Transforming Dirt into Cash According to Statista, estimated 2017 revenue for US car washes was $8.665 billion, a 3.4% increase from 2016. Revenues are projected to increase another 2.5% during 2018, to $8.882 billion, and to continue increasing through 2020. Auto Laundry News’ (ALN) December 2017 State of the Industry survey found 90% of respondents experienced an average sales increase of 12% during 2017. They were optimistic about 2018, as 80% predicted an average revenue increase of 15%. Competition is fierce. Almost half (46%) of operators have one to five competitors in their area, 23% have 6–10 competitors and 27% have 11 or more. More than a third said they plan to open another car wash within a year and 27% are considering it.

Full/Flex Car Washes According to Auto Laundry News’ March 2018 survey, full/flex car washes had significantly less traffic count and volume than the 2017 survey results; however, average monthly impulse sales had increased, at $1,926 (full) and $1,750 (flex). The large differences in the table on page 1 of the Profiler may be a survey anomaly, as 46% of survey respondents said their 2017 incomes increased over 2016, which was the same percentage for 2016 versus 2015. Social media, 63%; direct mail, 42%; and radio, 26% were their top 3 advertising channels for full-service car washes as well as flex-service: social media, 80%; direct mail, 27%; and radio, 27%.

In-Bay Automatics’ Performance Not So Sparkling According to Auto Laundry News’s October 2017 In-Bay Automatic Survey, 41% of respondent reported an increase in wash volume. By comparison, 61% of respondents indicated volume growth during 2016. More than a quarter (26%) had volume declines. Per-car-revenue, however, increased to $9.36 from $8.69 for 2016. The average monthly gross income per self-serve bay decreased from 2016’s $1,778 to $1,692. Seven-percent of in-bay automatics operators plan to build more facilities during the next 12 months, 4% of express exterior, 2% of exterior-only, 2% of flex-service operators and 0% of self-service operators.

Exterior Conveyor Operations Although only 43% of exterior conveyor operators responding to the July 2017 Auto Laundry News Exterior Conveyor Survey reported revenue growth compared to 78% during 2016, ALN attributed the difference to fewer respondents in certain categories. Average annual wash volume was 62,400 for exterior-only and 90,900 for express exterior. Each type reported approximately $300 in monthly impulse sales. In additional revenue streams, 44% of exterior-only and 36% of express exterior offered self-serve; 6% and 23%, respectively, had fast lube; 11% and 14% offered detailing; and 6% and 7%, respectively, sold gas.

The Finer Points of Detailing According to Auto Laundry News’ January 2018 Detailing Survey, 53% of detailers reported more sales during 2017, compared to 54% for 2016. Forty-one percent had no change in sales compared to 43% and 6% reported decreased sales compared to 3%. The customer profile was 84% retail, with 13% of vehicles less than one year old; 26%, 1–2 years; 35%, 3–5 years; and 26%, 5 years and older. Auto dealers were 13% of customers; taxis/limousines, 1%; and others (fleets, body shops, etc.), 2%. According to the survey, 83% of detailers advertise: Internet, 44%; social media, 39%; direct mail, 33%; newspapers, 28%; radio, 6%; and other, 17%.

Advertising Strategies To help car wash operators increase traffic during the summer, propose a discounted-combo package of a pre- road-trip vacation wash during June, July and August and one wash during the winter months. Consider a detailing cross-promotion with a new-vehicle dealership’s service department to increase the percentage of detailing jobs of newer vehicles. Service customers receive a coupon for detailing and a dealership brochure is placed in every vehicle detailed. In-bay automatics can increase total onsite revenues with a succession of monthly discounts for the other businesses they offer: a discounted full- service wash, fast lube or detailing with gas fill-up, c-store coupon with a qualifying total purchase of other services, etc.

New Media Strategies Offer flash sales on social media: a discount for every car wash during the next hour or that afternoon or a detailing discount when scheduling the service during the next four hours via the business’ online scheduling page. For more time-intensive jobs, such as waxing or detailing, ask for customers’ cell phone number to join your texting service. Text them when their vehicle is ready and send a coupon for their next service for joining. Send monthly and loyalty customers rewards for posting online reviews, with bonus rewards for video reviews.