Key Take Aways from The Car Wash Show – Nashville 2024
The car wash industry is experiencing shifts in consumer preferences towards professional services and express models, improved labor efficiency due to subscription models, and evolving business sentiments.
Takeaways
- Employees per location decreased by about 15%
- Revenue per store nearly doubled.
- Significant increase in professional car washing since the 90s.
- Overall customer satisfaction shows subscribers have higher satisfaction.
- Shift from full serve to express exterior car wash models.
- Consumers appreciate having car wash businesses in their community.
- Less than half of the people consider car washing a good career choice.
- Store-level profitability is on the rise, particularly due to strong subscription sales.
Highlights
– ` “The home car washer, while not extinct, it’s almost becoming a novelty.” `
Chapters & Topics
1. Labor Efficiency and Revenue
> In the observed data set, labor efficiency has improved with a 15% reduction in employees per location, while revenue per store has nearly doubled, influenced by the subscription model’s popularity.
– Improvement attributed to the subscription model.
2. Shift in Car Washing Preferences
> There has been a significant shift from driveway washing to professional car washing over the decades, with professional washing increasing from 45% in the 90s to 80% recently.
– Driveway washing is becoming a novelty.
3. Subscription Program and Membership Satisfaction
> The research indicates a consistent improvement in satisfaction levels for both subscribers and non-members, with subscribers generally showing higher satisfaction.
– Overall customer satisfaction shows subscribers (red line) have higher satisfaction in the 80% range compared to a la carte retail customers (blue line).
– The data, although only covering a few years, shows a small but consistent improvement in satisfaction for both subscribers and non-members.
4. Car Wash Model Utilization Trends
> There has been a noticeable shift from full serve to express exterior car wash models, influenced possibly by the COVID-19 pandemic and changing consumer preferences.
– Initially, full serve was the preferred model in 2016, but there has been a consistent shift towards express exterior models.
– The decrease in full serve usage might be due to an increase in express stores and a shift in consumer behavior during COVID-19 towards safer, minimal contact services.
5. Consumer Perceptions and Community Impact
> Consumers view car wash businesses positively, indicating a strong community presence and a desire for more convenience and services.
– Consumers appreciate having car wash businesses in their community and perceive them as positive contributors to the community.
– There is a strong consumer demand for more car wash locations, driven by convenience.
6. Car Wash Industry Employment Perception
> The perception of car washing as a career choice has improved, but there remains significant room for enhancing its image and attracting skilled workers.
– Less than half of the people consider car washing a good career choice, though this perception has improved compared to 20 years ago.
– There is a need to better communicate the benefits, compensation packages, and career paths available in the car wash industry.
7. Store-Level Performance and Pricing Strategies
> Store profitability is growing, driven by strong subscription sales, while pricing strategies show a cautious approach with fewer retailers planning to increase prices in the next 12 months.
– Store-level profitability is on the rise, particularly due to strong subscription sales.
– 60% of retailers reported having increased prices in the past 12 months, but less than half plan to do so in the next 12 months.
8. Industry Insights and Future Outlook
> Despite challenges, there is a sense of duty among business leaders to remain optimistic and continue driving growth, particularly in niche markets like specialized car wash equipment.
– Business leaders feel a duty to remain optimistic and drive growth despite economic uncertainties.
– Niche suppliers like specialized car wash equipment providers maintain a positive outlook and see opportunities for growth.