Could we survive??
- Thread starter shawee
- Start date
Ben's Car Wash
Conveyor & self service
at this time... I have no comment.
I.B. Washincars
Car Washer Emeritus
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Undisputable evidence that the world is officially coming to an end.
Greg Pack
Wash Weenie
I've always heard that carwashes werer "recession resistant". Not sure I buy that just yet. It seems to me high fuel prices have a negative impact on business. Some people think this is the year of 4.00/gallon gas.
Surely some of you old timers were around during the stagflation days. How was business?
Surely some of you old timers were around during the stagflation days. How was business?
I.B. Washincars
Car Washer Emeritus
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Back in '85 I bought out my dad's partner on the 6 bay SS they built in '73. I paid 12.5% on the 52K loan. I think I still have the ledger book in my basement. If I get time I'll check it out.
Earl Weiss
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I hate to think of myself as an old timer. Business has been more weather dependant than general economy dependant. This of course would not be true if you were in an area where a major employer closes and the population of your area drops.
One exception was during the 1970's gas crunch with the long lines. People had no concern about washing, they focused all their energy on getting gasoline.
One exception was during the 1970's gas crunch with the long lines. People had no concern about washing, they focused all their energy on getting gasoline.
Greg Pack
Wash Weenie
BTW, Shawee, "inflationary depression" are some scary words. Stagflation is more politically correct.
If gross revenue dropped 25%, would you still cash flow? If so, I think you're safe from just about anything.....
If gross revenue dropped 25%, would you still cash flow? If so, I think you're safe from just about anything.....
smokun
Consultant - Rainmaker
Chicken Little Shouldn't Own A Carwash
Having been in the carwash & detail business for a while, I can assure you that the sky isn't falling... and carwashing will remain a good business for all but the most complacent. I was an owner-operator who also built carwashes throughout those turbulent growth years of our industry, and quite frankly, business was great!
The first oil shortage in the 70's triggered a serious recession, causing the same fears in some operators as is suggested by this post. Same was true for the second oil shortage scare that caused a milder scare in the 80's, mostly because it wasn't as severe as the decade before.
Okay, some exterior carwashes went out of business due to the normal shakeout caused by any economic challenge, mostly because they were absentee-owner operations. That will happen... and it should occur to those operations that are poorly planned and executed. Shake-ups get rid of dead wood... and rid clutter from the marketplace.
Back during the oil shortages, others flourished because they also sold gasoline, and were stabilized by being diversified into multi-profit centers. Oil companies were giving away carwashes for "free with a fill-up" at their locations, so there was no shortage of competition.
Labor is easier to find during a tough economic stretch. And consumers were more understanding of price increases due to inflation because it was prevalent in everyones life.
(continued)
Having been in the carwash & detail business for a while, I can assure you that the sky isn't falling... and carwashing will remain a good business for all but the most complacent. I was an owner-operator who also built carwashes throughout those turbulent growth years of our industry, and quite frankly, business was great!
The first oil shortage in the 70's triggered a serious recession, causing the same fears in some operators as is suggested by this post. Same was true for the second oil shortage scare that caused a milder scare in the 80's, mostly because it wasn't as severe as the decade before.
Okay, some exterior carwashes went out of business due to the normal shakeout caused by any economic challenge, mostly because they were absentee-owner operations. That will happen... and it should occur to those operations that are poorly planned and executed. Shake-ups get rid of dead wood... and rid clutter from the marketplace.
Back during the oil shortages, others flourished because they also sold gasoline, and were stabilized by being diversified into multi-profit centers. Oil companies were giving away carwashes for "free with a fill-up" at their locations, so there was no shortage of competition.
Labor is easier to find during a tough economic stretch. And consumers were more understanding of price increases due to inflation because it was prevalent in everyones life.
(continued)
smokun
Consultant - Rainmaker
More of the same...
Tough economic times are the incubator for innovation that adapts to the needs of the marketplace. My carwashes were flourishing, mostly due to my focus on the consumer... and targeting what customers wanted. I was young and confident enough that ignoring convention came easy. That's when this was purely a cash business... with no computers. Just money. In fact, I was pulled into consulting in 1969 due to my pioneering with menu-marketing and developing "extra services" that allowed my carwashes to generate the highest dollar-per-car in the country for decades. No brag, just fact. My reason for telling you this: It's time to innovate... and focus on the consumer. Get off your seat... and engage your customers and provide the needed "help". Assess how you can distinguish your operation... and take your customers off-the-market from others. The rewards are huge! Price won't do it, but "value" will play a significant role.
