Southwest Car Wash Association - ADVANTAGE - 4th Quarter 2017 by Southwest Car Wash Association ADVANTAGE

Publication of the Southwest Car Wash Association

Fourth Quarter 2017

Preliminary Schedule Inside Registration & Program www.swcarwash.org

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PRESIDENT’S MESSAGE WELCOME to the 2018 SCWA Convention & Car Wash EXPO edition of the ADVANTAGE. The SCWA Convention & EXPO continues to be one of the most popular car wash events and continues to grow bigger and better every year. Attendees come from not only the Southwest but also across the U.S. and even attracting DeWayne Hall an international interest. SCWA President As small business owners we are all busy and have a lot going on in our lives – so the thought of taking a couple of days away to attend a convention may seem like a stretch. However as with any business owner, ROI is the key and if you can come away with only one good idea or new equipment insights to improve your business and increase your profits – then it is certainly worth the investment.

HERE ARE FIVE SOLID REASONS TO INVEST AND EXPERIENCE SCWA 2018.

SCWA – EXPO - See the Latest Equipment, Products and Services – The 2018 SCWA edition will feature more than 325 exhibit booths in over 70,000 square feet of EXPO space displaying the very latest in car wash, lube and detail equipment, supplies and services. Industry suppliers are some of the best resources for you to learn more about the current business climate. Discovering innovative products and services for your business is necessary to stay competitive in today’s fast changing world. Plus our vendors who sell to the car wash industry fully grasp what is happening in your market. Invest the time in the EXPO to see the newest and best plus get to know the suppliers and turn them into your friends and allies. So many attendees talk about how much they enjoy visiting the SCWA EXPO because they see all the great car wash companies both large and small in a relaxed atmosphere. Premier Education – No matter how experienced you are – every one of us can learn and grow. Working in a small business can often be isolating and without exposure to a variety of points of view, we can miss new ideas and trends that can impact future results. EXPERIENCE SCWA 2018 will offer you one of the best all – around education program to be found. Learn new ways of conducting your business and being more productive. Everyday car wash owners are facing new challenges. The CEO Forum - Car Washing - The Future is NOW kicks off the Convention. The Forum will feature a panel discussion focused on where the industry is headed and how we can respond to the unique challenges we face. The panel will include car wash industry veterans Bill Martin, owner of Metro Express; David Begin, owner of Wild Blue

Car Wash and Paul Fazio, Sonny’s - the Car Wash Factory. If you are serious about your car wash business and want to make sure you stay relevant to your customers – this is the panel you will not want to miss. The EXPO Quick Talks were a big hit last year and will be back again with a full slate of important car wash topics presented in short quick presentation by car wash pros. The Tuesday Car Wash Academy is being expanded to include a broader range of topics including a workshop specifically designed for car wash managers. This panel will discuss important tips on “real leadership” and how to find the leaders in your organization. Keynote speaker Rob O’Neill will be the highlight of the three days. Rob was the leader of Navy Seal Team Six and led the search for and killed Osama bin Laden. One of the nation’s most-decorated veterans who lives by the mantra “Never Quit”. He is a New York Times Best Selling Author and appears on many television primetime networks and as a contributor for FOX News Channel lending his military expertise; views on the current terrorist threats and leadership insights. Rob will share his stories and perspectives for business owners encouraging all of us to “never quit”. Connecting with Other Car Wash Owners – EXPERIENCE SCWA 2018 provides a great opportunity to network. Often competitors from other regions of the state or region can become valuable resources for referrals and learning new best practices. Avoiding peers for fear of others discovering insights in your business can limit your success. Collaboration is the easy to approach networking - because together people can help each other uncover ideas and discover inspiration when they get to know each other on a more personal level. Share with Others – Each of us has ideas or experiences that can be valuable in helping others. EXPERIENCE SCWA 2018 gives us the chance to make the car wash industry a better place. What better legacy can you leave? If your strategy is to be the best kept secret in the car wash community you will be missing a valuable opportunity. Have FUN – Being in business should be rewarding and fun. All work and no play can get to be old fast. EXPERIENCE SCWA 2018 will add a layer of enjoyment to your business life by mixing a little social aspect into your learning and business development. EXPERIENCE SCWA 2018 is February 25-27, 2018 in Arlington and offers something for everyone. The program and registration information is included in this edition of ADVANTAGE and you can also visit www.swcarwash.org to register online. Join us for the FIRST BIG CAR WASH SHOW of the YEAR! I encourage you to come experience the power of the car wash community as you only can in the Southwest – EXPERIENCE SCWA 2018. On behalf of SCWA we wish everyone Happy Holidays and a Successful 2018. See you in Arlington. 3

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INDUSTRY BRIEFS Goo-Goo Acquired. IMO Car Wash Group, a privately owned British firm has acquired Columbus, GA-headquartered Goo-Goo Car Wash. The purchase covers 53 express wash locations in seven states, but does not include eight self-service car washes, which remain under the previous ownership. No financial details of the purchase, which took place at the end of July, were released. IMO operates nearly 840 car washes in 15 countries, with more than 320 in Germany, about 280 in the United Kingdom, and the rest spread throughout Europe, Australia and the United States. Reportedly the largest car wash company in the world, it washes more than 35 million vehicles a year. Mister Car Wash Adds Two. Tucson, AZ-based Mister Car Wash has announced its acquisition of Standale Auto Wash, a single express location in Grand Rapids, MI. “The addition of this location is a nice compliment to the other stores we’ve added in Grand Rapids, this year and we are glad to welcome the Standale team to the Mister Car Wash family,” said Tim Vaughn, Division Manager for Mister Car Wash. In a separate statement, the company reported the acquisition of Grand Slam Carwash, a full-serve location in Buford, GA. This new store is an addition to Mister Car Wash’s existing net-

work of stores in Georgia, with a total of 13 locations in and around Atlanta. With these aquisitions, Mister Car Wash now operates 237car washes in 21 states. Wild Blue Car Wash Fundraisers. On a recent Saturday, the William J Palmer High School band was able to raise $1,320 at their car wash fundraiser hosted by Wild Blue Car Wash’s Academy Blvd. location in Colorado Springs, CO. The wash donated 50 percent of wash sales during the fundraiser to the group, while band members and volunteers sold baked goods and drinks and vacuumed and dried cars for additional donations. One week later, the Vista Ridge High School cheerleading squad collected $1,682 at their car wash fundraiser at Wild Blue’s Powers Blvd. location. Wild Blue’s Powers Blvd. location hosted another fundraiser for the benefit of Doherty High School Theatre – Thespian Troupe #2242. The group raised $1,611 at the event. Zips Adds Another in San Antonio. Zips Car Wash, headquartered in Little Rock, AR, has acquired its eight store in the San Antonio, TX area. Previously Cascades Car Wash located at 2809 Pat Booker Road in Universal City, TX, this site is the 74th store in the growing car wash chain’s portfolio. The acquisition recently closed, and rebranding will occur for this location within the following 30 to 45 days. Zips Car Wash hours of operation for this location will mimic the rest of the chain,

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ADVANTAGE with services available from 8 a.m. to 8 p.m., seven days a week. Zips Car Wash plans to bring its Unlimited Wash Club program to the Universal City location in the coming months. All club members can use any of the 74 Zips locations with their unlimited RFID pass. WOW Washes 1,100 Cars Free on Day One. The South Metro Denver Chamber of Commerce officially welcomed WOW Carwash to the Littleton, CO community with a ribbon cutting ceremony, as they celebrated the grand opening of WOW’s first car wash. The festivities went all day featuring food and prizes that included wash books and unlimited wash club memberships. A total of 1,112 free washes were provided throughout the day. WOW also launched a raffle for a YETI cooler and YETI tumblers. The car wash partnered with local businesses to provide refreshments to all those in attendance. “We appreciate the support extended to us by Atlas Coffee and three Portillos Restaurants through their kind donations of coffee and snacks on our special day,” said WOW manager, Karl Thomas. Driven Brands Raises Funds For Hurricane Relief. The Driven Brands Charitable Foundation (DBCF) has partnered with parent company Driven Brands’ retail automotive brands to help raise funds for Hurricane Harvey and Hurricane Irma relief through the American Red Cross. Driven Brands’ participating companies include

