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Driving Success in Car Wash Business

Explore industry insights and strategies for increased revenues in car washing and detailing operations. Learn about growth trends, advertising strategies for car wash and detailing services, and innovative new media approaches to enhance customer engagement.

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Driving Success in Car Wash Business

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  1. A Small-Business Success Story • According to Professional Carwashing & Detailing’s latest annual survey (June 2016), 2015 was a very good year for the industry, with 73% of respondents reporting either greater or much greater growth during 2015, as compared to 2014. • Auto Laundry News’ December 2016 State of the Industry survey found that 77% of respondents experienced an average sales growth of 14% during 2016. By comparison, average sales growth for 2015 was 17%. • In the sub-category of equipment manufacturers, 100% of respondents reported an average sales increase of 16%. The average sales increase for the sub-category of chemical manufacturers was more modest, at 6%, for 70% of respondents.

  2. More Dollars in Flex-Service Operations • The 2017 Auto Laundry News Full/Flex Survey found that 46% of operators in both sub-categories reported increased revenues for 2016; however, it was a second year of decline of those experiencing an increase, from 67% for 2014 and 51% for 2015. • It was flex-service operators who experienced much greater growth, with 82% reporting increased revenues, compared to just 26% of full-service respondents. For 2015, full-service operators had a larger increase, 54%, to flex-service operators’ 46%. • Although winter is the best season for full- and flex-service car wash operations in most region of the US, summer is also a big season in the Mid-Atlantic, South Central, Central, Mountain and Pacific regions.

  3. In-Bay Automatic Operators Raking in the Revenue • According to Auto Laundry News’s 2016 In-Bay Automatic Survey, 2016 was the second consecutive year – and only the second since 2002 (the other being 2015) – that more than half, or 61%, of respondents indicated a growth in volume. • In the all-important per-car-revenue metric, respondents stated a slight decline from $8.96 for 2015 to $8.69 for 2016. The average monthly gross income per self-serve bay was $1,778. • Operators of in-bay automatics plan to build more washes during the next 12 months at 2.5 times (5%) than the rate of other operators: 2% for express exterior and self-serve operators and 0% for exterior-only and full-service operators.

  4. Exterior-Only and Express-Exterior Advertising & Promotion Media, 2016 Auto Laundry News, July 2016

  5. More Detailing Dollars During the Summer Months • According to Professional Carwashing & Detailing’s 2016 Detailing Survey, 52% of respondents said summer was their busiest season. That’s also the case in the Central, Mountain and Pacific regions, as reported in Auto Laundry News’ 2017 detailing survey. • The Auto Laundry News survey found that 54% of participating operators experienced improvement in 2016 revenues, compared to 45% for 2015. More importantly, only 3% reported a decline in business, the lowest percentage ever. • Detailing service operators said 82% of their business is retail; 15%, auto dealers; 2%, taxi/limousine; and 1% other, such as fleets and body shops. The largest percentage of vehicles serviced (34%) was 3–5 years old.

  6. Advertising Strategies • With summer the primary season for detailing, recommend an ad on the weather page of your station’s Website for detailing operators without the budget for TV. A mobile coupon for a discount on the slowest days of the week should maximize ad responses. • For car wash operators who use direct mail, recommend an early morning news flight of 15-second spots to drive consumers to the direct mail piece they receive, with a “drive time” discount for a car wash and/or other services from 4 pm to 7 pm. • TV can be a good complementary ad medium for car wash operators who use direct mail, newspaper or other channels to announce a new location. Offer a discount for first-time customers at the new location.

  7. New Media Strategies • Videos generate the most interest of any social media content. Detailers can use videos to target their taxi/limousine and corporate audiences on LinkedIn that show the extra steps and care taken compared to the competition. • With environmental protection and clean-energy use an important topic for so many consumers, car wash operators should use blog posts and/or videos to show how they use water and energy more efficiently and reduce the use of environmentally harmful chemicals. • Of the many consumer businesses, car wash operators should be leaders in the use of mobile and location marketing. Find, download and share the many New Media Insights Reports that include mobile and location marketing tips and ideas.

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