from flex to express

we recently changed from a flex type carwash to express we only did hand dry and hand applied tire dressing nothing to interiors. We changed to all exterior only online tire dressing 8 blowers instead of 3 brand new system all the bells and whistles. Our old system was 30years old dark and scary our new system is bright and clean. Our problem people hate it! I get personally attacked everyday mean hateful customers. Our pca droped from $9 per car to about $5.50 we wash alot more cars but everyone gets the cheapest wash
our prices before were 5 7 9 11 13 now they are 3 5 7 9 we thought the savings and time would be appericated we went from 8 min avg per car to 1 min! We are thinking about switching back its only been 3 months but its been hell anyone out there with some advice?

We were flex with interiors/hand applied tire dressing and rain-x. For 55 years!!! We decided were going to close the interior service bays and add IBA typhoons. Well for the 12 months we poested that there will be no more interior service July 31, 2007 I wanted to cry everyday at work. Customers constantly telling me they wont return after, that we were stupid the whole nine. Luckily my Exterior Volume was high enough that I could awknowledge our decision we had made. WE put out a dynamite wash, we were the first on our area to offer Free vacuums with any wash, offer great customer service.we now look back and smile, It was a struggle but stick to your guns, as long as your paying the bills I would deal with the yelling customers and have justification to give them on your recent desions. Like I tell my customers everyone is in business to make money not lose it, thats why we did what we did

The indecision is a difficult thing to deal with. Especially if you feel like you are leaving money on the table. When you ran flex service, was it profitable, why did you quit doing it? How was the end result? What does the market demand? What does your competition do, and how close are they?

We changed from a traditional full serve to a flex type service with automatic tellers. We still offer the interior cleaning but we had the same problems. Customers were angry! We offered a better service, faster and better pricing but it was DIFFERENT and they had to use a "machine" so they were mad.
After 3 years, I believe it was the right decision but there were times when I wasn't sure.

If you decided to make the change, I am sure you had good reason to do so. Keep those reasons in mind, don't forget all the bad that went with the old way, and market your improvements like crazy! You want to gain new customers so don't forget to tell the public why it is better and why they should try your new wash. You will probably lose some existing customers.

If everyone is getting your cheapest wash, check your on-site marketing, how are your menus laid out? Do they make it clear why upgrading is valuable?

I am a little confused. You said you were flex but did not do interior cleaning? Steve Okun can give an exact definition of Flex-serve but I am sure it always includes interior cleaning. If I read your post correctly, you upgraded equipment and simply dropped the towel dry.

reply to all,
i dont really know what to call what we were flex is the best i can describe it. We hand dried cars hand cleaned rims and hand applied tire dressing. We bought this carwash 4 years ago and we ran it like it had been run for 25 years we put our own little twist on things and people loved what we did but then payroll started to go up 5.15 to 5.75 to 6.55 to 7.25 to 8.15 all in the span of 2 years. It had been run for 25 years at almost the same pricing that we were doing today. So we tried to raise our prices to help with the gas being high water going high everything people got pissed, so we looked at the express model and thought ok cheap, fast, new equipment we will put up new walls new lights do better markting, blah blah, and here we are at the cross roads of either selling or switching back to our old method.
Dave, we switched for all the reasons i listed above and because it was so physically demanding i work as an employee to help save on the rising costs. The new way is much easier on us we let the equipment do the work. At the end of the day the only change is no hand dry and hand applied tire dressing but we offer way more value on our packages. It pays the bills but looking back to last april for example we washed 2000 cars made $21,000 and $8000 gross this april we have washed a ton more cars at 3200 only $16,080 and gross of $500 all that money being left out there makes me sick. The only thing i can muster is that it had been the only carwash for many years and people in our town dont like change. We have attracted alot more customers but they all get the lowest wash and they all say it because no hand dry they say they would pay $10 -11 for a wash if it had that but they say there is no value without it. $9 is our highest wash shit it includes vacuum, all the stuff and even 48 hr wash guarantee! But they will settle for $3! Im lost. Phew! anywho sorry i got long winded its good to talk to people that deal with all this stuff on a regular basis and know how it is

jirvin21

We had a similar situation about 10-12 years ago. We took over a short (45foot) tunnel wash when we purchased the self serve next to it. The customer base was coming to this wash for at least 25-35 years. The equipment was old and outdated etc. When we took over we decide to run it the same way at the same price. This was good for the first 1-2 years. Prices, even back then started to creep up so we raised our price to compensate, not to try and make more money. All of the customers revolted. How can you charge this for that etc? Just as you said, are we in business to make people happy because we are so cheap (pricing), or are we in business to make a profit at what we do. We ended up closing down the tunnel because we interviewed about 1000 different customers for the last three years we were open and asked them about what if we did the upgrade and that upgrade would you pay this price. The answer was always no. I guess it is human nature, we want we want we want, but we do not want to pay. In our situation we could no longer afford the labor (back then it was $5.50 hr to $6.50hr). You need to try and meet the customer base half way with what they want, a hand dried car. Both you and I know why it is now almost impossible to do just that labor costs to pricing. I've said this before in many forums Wal-Mart McDonalds etc. are truly the downfall of the small business person. Everyone, I mean everyone, expects ALL businesses to be just like Wal-Mart etc. Something for nothing. That's why they settle for the $3 wash!

Wow we changed from 5/8/11/14 to 6/9/12/15. When the customers bitch I tell them to blame Obama. Then they except the price increase. Our interior cleaning is 16/19/26/29 the highest package is the most picked.

The ebb and flow of the car wash business has shifted from exterior-only to full-service and back again for decades; since the Sixties.

