Breaking the car wash habit

They say it takes 21 to 30 days to break a habit or to learn a new one. Now we've have 3.5 years of poor economy, poor new car sales, aging of the motoring fleet and poor car washing. Is the public habit changing?

Previous ICA studies showed: cars older than 3 years were washed much less than 1 to 2 yr old.

Average Age of Automobiles and Trucks in Use, 1970-1999
Year Auto Trucks
1970 5.6 7.3
1971 5.7 7.4
1972 5.7 7.2
1973 5.7 6.9
1974 5.7 7.0
1975 6.0 6.9
1976 6.2 7.0
1977 6.2 6.9
1978 6.3 6.9
1979 6.4 6.9
1980 6.6 7.1
1981 6.9 7.5
1982 7.2 7.8
1983 7.4 8.1
1984 7.5 8.2
1985 7.6 8.1
1986 7.6 8.0
1987 7.6 8.0
1988 7.6 7.9
1989 7.6 7.9
1990 7.6 8.0
1991 7.8 8.1
1992 7.9 8.4
1993 8.1 8.6
1994 8.3 8.4
1995 8.4 8.4
1996 8.5 8.3
1997 8.6 8.3
1998 8.8 8.3
1999 8.9 8.2
2000 9.0 8.0

Note: Mean age is equal to the sum of the products of units multiplied by age; divided by the total units. Source: Ward's Communications, Ward's Motor Vehicle Facts and Figures 2001. (compiled from The Polk Com

We are now up to 10.2 for the average age. ARE WE IN DANGER OF PEOPLE LOSING THE HABIT OF WASHING THEIR CAR? Someone give me some hope, the good ole days will be back! But I have this feeling, that we as an industry, are not on people's radar screen anymore. If you ask people where the nearest car wash is? it's like asking them where is the nearest "video store" or even older..."record store"(remember sitting in a glass booth listening to a 45rpm?)

In my market, we have doubled the number of car wash site in 10 years. The same percentage of growth that occurred from 1970 to 2000(30 years). Our pop, has only grown 14% in 10 years. It seemed like all locations that existed in 2000, did more washes 10 years ago. So, are we trying to slice a consumer demand into more pieces? or are we actually penetrating the market better than before just because of the number of locations? albeit, most - barely profitable.

Are the shear numbers of locations and reduced demand because of vehicle age creating a market place that makes most $2 million dollar locations "over built"?

Maybe I'm just seeing what's going on in the SE? Have location numbers doubled in your market the last 10 years?

I live in the North East and the number of car wash locations have not doubled, which is strange because we get lots of snow and salt. As you mentioned, the start-up costs ($2M) to build and establish a carwash business are enormous, not to mention the chemical costs, and ongoing costs of heating the bays, entrances and exits, therefore the competition in our area are few and far between (luckily for us).

Vehicle age is a huge factor. Unfortunately, in this economy, people with older cars, usually with lower income, wait until the car is beyond washable and expect our wash to do miracles. You're right, many people are not in the habit of washing their cars. So, we need to get a price-range that makes it affordable to do so....ours is $6 (and for some, that's too high).

Because the market one lives in determines opportunity, the good old days will not be back anytime soon for many carwash owners, especially those in boom-bust areas.

Florida, recently cited as the saddest state in the U.S., is a good example.

Although Florida has never been a particularly good washing state (no snow, long rainy season, brutal humidity and relatively clean - no heavy industry), my take is a lot of the people who live here don’t seem to take pride in their vehicles as say people living in Atlanta, Chicago, Dallas/Ft. Worth, California, etc.

Perhaps having no state motor vehicle safety inspection program in place helps breed people’s neglect of their vehicles.

For example, when snow birds and tourists arrive, you can easily notice the increase in wash counts and amount of spending at local washes. Part-time residents and visitors obviously bring their good washing habits with them.

Some owners also have themselves to blame; building new when there was little evidence of unmet demand for another self-service wash, building the wrong type of wash in a market (under-building) and bad location.

For instance, there are a number of exterior express washes in Florida that are floundering because they were build in satellite communities rather than urban centers. Many of these satellites remain hard-pressed because of the downturn.

What latitude does an express owner have with shrinking market and less demand when saddled with a base price of $3.00 and having no other products or services to sell?

The ICA asserts that home washing has declined by 2% over the last ten years and there is a likely acceleration of this trend. I don’t buy this because there is more than anecdotal evidence to suggest otherwise; industry drivers, benchmarks and equipment spending have been trending down, not up.

So, if an operator wants more of the good old days, are not home washers the most logical place to get it from?

trends, some people like new things.. you can build train people to come to wash all the time , then the fluff wears off.. almost any # of reasons

I have seen lots of people make really radical(no common sense) choices so again it's we are all human?

