Bottom Line: Car Washes Increase Revenue

By Brian Harris

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With convenience stores selling an estimated 80% of the gasoline purchased in the U.S., adding a car wash may seem like a good idea. It gets even more promising when 86% of U.S. car wash equipment manufacturers reported a collective revenue increasing of 20% last year, according to a 2015 industry survey.

The study appeared in a Convenience Store Decisions article about car washes becoming a high-margin opportunity for convenience stores. “Presuming there is a market to be served and the site has the ability to process the demand, the car wash can contribute significantly to the bottom line,” Eric Wulf, CEO of the International Carwash Association, told CSD. He added that convenience store operators have more options than ever before due to new models and technologies. From mini-tunnels that minimize land usage to RFID technology that automates payment, more retailers are having success by increasing their throughput of cars per hour.

Car Wash Fundamentals

Like the convenience store or gas island, a car wash must be clean and functional, and offer a positive customer service experience. Car wash promotions are connected to the store’s marketing efforts and can tie into loyalty programs; the profit margins are intertwined.

CSD profiles Idaho-based Stinker Stores, which operates two touchless and eight soft-touch car washes. The select number of stores offering those services is notable, considering Stinker Stores operates 65 locations throughout the state. All of the systems have upgraded equipment to maximize efficiency and ensure that customers are getting the best experience.

Remember the Nationwide insurance commercial which depicted a rather large human baby as a car? Don’t mess with your customer’s baby! They will take to social media to complain, including on platforms like Yelp, and this can damage your brand.

Honk if You Have a Process

Whether installing or maintaining a car wash operation, it’s essential that you audit your operations both for functionality and marketing program compliance.

Sample audit questions:

  1. On average how long does it take a car to be washed, from the time it arrives at the terminal to the time the customer is ready to leave?
  2. Is equipment operational? (Can be more specific: brushes, rinsers, wipers, blow dryers, etc.)
  3. Is the car wash terminal an inviting, well-lit environment?

If the survey was built with Zenput, an answer of “no” to questions 2 and 3 would elicit a photo or explanation that could alert senior management that service is needed. Senior management could also set the average service time for Question 1. Therefore, they would receive an alert when the service time was taking too long. There might be a malfunction inside the tunnel or simply a traffic jam on a bright, sunny day when everyone wants a wash.

We usually say Zenput provides store-level insights. In this case, wash-level insights—down to a lack of soap—could be accounted for during an audit. It’s yet another example of how mobile technology can empower business operators to explore profit-building opportunities—without the fear of losing your shirt in the wash!

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