Car Wash - Fall 2016 - 21


LOWER PRICES,
INCREASE CUSTOMERS

Across the globe, car wash professionals who
want to make the most out of the current
boom time are trying to predict the trends
and troubles the industry will encounter
over the next decade.
In July, at a retail petroleum and car wash
industries trade fair in Stuttgart, Germany,
a panel of executives from car wash equipment giants WashTec, Istobal, Kärcher and
Sonax sat down to discuss the future of the
European market. According to Brushtec's
website, which reported on the panel's discussion, the executives agreed that "good
price" was one of the first things European
customers looked for. And American
consumers are no different. In a 2014
International Carwash Association National
Consumer Study, 67 percent of customers
identified "price" as a leading concern when
purchasing a professional wash.
Lower prices are linked to another trend
sweeping the industry - the decline of selfservice washes and the rise of the express
exterior. ICA's 2014 study reports that 57
percent of car wash consumers use conveyors, and of those, express exterior washes are
the most popular at 29 percent. "By 2025,
conveyors are going to demand more than
80 percent of the total market," Roman predicted. "Self-service is going to be a dribble,
and in-bay automatics are going to decline
to about 15 percent of the total market."
Thanks to the rise of the express exterior
wash, operators will be able to offer washes
at lower prices, thereby attracting and keeping customers in what is expected to be an
increasingly competitive market. According
to Jeff Pavone, the principal consultant with
Commercial Plus, a firm specializing in car
washes, "As the express model expands and
competition heats up, prices will likely come
down. We are already seeing basic washes
offered at $3 to $6 in many markets."

Q. What should small and medium sized
operators do in the next 10 years?
"Do what the big-chain operations are not doing. They are not interested in
express detailing. They are not interested in reconditioning work or window
tinting or other kinds of appearance service work. This market is underserved."
Bob Roman, car wash consultant
with 17 years of industry experience
"Our competitive edge is our

"Select a site that has the

training. We really go the extra

best possible protection from

mile to spend good quality time on

competition, with natural

the training of the team members.

barriers to entry such as a unique

When you come into a Mike's

geographic position, and legal

Carwash, it is very professional and

barriers such as zoning laws."

our customers like it."

Jeff Pavone, consultant specializing

Mike Dahm, owner and operator

in car washes with Commercial Plus

of Mike's Carwash
"The most important thing is to continue growth. The industry is growing
right now, and if you do not grow in the market you are in, you are going to face
competition from people outside of your market."
Robert Andre,
VP of training and education
at Sonny's CarWash Factory

THE VALUE IN LABOR

Over the next decade, labor will be an
increasingly important concern for car wash
operators. Just when operators are looking for
ways to lower prices, labor costs are expected
to rise.
Robert Andre, vice president of training
and education at Sonny's CarWash Factory,
explains that labor laws and labor costs
are on the rise on the West Coast, which
could be the beginning of a troubling trend
FALL 2016 | CAR WASH MAGAZINE | WWW.CARWASH.ORG

