Sunday, May 11, 2014

Is Your Car Wash Business Relevant




By: Anthony Analetto
Originally Published in CSP Magazine

Fast, consistent, easy, predictable value. Meeting that benchmark is the bare minimum to remain relevant to customers. And things are getting tougher. If you’re able to survive by delivering good prices and convenience, competitors are searching for your market to meet or beat your price while also offering a better shopping experience. You’re up against high-end branding, superior customer service, and engaging loyalty programs, and I’m not talking about your c-store; I’m talking about your car wash.

The advent of express-exterior tunnels washing well over 10,000 cars per month has taught us something. As disposable income in a market decreases, volume at these washes often skyrockets. Customers seek to maintain the appearance of their vehicle longer by washing more frequently. Now that gas prices are topping $4, we’re seeing a surge in interest from in-bay operators looking to retrofit rollover automatics with mini-express tunnels. Technology has advanced to deliver labor-free wash performance on-par with a full tunnel in only 35 feet. But investing in the firepower to deliver 50 spotless cars per hour however, without first having a marketing and operational strategy in place necessary to pull the trigger, is a potential recipe for disappointment.

Petroleum sites have a distinct advantage to leverage gas discounts. There’s a lot of emotion when a customer hits “yes” to a car wash and the pump rolls back 10-20 cents. And the numbers work. With a 10 gallon fuel purchase it will cost you $1 or $2 to generate a $5 to $10 incremental profit from the wash. This strategy has produced significant numbers for some, hence the demand for faster throughput. What isn’t always seen is that wash quality and throughput are only one part of the equation. Successful sites start by delivering a superior customer experience, and here are just a few of the tactics they’re using.

Free Vacuums:

The hallmark of the express-exterior format, free vacuums have been proven to increase customer satisfaction, loyalty, and wash frequency. Rather than customers grudgingly inserting the customary $1 for four minutes, many automated attendants can be retrofitted to dispense a free vacuum token with the purchase of any wash or just the top package.

Branding:

How the car wash is packaged plays a vital role in establishing a customer’s belief in the safety and quality of your service. It costs very little to create and promote a distinct brand across your site with professionally designed and coordinated signage at the wash, pumps, in-store, and on-staff through the use of buttons or other uniform enhancement. If your car wash looks like an afterthought it doesn’t matter how well it works, the customer won’t believe it.

Wash Quality:

Nothing matters if you don’t deliver a clean, dry, shiny consistent product with the extra services your market demands. Equipment, detergent, and wash material innovations from the last five years are readily available to deliver a quality wash. Tire shine, wheel cleaning, and total body protectant extra services can be added to both in-bay automatic and mini-tunnel equipment packages. Ensure preventive maintenance schedules are adhered to and work with your chemical and equipment supplier to dial-in wash quality specific to site conditions.

Throughput:

Watching 300 to 500 cars pour through a mini-express tunnel in a single day inspires daydreams of incremental revenue – making up for shrinking profits in other areas. Before considering this format, conduct a careful demographic analysis, proforma, and site plan options for the upgrade.  Sure, both a rollover and a mini-express tunnel fit in the same 35-foot bay. The first however has a capacity of approximately 100 cars in an 8 hour day, and the latter, nearly 500 cars. That’s not necessarily a good thing. Confirm you have enough space to handle the additional volume at a price that fits your investment objective. Otherwise you’ll frustrate your customers and your potential to maximize an investment in a mini-express tunnel. Today’s crop of rollover washes dramatically cut wash times with improved quality. Mini-express tunnels however require additional labor, management, training, and marketing. Potential volume and profit are remarkable, but not without strategy and work. As with most things, the harder you work, the luckier you get.

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