CARSTAR Auto Body Repair Experts, Maaco, Meineke Car Care Centers, Take 5 Oil Change, and 1-800 Radiator & AC. Franchisees, employees, vendor partners, and customers can visit the Driven Brands Charitable Foundation website (www.drivenbrandscharitablefoundation.org) or any of the participating brand websites to donate. Proceeds will benefit the American Red Cross relief efforts in both regions. Grease Monkey Becomes Fullspeed Automotive. Greenwood Village, CO-based Grease Monkey International LLC, an independent franchisors of automotive quick lube centers, not owned by an oil company, announced it will now use a new business name: FullSpeed Automotive™. “This new name better reflects the diversity of the company’s automotive service brands and continues to inspire its terrific growth trajectory”, said John B. Adams, the company’s President and CEO. The brands covered by FullSpeed Automotive include: Grease Monkey®, SpeeDee®, LubePro’s®, and Monkey Shine®. Separately, the company announced that Grease Monkey franchisee, Wayne Glasser, had been honored as Franchisee of the Year at the International Franchise Association’s annual franchisee of the year award ceremony in Washington, DC. Owner of 11 Grease Monkey centers located throughout

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ADVANTAGE Colorado, Glasser’s centers are always ranked among the brand’s top performers. This success was earned through hard work, commitment to the Grease Monkey system, and assembling a passionate team of employees over the past 35 years. Romainian Detail Leader Passes Away. Detail Plus Car Appearance Systems has announced the recent passing of Cristian Pop of Expert Detailing in Bucharest, Romania following a heart attack. Pop, considered by many as the “guru” of auto detailing in Romania, had been a leader in bringing professional detailing to the country. He wrote several books on detailing and conducted detail seminars throughout the country in addition to providing private training to many. Pop was the exclusive distributor for Detail Plus in Romania and sold several high-tech systems throughout the country. He leaves behind a wife and daughter who hope to carry on the business.

IN MEMORIAM

Randy was an outdoorsman, an avid hunter and fisherman. He was a lifetime member of the Safari Club International, the Houston Safari Club, and the Billfish Foundation. His hunting and fishing trips with his brother Russell and close friends took him to Guatemala, Costa Rica, Argentina, South Africa, Botswana, Zimbabwe, Mozambique, Namibia, Canary Islands, Spain, Galapagos, Venezuela, Colombia, to name a few. His last excursion was an adventurous Alaska float trip down the Stony River with his Dad. Randy is survived by his two sons, Spencer and Everett, his parents Jim and Lorraine Coleman, siblings Gail Jackowski, Russell Coleman, Wayne Coleman, Mary Cheatham, Annette Martin, and Pat Coleman as well as many nieces and nephews and friends. Randy was charismatic, not just the life of the party, he was the party. He had friends from all backgrounds and all over the world, those who knew him loved him. He enjoyed a grand and celebrated life. He will be greatly missed.

SCWA COLORADO REGIONAL MEMBERS MEETING More than 40 Colorado car wash owners and suppliers recently gathered at the Denver Chop House & Pub for lunch and the SCWA Colorado member meeting. SCWA Executive Director Chuck Space highlighted the program and activities planned for the 2018 SCWA Convention & Car Wash EXPO – February 25-27, 2018. He announced that American hero Rob O’Neill would be the convention keynote speaker. O’Neill is the Navy Seal Team Six leader who searched for and killed Osama bin Laden. Space talked about how the SCWA event continues to grow and attract attendees from all area of the country. This year will add an additional 35 booth spaces to the EXPO for a total of over 325 booths.

Randall Gerard Coleman

Dec.19, 1959 - Nov.15, 2017. Randy Coleman is the fifth child of seven of Jim and Lorraine Coleman. In 1980 he began working alongside his father, Jim Coleman and his brothers, Russell and Wayne, at the Jim Coleman Company. He soon joined them as a shareholder. His first positon with the company was in the parts department working his way up to the sales department, successfully leading the team of salesmen in the growth of the company’s profits. Randy’s creativity and direction of the graphics department eventually led to the position of Vice President of Sales and Marketing at Jim Coleman Company. Randy served the Southwest Carwash Association for a term as President. He also served on the ICA board and received a Lifetime Achievement Award. Randy left the company in 2011, he has been living at the family ranch and in Costa Rica, traveling and visiting with various friends and family.

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ADVANTAGE making sure employees are trained for emergency situations is a key to less tragic outcomes. A similar presentation will be a part of the 2018 SCWA Convention education sessions.

MANAGEMENT Decision Making Four Ways to Improve Inter-Generational Participation

Making decisions is always difficult. It is hard enough when the decision needs to be made by a group of like-minded peers; but the hardest type of decisions to make are those in which there are multiple generations involved in the process. So what do you do? Bringing out the best in the generations impacting your decisions requires four critical approaches to ensure their decision-making involvement stays on track and is focused on moving to a decision outcome that matters.

1. DON’T ASSUME ENOUGH INSIGHT

Decision making does not get a participation trophy. Just showing up is not enough in today’s fast-paced business environment. Careful consideration of the available decision options is important. Frequently, the assumption is made that everyone at the table has enough insight and information to participate effectively in the process. All too often they don’t. Make sure your inter-generational team has enough information so they can be more mindful in evaluating your options. Established car washers can get grounded into a black-or-white point of view that makes them hold fast to historical assessments of potential options. Younger participants can have a limited viewpoint about possible options and consequences. This is not because they are incapable of complex thought; it’s just they often don’t have enough experience to engage in a more nuanced deliberation. Prepare them for participating in this process. Do they need advance reading material, such as an article about the critical issue you are going to address? Write up a summary of the critical elements of the issue and why a decision needs to be made. Set the stage at the outset by doing a comprehensive presentation at the first decision making meeting. Provide them with clarity about how the decision relates to your organizational business strategies and why this is an area of concern. Don’t assume they understand this; consider this an educational opportunity.

2. CLARIFY THE DECISION PARAMETERS

Keeping an inter-generation group focused is a challenge. They will careen from issue to issue unless

you frame things up clearly for them. Establish a framework of what must be considered and the boundaries for how far they can go with the decision options. Set limits. If there are budget or staffing limitations, say so. Make sure to clarify the boundaries of the group’s role in the decision-making process too. Are they the decision maker, serving in an advisory function to others who will decide, or an influencer with critical insight into key decision options? Put this in writing so no one can say later that they misunderstood or did not hear you say there were limits to work within. It is easy to defer to a group of enthusiastic young car washers, but unless you stay on top of them, they can go way beyond the appropriate parameters. This can result in treacherous consequences, both in them going too far and in you dampening their enthusiasm for participating again. Have tons of interim check points, and keep re-directing the discussion as needed. It is also easy for younger team members to defer to older ones. Of course, they are seasoned and have experience. But they can also fall into the trap of only thinking within a box of historical options that limit consideration of new approaches to solving problems. You need the insight of all generations at the table. But it has to be effectively channeled.

3. MANAGE THE DECISION DISCUSSION

Don’t abandon your team to work without your involvement. You don’t have to be there for every workgroup conversation, but you still need to manage the discussion. Most importantly, encourage candid dialog. Clarify for everyone the stakes, the resources of information you need, and begin discussing the decision parameters. Have them walk through the potential outcomes of the options under consideration. Require them to discuss the pros and cons of each option. Encourage them to ask questions of each other to explore the consequences of the ideas being suggested. Challenge them to ask if there is an element of this option that could be combined with something already reviewed to make a stronger option. Approach this in a respectful manner. Carefully manage how the group communicates so those with strong voices do not drown out innovative ideas from more introverted participants who may lack confidence in speaking up in the group. If you get each of your participants deeply involved in the discussion, they will develop mutual respect and learn from each other. This enhances inter-generational communication and encourages a more collaborative decision dialog.

