By Anthony Analetto
Originally Published in AutoLaundry Magazine
When is the next upgrade to your car wash planned? What are you planning to update and why? It’s not a secret that remaining competitive in any field or industry demands constant improvement. For most of us, our motivation to improve falls into one of two categories; we either fix things to solve problems, or identify opportunities and execute improvements. Personally, I like to think of myself as an opportunity-execute, rather than a problem-solve kind of guy. Ironically, my inspiration for this article comes from a newspaper clipping my wife handed me this morning. An interesting piece, it outlined the importance of completing home improvements to avoid problems, rather than waiting for things to break. Fortunately, I have a more organized approach for car washing than I do at home. Every few months I write out answers to each of the following questions in a log. I put down a ballpark figure for what the opportunity will cost, and jot down a month and year I would like to have it done by. Here are the questions I ask myself.
What can be done to reduce maintenance and repairs?
It’s a dilemma. Following a comprehensive preventive maintenance (PM) program is vital to maximizing your site’s profitability. At the same time, every minute spent increases your labor cost. When looking for opportunities to reduce maintenance, first look to training. Consistent PM training will improve both accuracy and efficiency. Your equipment will work better and PM will take less time. Next, evaluate any older equipment in your wash that is limping along with extensive maintenance. Calculate the monthly maintenance cost considering both additional replacement parts and the associated labor cost for both you and your staff. Estimate how much it would be to update the component, and forecast when it would make more sense, financially, to replace it. The date may not occur for another year or more. The point is you’ve begun to schedule improvements to your business.
What can be done to reduce labor?
Adding labor to supplement failed or ineffective equipment is an easy trap to fall into. Often it starts slowly for special considerations. Before you realize it, you’re using labor on every car that duplicates what could be done with equipment. Make sure to calculate the true cost of labor. Include more than salary. Estimate wasted chemicals, shrinkage, slower processing times, and inconsistent wash quality. Identify activities in both prep and finishing areas that could be replaced. Keep a constant dialogue with your equipment supplier and attend trade shows to keep up to date with the latest innovations available. Like I said before, remaining competitive in any field or industry demands constant improvement. Imagine a tax attorney that didn’t constantly invest in learning the latest information. They would soon find themselves unemployed. Car washing is no different, like any profession, it demands daily learning.
What can be done to reduce operating costs?
In addition to scheduling upgrades to lower labor, maintenance, and repair costs, list projects that would reduce your overall operating costs. Do a complete evaluation of your detergent types, application equipment, and location in the wash. Invite your detergent supplier to demonstrate new products and best practices. Identify opportunities to reduce electrical and water consumption without negatively impacting the wash process. This may involve equipment upgrades, modifications, or enhancements. Other possibilities include changes to your PM routine that refine optimal timing for cloth and nozzle replacement. It may be something as simple as installing motion detectors on the bathroom lights. The goal is to keep a running list of things to do to reduce your operating cost with an approximated cost and timeframe to implement.
What can be done to improve safety?
Creating better training may be the first thing many will think of to improve safety, but don’t stop there. Examine opportunities for clearer signage and procedures that reduce unnecessary movement of vehicles on your property. Look for opportunities to alter traffic flow and stacking procedures to reduce the potential for cars and people to cross paths. Estimate the costs of installing bollards, railings, and other aids to control movement of vehicles and provide safety barriers for customers and employees. Evaluate the procedures and training policies in place for handling chemicals on your property. List every opportunity to enhance the personal protection of everyone that may enter your property and refine your plan of response in an emergency. Remember, an ounce of prevention can save a pound of pain. Prioritize all safety improvements you identify for immediate implementation.
What can be done to improve the wash process?
Evaluate what can be done to deliver a better, more consistent product, in a faster, more predictable amount of time. This is the heart of your business. Avoid any temptation to trust that a “re-wash” guarantee will ensure customer satisfaction. The most valuable customers expect a clean, dry, shiny car the first time and have no desire to spend the time to take you up on a re-wash. They will most likely never tell you that they’re dissatisfied. Keep up to date with the latest best practices for equipment placement, material selection, and detergent type and application. Maintain contact with other operators via online forums, magazines, and industry trade shows. Equipment updates can be expensive. Often gains in performance can be found with tuning, placement, material selection, and proper maintenance. When replacing old or worn equipment is the most cost-effective solution, make sure to brush up on tax incentives with your accountant. Managing your depreciation is fundamental to reducing your tax obligation, and there may be special IRS provisions that allow for further acceleration of depreciation. These regulations constantly change and are often designed to provide relief for areas affected by disasters. I mention it here because if you are constantly identifying and scheduling planned updates to your wash, you can coordinate them to your greatest financial advantage. This sure beats the alternative, an emergency replacement so that you can remain open.
What can be done to improve throughput?
If only it was as easy as cranking up the conveyor. Unfortunately, increasing throughput may involve signage, site layout, training, and improvements to equipment performance to handle more cars. This exercise is an excellent opportunity to evaluate your current volume, growth trends, and any planned marketing activities against your established maximum acceptable time of service. Constantly measuring your ability to satisfy your customers’ expectations allows you to plan and schedule upgrades accordingly.
What can be done to improve branding and marketing?
Start small. Is your site clean - does the hot water in the restrooms work? Don’t laugh. Often we spend so much time at our properties that these eyesores and inconveniences go unnoticed. Once all the basics of a clean, appealing site are covered, turn your attention to defining what makes your site better than any car wash that is or might open in your market. Branding and marketing simply deals with how you communicate the competitive advantage of using your wash to the audience of potential customers. Activities you identify and schedule may include signage, landscaping, building modifications, staff training, and advertising, to name a few. Be very specific when listing the activities and anticipated costs; then schedule each activity. Branding and marketing activities are some of the most valuable aspects of your ongoing plan, but often, the easiest to postpone. Being specific helps make sure things get done.
What can be done to improve profitability?
More and more washes are going beyond express detailing, quick lube centers, and modifying wash packages. I’ve visited car washes where customers stop in specifically for their selection of greeting cards, coffee, smoothies, sandwiches, and nearly anything you might find at a specialty convenience store. Another growing trend is offering monthly wash subscriptions, which guarantee monthly revenue regardless of the weather. The opportunities are endless, but like everything, require a plan to implement.
Summary
Using these exact questions to keep a running list of upgrades you plan to do isn’t important. What is important is that you consistently look for and document upgrades you’ve identified as important to grow your business. In the hectic pace of operating a car wash day to day – it’s too easy to forget the great idea you had six months ago when a problem causes you to scramble for a solution. Too bad maintaining my home wasn’t this easy.
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