Insights from the Car Wash Show



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.





Source link

About Caroline Vega 317 Articles
Caroline Vega combines over a decade of digital strategy expertise with a deep passion for journalism, originating from her academic roots at Louisiana State University. As an editor based in New Orleans, she directs the editorial narrative at Commercial Lending News, where she crafts compelling content on commercial lending. Her unique approach weaves her background in finance and digital marketing into stories that not only inform but also drive industry conversations forward.