4. MANAGE EXPECTATIONS

With inter-generational teams, also manage their expectations about how much influence they will ulti11

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ADVANTAGE mately have on the decision-making process. It goes back to the role they play in the decision. Will they get a vote in the decision? Or will they be influencing how you decide? Carefully managing their expectations at the front-end will help manage angst at the back end if you are the final decider and go a different way than they recommend. Make sure you develop feedback loops and mechanisms for follow-up. You will lose your younger team members if they don’t get periodic follow-up on the decision outcome. If possible, continue to involve the decision team in reviewing the progress of the decision implementation. Then they can help you adjust and adapt your decision strategy based on the evolving outcomes. Inter-generational groups can provide you with significant ideas beyond options you initially considered. When you can do this effectively with inter-generational teams, they bond more effectively and can learn from each other. They can also find unexpected approaches linking possibilities in powerful, and sometimes unexpected ways that may create amazing results.

FINAL THOUGHTS

If you effectively manage your inter-generational decision making efforts, you will create a team dynamic that is powerfully focused on resolving issues. At the same time, they will build critical thinking skills and learn how to work together for future decision making. In what ways can you strengthen your inter-generational decision-making to get better results? Jill Johnson is the President and founder of Johnson Consulting Services.

PERSPECTIVE Profitability - Vacuums: Free or Metered?

The September 2016 issue of Auto Laundry News carried an article on metered vacuums. The author asserted that many operators (i.e., of express exterior locations) were growing tired of giving away vacuum service for free, and were looking for ways to turn this around without alienating customers. The suggested solution was to regulate vacuum use by limiting free time on the machine. After a predetermined period, the vacuum would shut off, and customers would have the option to buy more time. Why the push back? Supposedly, free vacuums have changed consumer behavior and customers are vacuuming longer than they used to. The result has been marathon vacuum sessions, long waits, and rising costs associated with energy, equipment maintenance, and obsolescence.

Arguably, metering vacuum use is similar to “downsizing” consumer products such as ice cream. Historically, ice cream was sold in standard .5-gallon containers. However, in 2008, Breyers and Turkey Hill Dairy downsized their containers to 1.5 quarts. Subsequently, other producers followed suit with the exception of holdout Blue Bunny, who reduced its standard container size to 1.5 quarts only last year. According to Quintin Frey, president of Turkey Hill Dairy, the decision to downsize was due to rising costs of ingredients such as milk, cream, cocoa, and sweeteners as well as packaging, fuel, and labor. Frey said the company had three options: use cheaper, lower quality ingredients; keep container size the same and raise price; or reduce container size. Frey’s decision was based on the results from focus groups that indicated keeping the price the same and decreasing size of the package was the best answer, even if no one was happy about it. Since downsizing is essentially an increase in price — less product for the same price — how did consumers react? According to USDA National Agricultural Statistics Service, between 2005 and 2014 per capita consumption of ice cream dropped from 25.2 to 22.8 pounds and production dropped by 87.8 million gallons. According to some sources, about 40 million gallons of this decline is attributed to reducing the standard contain-

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ADVANTAGE er size. As an ice cream lover, downsizing left me with a sour taste. My reaction was to switch brands and purchase ice cream from companies selling in .5-gallon containers. However, this strategy eventually failed because no one packages ice cream in .5-gallon containers anymore. As a result, I eat a lot less ice cream today because my wife will only get it when it’s buy one, get one free. What about the potential push back if vacuums are metered? Consider a customer who normally spends 10 minutes vacuuming the seats, carpets, mats, and trunk compartment. If metered time were five minutes, this customer would need to purchase five more minutes to obtain the same level of service. If the price for five minutes is $1 and the price of a car wash is $5, this customer would experience a 20 percent increase in the price to clean their vehicle. Otherwise, they would need to decrease the amount of time spent vacuuming by one-half. Metered vacuums would probably affect most economical shoppers who are more concerned about price and less concerned about quality. This might include former self-serve users who defected for the promise of a low-price express wash done in three to four minutes and a free vacuum. Affected least would be discriminating shoppers who are more concerned with quality and less concerned about

price. This would include customers who use express as an in-between to full-service. Arguably, metering would provide diminishing returns across the spectrum. Pundits argue metering would help create a sense of urgency encouraging customers to move more quickly through the vacuum process. Sounds great, but customers aren’t employees who would follow along because keeping their jobs would depend on it. Moreover, there is also the added expense to consider from retrofitting the vacuum system. Arguably, the payback period for retrofitting would be considerable because once behavior is “curbed” the revenue generated from vacuums should be considerably low. So, is metering the answer? Let’s consider the prototypical exterior express with 120’ conveyor and 24 vacuum spaces. The tunnel is stateof-the-art, and the conveyor has every conceivable online profit center as well as contemporary marketing (i.e., unlimited wash, VIP, mobile app, etc.). Shown on page 17, is data for our super-efficient wash. If metered vacuums would reduce usage by 50 percent, the savings in electric cost would be $12,000 or $0.12 per car. Arguably, $12,000 isn’t peanuts, but many operators are facing challenges that are far more significant.

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After all, our car wash is super efficient and has nothing else to sell. Thus, its future profitability may be affected by rising water rates, increase in minimum wage, as well as increases in electric rates and chemical cost. For example, the table shows what happens if hourly wages increase from $12 to $15 and water and sewer rates rise from $3 to $9 per 1,000 gallons of fresh water. The result is an increase in unit variable cost of $0.42 or $42,000 ($0.42 X 100,000) and fixed cost of $35,000 ($0.35 X 100,000) or a total increase in expenses of $77,000. So, $12,000 savings from metering vacuums would only make a dent in this at the risk of alienating customers. Alternatively, a price increase that would cause average

revenue to rise from $10 to $10.77 would offset the increase in operating expense. So, the car wash operator’s dilemma is similar to that of the ice cream producers. Use cheaper, lower quality ingredients; keep size the same and raise price; or reduce size. Ice cream producers chose to reduce size and they eventually paid a price for that decision in the form of alienated customers and reduced sales volumes. Focusing on cost and keeping price the same didn’t work for self-serve. So, keeping things the same (i.e., unlimited free vacuum) and increasing price a bit might not be such a bad alternative.

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100,000 10.00 1,000,000

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Bob Roman is President of RJR Enterprises – Consulting Services (www.carwashplan.com).

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ADVANTAGE In short, many Baby Boomers were happy to toil away, learning jobs and building careers in a loose way that would seem absurd to the members of today’s younger millennial workforce.

LABOR Training WHY IT MEANS A LOT TO MILLENNIALS

When Baby Boomers took their first “real” jobs upon entering the workforce, their demands and expectations were ridiculously low by today’s standards. On their first day on the job they got an employee handbook that they took home and scanned while eating dinner or watching TV. Company training, if there was any, was minimal. For the most part, they accepted the idea that it was normal to feel ignorant and unskilled in the first weeks or months on a new job. They expected to “learn the ropes” by making mistakes. When it came to promotions, most boomers were equally willing to proceed by trial and error. Nobody told them, “Here is just what you need to do to get ahead in our company; here is the next position we’ll be considering you for.” One day in the hazy future, they hoped that their bosses would call them in and say, “We just gave you a promotion. You may leave early and celebrate with your family.” Was there feedback? Of course, there was. There were quarterly, semiannual, or yearly job reviews that usually followed the script, “Here’s what you’ve been doing wrong, here’s where you need to improve — so do it. Session over.”

DIFFERENT EXPECTATIONS AND DEMANDS

Boy, have things changed. Today, most millennial workers would object strenuously to the same kind of conditions that Baby Boomers (and members of the generation that preceded them) thought were normal. If today’s Millennials start new jobs and discover conditions like those in a new workplace, they are going to start looking for new jobs in a matter of hours. Ample research documents that millennial attitudes are different. One major study from Gallup, “How Millennials Want to Work and Live,” reports these findings: • 60 percent of Millennials say that the opportunity to learn and grow on the job is extremely important. In contrast, only 40 percent of Baby Boomers feel the same way. • 50 percent of Millennials strongly agree that they plan to remain in their jobs for at least the next year. That might sound like a big percentage, but 60 percent of members of all other groups plan to stay in place for at least a year. Baby Boomers and others are planning on sticking around, while Millennials are weighing their options.

