, and enthusiastic is equally important. In my opinion, every company must have a separate training department. Tidal Wave isn’t big enough to justify that kind of investment right now so I outsource this function to a professional training company.

I was in the quick-lube business many years before building my first car wash. In that industry there are several sources that offer excellent programs to train your staff. The employees and my business always got an awful lot out of it – way more than what I spent. Being able to take a week to focus on training, away from daily distractions, is about more than just learning how to do a job. It’s truly wonderful for morale. Many of the people I hire have never been at a company that has invested in their knowledge and training. You read all these studies on how dramatic the return on training dollars is, and it’s scary how bad corporate America sometimes seems to be at taking advantage of it. There are a lot of employees who want to do a good job but don’t get the tools. When I put a new hire on a plane to spend a week at a training center, I’m telling that person how important they are to me. They come back with key ideas and know they are empowered to implement change to grow the business. They take it more seriously.

ANALETTO: Do you believe that it is cost effective to outsource your training?

BLACKSTOCK: Absolutely. Like I said, you have to have a training department, either your own or someone else’s. I used to be very involved in the tire change industry and owned several locations. Similar to how car washing used to be, there were really no outsourced training companies serving the industry like you find in quick-lube or automotive service. I had to invest a lot of time and money to create my own department. I remember presenting at an event where another tire change owner asked me “Doesn’t it make you furious to spend a lot of time and money training people and they leave?” to which I answered “Not nearly as mad as the only other alternative, which is where I don’t train them and they don’t leave.”

If you’re a single location or a growing chain like us, you’re so busy keeping open and working to get customers – if you don’t outsource training it won’t get done. Training is a line item on my P&L statement. If that ever goes to zero I know I have a problem.

The more I invest in training, the more my costs and turnover go down. High turnover forces me to pay overtime and increase head count to cover daily tasks while new hires learn what to do. Training also helps me reduce maintenance, downtime, service claims, and positively impacts customer retention. When you look at that training line item expense, realize you’ll get it back several times over. It plays a role in reducing other expenses and potentially raises revenue - you’ve got to factor that into your P&L.

ANALETTO: Do you send every employee out for training?

BLACKSTOCK: No. We have strong internal training procedures and manuals that address nearly every “what if” scenario that can happen at a car wash. This covers everything from customer role play and interaction, to how to reset wraps and take a car out of the stack. This training is usually sufficient for attendants and even assistant managers. Location managers on the other hand, are required to spend 1 week studying operational management and possibly another 2 weeks for equipment maintenance and repair training depending on their experience level. We’ll often send other key staff members for training that have demonstrated an ability to move up in our company.

ANALETTO: You mentioned equipment maintenance and repair training. Are these activities your managers focus on?

BLACKSTOCK: Not really. I want my managers to focus on running the business and improving customer service. At the same time, when a manager returns after a week of studying how to maintain equipment and develop a comprehensive preventive maintenance (PM) program, they have an understanding of the importance of these tasks being completed. Although our equipment supplier performs PM, this training helps our manager alert them to potential problems and make sure daily tasks are completed with a sense of urgency. Having basic repair skills, they have a much better chance of fixing problems quickly during an emergency.  In several cases I’ve been able to continue washing cars instead of shutting down for the three hours while we sometimes have to wait for a service tech to arrive. 

ANALETTO: Do you look for employees that have previous car wash experience?

BLACKSTOCK: Absolutely not. I look for attitude. I have hired people with car wash experience that have worked out. I’ve also hired some where it was too hard to un-train habits that didn’t fit our culture. I try to find people with a record of integrity that includes a history of staying with a job, a record of success, and I check references to make sure they would hire the person back. Most important are character traits that demonstrate a good work ethic. If they have the right attitude I can get them the skill set.

ANALETTO: Where do you find your best candidates to hire?

BLACKSTOCK: There’s not really a single source, it’s more of a non stop talent search. Our entire management team is constantly looking for sharp individuals. We then make a pitch to get them on our team. Most candidates come from personal interaction. It may be a really helpful person at a home improvement store or a sharp individual at a fast food restaurant. More recently, most of our new hires come from internal referrals. Our existing employees are happy with what they’re getting and have a friend, brother, cousin, etc, who would like to get into this business. To me, this is a sign we have a good team.

ANALETTO: Once your managers return from training, what do you do to maintain the enthusiasm and skills they have learned?

BLACKSTOCK: I mentioned before the manuals and internal procedures we’ve assembled, but they don’t do much to maintain enthusiasm once the training buzz wears off. The one thing that I would recommend is that whenever you can do it, send multiple employees together.  It’s a good team building and bonding experience and I’ll normally send 2 to 3 employees at a time. When they get back, they’ll call each other with problems or to share things that have worked. If you’re debating and can do it, send 2 or 3 to the same class, sit back and be amazed at what comes out of it.