21


http://WWW.CARWASH.ORG

Table of Contents for the Digital Edition of Car Wash - Fall 2016

Letter from the ICA
By the Numbers
Overheard Online
Shifting gears: Predictions in a growing industry
7 business trends to leverage in 2017
First ever full-service fueling
Coming clean on property taxes
3 global talentmanagement trends every manager should understand
The psychology behind purchasing
Are on-vehicle cameras a concern for car washes?
Working overtime
Randy Shick finds perfect fit in the car wash industry
Creating and cultivating loyalty
Inspiring people to shine
Women in Car Washing
Take a Tour
Wash Ideas
Focus on a Member
Blast from the Past
Download It!
Marketing Minute
Ask Champ
Top Tweets
Index of Advertisers
5 Things
Car Wash - Fall 2016 - bellyband1
Car Wash - Fall 2016 - bellyband2
Car Wash - Fall 2016 - cover1
Car Wash - Fall 2016 - cover2
Car Wash - Fall 2016 - 3
Car Wash - Fall 2016 - 4
Car Wash - Fall 2016 - 5
Car Wash - Fall 2016 - 6
Car Wash - Fall 2016 - 7
Car Wash - Fall 2016 - 8
Car Wash - Fall 2016 - 9
Car Wash - Fall 2016 - 10
Car Wash - Fall 2016 - Letter from the ICA
Car Wash - Fall 2016 - 12
Car Wash - Fall 2016 - 13
Car Wash - Fall 2016 - By the Numbers
Car Wash - Fall 2016 - 15
Car Wash - Fall 2016 - 16
Car Wash - Fall 2016 - Overheard Online
Car Wash - Fall 2016 - Shifting gears: Predictions in a growing industry
Car Wash - Fall 2016 - 19
Car Wash - Fall 2016 - 20
Car Wash - Fall 2016 - 21
Car Wash - Fall 2016 - 22
Car Wash - Fall 2016 - 23
Car Wash - Fall 2016 - 24
Car Wash - Fall 2016 - 25
Car Wash - Fall 2016 - 26
Car Wash - Fall 2016 - 27
Car Wash - Fall 2016 - 7 business trends to leverage in 2017
Car Wash - Fall 2016 - 29
Car Wash - Fall 2016 - 30
Car Wash - Fall 2016 - 31
Car Wash - Fall 2016 - 32
Car Wash - Fall 2016 - 33
Car Wash - Fall 2016 - 34
Car Wash - Fall 2016 - First ever full-service fueling
Car Wash - Fall 2016 - 36
Car Wash - Fall 2016 - 37
Car Wash - Fall 2016 - 38
Car Wash - Fall 2016 - 39
Car Wash - Fall 2016 - 40
Car Wash - Fall 2016 - 41
Car Wash - Fall 2016 - 42
Car Wash - Fall 2016 - Coming clean on property taxes
Car Wash - Fall 2016 - 44
Car Wash - Fall 2016 - 45
Car Wash - Fall 2016 - 3 global talentmanagement trends every manager should understand
Car Wash - Fall 2016 - 47
Car Wash - Fall 2016 - 48
Car Wash - Fall 2016 - 49
Car Wash - Fall 2016 - 50
Car Wash - Fall 2016 - 51
Car Wash - Fall 2016 - 52
Car Wash - Fall 2016 - 53
Car Wash - Fall 2016 - The psychology behind purchasing
Car Wash - Fall 2016 - 55
Car Wash - Fall 2016 - 56
Car Wash - Fall 2016 - 57
Car Wash - Fall 2016 - 58
Car Wash - Fall 2016 - 59
Car Wash - Fall 2016 - 60
Car Wash - Fall 2016 - 61
Car Wash - Fall 2016 - 62
Car Wash - Fall 2016 - Are on-vehicle cameras a concern for car washes?
Car Wash - Fall 2016 - 64
Car Wash - Fall 2016 - 65
Car Wash - Fall 2016 - Working overtime
Car Wash - Fall 2016 - 67
Car Wash - Fall 2016 - 68
Car Wash - Fall 2016 - 69
Car Wash - Fall 2016 - 70
Car Wash - Fall 2016 - 71
Car Wash - Fall 2016 - 72
Car Wash - Fall 2016 - Randy Shick finds perfect fit in the car wash industry
Car Wash - Fall 2016 - 74
Car Wash - Fall 2016 - 75
Car Wash - Fall 2016 - Creating and cultivating loyalty
Car Wash - Fall 2016 - 77
Car Wash - Fall 2016 - 78
Car Wash - Fall 2016 - 79
Car Wash - Fall 2016 - 80
Car Wash - Fall 2016 - 81
Car Wash - Fall 2016 - 82
Car Wash - Fall 2016 - Inspiring people to shine
Car Wash - Fall 2016 - 84
Car Wash - Fall 2016 - Women in Car Washing
Car Wash - Fall 2016 - Take a Tour
Car Wash - Fall 2016 - 87
Car Wash - Fall 2016 - 88
Car Wash - Fall 2016 - 89
Car Wash - Fall 2016 - Wash Ideas
Car Wash - Fall 2016 - Focus on a Member
Car Wash - Fall 2016 - Blast from the Past
Car Wash - Fall 2016 - 93
Car Wash - Fall 2016 - Download It!
Car Wash - Fall 2016 - Marketing Minute
Car Wash - Fall 2016 - 96
Car Wash - Fall 2016 - Ask Champ
Car Wash - Fall 2016 - Top Tweets
Car Wash - Fall 2016 - Index of Advertisers
Car Wash - Fall 2016 - 100
Car Wash - Fall 2016 - 101
Car Wash - Fall 2016 - 5 Things
Car Wash - Fall 2016 - cover3
Car Wash - Fall 2016 - cover4
Car Wash - Fall 2016 - outsert1
Car Wash - Fall 2016 - outsert2
Car Wash - Fall 2016 - outsert3
Car Wash - Fall 2016 - outsert4
Car Wash - Fall 2016 - outsert5
Car Wash - Fall 2016 - outsert6
Car Wash - Fall 2016 - outsert7
Car Wash - Fall 2016 - outsert8
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