Trends in Self-service Car Washes

Article published in America’s Car Care Business Magazine April 2007

Recent trends indicate fewer self-service and combination self-service/ automatic car washes are being constructed. Strong real estate markets, escalating construction and material costs, as well as, higher interest rates for loans have served to reduce the manufacturing demand of self-service car washes. Rising costs and stable gross income serves to reduce net income; diminishing the appeal of some car washes as an investment.

The current inclination with car washes that are built is to have up-scale buildings, additional equipment features and multiple payment methods to make facilities more appealing and user-friendly. More income must be derived from facilities to make self-service car washes more attractive as an investment. Reasoning maintains that it is easier to derive added revenue from existing customers than attracting new customers. Extra functions and amenities are provided at the self-serve car wash to maximize the overall income.

Increasing Income from Your Self-service Car Wash

Maximizing income or the return o investment is the goal of every entrepreneur. Income from new and existing self-service car washes may be enhanced by pursuing several options. Using multiple payment methods (coin, token, bill and/or credit card) affords ease of purchase thus reducing the amount of time required to initiate the bay. Simple equipment operation affords a familiarity and adds to the level of comfort to make purchases. Improving the ease of the purchase and adding selections optimizes income.

Multiple Payment Methods

By exploring various payment methods and demographics using these payment choices, the correct payment options may be implemented. Customers seek dependable cash acceptance and simplified vending. Choices in payment methods must be weighed against costs, revenue increase achieved and vulnerability to vandalism. A location providing the correct payment services maximizes vending potential and keeps costs in check.

Coin and Token Acceptance

Electronic coin acceptance may seem standard, however, inferior equipment packages still install mechanical coin acceptance in bay meter boxes. Mechanical malfunctions jam coin passages and discourage repeat customers. The most important contact a business has with a customer is the “Point-of-sale” or bay meter box. Insure each bay meter stays clean, attractive and accepts payment smoothly.

Tokens may be used for promotion and to deter break-ins. Tokens may be distributed, pre-sold to promote car wash sales or distributed from bill/credit card changers. In high crime areas, tokens are sometimes implemented to reduce the likelihood of theft and vandalism. Tokens have no cash value and are less attractive for theft. However, “Token Only” acceptance may have a harmful impact due to leftover and lost tokens. Customers may become irritated if an unfair value is perceived. When tokens are used in conjunction with coin acceptance, some of this negativism may be reduced.

Bill Acceptance

No change is given in many in-bay bill accepting systems, increasing time purchased and gross income. However, the primary benefit of in-bay bill acceptance is the reduction of the initiation period. The initiation period is the time between customer arrival in the bay until time 1s purchased or the bay is initiated. A customer requiring change to start the equipment will spend a few minutes parking the car, walking to the bill or credit card changer at the equipment room and returning to the bay with coins or tokens to start the equipment. This time of non-revenue production may be reduced by providing bill and/or credit card acceptance in the bay meter. Bill validators in the bay meter should be implemented in all high-traffic areas with lower vandalism rates.

Credit Card Acceptance

Credit card options are numerous. Changers that dispense tokens with the pass of a credit card are the lowest cost, but the customer must travel to the changer for tokens. In-bay credit card acceptance allows continuous operation without interruption to maximize ease of payment. A cost analysis should be used to compare equipment and operation costs of credit card options. Moreover, these costs should be compared to the potential income increase to evaluate the feasibility of adding credit card acceptance. Evaluate the credit card equipment for durability, distributor representation and service availability.

The demographic profile of a typical self-service car wash customer indicates an age of 18 to 30 years, lower to middle income and utilize debit cards, not credit cards. Purchasing credit card acceptors, interfaces, software and a telephone modem connection may be too expensive at some locations to serve a smaller percentage of credit card users.