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THE COMPLETE CAR WASH COMPANY SERVING TEXAS. OKLAHOMA & NEW MEXICO

CONSTRUCTION Design & Development EQUIPMENT Sales & Installation CHEMICALS & DETAIL Sales & Service SERVICE Maintenance & Repair PARTS Repair & Replacement

BUILD BIG • WASH BIG • CLEAN BIG • SUPPLY BIG • SERVICE BIG To See More BIG THINGS, Visit Us at BIGMANWASHES.COM

BIG MAN WASHES, INC.

3421 S. BRIERY ROAD IRVING, TEXAS 75060 P. 972.986.7239

Big Man Washes, Inc. is a member of SONNY’S Select Service Organization (SSO). 20

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TRAINING IS KEY TO RETENTION

Learning and training are key to retaining Millennials and maximizing their productivity. Findings like those above — and you can easily find more — document that Millennials are more likely to be engaged and to stay on their jobs if they have opportunities to plan their career paths and learn. Here are the trends: • Millennials like to feel capable and confident in their jobs. They do not like to feel like rookies. Many think of themselves as leaders — or as leaders who are waiting to be discovered. They want to look good, and thrive on being able to confidently contribute from the first day they arrive on the job. The right kind of training — both for new and current millennial employees — makes that happen. • Millennials are usually skilled students. To them, learning feels as natural as eating three meals a day. As the Gallup study found, they are eager to learn. In contrast, getting Baby Boomers to believe in training can be a harder sell. They tend to view training as a burden, something they have to endure. Millennials say, “Wow, when can I start?” • Millennials are tech-friendly. Most of them love to be trained on their smartphones and tablets, which are the most powerful training options available to many companies today. The result is better knowledge transfer, even to groups of employees who work in multiple or far-flung locations. Baby Boomers, in contrast, are more tech-resistant. They are likely to freeze and resist when they hear they are going to be taking company training on their smartphones.

with luxurious microfibercloths from Texas Microfiber

TRAINING BUILDS MILLENNIAL PRODUCTIVITY

A lot of training focuses on teaching needed skills. It should. But training can accomplish a lot more than that, if you use it to establish some of the following things that many Millennials are looking for: • Mentoring relationships with their supervisors. Gallup found that 60 percent of Millennials feel that the quality of the people who manage them is extremely important. With that in mind, your training for new employees can set up mentoring, not reporting, relationships between them and their managers. Explain how often check-ins and job reviews with their managers will happen, and what they will cover. And schedule frequent check-in rather than “on the calendar” pro-forma reviews that both managers and the people they manage find boring, or worse. • A sense of belonging on an energized and innovative team. This is a bit of a contradiction, because at the same time Millennials think of themselves as individualists and entrepreneurial. They also expect to be part of an interesting team. Letting Millennials get to know their teammates during training, and fostering a sense of team/group identity, can help convince them that they have joined the right organization. Continued on pg. 37

ORDER ONLINE TODAY !

www.texasmicrofiber.com

214-810-9563 800-742-2913 21

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The Tunnel Experts

YOU CAN’T FAKE EXPERIENCE. ’s

Sonny

Sure, our equipment is reliable, easy to maintain, and affordable, but that’s only a small part of why Sonny’s is the bestselling conveyorized car wash equipment in the world. When you choose Sonny’s, you’re getting a partner that has been washing cars since 1949 with the hands-on operating experience to guide you every step of the way.

ü Maximize your properties revenue potential with our

site layout engineering team that creates over 13,000 site-specific drawings each year for many of the most profitable car washes on the planet.

ü Eliminate costly project delays with as many as 50 pages of mechanical drawings, free of charge, with every equipment purchase backed by a company with Dun & Bradstreet’s highest rating since 1997.

ü Protect your investment with Sonny’s retrofit-able

Foundation Frame architecture. You’re able to mount additional components to increase wash throughput and retrofit new technologies as your site matures.

Grow your business with new training, technology, and equipment innovations engineered to adapt to your existing Sonny’s tunnel and ensure your competitive advantage for generations to come.

We make car washing easy!

ash — Car W

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Mass

Testimonial Our decision to work with SONNY’S was the single most important factor in our early success as an organization. We came into this business without any industry experience and SONNY’S incredible team of former operators, industry experts and warm and responsive service staff helped us get off the ground, learn how to operate a great car wash and has continued to support us on a regular basis. I couldn’t imagine working with anyone else in the industry.

Tom D’Eri

Left to right: Donna, John, Andrew and Tom D’Eri

COO /Co-Founder Rising Tide Car Wash Boca Raton, FL

You be the judge! FREE Site Evaluation Call today to claim your free site evaluation. Whether you’d like to evaluate how a component upgrade could improve customer satisfaction, or run a complete proforma to retrofit your site to a different wash format, we’ll show you your potential, with 3D renderings you can take to the bank.

www.SonnysDirect.com | 800-327-8723

Designed Here. Built Here. Backed Here.™

Thank You for Making SONNY’S the Largest Manufacturer of Conveyorized Car Wash Equipment In The World!

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February 2018 February 25–27 25–27 2018 ArlingtonConvention Convention Center Center --Arlington, Arlington Arlington,Texas Texas VISIT SWCARWASH.ORG FOR HOTEL RESERVATION LINKS & REGISTRATION INFORMATION

www.swcarwash.org

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The focus of the 2018 SCWA Convention & EXPO is simple. Providing you with proven, time tested strategies, techniques and products to improve your business. Beginning with the CEO Forum through the Tuesday Car Wash Academy sessions, you will learn many new insights that will maximize your profits & help exceed your customers’ expectations.

Sunday Highlights CEO Forum - 12:30 The Future is Much Closer Than You Think! David Begin

Paul Fazio

Bill Martin

Wild Blue Car Wash

Sonny’s The CarWash Factory

Metro Express Car Wash

What does the changing car wash market look like today? What does the current consolidation movement mean to us? How do we deal with market saturation? How will self driving cars impact our business? How do we prepare for all the new auto technology? Millennials are driving less – what does that mean? The CEO forum will address where the industry is headed and the challenges that we will face. • Experts Prediction - by 2020 10% of city dwellers will replace ownership with on-demand rides. • Experts Prediction – new car sales could drop by almost 40% in the next 10 years. • Collision Avoidance Systems; Automatic Wipers; New Transmissions - All disrupting the wash operations. The future is now and we must be ready if we want to be successful. The panel will provide their insights and answer your questions.

EXPO Floor Hours 26

2:00 – 6:30

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Monday Highlights Keynote Speaker - 10:30 - Rob O’Neill

Rob O’Neill

Former SEAL Team Six Leader - leading the search and firing the shots that killed Osama Bin Laden. One of the nation’s most-decorated veterans who lives by the mantra “Never Quit”. New York Times Best Selling Author. Appears on many television prime-time networks and as a contributor for FOX News Channel lending his military expertise; views on the current terrorist threats and leadership insights. Faced several of the most high-profile and difficult war missions of our time. Since leaving active duty, O’Neill is a co-founder of Your Grateful Nation, which provides individualized transition support for Special Operations heroes and their families. O’Neill will share his stories and perspectives for business owners encouraging all of us to “never quit”.