Then, when full-service began to evolve into flex-serve, much of the same change occurred with operators either shying away from labor burdens... and others familiar with labor management in other industries recognize hands-on service as an essential competitive edge. Headaches and heartaches come whenever you have a staff... in any business.

After many, many years scrutinizing the role that labor plays in all modes of carwashing, I am absolutely convinced that operators who grow beyond mere competence... and become truly proficient in their understanding and implementing effective labor management will enjoy a special level of confidence in the resiliency of their options... and the fruitful rewards that come with diversified operational skills. Hands-on operations simply make more money... while retaining a powerful competitive edge in customer service.

Flex-Serve was designed to enable operators to tailor their operation to meet their marketplace needs as well as cater to their personal likes and dislikes. Automatic carwashing designed to meet the owner's desired capacity. Hands-on capabilities to meet each owner's tastes and desires. Base staff in a Flex-Serve operation is 4 cross-trained people, two of which are deployed in hands-on after-care detailing. More people can be added exponentially, as needed... or desired.

The ebb and flow will continue as long as investors build and open exterior-only washes, thinking it is easier to avoid labor and rely exclusively on a push-button process... when the reality of the consumer marketplace will always need and seek out some level of hands-on care, and are quite willing to pay for it.

Flex-Serve was designed to be the quintessential automatic carwash model. Unfortunately, some operators never chose to fully exploit its pliable potential, and instead embraced a dysfunctionally outdated full-service mindset. The Flex-Serve paradigm is the mindful merging of automation with prudent hands-on service.

As a professional courtesy, I'd be happy to help any operator reach a better understanding.

-Steve

www.FLEX-SERVE.com

We switched from full service to exterior only in 1997. Went from 36,00 cars our last year of full service to 101,000 cars the first full year of exterior. As a full service we were $7 & 10 For cars and $10 and $13 for SUVs and vans.

Initially we dropped the price to $3 and $5 for all vehicles and reduce labor costs by 85%. Yes some people were pissed off, but at the price we were charging, we won most of them back and made many anew customer. Just prior to winter 1997-1998 we went to $4 and $5. The next year we went to a flat $5 and have used a one price format ever since. Over the years we added new on-line service and today we are at $10. We offer $2.oo coupons on our website, google and adverise in 4 area Town Planner Calendars (great return by the way on this) and have just begun a welcome wagon type program to attract people new to the area.

In 2000 we began offering 5 Wash books and in 2007 Monthly passes. These two programs currently account for 31% of our annual revenue. 5 Wash books are $35 each or 5 for $150. Club Cards (monthly passes) are $60 each or 2 for $100. Usage rates on club cards average out at 10 washes per month. Our per car average is $8.10 per car and labor runs at 16%.

My advice would be to stop with the 4 different prices. That menu style crap is needed for full serves. Get your prices up and only give "cheap washes" to your best customers. Let the one who wash their car twice a year whether it needs it or not (joke) pay full boat. They don't meet the definition of customers and are always the hardest cars to clean and hardest custiomers to please. If anyone complains that $10 is too much I inform them of the many ways for them to save at least $2 per wash or more with the books and club card. If they can't print a coupon, tear one off a calendar or don't want to commit to a $35 book for 5 washes that never expire, then they have to pay $10. 4 different price is way too confusing and we both know your greeter isn't even trying to upgrade customers. If they are, not only are they doing a poor job of it, but customers begin ignoring all the B.S. of employees trying to get them to upgrade every time they come in.

$5 and $8 and call it a day. $3 baredly covers your direct costs let alone indirect, devalues the sevice you are offering, and since your greeters are inacapable of hammering customer to upgrade, a waste of your time not to mention severely affecting your revenue. Offer a basic wash and the "Works" A or B, this or that? You will find it to be simple and effective not to mention raising your revenue per car.

I have helped operators deal with this situation in the past and also faced it as an owner and manager. I have found that it is very difficult to force something down customer’s throats. The consequence is that if customers feel as though they have been handed the old “take it or leave it” they will usually vote with their pocketbooks. As a result, some of them may spend less at the store and some of them may go somewhere else.

Many express exterior conversions have little to do with the market. Change often comes because the owner is no longer willing to cope with the labor and management that are involved in providing value-added services like interior cleaning, express detail, reconditioning and a high level of customer service.

Of course, it’s the owner’s prerogative to change because it is his or her money.

Is flexible service the answer? Not necessarily. I know markets where flexible service is not well received because the “ride-in-the-car” format is still not well received.

An express exterior is like a fast food drive-through that only sells hamburgers and fries with a free soft drink. If you want to buy a fish or chicken sandwich, salad, sit down and eat inside the store or other variety, you would have to go somewhere else. So, we find few one trick ponies in fast food industry.

Why is P&G placing Mr. Clean carwashes in the market? Because the company believes the chosen regions and sub-markets have the potential to support its long range expansion plans.

For example, if I had my choice to build a flexible service wash, one of my choices would Indianapolis or Cincinnati. These regions are dominated by Mike’s Express. Mike’s is probably never going to consider converting to full-service or flexible service and many of the sub-markets in these two regions would make for literal gold mines for well-designed full-service or flexible service carwashes.

On the other hand, experience has shown you can fight the good fight with an express exterior if you have the right location.

FYI: I have a client in Australia that has upgraded & implemented FLEX-SERVE in their high-speed hand-carwash operations.

Their flat-belt conveyorized washes have a capacity of 100-CPH, and by incorporating two additional side-by-side moving-floor conveyors for Express After-Care, they can process 50 to 60 cars per hour with select detailing services.

The client says the solution uses less space to produce more cars yielding significantly greater profit... and has helped the carwash maintain exceptionally happy customers. Revenues have gone through the roof!

-Steve

How many flat belt conveyors do they need to wash 100 CPH by hand and how long is it?