More Profits Part I:
From Your Wash
By Patrick H. Crowe
These are challenging times. While car wash operators have always faced hurdles of one kind or
another, several factors are combining to test their skills as businessmen. Rising food and gas prices are putting a dent in consumers’ discretionary spending, and self-service wash operators
are facing stiff competition from other wash formats. In this series of articles, we will discuss ways to operate self-service car washes more profitably. This month, we will consider photocells and timers, purchasing, vandalism, expansion, and promotion.
- PHOTOCELLS AND TIMERS
Use photocells on all lights that need to be on whenever it is dark. One photocell can control multiple lights and does not require resetting as days get longer/shorter. They provide light only when it is needed. Under certain circumstances, timers may be more efficient. For example, an eight-bay self-serve wash may not need to have all bays fully lit at all hours of the night. It is possible to reduce the light level in some of the bays to the point where adequate lighting for security is maintained but only half the light level ideal for washing is provided. This can be accomplished by having half of the bay lights on a timer that shuts them off once business in those bays becomes unlikely. The same reduced light level can be used for lot lighting during those hours when business is slowest. In designing any new wash it is important to plan the lighting system to be ample for all times. Usually less lighting is needed in the wee hours of the morning than shortly after it gets dark. The use of photocells and timers in combination can effectively control lighting costs.
- PURCHASING
Buy all parts and supplies direct from the manufacturer when possible. Any time middlemen can be eliminated, you’re going to save money. Buy soap directly from a soap manufacturer, vacuums from a vacuum manufacturer, etc. Some manufacturers sell direct under one label, and to distributors under another label — same products different labels. Buying direct is usually cheaper and faster. When you call a manufacturer, he doesn’t know the size of your operation, and he’s in business to sell.
- VANDALISM
Keep vandalism to a minimum. The four secrets to minimizing vandalism are:
- Good equipment, working well. Much vandalism is a result of someone becoming angry over lost money or poorly operating equipment.
- Clear signs in each bay offering a refund if the equipment fails or the customer is not satisfied in any way.
- Absence of graffiti. Graffiti and vandalism tend to be contagious. As soon as any appears, remove it. People who are prone to this sort of destruction seem to do it where they observe someone else has done it.
- Equipment choices. In purchasing any equipment that goes
outside of the equipment room, always ask yourself what a vandal could do to it. Consider stainless steel for any exposed metal rather than painted surfaces.
- EXPANSION
Consider additional bays on ends of buildings. These will be uncovered and can be added, in many cases, at far less than the cost of original bays. They allow for larger trucks and RV’s that would not fit in covered bays. In general, they will not get as much use as covered bays except on busy days. Still, the profit/cost ratio is good.
There are some owners who reject the notion of outside bays (sometimes called truck bays) on the grounds that they tend to attract too much mud or somewhat undesirable clients. That’s a matter of personal choice.
However, there are situations where setback requirements will not allow a closed bay (too close to property line) but will allow the area to be paved for an open bay. I once made a four-bay wash into a six-bay under these circumstances by adding an open bay at each end of the building, increasing revenue by 50 percent on very busy days. It was a very worthwhile investment — despite the fact these bays did attract somewhat more mud (at times) than the enclosed bays did.
- PROMOTION
There is a major difference between publicity and advertising. While both focus media attention on a particular subject, publicity is free while advertising costs. Both require the business owner to make an effort to attract media attention. Most self-serves have rather limited advertising budgets so publicity becomes all the more important. Often unique and interesting paid advertising can attract media attention, and the resulting free publicity vastly increases the number of customers who get information about the business.
The Press Release
The press release is a critical document for many promotions. Its purpose is
to attract the attention of the media
person who receives it. It should be one page long and tell the reader who, what, where, when, and why of what is being promoted. It should include a
picture if at all possible. Of course it
must include the name and contact information of the car wash owner.
It should be sent to all area media. It is preferable to send it to a particular person — sending it to business reporter John Smith is better than sending it to the city desk.
As I learned with my “Vote for the Candidate of Your Choice by the Bay You Wash in” promotion, the right press release can generate tons of publicity. The press release showed a 75’ long banner strung across all four bays of a wash I owned. It was ahead of the national election in 1996 so I had Clinton over the far left bay, Dole on the far right bay, and the two middle bays were Anybody but Clinton or Dole and Mickey Mouse. Every local paper and all local TV stations did a story. The banner seemed expensive when I ordered it, but it generated at least 100 times its cost in free publicity.
My “Oprah for President” promotion went beyond that. It was seen, read, and heard by more than 20 million folks worldwide — same game: press release, big banner, and lot’s of talk.
Not only are such promotions great publicity but they are fun to do. In overcrowded markets and when the economy is slow each owner must find a way to make his/her wash seem “special,” or “unusual.” Merely repeatedly reducing the price per minute is a very questionable way to compete. Promote!
NEXT MONTH
In next month’s issue of Auto Laundry News, we will look at how credit-card acceptance, pricing, labor arrangements, and vending can improve your bottom line.
Patrick Crowe is a veteran self-serve car wash operator and a recognized author and speaker on the subject. He owns Wonderful Waldo Car Wash in Kansas City, MO. For information about his Self-Service Car Wash Technical Bulletins, visit www.carwashappraisal.com. |