• Presentation of the SCWA Lifetime Achievement Award and the SCWA Manager of The Year • Car Wash Investing Basics • Idea Exchange Sessions • Round Table Discussions • Celebrate SCWA Monday Evening • EXPO Quick Talks

EXPO Floor Hours

1:00 – 5:30

Tuesday Highlights Car Wash Academy - 8:00 –11:30 Concurrent Sessions offering no nonsense business solutions; management strategies and innovative car wash business ideas. The Academy will offer topics for all car wash models including: Protecting Your Cyber Information; Develop a Leadership Culture with Your Managers; Create an Emergency Management Plan Before It Is Too Late; Leverage Today’s Technology for Your Car Wash; Best Practices for a Successful Self Serve; Challenges of the New Auto Technology. • Professional Detailing Educational Sessions presented by the International Detailing Association • Closing Luncheon, Door Prizes & Introduction of 2018–2019 SCWA Officers & Directors

“From start to finish the SCWA Convention & EXPO is the best. I will not miss this one!” Ryan Darby, Regional Manager Mister Car Wash 27

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SCWA 2018 Convention & Car Wash EXPO SPONSORS KEYNOTE ADDRESS

ProTech Services CEO FORUM

Big Man Washes HOTEL KEY CARD

Big Man Washes CONVENTION BADGE HOLDER

Qual Chem SUNDAY EXPO RECEPTION

Coleman Hanna Car Wash Systems DRB Hamilton Manufacturing CELEBRATE SCWA RECEPTION

CSI – Lustra Car Care Innovative Control Systems Stinger Chemicals CELEBRATE SCWA EVENT

Kleen–Rite EXPO CLOSING GRAND PRIZE

Blendco LUNCH WITH THE EXHIBITORS

Motor City Wash Works Scotch Plaid Vacutech MONDAY BREAKFAST

AP Formulators Auto Wash Services WET – Washing Equipment of Texas REFRESHMENT BREAK (MONDAY) Midlothian Insurance TUESDAY BREAKFAST

Kwik Industries BREAK SPONSORS Chem Quest Con-Serv Water Recovery Systems Huron Valley Sales Simoniz STI Conveyor Systems PRIZE DRAWINGS Kleen–Rite

2018 EXHIBITORS (To Date) A Plus Design Group Acquire Video Aerodry Systems All Paws Pet Wash AllegianceBank American Changer American Dawn American Lube Supply AP Formulators Arcadian Services Arimitsu Pumps Ascentium Capital Astromatic Attlee Realty Auto Clean/Gulf Coast Auto Laundry News Auto Vac Auto Wash Services/Wash Sales AutoMat Washer & Supply AV Car Wash Solutions-Autec Baker Equipment & Supply Belanger Big Man Washes Blendco Systems Brink Results Car Brite Car Wash Buildings Car Wash Insurance Program by McNeil Carolina Pride CarWash SuperstoreNational Pride CarWashKing.com CarWashWorld CAT Pumps Cen-Tex Detail Supply ChemQuest CK Enterprises Clean World Distribution Coast Commercial Credit Coleman Hanna Complete Signs Con-Serv Water Recovery Systems CryptoPay CSI/Lustra Car Care Cummins-Allison D&S Car Wash Systems Dealer Industries Diamond H20 Diamond Shine Diskin Systems Dixmor Doyle Vacuum Systems DRB DRN Dultmeier Sales eGenuity Elektrim Motors Elite Oasis Drive Entech Signs Erie Brush & Manufacturing Etowah Valley Equipment Eurovac Exact One Executive Leadership Solutions Extractomat Extrutech Plastics FW Promo Gallop Brush Company General Pump Genesis Modular Building Systems GinSan-Industrial Vacuum Systems Hamilton Manufacturing H-Pac Plastics Huron Valley Sales Hydra-Flex IDX Innovative Control Systems International Carwash Association International Detailing Association J.E. Adams

JBS Industries Kim Supply-Service Champ Kleen-Rite KLOPP: Money Handling Equipment KO Manufacturing Kwik Industries Laguna Industries Links Construction Lone Star Car Wash Systems Main Street Hub Mark VII Equipment Matrix Technologies Maxx Builders & Designers Members Choice Credit Union SBA Micrologic Associates Midlothian Insurance Agency Mile High LED Systems Monitor Canopies Motor City Wash Works Mr. Foamer Car Wash Equipment & SIGNS N1 Buying Group National Carwash Solutions Nationwide Insurance New Horizons Car Wash NOA Bank NuForm Building Technologies Oasis Car Wash Systems Parker Engineering & Manufacturing PDQ PECO Car Wash Systems Premier Dryers & Vacs Professional Carwash & Detailing Magazine Proto-Vest PurClean PurWater Qual Chem Ra-Lock Security Solutions RDM Industrial Electronics Rowe Bill Changers Rug Beater by Dralco Scotch Plaid Self-Serve Carwash News Sellers Publishing Sellers Sales Co Simoniz SoBrite Technologies Sonny's The Car Wash Factory Southwest Car Wash Association STI Conveyor Systems Stinger Chemicals Suntech Building Systems Superior Auto Extras Superior Control Systems SWYPIT Synergy Solutions Texas Microfiber The Insurancenter Tidal Wave Wash Supply Tri-State Car Wash Supplies TSS Turtle Wax Professional Twin Distributing Unilube Systems Unitech Vacutech Vaughan Industries Velocity Water Works Ver-Tech Labs Warsaw Chemical Wash Solutions WashCard Systems Washlink Systems Washworld WET-Washing Equipment of Texas Wheel-eez/Cork Industries Windtrax Zep Vehicle Care

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Call Now F the BEST pricor es!

G&G LED

32' Bay Lighting Package

• (4) - 8' Wet Location Linear luminaires • 4' jumpers • (1) 320W driver • Fits bays from 22'-28' • Made in the USA

1,298.99

*Other package sizes available!

CryptoPay

Credit Card Swiper Simple, affordable and rugged enough for the harsh car wash environment. Secure wireless connection for credit card payments. * Coordinator & ethernet cable sold separately.

374 .99

CPS3005

MegaVendor lll The MegaVendor III with Coinco Validator is a glass front vending machine rated for outdoor use. It has many built in security features that enable it to be used without an enclosure. The machine will vend 41 to 56 items depending on product size. This will create exciting new opportunities for the car wash owner. *Refrigerated model also available

5,400.00

GGBAY32

High Security Meter Boxes For even more security at your car wash, upgrade to our High Security Meter Boxes. They include all of the standard features of a traditional coinbox with added security features: thicker 7 gauge stainless steel, reinforced timer display housing, and more!

Short Hull CBK6000HS

1,990.00

Long Hull CBK5000HS

2,215.00

MG90040-C

Simoniz®Hot Wax & Shine This unique car wash tunnel .88 product applies carnauba wax to $ the entire vehicle, with a stunning 5 Gallon Bucket visual presentation. PA5338

127

47.99

100 Per Case

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SPECIALIZING IN CAR WASH LOANS NATIONWIDE LOANS INCLUDE WORKING CAPITAL & CLOSING COST NEW CONSTRUCTION

EXISTING WASH

NEW EQUIPMENT & RENOVATION

VISIT SBA-CAPITAL.COM & SEE BLOG FOR: TOOLS FOR PURCHASING YOUR CAR WASH SECURE AND CLOSE YOUR WASH LOAN IRA PROVIDES EQUITY FOR CAR WASH LOAN SBA LOAN BENEFITS FOR YOUR BUSINESS FOUR WAYS TO RAISE CAR WASH EQUITY

REDUCE LOAN EQUITY & INCREASE WORKING CAPITAL CAR WASH BROKERS ENJOY YOUR QUICK CLOSE LOAN PROGRAM

UP TO 100% PIP FINANCING TO: INSTALL NEW MODERN EQUIPMENT RENOVATE YOUR CARWASH BUY YOUR PARTNER OUT PURCHASE A NEW CARWASH SEE WWW.SBA-CAPITAL.COM FOR DETAILS

Property Improvement Plan

EXPERT IN SBA LENDING LOAN PREQUALIFICATION FREE Founding Director Pavillion Bank 1982 - Dallas, TX Lending in Texas and Nationwide

Hershel Pierce 214-726-9000 www.SBA-Capital.com pierce.pavbank@gmail.com

More Car Wash Loans Available For • Refinance-Lower Rates & Longer Terms • 1031 Tax Free Exchange • Expansion and Renovating • Existing Washes • Construction Loans

On The Road Again

SCWA Baton Rouge Over 200 car wash owners and suppliers recently converged on Baton Rouge, Louisiana for the October edition of the popular SCWA â&#x20AC;&#x201C; On the Road Again. The event began with a WELCOME Reception the evening before the Tour giving attendees a chance to see old friends and meet new ones. The next day opened with a panel discussion highlighting Best Car Washing Practices. The panel featured the owners of the car washes on the tour Justin Alford, Gary Robinson and Vince Ward. Outstanding washes on the tour are highlighted on the following pages.