I like to sit back read the info on stats, but I dont like to say well your info is really flawed because where you got the info and what is the intent of the story could be.

Just compare and take what applies to you.

just my two cents.

company's have stop making some cars,

example crown vic will not be sold anymore..

so is the market flood with excess cars?

I know in Atlanta we have had mixed results when people in droves have moved from one location to another.

Some need work others want better schools, and when school funding was stop lots of smaller somewhat private schools closed doors .

Think its part of the cycle of the industry. Maybe volume will be cut and maybe that means its time to adjust prices.

topic and reply gots me thinking to deep on this sorry wish I had more simple answer or reply.

I agree with Robert regarding home washing. Our wash is 1/4 mile from a lake and we try to stress the importance (on our electronic sign) of using professional car washes vs home washing. We write, "Please protect our lakes and wildlife, use professional car washes!" It seems to send the appropriate "guilt trip", which directs them to our car wash. Whatever works!

One of the benefits of being in a business for many years is the ability to reflect on history. Ignoring lessons already learned often results in complacently repeating... and needlessly reliving the mistakes of others before them.

Changing marketplace competition and lackluster consumer response to marketing motivation is an indication that your business may be slow to react and adjust to the needs of "today's" marketplace. While much of the economy is really suffering, many businesses have successfully adjusted and retrofitted to meet the demands of their respective marketplace... and are profitable. Others sadly join the choir of the discontent and bellow the laments of media-induced gloom and doom.

Step back and take a fresh, clear look at your business and prepare to adjust for a more robust 2012. The business is there for many who are willing to fight for it with innovative service and merchandising... while the unenlightened continue to wonder and worry if the sky is really falling. It isn't... if you step outside of your comfort-zone and explore what TODAY'S CONSUMER WANTS... AND IS WILLING TO PAY FOR. Those who have already realized this are quietly doing business, engaging customers... and making money. But don't expect them to eagerly share their knowledge because it will stay guarded, for fear of being spoiled by dilution from others who simply sit and wait for others to lead the way.

Now is the perfect time to take pause... and reflect on you plan to distinguish yourself in 2012... and adapt to improve business. Avoid the naysayers and shun negativity. Ignore those who view this post as a pep rally... and instead recognize it as a wake-up call. Preferably, repackage yourself and your business... and then re-enter the marketplace anew.

The Happiest of New Years To All...

-Steve

www.SMOKUN.com

I like the way you put it, Steve. Now, I don't think there is that much of drastic changes to be made to stay "innovative", but I agree with you that one needs to really examin his biz and try to make things happen versus just waiting.

I've only been in this biz 3 years, but I'm still shocked to meet owners(regardless of their lenght of experience) who really do NOT know too much about their customers. They have many assumptions and THINK they know by their gut feeling but factually so wrong.

I have tried to talk to them and share what little success I've had so far, but they are only eager to listen but when it comes to making decision and putting them to action, they sit back.

I've gotten tired of trying to talk to them and so I have given up. I guess they'll find their own ways. :)

Regardless of "HOW", I think it is definitely the owner's initiative that will change the perespective of any car wash and start going on the right path.

-tom

Remember the days you use to go to Blockbuster and have an enjoyable 15 min picking out your weekend entertainment. Or use to go to the theatre and drop $30 bucks for two tickets and popcorn. Or use to go to the record store and listen to a 45 before you bought it. Or use to go to the local Sears every year to do all your Christmas shopping there. Or read the local paper everyday. Or only had two tv channels to choose from and they were black and white. Or had milk delivered to the door weekly(i'm really old). Or spent $15 for every pizza you bought. Or got a quart of oil with your fill up?????

Sometimes change is like a locomotive that nothing can stop...sometimes you can't adapt...you gotta run like h...and find something else to do for a living.

It use to be: a single full serve location could provide a good income and reward for a hard working owner. With all this competition and market changes, the reward is not there anymore for many. Multiple locations are rarely operated as well as single units with owners on-site. When the profit goes...the attention...the maintenance...the site starts to suffer...which further hurts the operation.

I don't think its gotten that bad for our industry yet. But this long...long...long downturn, increase in competition, etc...has got me concerned. I hope we don't go the way of a lot of other industries.

I wonder if those that have gotten into the last 5 years have got what it takes to see this market rebound.

I think we are witnessing a profound change in the business climate. I have an alternate business, (I could not survive without it) that enables me to interact with various owners over a range of non related business platforms. The number one complaint and concern is that their business is declining and the market is changing. Moreover, many wrongly perceive that it's only occurring within their market segmant. Overall though, there seems to be trailblazers in all business segments that are trying to reinvent how they conduct business. For the most part, these are the people who will have the greatest chance at success. In addition, I feel that our most recent economic boom was fueled mostly by debt and many were lulled into thinking this was the "new norm". The attitude of build it and they will come was prevalent in many business segments. Another interesting facet of the previous boom was the ability to essentially have unlimited hourly overtime. Perhaps, what we are witnessing is a gradual return to a normal economy without all the built in excesses fueled by debt. Another thing to consider is the psychological effect of having lived through this downturn of epic proportions. If history is an indicator of the future then, just like the 1929 crash, we should expect that those affected will forever change their spending habits.

