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Teach an Old Carwash New TricksTurn that ugly duckling back into a profitable location
By Ryan Carlson
03/26/2008 Continued from page 2 Bob Roman’s advice, Dan decided he could only manage a certain finance payment and still maintain his current quality of life. Inexpensive Cosmetic Upgrades Since Dan planned to reopen the wash with prices higher than what the location’s customers had been paying, he needed to create a sense that things were different and improved. Since humans are 80 percent visual, there are many cosmetic changes that go a long way toward creating a perception of quality that justify price increases. For several thousand dollars Dan made the rundown carwash look like a new business. After giving all of the bay walls a serious cleaning, he painted every wall to match the look of his first location. He changed any failing light fixtures and replaced every light bulb to keep the location well lit. Working with his distributor, Dan ordered all new lighted domes for his vacuum islands which made them look like new. The most important cosmetic change he made was replacing every bay sign and equipment decal on the property with a brand new decal. Dan worked with a company to create custom decals for all of his old bay meter boxes. The changes created a nice, consistent look and feel throughout the wash. For a minimal cost, Dan transformed the old wash from an eyesore into a respectable, professional wash facility. Retrofit Options Buying an old wash and getting it back into business is a serious endeavor. Dan ran a cost analysis to determine the “best bang for his buck.” Since he financed the upgrades, he had to resist the temptation to spend too much money on equipment that did not maximize his return on investment. By holding off on buying a new in-bay automatic, for example, Dan focused on the improvements that made his first location a big success and replicated those that showed the best return on investment. Through his years as an operator, Dan understood that carwashing had not changed nearly as much as the behaviors and habits of his customers. For most customers, washing their cars comes down to an application of soap and water. New technological innovations have allowed manufacturers to create bigger, faster and higher quality wash equipment, but to customers, it is still a matter of applying soap and water. The difference is that customers now want and expect wash experiences that are as convenient as possible. Improvement #1: Credit Card Acceptance Other than raising prices there is no better way to make more money per wash than changing the way customers spend their money. Dan noticed that cash customers routinely place their stack of quarters on the lip of the meter box and put in only the starting cash value. Once they reach one minute of washing, the timer gives a not-so-friendly reminder to add more money. In most instances, the beeping sound has the effect of a pistol shot at a track and field event. Instead of adding more time, customers typically pick up their pace and wash their cars as fast as possible before the bay shuts off. When Dan added a credit card acceptance system at his first wash, he saw how revolutionary a simple retrofit upgrade could be. When longtime customers were given the option to use their credit cards, they nearly doubled the amount of money spent per visit. Dan configured his card system to “count up” and charge a per-minute rate in the self-service bay and a minimum charge to match his cash start value. Dan noted that customers’ washing pace slowed considerably and many stood around talking to friends or people in the next stall. Credit customers take their time because at no point are there the loud beeps that turn carwashing into a timed event. Not only did customers spend more money, they gave Dan countless positive comments on their new washing experience. Adding a credit card acceptance system to Charlie’s old wash location was the most profitable retrofit
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