The customer is still king; although in most cases, queen... because women have nudged into first place over the past decade. If your operation isn't the consumer's favorite place to get a carwash or detail, find out why... and adapt. Be the nicest place to visit, and visits will happen more frequently. Quality is still primary... but quality doesn't stop at the carwash. It must be conscientiously extended to the customer's individual experience. Done properly, even Chicken Little will be a fan.
When I developed flex-serve, resiliency was part of the formula that positioned the operation to adapt and remain sensitive to any marketplace. Having lived through 4 decades of carwashing & hands-on detailing services, I knew it was essential to provide a durable yet pliable and versatile operating platform. It will weather this... and future storms better than any other tunnel format.
Hope my long-winded encouragement helps you sleep better. Simply adjust... and adapt, and all will remain well.[/SIZE]
Tough economic times are the incubator for innovation that adapts to the needs of the marketplace. My carwashes were flourishing, mostly due to my focus on the consumer... and targeting what customers wanted. I was young and confident enough that ignoring convention came easy. That's when this was purely a cash business... with no computers. Just money. In fact, I was pulled into consulting in 1969 due to my pioneering with menu-marketing and developing "extra services" that allowed my carwashes to generate the highest dollar-per-car in the country for decades. No brag, just fact. My reason for telling you this: It's time to innovate... and focus on the consumer. Get off your seat... and engage your customers and provide the needed "help". Assess how you can distinguish your operation... and take your customers off-the-market from others. The rewards are huge! Price won't do it, but "value" will play a significant role.
The customer is still king; although in most cases, queen... because women have nudged into first place over the past decade. If your operation isn't the consumer's favorite place to get a carwash or detail, find out why... and adapt. Be the nicest place to visit, and visits will happen more frequently. Quality is still primary... but quality doesn't stop at the carwash. It must be conscientiously extended to the customer's individual experience. Done properly, even Chicken Little will be a fan.
When I developed flex-serve, resiliency was part of the formula that positioned the operation to adapt and remain sensitive to any marketplace. Having lived through 4 decades of carwashing & hands-on detailing services, I knew it was essential to provide a durable yet pliable and versatile operating platform. It will weather this... and future storms better than any other tunnel format.
Hope my long-winded encouragement helps you sleep better. Simply adjust... and adapt, and all will remain well.[/SIZE]
Waxman
Super Moderator
Smokun,
I was glad to read your post. I agree that tough economic times create innovation and market corrections. Operators who can adapt, offer services that customers truly want at a value price, and put service and customers first will enjoy profitability even in tough times. Of course, having low debt service and not overbuilding also help.
I'm personally beginning construction of a new, 3-bay detail shop this Spring ad am excited about beginning an express detail program. This is a part of my plan to adapt and offer customers what they want.
I was glad to read your post. I agree that tough economic times create innovation and market corrections. Operators who can adapt, offer services that customers truly want at a value price, and put service and customers first will enjoy profitability even in tough times. Of course, having low debt service and not overbuilding also help.
I'm personally beginning construction of a new, 3-bay detail shop this Spring ad am excited about beginning an express detail program. This is a part of my plan to adapt and offer customers what they want.
I have been around the car wash industry for almost 30 years. During that time I have seen many ups and downs. I would agree with most of what Steve has already said. It is a good time to look in the mirror and see what is working and what isn't in your entire operation. Are you getting the best wash results you can? Is you facility in the best physical condition it can be? Are you giving your customers there money's worth or more? How can I improve the overall performance of my business?
Looking at the bigger picture, times like these usually "weed out" the borderline operators and scare off the timid making this a better business. My personal feeling is that things will not get as bad as many think and not as bad as it has been several times before. This will probably be a slow year until just before the elections. Regardless of the outcome, things should begin to improve shortly thereafter.
Looking at the bigger picture, times like these usually "weed out" the borderline operators and scare off the timid making this a better business. My personal feeling is that things will not get as bad as many think and not as bad as it has been several times before. This will probably be a slow year until just before the elections. Regardless of the outcome, things should begin to improve shortly thereafter.
pitzerwm
Active member
I bought my wash in 80, since I had other income, I arranged it so 100% of the net went to the payments. In 84 they closed 3 nuke plants, and about 100K people left the area. I cash flowed until 87, it took 7 years total to get back to normal. I only had the one wash, and my thoughts are "don't put all your eggs in one basket".
