Steady Profit Centers for Local Entrepreneurs Carwashes Profiler 2016 © 2016 THE MEDIACENTER. All rights reserved.

Profiting from More Cars and More Driving Good news for the carwash industry: A new light vehicle sales record of 17.5 million units for 2015 and a 2016 production forecast of 18.2 million units; more Americans working and commuting; and lower gasoline prices and more total driving. According to the March 2016 report from the US Energy Information Administration, regular gasoline prices for the remainder of 2016 will range from a high of $2.02/gallon during June to $1.73/gallon for December, and average $1.97/gallon for 2017. Except for Jaguar and Maserati, all other luxury brand vehicles recorded 2015 sales increases: Lexus, 10.7%; Mercedes-Benz, 4.7%; BMW, 1.8%; Cadillac, 2.6%; Infiniti, 13.8%; Lincoln, 7.1%; and Porsche, 10.1%.

Carwash Operations’ Use of Advertising Media, 2015 Auto Laundry News, 2015 Exterior Conveyor Survey and 2016 Full/Flex Survey Media Newspapers Direct mail Radio TV Yellow Pages Social media Exterior Only 20% 60% 30% 10% 40% Exterior Express 70% Flex-Service 75% Full-Service 67% 56% 22% 11% 78%

Manufacturers Pushing Product According to Auto Laundry News’ (ALN) 2015 State of the Industry Survey, 100% of carwash industry equipment and chemical manufacturers reported increased sales for 2015 and anticipate the same for 2016, with the average increase 14% for both years. Among distributors only, 75% experienced increased sales during 2015 at an average of 16%, but they expect to do better during 2016, with 85% forecasting increased sales, also at an average of 16%. Of all equipment and chemical manufacturers, 50% forecast their production capacity would increase 21% and their warehousing capacity 17% during 2016. Equipment manufacturers were projected to increase more than chemical manufacturers.

Inside Detailing Operations ALN’s 2016 Detail Survey reported that just 45% of detailing operations experienced improved revenue performance during 2015, while it was 70% of those surveyed by Professional Carwashing & Detailing (PC&D). According to the ALN survey, 76% of detailers’ customers are retail; 19%, auto dealers; 2%, taxis and limousines; and 3%, other (fleets, body shops, etc.). Surveyed detailers also said that 16% of the vehicles they service are new, or less than 1 year old; 23% are 1 to 2 years old; 27% are 3 to 5 years old; and 34% are 5 or more years old.

Optimism Despite Obstacles According to an article in the August 2015 issue of PC&D, there has been a significant increase in the number of new investors in the carwash industry, as 37% of businesses have been owned for less than 5 years. During the 2015 International Carwash Association (ICA) convention, information gathered from conveyor manufacturers indicated they had received orders for more than 500 conveyors for installation during the next 12 months. Carwash operators face numerous challenges, including the difficulty of securing bank financing, increasing municipal water/sewage fees and irregular cash flow because of the seasonal nature of the business.

Advertising Strategies To boost traffic during the early week (notoriously poor for carwash operations), propose a New Car/Old Car promotion, with discounts for drivers with a new car purchased within the last 6 months and drivers with cars 10 or more years old. Bring together a local car dealer and mobile detailing operation. The car dealer could feature the detailer in some of its TV spots offering one year of detailing with a new car purchase. The detailer could provide videos with car cleaning tips for posting on the dealer’s Website. Suggest a summer promotion targeting families, providing a coupon or discount to clean and freshen their vehicles prior to their car vacations.

New Media Strategies Boost employee morale by posting videos of each, portraying them as more than minimum- wage workers. Since many are young, they should explain their future career plans, the valuable lessons they’ve learned and what they like about serving their customers. Carwash owners should create videos that explain the operation’s equipment and how it cleans as well as protects a vehicle’s surface during the process. Other videos could highlight eco-friendly chemicals used and water-saving efforts. Post a poll asking social media visitors what vehicle they own, how many miles they drive per week/month/year and how often they patronize a carwash per year. Offer a coupon/discount to those who frequent a carwash the least times annually.

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