I had the usual conversations recently. Discussions on just what is happening in the world and how it is affecting the car wash industry.

Typical topics included gas prices, the overall economy, the presidential election, and the weather. No surprises there! What’s interesting is that the operators I’m speaking with aren’t approaching these situations with doom and gloom. Both car wash operators and friends in other industries are evaluating changes to their business model to capitalize on new opportunities. They’re pushing vendors, including us, to deliver better solutions to improve efficiency and flexibility. Don’t get me wrong. There’s no shortage of things to be concerned about these days. Before moving on, let’s lay them out.

Gas Prices: Not if, but how will it affect us and at what point does it get really bad? Gas is affecting pricing and buying habits of everything and everyone. I have a large sedan that takes premium gas. I saved the last receipt - $96.39 to fill up. Are you kidding me???

The Overall Economy: While they try to figure out if we really are in a recession based on their definition of what a true recession is, it doesn’t take a genius to see that business is off and getting financing is nearly impossible, unless of course, you don’t need a loan. I had dinner with one of my banker friends recently. I like to do that to see what their economists are saying. He went on to say “Right now we are not giving loans”. Then what the heck are you doing? How are guys like us supposed to create opportunities and get us out of this mess if these guys have locked the treasure chest? Fortunately, I also know SBA lenders with a growing interest in the new car wash formats who are actively seeking investors. It’s reassuring to know not everyone has there head stuck in the wrong places!

The Presidential Election: Tell me, who in their right mind would want to be President for the next 4 years? At least when Bill was in the White House we had a few good laughs (other than having to explain to my eight year old daughter why the president’s wife was so upset).

The Weather: Worse than gas prices or the economy in our industry, the weather trumps everything. I am afraid to turn on the television. This area in drought, that area under water, fires that keep growing, and 1,100 tornados so far this year. I have to figure that this hurricane season, here in Florida, could be mean based on what is happening around the world. If it takes me longer to answer my phone when you call it’s because I’m hiding under my desk!

Our Industry: With all this stuff going on, it is no wonder that we are seeing times like I have never seen. World dynamics are changing. Any one of these factors is enough to cause you to stop and wonder. Yet through this, history tells us we will come out stronger. Life doesn’t stop because the stuff is hitting the fan. It changes, but it doesn’t stop.

I was talking to a friend of mine that owns a few Italian restaurants. He was telling me it is time to change his format. He is moving toward a coal fired pizza concept that has been successful in many areas by other restaurant owners. It features a very limited menu and cuts his food and labor costs from over 60%, to around 40% of revenue. He tells me that he has seen that clients prefer quick service and a more affordable format. So have people stopped eating out? No. They have just changed where they are going and what they are spending. My friend is making changes to his business format to take advantage of that opportunity.

General Motors is planning on laying off and shutting down some of their SUV production plants. No surprise there. But again, cars are still being sold, only not as many SUV’s. Just the other day I got an email link where I can deposit $500 dollars to reserve a plug-in electric car that advertises it can achieve the equivalent of 300 miles per gallon, will be available before the end of the year, and costs less than $30,000. Who would have thought even 5 years ago that there would ever be room for new manufacturers of automobiles to enter the market?

Starbucks stock has dropped from around $48 to $17 a share. In the meantime Dunkin Donuts new coffee program is taking off. People haven’t stopped drinking coffee; they just stopped drinking Starbucks $6 coffee.

Even in today’s environment, people will continue to wash their cars. We need to give them a reason to come to us. Make sure the value proposition is there. And remind them of how good it makes them feel to drive a clean car. I don’t know about you, but with all the stuff I hear about everyday, feeling good isn’t as easy as it used to be. In fact, I think I’ll go get my car washed!

Reprinted with permission

Paul Fazio is the CEO of SONNY'S The Car Wash Factory. His career represents 28 years of conveyorized operating expertise. Prior to taking the helm at SONNY'S, Paul was an owner / operator of (2) self-serve, (1) exterior, and (11) full-serve wash locations, in addition to (6) gas stations with convenience stores as well as several detail shops and lube centers. He can be reached at 800-327-8723 or via email at PFazio@SonnysDirect.com