Ben's Car Wash
Conveyor & self service
Sorry, but I put my sister on a ventilator the other night for a severe form of pneumonia called ARDS and she is actively dying now. I'm picking up my brither from Philly in a few minutes. I made her a DNR yesterday as my mother is "dis-engaged" at this time and I'm having to make all the decissions.
The debate will have to wait.
The debate will have to wait.
newhampshiretech
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that is very dis-heartening news, you don't know me but my best wishes are with you and your family.
loved ones are all that really matter.
Last edited:
Doug,
We just found out that one of the owners of our company has terminal pancreatic cancer. Impossible to figure out why these things happen. In your current situation almost anything we could be discussing here would seem rather trivial. Best wishes for you and your family in this trying time.
We just found out that one of the owners of our company has terminal pancreatic cancer. Impossible to figure out why these things happen. In your current situation almost anything we could be discussing here would seem rather trivial. Best wishes for you and your family in this trying time.
I live in a city that I believe is the largest food producing city in the US. Plus, our largest employer is a complany that gets a lot of it's business from the government (manufacturer of aviation electronics, etc)
So long as people need to eat and the government continues to spend billions on defense/offense my city will be fine. We are as close to recession proof as you can get up here.
So long as people need to eat and the government continues to spend billions on defense/offense my city will be fine. We are as close to recession proof as you can get up here.
I.B. Washincars
Car Washer Emeritus
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I found the books on our old wash which was built in '73 and closed in '01. It was a 6 bay SS (outside bay on each end), the competition was a 5 bay SS (one outside) on the other side of town and a 3 bay drive-in/back (one of them being an outside bay) behind a gas station in the middle of town. The 3 bay did hardly any business and closed in mid '85. Here are the gross receipts for the '80s. I left out 1980 because the 5 bay wasn't built until '81.
1981 - 26,606
1982 - 25,221
1983 - 26,006
1984 - 32,929
1985 - 35,524
1986 - 40,734
1987 - 37,816
1988 - 43,134
1989 - 42,032
I'm thinking our start-up was $.50 most of the time and probably raised to $.75 in the mid to late '80s.
1981 - 26,606
1982 - 25,221
1983 - 26,006
1984 - 32,929
1985 - 35,524
1986 - 40,734
1987 - 37,816
1988 - 43,134
1989 - 42,032
I'm thinking our start-up was $.50 most of the time and probably raised to $.75 in the mid to late '80s.
Greg Pack
Wash Weenie
Pat, thanks for the info. Do you have late 70's numbers?
I.B. Washincars
Car Washer Emeritus
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1973 - 5,818 opened in August
1974 - 23,373
1975 - 18,306
1976 - 21,256
1977 - 26,796
1978 - 31,563
1979 - 32,988
1980 - 31,939
They opened up @ $.25/5 min. I'm not sure when they went to $.50, but judging by the #s I would assume it was in '77.
I will add that my dad opened up a store next to this wash in '76 (open 6 days a week). We didn't install a bill changer until '86 so Sundays washers had to have their own change. I'm sure that affected the bottom line a little.
1974 - 23,373
1975 - 18,306
1976 - 21,256
1977 - 26,796
1978 - 31,563
1979 - 32,988
1980 - 31,939
They opened up @ $.25/5 min. I'm not sure when they went to $.50, but judging by the #s I would assume it was in '77.
I will add that my dad opened up a store next to this wash in '76 (open 6 days a week). We didn't install a bill changer until '86 so Sundays washers had to have their own change. I'm sure that affected the bottom line a little.
Ben's Car Wash
Conveyor & self service
Thank you for all your prayers and well wishes... things still looking bad. ARDS has an 80% mortality rate (death rate) associated with pnemonia. Diane lived a hard life for her 49 years.... Philly can be tough.
I was reading my news this morning and came across this articles... I thought of you guy and your post. It's from the Financial Times of London. It predicts in stages what could and what has happend in credit & housing markets. Read the link & article.
Going back up to the hospital (not the one I work at... next town) to she how she did over night. Thanks again.
http://blogs.ft.com/wolfforum/2008/02/americas-economy-risks-mother-of-all-meltdowns/#more-110
I was reading my news this morning and came across this articles... I thought of you guy and your post. It's from the Financial Times of London. It predicts in stages what could and what has happend in credit & housing markets. Read the link & article.
Going back up to the hospital (not the one I work at... next town) to she how she did over night. Thanks again.
http://blogs.ft.com/wolfforum/2008/02/americas-economy-risks-mother-of-all-meltdowns/#more-110