You know, maybe there is just too much talk about "changing business climates and consumer attitudes and buying habits, etc. etc."

Maybe this conversation is just a conscious or unconcious excuse for not doing things the right way in business.

Not making these remarks in any accusatory way.

But I know very, very successful carwash operators who have been doing and are doing the same thing they have done for more than 3 decades and they are getting more and more successful in their business in spite of growing competition in their markets.

They are focused on turning out a consistently clean & dry car; with the same consistent service; in about the same amount of time at a reasonable price.

Their emphasis is ONLY about doing those things better.

When I talk to them about changing business climate and economic conditions their remarks, universally are always the same, "we can't control those things all we can control is what we do and my goal is to do what I do better."

Just a thought.

Happy New Year.

Bud Abraham

Not saying you are wrong, Bud, I would side more with Mr. Carwash. Great change has already happened in carwash as well as other industries.

For instance, over a decade ago, Atlanta Metro was a viable carwash market and growing.

Today, growth has slowed significantly and development of express washes has been bitter sweet. Some express are very successful. I also know an equal number that are lucky to be washing over 40,000 cars a year.

Who else is succeeding in Atlanta? One example is Cactus Car Wash in downtown.

Cactus thrives because of service. Also thriving in Atlanta are companies like RaceTrac and QuickTrip that are known for service as well as fuel, food and anything else you need.

Given competition and shrinking market, a carwash owner can no longer afford dirty bathrooms, unkempt landscaping, old technology or poor customer experience.

Even this is not enough.

Consider the shoe repair industry, 360 million pairs is sold each year. Today, only 7,000 shoe repair shops are left, down from 68,000 in 1968.

By not keeping up with the times and learning how to repair molded bottom and hollow heel shoes, shop owners developed an “I can’t fix it” mentality and literally chased customers out the door and convinced a generation it doesn’t need them.

Quite frankly I find it impossible to determine to what extent factors like habits, competition and the economy have effected my business due to one overriding factor represented by that 4 letter word RAIN.

In Chicago, July was literaly the rainiest July in History. August was worse, and November even worse. As you know rain volume is not the only factor. Even a little followed by an overcast day is bad whereas a 7:00 deluge followed shortly by dry streets and sunshine can be a good day.

Prior 4 years were rainy as well compared to 2001 - 2005. 2008 wettest in History with 2011 running a close 2nd.

On Sunny days the volume seems to be good. Sadly there seem to be way to few sunny days.

I keep saying it has to get better.

Good dialog: 1) For sure involved, adaptive, hard working operators have a better chance of succeeding than those who don't care
2) But when everyone is wearing sandals and flip flops, you're not going to be successful as a cobbler no matter what you do

Hence my question: Is the market changing because of reduced auto sales, increase competition, and this long depression? I would take the Texas(oil based) economy over FL's any day. Some of y'all haven't had the depression we have had...some of y'all haven't had the car wash growth we have had. The Atlanta market is horrible also.

More people are wearing sandals (driving older vehicles) with a reduced demand for washes, more locations (doubling in 10 yrs in the SE) have reduced volumes and profit motivations. Will the fit survive? I would say at most locations, yes. But, I've got a downtown location, next door to our regional rescue mission, with a 60% vacancy rate in the downtown area, that I'm afraid has lost it's viability. I haven't closed it yet. But if an alternative presents itself I would jump on it. I would probably pick up most of the washes at one of my other locations 3 miles away.

Earl, I disagree about the weather. I think it is a short term factor but not long term. And besides, we've had a great 3 years of weather. I'm afraid something is happening to the consumer now! Could be nobody's got a good job anymore.

My snowbirds are the only ones who seem to want a car wash or afford it.

For what its worth we had something take place that really concerns me about our customer base. As small as our base is, for three years they have been so right on the money each month its scary. Until Novemeber 2011.
The bottom fell out of our sales, down 50 % we had a good october and then Novemeber just died we have had very dry weather and cars just dont get dirty so they dont wash them,,,,we thought. December did not come back we are down 50% for december 2011 . We just did our anual records and we beat 2010 barely so what happened.
I think its the Christmas season finally got to all the hurten folks and they simply said, Im going to the mall, Im going out to dinner, Im going out to the movies and just use that credit card,:(
So Weather, sure its been a draught here, but the real reason. the recession and remember Wichita is the Air capital of the world where all the CORPORATE JETS are built. You know, those Jet Planes all those bad Corporate CEO's USED to fly around in.
Im afrai 2012 is going to be a wild ride. hold on folks we aint seen nothen yet.
there is car wash Giant in Wichita called JOES. They have several SS and Tunnels and they know their business. Good folks. Well when I turned on the talk radio channel the other day and heard they where having a Half price car wash sale, wow I have never heard them advertise on the radio before. That pretty well convinced me that its now just me :(
They got a big payroll. I dont . Hope they survive this.
Hope WE survive this.
Allen
Wichita kansas