CRUZIN EXPRESS CAR WASH 3950 Harding Blvd. Cruzin Express Car Wash is state of the art Modern Express Car Wash owned by Gary and Sandra Robinson. Cruz in Dirty…Cruz out Clean. Our advanced pay stations are user friendly which allows the customer to quickly make a decision as to their choice of one of the 4 wash packages to purchase. It’s quick and easy since they are designed to provide a 2 to 3 second transaction approval time. For Fast Pass customers, the gates will automatically open when vehicle’s Fast Pass (RFID) windshield tag is read by the Fast Pass reader at the gate.

THANKS TO OUR

BATON ROUGE SPONSORS DIAMOND SPONSORS

Big Man Washes

Innovative Control Systems

DRB Systems

LUNCH SPONSOR

Sonny's The Car Wash Factory EVENT SPONSORS CSI Lustra

Hydra-Flex

Midlothian Insurance

Motor City Wash Works

Proto-Vest

Southwest Car Wash Association

One of our friendly team members will always be available to offer any assistance with the pay station or have questions regarding our wash packages. A team member will guide onto the wash conveyor. An instructional sign on driver’s side is available with instructions for the customers. The team member will also give these instructions verbally. Technologically advanced equipment will provide a wash in about 3 minutes. Cruzin Express Car Wash is not only Fast but also a simple and convenient wash process! Our foaming tire and wheel cleaner is safe on all types of wheels. It removes brake dust, road grime, dirt and grease. The wheel blaster uses high pressure water to get rid of immovable dirt and put a new luster on the customer tires and wheels. The spot free rinse water assures a spot free car. The Cruzin Express Car Wash bank of nine (9) high performance touch free air dryers will dry cars efficiently and effectively. The tire shine machine applies a professional looking tire shine to the vehicle’s tires. Our 21 free self-serve vacuum stations are available for unlimited vacuuming.No coins, no tokens, just free vacuums! A wide selection of vending items are available plus a mat cleaner to vacuum, shampoo and dry customer floor mats.

GEAUX CLEAN EXPRESS CAR WASH

BENNY'S CAR WASH & LUBE

2345 O'Neal

13385 Coursey

Geaux Clean Express Car Wash has been open for 7 years now. We are an exterior only wash chain. Our first location was opened in 2010 in the town of Central, La., just north of Baton Rouge. We now have 6 locations, 4 in Baton Rouge, one in Central and one in Dutchtown, La. with a 7th Baton Rouge site coming next year. The equipment is PECO. This particular site is our first electric tunnel. The only hydraulic equipment - the conveyor and high pressure arch. We use (2) 40 hp producers with double hose drops from Vacutech for our vacuum system, ICS for our POS and tunnel controller, and Washlink Systems for our sonar truck bed sensor. We are the Official Car Wash of LSU Athletics.

Benny’s on Siegen opened in May of 2016 featuring a 186’ conveyor with 31 Free Vacuum spots and a 80’ Tommy’s Detail conveyor system. It is built on a two acre site and features four ICS pay stations, Sonny’s Equipment, Mr. Foamer, Protovest Drying System, HyraFlex and Qual Chem Wash Solutions. It also has an ICS VFD motor control system.

BENNY'S CAR WASH & LUBE

GEAUX CLEAN EXPRESS CAR WASH

8370 Siegen Lane

10603 Burbank Drive

Benny’s Car Wash on Coursey opened as a full-service car wash and oil change in 1995 with a previous owner. It was acquired by Benny’s in 2002 and remodeled into an express wash with free vacuums. It was just recently remodeled again in 2017. It has 110’ Sonny’s conveyor and Sonny’s equipment. We use Hydra Flex and Qual Chem solutions. It has three ICS pay stations and ICS controller. We have a Protovest drying system. The Oil Change is a Mobil 1 Express lube and uses Sage software.

The Geaux Clean location on Burbank Drive has become our second best location as far as car count. The site includes PECO equipment and being close to LSU provides us with some of our best customers and best employees. We work hard to make sure our site is clean and fresh all day. The attention to the small details is so important to Geaux Clean and our employees.

ADVANTAGE

THE FACE OF CREDIT CARD PROCESSING

SWYPIT KEVIN HODES (R) MICHAEL GOLDSMITH (L) SWYPIT.com 877.379.9748 3001 Dallas Parkway, Suite 120 Frisco, Texas 75034

For nearly two decades, Kevin Hodes’ company Swypit has taken pride in bringing honesty and integrity to the world of credit card processing. Swypit aims to be more than just another service. Their goal is to become a trusted partner, helping to positively impact the merchant’s bottom line. In an industry rife with providers more focused on selling or leasing equipment than building relationships, Swypit is different. They ensure customers always know that they are more than just a number. Swypit provides world-class service as well as some of the most competitive rates in the industry. How much do their terminals cost? Nothing! The company provides merchants with credit card terminals, discounted point-of-sale and even cash advances to customers they choose to partner with… no catch. Owner Kevin Hodes is a two time best-selling author and the Executive Producer of, “Maximum Achievement, The Brian Tracy Story.” His expertise in the credit card processing industry is frequently sought out from all over the country and has been on NBC, ABC, CBS & FOX. Staying active in the community and giving back is important to Mr. Hodes - he is an avid supporter of helping families of fallen soldiers with The American Fallen Soldier Project.

ADVANTAGE Continued from pg. 21

• A well-defined career path. Consider creating a personalized career development plan for all new employees (the exception being seasonal or other short-term workers who will probably not remain with your company for long). Another idea? Enroll new employees in management training programs from their first days on the job. In retail, for example, you can enroll them in training that will enable them to manage their own stores in two years, or after another stated period. Millennials like to know their next steps as they build their careers, and training is a fine place to explain them. Yes, training is important to Millennials. They are the most energized, skilled, and capable generation ever to enter the workforce. Train them well, and they will become your organization’s brightest future. Evan Hackel is CEO of Tortal Training, a firm that specializes in developing and implementing interactive training solutions for companies in all sectors.

FINANCE Funding Alternative Financing Alternatives

Sad fact is: most banks don’t like to do car wash financing. In fact, whether it is bank financing, SBA guarantees, or private financing, most car washes are considered “special facilities” and funding is often difficult. Fortunately, hundreds of millions of dollars are being raised from unique new, online “platforms” such as crowdfunding, peer-topeer lending, and marketplace lending. Crowdfunding, for instance, employs an online platform to raise small amounts of money for projects or ventures from a large number of people and recently entered the equity arena. Peer-to-peer lending is the practice of matching borrowers and lenders through other online platforms. And, while the newer “marketplace” funding remains largely undefined, it encompasses lenders that make loans to higher-risk, lower-income borrowers; micro-finance; and larger-scale lenders that market their products to traditional consumers and small businesses. Bottom line, the entire lending marketplace is an emerging segment of the financial services industry that increasingly uses online platforms to lend directly or indirectly to consumers and small businesses. Borrowers are able to gain access to funds quickly and typically at lower interest rates than offered by many banks, making it an attractive loan alternative for borrowers. How can a car wash operator or investor take advantage of these speedy financing options while avoiding the risks associated with borrowing from so-called “shadow banks?”