Simple and Easily Understood Operation

Developments in signage and bay packages have provided for simple and easy to understand operation. Consistency is essential in any business. At any facility, all bays must operate alike and provide reliable service. Simplify the equipment operation using numbering systems for correct equipment usage and reduce the amount of reading required to operate the equipment. Pictorial signs show correct application at a glance and numbers indicate proper order of usage for features.

Clean and Safe Environment

Overall aesthetics are enhanced with cleanliness. It is difficult to clean a vehicle in a dirty bay. Clean facilities translate into a well-cared for business. Lighter colors and well-lighted facilities serve to brighten the appearance and invite customers into the business.

Customers sense their security. Open visibility provides a feeling of well- being, while security systems and lighting reinforces this level of comfort. Discourage loitering and avoid dark corners to provide a safe business environment and encourage repeat customers. 

Adding Functions

Newer systems offer more functions and greater versatility. It is essential for self-service car washes to provide the services customers expect. Standard functions should include: Tire Cleaner, Presoak, Soap, Foam Brush, Wax, Rinse and Spot-free Rinse. Vacuum cleaners, fragrance dispensers, vending machines and carpet shampooers have also become standard features at many self-service facilities. By listening to customers and being intuitive, the best options for the location may be added to increase sales to existing customers and attract new customers.

Some of the more popular added functions include: Tri-color Foam Conditioner, Bug-off, Wheel & Chrome Cleaner, Rain X, Rubber Protect and Air Dry Shammee. Regional selections may include Marine Flush for purging salt water from marine engines and in-bay vacuum cleaner for in- door vacuuming in colder climates. Many customers have gravitated toward the Air Dry Shammee option. Pat Pearson, Vice-President of Sales and Marketing for Diskin Systems Inc. indicates the average vended time for the Shammee is 4-6 minutes and the feature is the third most popular function in the bay behind Rinse and Soap. Car wash operators that have installed the Air Dry Shammee have seen an increase in income of 8.5% to 13.7% and lines of customers wait to use the function. Many operators that initially tried the Shammee in one or two bays are installing the equipment in all of their bays.

New features are continually being added to meet the needs of an ever more demanding clientele. A new innovative idea is to vend fragrance and carpet shampoo in the bay, along with the vacuum cleaner function. Although in the beginning, features such as the Air Dry Shammee, Vacuum and Fragrance/Shampoo show popularity in colder climates, many warmer climate facilities find acceptance for in-bay features. Small expensive properties must seek inventive ways to maximize income with limited space.

Environmentally Green

Construction demands and building requirements necessitate innovative solutions. Environmentally green products and construction techniques are practical and may be used in facility promotion. Multiple goals are accomplished by advertising environmentally safe products. Any advertisement is good for promoting a business. Pre-construction discharge and run-off concerns may be addressed and curbed with planners and regulators during the construction phase, by promoting green construction methods. Further advertisement may attract environmentally conscience users and discourage the practice of “driveway” washing vehicles. Vehicles washed in the street or driveway harm the environment by sending untreated grime and detergent discharge directly into municipal storm drains. Water from these storm drains go largely untreated into the water cycle, potentially contaminating the water supply.

Many sustained construction techniques are cost effective and will provide reduced utility costs. Use natural light in the bay by implementing clear or transparent roof and wall panels. Set the aspect of the facility on the property to gain sunlight in the colder months to reduce heating and de-icing costs. By exploring and implementing alternate energy applications and cost efficient construction techniques both initial and recurring expenses may be reduced.

Differentiate the Product

Business success is still determined with the old rule of differentiation. Find your market niche within the business environment, whether it is convenience, additional features or environmentally friendly detergents. Market strengths and minimize weaknesses. Keep in mind that competitors are doing the same. Success may be determined by owner commitment and research prior to construction.

Although the present trend may indicate fewer new facilities are being constructed, the newest car washes are likely to have upscale construction, reliable high quality equipment with more functions and multiple payment methods. To remain competitive, existing car wash operators must remain attentive to customer’s concerns and current with equipment up-grades.