Car Wash: The Hidden Profit Center
Disclaimer The opinions of the contributors expressed herein do not necessarily state or reflect those of the International Carwash Association, its directors or employees. Reference herein to any specific commercial products, process, or service by trade name, trademark manufacturer, or otherwise, shall not constitute or imply an endorsement, recommendation, or support by the International Carwash Association. The International Carwash Association makes no warranty, express or implied, nor does it assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, product, or process described in these materials. All commentary and information provided by the speakers represents individuals‟ opinion only. International Carwash Association makes no recommendation or representation regarding such market information and commentary. All such information and commentary is subject to change without prior notice. Any predictions, estimation and projection is not necessarily indicative of future performance and is for reference only. International Carwash Association will not accept any responsibility or liability of any kind with respect to such information or opinion expressed herein. Investment involves risk. Past performance of any business opportunity is no guide to its future performance. The information or investment opportunities expressed herein may not be suitable for all investors. Before making any investment decision, investors should read and understand the relevant nature, risks, terms and conditions of an investment opportunity and be capable of and wiling to assume the associated risks in light of their own investment objectives, financial circumstances or particular needs and exercise their independent judgment. If needed, investors should seek independent professional advice.
Notice It is the policy of the International Carwash Association to comply with all antitrust and competition laws. The fundamental objective of the antitrust laws is to protect and promote free and fair competition. These laws reflect the belief that a competitive marketplace will enable consumers to obtain the highest quality goods and services at the lowest price. The Association supports the public policies embodied in these laws, and it is the Association's policy to comply fully with them. Thus, out of an abundance of caution, if today's discussion appears to implicate, to any degree, prohibited topics such as pricing, price fixing, market allocation, boycotts, exclusive dealings, resale restrictions or preferential treatment, such discussion shall be terminated immediately. Any questions about the propriety of a discussion should be raised immediately with the Association‟s legal counsel.
Objectives • Provide unbiased industry information • Help establish a professional network • Provide information and tools to assist in creating a successful car wash
Today‟s Topics • Welcome to the Industry • Return on Investment • Importance of Car Wash Advisor • Customer Experience • Effective Signage • Promoting Car Wash
In-Bay Automatic Car Wash Segment • Largest of all segments – 36% • 56% of customers are women • 29% are in the 50 – 59 age group • 35% have an income of $30k - $59,999 • 54% own cars versus trucks or SUVs
Car Wash Most Frequently Used
Top Factors When Choosing a Wash 91% 85% 84% 72% 72% 65% 65% 76% 71% 57% Importance Satisfaction
Factors That Would Influence NOT Picking One Wash Over Another 82% 79% 79% 75% 66% 66% 51%
Return on Investment* • Projecting Wash Volume – Direct correlation between fuel and wash volume • Every 75-100 gallons = 1 wash – Geography dictates equation – Variables may also impact • Investment Potential – $12 - $15k not uncommon – 70+% Profit Margin *estimates *estimates
Return on Investment* • Typical Operating Expense – Understand Cost per Car – Chemical & Maintenance • 8% - 10% of revenue (per) • Vary by Wash Type • Vary by Location / Region of Country – Water / Sewer • Equipment Type • Reduce Usage – Reclaim – Spot Free Recovery – Equipment Options Available – Electricity • Equipment Type • Equipment Options – Damage • Typically Friction *estimates – Insurance *estimates
Importance of Car Wash Advisor‟s Expertise • Some say more important than equipment choice • Composition Changing • How to Choose – Length in Business – Success Strategies – Installed Base – Employee Strength – Talk to new and long term customers – Technical Support – Trucks on Road – Inventory on Trucks – Meet your Technician – Service Agreement Guarantee – Visit Office – Value Added Services – Reporting and Expense Analysis – Relationship Based – Partnership Driven
Extend the Customer Experience • Customer Touch Points – Provide communication at all points – Signage that communicates “We have a great car wash” • Most c- store wash consumers are „routine‟ customers • Enhancing the experience can create „destination‟ customers – Extend welcome with entrance elements • Especially if the car wash is behind the c-store – Make it Convenient • Offer self pay kiosk at wash with credit card and loyalty – Cash converted to credit 80+%, of those who converted 70+% purchase top wash – Increase revenue, lowers liability – Focus on the overall experience extending from all points to car wash
Extend the Customer Experience Roadmap to higher volumes Prioritize Primary and Secondary Communication
Extend the Customer Experience Creating a deterrent with negative signage Reduce liability with non-threatening signage posted on car wash building
Extend the Customer Experience Add components that create satisfaction and loyalty • Offer payment options, especially credit card • Spot Free Water • Add upgrade options such as vehicle protectants • Create a „Show‟ • Invest up front for higher returns
Extend the Customer Experience Ancillary Equipment • Vacuums – Maintenance is minimal – Market for higher profits – Expect $3K annually on Standard Vac • Vending Machines – Historically not profitable at C-Store – Consult with local Car Wash Advisor Courtesy of Bedrock Brand Consulting. Duplication prohibited without consent of Bedrock Brand Consulting.
Extend the Customer Experience • Operational Excellence – Optimal wash performance • Preventative maintenance program – Minimum once per month – Make necessary repairs – cost cutting will result in lost sales • Chemical service reporting – Important service with chemical agreement » Titrations » Volumetrics – Once per month – Provides water quality, cost per car, performance and general reporting – Second set of eyes
Extend the Customer Experience • Operational Excellence – Optimal wash performance • Monitor wash – Every shift change – Utilize daily checklist – Establish clean, dry, shiny standards • Maintain wash bay and general area – Clean, free of debris – Walls and machine clean – Well lit bay
Extend the Customer Experience • Perceived Value Pricing – Create the experience – Ensure wash performance – Add services to enhance experience • Captive Audience – Convenience – Fast and easy – Clean, dry, shiny – Don‟t compromise quality for speed – Time doesn‟t translate into added value • Evaluate Competition – Make sure your offering is better
Pricing Strategies • Market Pricing – Shop competition – Don‟t price out of market – doing so could push customers to another wash segment • Discount with Fuel Purchase – Do not discount wash with fuel purchase! – Volume will hold – revenues rise • 70% - 75% of wash purchases come from pump • Discount with Wash Purchase – Best wash only – Offer car wash prior to fuel
Effective Signage • How to build a menu – Keep it simple • Less is more • Easy to read, clear messaging • Market top wash • Perceived value – Most don‟t take the time to read • Cater to demographics with bilingual messaging • Refresh regularly
Effective Signage – Poor Messaging • Busy and confusing • No demonstrated value • Mixed messaging • No commitment to category
Effective Signage - Messaging • Top wash highlighted • Easy to read • Customer driven • Crisp and friendly messaging • Less price points increases revenue
Promotions and Cross Marketing • Leverage your biggest asset – employees – Lost opportunity in store – Train and retrain • Educate on wash offering • Provide selling techniques – Ask for the sale – impulse transaction • Maintain focus • Outline and continually review expectations – Manager bonus – Incentive programs • Creates focus • Builds competition • Monthly promotions – Prizes – Make it fun!
Promotions and Cross Marketing • Loyalty Programs – 64% of households said it was important to shopping decisions – Loyalty members wash 2.6 times per month versus regular customers who wash .5 times per month – Pre-paid multi-wash – Web based – Fleet accounts • Leverage Technology – Unlimited Wash Programs • Provide ongoing monthly wash revenue • Create destination • Use at multiple sites • Create and enforce buying habits • Eliminate the “weather forecast”
Recommend
More recommend