CROWDFUNDING GROWING FAST

Crowdfunding “platforms” are known for raising money for worthy causes and special projects. Popular platforms including Kickstarter, Indiegogo, and Crowdrise provide this so-called “reward” crowdfunding and, more recently, equity crowdfunding and debt crowdfunding. Today, crowdfunding is challenging venture capital and angel funding as an alternative source of financing for many small businesses. Equity-based platforms provide backers with shares of the business in exchange for the money pledged. In fact, thanks to the Jumpstart Our Business Startups (JOBS) Act of 2012, small businesses can now raise more funds from small investors with fewer restrictions, thus creating more interest in crowdfunding. Businesses just starting out or in their early stages can pitch an idea to ordinary people, as well as wealthy investors who might be interested in investing small amounts of money. In exchange, the business owner offers some small incentive to donors (e.g., a free T-shirt) or a larger incentive (e.g., equity in the car wash operation or business). The new Securities and Exchange Commission (SEC) rules allow businesses, even first-time start-ups, to raise up to $1 million online from non-accredited investors over 12 months. The compliance usually required in private fundraising is waived although borrowers must provide financial statements — statements that don’t have to be audited. The amount an investor can invest via crowdfunding depends on their income. According to the SEC, an investor with an annual income and net worth of less than $100,000, can invest $2,000, or 5 percent of their net worth, whichever is greater, during a 12-month period. An investor with annual income or a net worth equal to or more than $100,000, can invest 10 percent of their annual income or net worth, whichever is greater. The crowdfunding sites, not the borrowing business, must be registered with both the SEC and the Financail Industry Regulatory Authority (FINRA). Debt crowdfunding, borrowing from individuals and other organizations, has also grown rapidly and moved into its own category, often referred to as peer-to-peer (P2P) lending.

PEER-TO-PEER LENDING

As borrowers seek alternatives to traditional bank lending, so-called “peer-to-peer” or P2P lending is growing rapidly. Much like crowdfunding, P2P lending matches borrowers and lenders through an online platform. P2P borrowers are able to gain access to funds quickly and often at lower interest rates than offered by banks, making it an attractive alternative to more conventional bank loans. The loans issued comprise funds from many different investors ranging from individuals to institutions. P2P lenders underwrite the borrowers but don’t fund the loans directly — they’re an intermediary between the borrowing business and institutional investors such as hedge funds and investment banks. Those third-party 37

ADVANTAGE

ADVANTAGE investors invest in the loans through the online P2P marketplaces, and assume all investment risk, not the P2P lenders. Individual and professional investors benefit by being able to lend money at a range of interest rates based on proprietary credit scores assigned by each P2P lender’s platform. Since investors typically fund only a portion of a loan and spread the amount they loan across many borrowers, investors can potentially receive steady, attractive returns with the risk spread among multiple borrowers. As a borrower, the car wash or detailing business only interacts with the P2P lender. After investors agree to fund the loan, the P2P lender transfers the total loan amount into the borrower’s bank account. The business/borrower repays the P2P lender, and they deal with repaying the investors. Unfortunately, even though it may be the most innovative source of funding, P2P lending is usually not the most affordable. Admittedly, banks take a lot longer to issue loans than do P2P sites, but a car wash operator or investor that can wait and that can qualify for a traditional bank loan or an SBA loan, will find that to be a far less expensive option -– if available.

MARKETPLACE LENDING

As a more diversified set of investors, especially institutional investors, become involved on lending platforms, “marketplace lending” is becoming far more popular. Online “marketplace” lending refers to the segment of the financial services industry

that uses investment capital and data-driven online platforms to lend directly to small businesses and consumers. While the volume is tiny in comparison with traditional bank lending, marketplace lending is experiencing rapid growth, with new lenders originating over $12 billion in loans. Marketplace lenders employ new, largely automated underwriting processes. Some lenders purport to rely on “big data,” often overlooked as part of traditional bank underwriting processes. However, there has yet to be one consistent, concise definition of what marketplace lending truly means. The U.S Treasury has issued a rather broad definition for “marketplace lending,” stating that it is: “the segment of the financial services industry that uses investment capital and data-driven online platforms to lend either directly or indirectly to small businesses and consumers.” They go on to say: “Companies operating in this industry tend to fall into three general categories: (1) balance sheet lenders, (2) online platforms (formerly known as “peer to peer” or “P2P”), and (3) bank-affiliated online lenders.” In general, marketplace lenders can be described concisely in three parts: a non-banking financial institution that heavily leverages technology to drive simplicity and speed of process and serves a two-sided market of consumers and investors. The majority of alternative online lenders lack a brick-and-mortar presence with which to interact with their customers making it important for borrowers to

GROW YOUR BUSINESS

THE SMART WAY Hamilton’s custom mobile app program gives you an incredible new way to sell your services, manage promotions, and track customer activity. Designed for seamless integration with new and existing HTK, CTK, and Gold Line kiosks, it is an easy and innovative way to build loyalty and strength in your car wash brand. Interested in learning more? Email app@hamiltonmfg.com, or download our demo version for Android or iOS today!

For information on our full range of high performance products, visit us at hamiltonmfg.com or call 888-723-4858

ALWAYS LEAD. NEVER FOLLOW.

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CV-A

Features

■ Fragramatics 1600 hr Turbo Motor ■ Poly or aluminum dome ■ Computer controlled timer ■ UV protected graphics ■ Filters – Four-bag system uses high performance,

synthetic filtration media with 15 sq. ft. filtration area. Two easy-access service doors on rear ■ 2” dia. vac hose – high-flex, vinyl, crushable, 15 ft. long. Includes cuff and polyethylene hand tool ■ ¼” x 25’ Wire braid or coil hose with inline gauge

Specifications

■ 1.25 HP ‘Big Dog’ high output compressor ■ Brushed Stainless Steel Tank and Main Cabinet ■ Coin acceptor – mechanical ■ Electrical - 120 V ac, 25 amps ■ Mounting - One internal and two external lugs with security collars. Uses 3/8” bolts for secure installation.

■ Tank Dimensions - 18.5”dia. x 42”h ■ Unit Weight - Net 145 lbs. Ship weight 185 lbs. ■ Ships in carton/pallet: 67”h x 32”w x 31”d Options

■ Multi-coin acceptor ■ Lighted dome ■ Debris catcher ■ Dome colors: red, orange, yellow, green, blue, white ■ Hose colors: red, orange, yellow, green, blue, white, gray, black

fragramatics.com 40

3021 Midland Drive • Pine Bluff AR 71603 800-643-1574 • sales@fragramatics.com

ADVANTAGE spend time differentiating models. As mentioned, each “type” of “marketplace lender” has a differing business model with varying revenue streams and diverse motivations in serving their customers. Marketplace lenders are currently required to comply with federal consumer financial protection laws such as the Truth in Lending Act, Equal Credit Opportunity Act, Fair Debt Collection Practices Act, and Gramm-LeachBliley Act. Peer-to-peer lenders that fund loans through third-party investors (rather than from their own balance sheets) may also be subject to securities regulation. For the most part, however, marketplace lenders are not subject to comprehensive federal or state supervision and examination in the same way as are banks and other insured depository institutions, nor are they subject to safety and soundness regulations, including minimum capital and liquidity requirements, under federal law. In fact, many marketplace lenders rely on banks to originate loans and merely purchase those loans for resale to platform investors. Therefore, for these lenders, a borrower may indirectly receive the same regulatory protections as any bank customer. In addition, a marketplace lender acting as a service provider to one or more banks may be examined by bank regulatory agencies in connection with the services provided to the bank.

TRADITIONAL VS. ALTERNATIVE FUNDING

Bank loans continue to dominate the financing space for small and mid-size businesses in need of capital. It is important to keep in mind that these new online entities are generally not government regulated in the way banks are. While it creates potentially more risk, it also makes them potentially more nimble, enables them to operate at lower costs by not having to follow all of the same compliance and regulatory requirements and to innovate with technology at its core. Crowdfunding, peer-to-peer loans, and the more closely-related marketplace loans offer an often less expensive source for the funds needed by a car wash investor or business and are usually much faster than funding from a more conventional bank or financial institution. Regulation and oversight of these alternative funding sources remain a concern for investors although both are on the upswing. Deciding which alternative will benefit your business and be less costly may require the services of a loan broker or other qualified professional. At the very least, all options should be thoroughly researched. Will your car wash business benefit from the alternative funding available from the online lending platforms? Mark E. Battersby is an Ardmore, PA-based freelance writer, specializing in finance and tax issues.

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Endorsed by

ADVANTAGE

MARKETING

THE REAL PROBLEM

Marketing - What has Changed in the Last 100 Years?