It is interesting to hear various operators discuss this. I have talked to several SS operators in other regions of the country and they are still very happy and doing good numbers. Not so around here. I talked to a 30 yr SS operator the other day and he said he's down 50% from ten years ago. The common thread in my discussions seems to be the flagship washes in their respective markets seem to be doing OK. The ones that have become an underdog in their market really suffer badly.

My theory is that SS segment won't get significantly better and will continue a slow downward spiral. Attrition will help keep the surviving SS washes afloat. At one time the SS business here was easy. Keep everything clean and working and the customers will find you. That doesn't seem to be as effective as it was fifteen years ago. Other formats will fare better but there will be less wash operations deemed hugely successful as measured by past standards. They will have to be run by energetic, innovative operators who have a passion for the business.

The newest generation of customers seems much more interested in their Iphone and twitter than they care about the cleanliness of their car. My daughter's car is a prime example-She can wash it any time she wishes when she's home from college but just doesn't bother-it's a rat's nest. But God forbid something happen to her Iphone or Ipad.

>>reply by PanamaJim about 20 hours ago

Earl, I disagree about the weather. I think it is a short term factor but not long term. And besides, we've had a great 3 years of weather. I'm afraid something is happening to the consumer now! Could be nobody's got a good job anymore.
<<<

Well, disagee all you like and perhaps where you are it has been great. The last 6 years in Chicago have been extremely wet. The weather service records prove this. (Literaly some of the wettest months and years on record during this time.) So, I don't know about you but looking back six years is not short term. Going forward? Who knows. Been thru these stretchesbefore, but this is one of the worst.

All the Gasoline retailers indicate sales volumes are down as well so there is likely some less driving. It seems to much to be only increased fuel efficiency. IMNSHO less driving = less washing.

Alot of good dialoque.
My impression about todays car wash customer is that they have been progressively conditioned that cars last longer. No need to worry about rust. Car finishes are more durable. A segment of customers take pride in their vehicles and some don't. The car wash cusomer is the "takeppride in their vehicles group", but how do you sway the others to come to look at their vehicles as a investment. To me, this is a tough task. This is the market car wash owners are chasing. The schedule today for most people is very busy - working longer hours, two job households, shuttling the kids here and there, running a household on less money because of the economy or feeling guilty about spending money needlessly. It used to be that people washed a waxed their cars in front of their houses - people took car of their vehicles as though they had some sort of trophy. It had to look good all the time. I fear todays customers has been slowed transformed to regard an autombile the same as the houseold lawnmower - toss in the corner when you are done with it, does not have to look good, only has to run the next time you pull the cord. Pride in your vehicles, for a nice looking car, protection of your investment - these are what drives a todays car wash customer.
It's difficult in my view to change a person from non washing to washing.
How do you do that ? I am not so sure that coupons can change habits. People have become inclined to use coupons if they were going to the extablishment or were looking for the service anyway. Does everyone agree that coupons breed new customers long term ? Coupons in my view generlly pull customers from one establishment to another.

My two cents

Great input guys, agreed Joe, look what couponing has done to pizza prices. Agreed Earl...less driving...less gasoline...less car washing...makes sense.

I'm starting a new thread because I'm reading some positive news about auto sales.

Just so I was sure it was not my imagination and with 2011 totals now in rainfall in Chicago:

2006 -2011 All Above average rainfall.

Since 1871

2008 Wettest
2011 2nd Wettest

2006 & 2009 more than 20% above average.

Had a soap rep ask me:" So what do you plan on doing about it?" Told him I don't care if you have the best wash in the worls and it's free, people aren't washing if it's raining.

I agree with Crown's statement above....I don't feel that coupons breed new customers. I had a women leave our carwash and drive 5 miles to our competitor's carwash because she wanted to save $2 with her coupon. Looking back, I should have given her the discount anyway to encourage her to use our wash going forward, but like Crown said, coupons really don't breed new customers, just people searching for a one-time deal.

2011 was the second rainiest year on record here in North East Ohio. The only saving grace was that quite a lot of the rain was at night and on weekdays. We didn't loose alot of weekends until November and December. It probably rained 75% of the last six weeks of the year. Even with all that, we still had an increase in car count and revenue this year.

In the last six days we have had the best run of business in the last 3 years. Hopefully 2012 will continue our upward growth in the economy and we will all wash more cars.