What are the big issues facing the industry?

On carwashTV.com I want to make sure we talk about the big issues facing the industry.

Of course we have a list of stories we plan on doing but I obviously think dialog is important. What do you guys think the big issues are that we need to talk more about as an industry? What concerns you?

-Kyle

Getting money for new construction. (I do know there are a lot of “what were they thinking” washes out there, but still...)

Over saturation, Insurance, Labor rates, lower volumes, and sky-rocketing operation costs.

Capital seems to be a big one that people are talking about. But what can we do about it? Anyone have an actual banker that knows car washing that we can talk to? I would like to hear what the banks say. If the project is a new investor building a big wash in Atlanta, then I might understand where they're coming from. But if we're talking about veterans who know what they're doing, then it's a different story.

Over saturation is also an interesting issue and I think it's closely related to selling washes for way more than they are worth and then starting a vicious cycle.

Anyone have any ideas about what we can do about these issues we're facing?

1)Weather patterns worry me.
When you talk to seasoned operators...those with 10 years or more under their belts. They will often agree, the difference between a good year and a bad year is usually one or two good months. Then when you break that down it becomes what's the weather been during your usual best months and the weekends during the other 9 months. Every region has its best months of the year. For us in the SE its Mar, Apr, May and Sept. Mostly because those months have less rain and often love bugs. If we lose one or more of those months the entire year becomes average to poor. In other words, just like a dry Tuesday will not make up for a wet Saturday...so too, a dry June will not make up for the losses incurred by a wet April. We've got to have our best months and dry weekends the rest of the year to make these businesses look good on paper for banks.

El Nino? Snowicanes in the NE? Goblal warming? Are our weather patterns changing? are we going to have more wet years than dry? Without an occassional dry year with the profits incurred, there is not much incentive to work hard in the car wash business. This business is so marginal, I'm concerned about future weather patterns. Operators who are established will survive but on less profit. New investors will suffer the most.

2) I've been shocked how slow most self serve operators have been to respond to the express conveyor explosion. Why haven't more gone to unlimited time which had proven in the past to raise revenue 50%? Why haven't more gone to POP (pay one price)? I know of two that just converted to POP and are having great success. Those that are my age can remember going to the older amusement parks and buying tickets for each ride...then they changed to POP.
I think POP, with gates, is going to revolutionize self serve. It will exciting to watch. If the self serve industry does not learn to adapt, they are in possible peril in many regions.

Competition, insurance, employee costs, et. al. have been important issues and will continue but will not limit growth in this industry. Weather has been and will continue to be our greatest ali or enemy.

Hey Jimmy! Welcome back!

My concerns are rising costs, margins being squeezed, weather patterns (which admittedly are completely out of our hands, so why worry?). Also, every level of government will be searching for untapped revenue sources. That could spell problems to our industry when they try to rule that a carwash is a good and not a service.

Financing is difficult and will be for some time to come. I heard second-hand of a very large chain now having to put down 40% on a new construction. I imagine it will eventually normalize but I'm glad the brakes have been put on. It has thrown a little cold water on the carwash building free-for-all we were having.

One positive is maybe the green weenies in gov't might decide to mandate professional car washing. If they did that, I just might be a little "O" sticker on my car- just kidding!

I too think the golden days of SS are over and the industry is on a slow decline. I would not be surprised to see a major shakeout of mfgs. in the business. Tech support for proprietary products could be a problem. Operators who bought a Superior IBA are finding that out right now.

The people we elect to office!