In 1975, the Federal Communications Commission (FCC) issued a largely overlooked ruling that allowed earth-orbiting antennas — satellites — to be used for broadcasting television over large areas. Around that same time, a little-known regional broadcasting network called Home Box Office (HBO) took notice, and decided to use the FCC’s landmark decision to begin distributing its own programming via satellite. HBO’s innovative move would have a ripple effect that would spill over onto the landscape of marketing. Soon, satellite networks proliferated, and with them, marketers’ ability to target in ways that were never previously possible. Since that time, there has been so much technological innovation that marketers are faced with choices beyond measure. It can be blinding and bewildering for anyone charged with allocating marketing dollars on behalf of a business. And, this very issue is what has caused marketers to go awry. This is an age of unprecedented communications, and yet many still struggle to connect with one another. But this problem is not the real problem.

The true problem is that too many marketers have failed to recognize that only one thing has changed in marketing in the past 100 years: technology. That’s it. Yes, you now have social media and tweets and followers and apps and branding and re-marketing and analytics and focus groups and ROI and CRM and customer personas and digital and so on. It’s all certainly true. But, what has enabled nearly every bit of it is technology. So prolific is the role of technology in marketing that it has become for some an alluring distraction. Panic and peer pressure set in, and organizations pursue the latest and the greatest technology-based marketing tactics without taking the time to thoughtfully consider a strategic approach. As legendary philosopher and strategist, Sun Tzu once put it, “Tactics without strategy is the noise before defeat.” Marketing must ultimately get the product or service into the hands of the customer — a real person. Marketers need to realize that it is way too easy to distract ourselves (via technology) away from what is centrally important in marketing: generating a sale to a real person and, hopefully, repeating that process again and again to her or his delight. Marketing strategy is not so much about a plan, but a system. Build your marketing (including the sale) around a strategically based, customer-centric system, then technology becomes a true and valuable tool, and not a distraction. Training On-Site Training Training Seminars

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CONCLUSION

STRATEGIC APPROACH

If you want to plan your marketing communications on a more strategic level and with a more integrated and seamless approach, consider the following methods and means to do so: Strategic Marketing Plan Seek full-on marketing guidance — someone asking the right questions and enabling you to think critically about your industry, business, customers, competition, brand, and marketing activities. A strategic marketing plan answers both, “What are we trying to do?” and “How are we going to achieve it?” in a thorough, resolute way that doesn’t miss a lick (broad-to-specific). It facilitates a systematic way of measurably and methodically moving your business’s overall marketing activities from point A to point B. Strategic Brand Plan Marketers love to talk branding these days, but few truly understand what a brand is. At its core, a brand is simply a (strong) promise. Everything after that is embodying the promise or not. A brand plan helps an organization answer the why’s and how’s of their brand in a way that actively demonstrates its value. Brand Landscape A collaborative document and process that combines visual (graphic, photographic) and distilled conceptual elements (written) to succinctly express what a particular brand is, and what it is not, to a broader internal audience. At its core, it’s a reference and training document. It serves to familiarize an organization’s management on the concept of their own brand, so that they themselves can more consistently demonstrate and articulate it to others. Vision Your organization needs to aspire to something greater in order for its marketing to become something that inspires others. Sometimes there is no unifying or inspiring vision — an expression of what an organization aspires to reach or become in the next five to 10 years. Other times, a vision reads as flat, academic, or long-winded. A good vision statement isn’t fluff. Rather, it helps all stakeholders reach to something higher. Public Outreach Strategy Address and formalize a communications approach for the public-at-large. This does not necessarily mean customers. Rather, it’s about respecting and interfacing with the general public as influencers, opinion holders, social activists, and supporters of personal, political, or economic interests. This type of strategy addresses a need for responding to criticism, and opposing or competing points of view. Its purpose is to build and demonstrate credibility and to authentically communicate it.

In conclusion, plan your marketing. Don’t be led by technology, or allow it to distract and overwhelm you. Know who you are, what you want from your marketing, and how you’re going to achieve it. Only then will technology become a navigable means to achieve your goals. Andy Slipher is founder of Slipher Marketing, a consultancy where strategy comes first, followed by tangible marketing results.

OPERATIONS Customer Service? Going Above and Beyond

Now is the time to take your customer service to the next level. I have spoken with many operators who have cut back on their marketing budgets due to slow or declining sales growth but continue to look for ways to increase sales. Many don’t realize that they can increase their sales by giving their existing customers the “Red Carpet” treatment. There is no better time than the present to evaluate how you treat your customers and find new ways to go above and beyond their expectations. So put on your thinking cap and start thinking “outside the box” for new ways to enhance your existing customer service plan. SWS FSB Ad - JP.PDF

6/9/15

10:52 AM

CMY

Comerica Bank

John Park Sr. Vice President, SBA Lending Comerica Bank San Antonio, Texas (210) 771-8878 Jcpark@comerica.com

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Peco Regional 2017 SCWA 7.5 x 9.5.indd 46

8/17/17 12:59 PM

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PROBLEM RESOLUTION

For starters, put yourself in your customer’s shoes. If you had an issue how would you want it handled? Assuming you are like most customers, you understand that problems do happen but you want the problem resolved as quickly as possible with a fair outcome. I have attended several customer service seminars and training programs. The one that sticks out in my mind the most is the customer service strategy at Ritz Carlton. The Ritz is a premium brand and they pride themselves on customer service. They realize they charge more for their services, but feel their customers continue to stay at their hotels because they provide the highest level of customer service and go above and beyond what the customer expects. Their attention to detail is second to none. The Ritz Carlton chain realizes that its biggest asset is its employees. They spend a great deal of money training their employees on how to interact with customers. They empower them to deal with customer service issues and find the best solution for each situation. There are no pre-defined “must do’s.”

THE RITZ CARLTON WAY

Here is an example of how a problem was handled at the Ritz Carlton Chicago: A guest was swimming in the pool and asked one of the pool attendants if he would bring him a hot sandwich with fries. The pool attendant normally didn’t take orders for food from guests, but he replied, “Yes sir. No problem. I will get that right out to you.” The pool attendant took a break from his duties and went to the kitchen and placed the order for the customer. He waited patiently for the order to be completed and then delivered the order to the customer’s table. Meanwhile, the customer continued to swim in the pool. About ten minutes later, the customer got out of the pool and went to his table. The customer flagged the pool attendant down and told him that the sandwich and fries were cold and asked if he would take it back to the kitchen and bring him another. This is where most people would have lost it and told the customer what he could do with his sandwich. The pool attendant handled it the Ritz Carlton way. He didn’t get angry and simply said, “No problem sir. I will gladly do that for you and because of your inconvenience you do not have to pay for your sandwich today. It is on me.” Wow! That is great customer service! But, it gets better. The customer enjoyed his sandwich and continued to lounge by the pool. He was greatly surprised at what he found when he finally went back to his room. In the entry way there was a nice display of cheeses, a bottle of champagne and a note that simply said, “Sorry for the inconvenience with your lunch at the pool today. Please accept the cheese platter and champagne as a token of appreciation for being such a valued customer.”

EXPECTATIONS EXCEEDED

This customer wasn’t a movie or sports star. He was a businessman who was in town for meetings. Do you think the Ritz Carlton exceeded his expectations for customer service? What type of reputation do you think you would develop if you offered this level of service at your car wash? Exceeding expectations is a means to create value for your customers. The expectations you exceed today become opportunities for tomorrow. Why should you care what your customers think and say? It costs six to eight times more to get a new customer than it does to keep an existing one. Did you know when a customer has a bad experience, if the situation isn’t handled to their satisfaction, they typically tell 10 people about their negative experience? Keep your customers happy.

HOW TO

Here are 12 tips to help boost your customer service plan: 1. The first thing to do is evaluate how you are treating your employees. Are they satisfied with their job? One disgruntled employee can easily run off dozens of customers. Find out if you have an employee problem and fix it. 2. Be reliable. Reliability arises from consistent follow through and execution. Set a standard for service and product quality. 3. Be credible. Do what you say you are going to do. 4. Be responsive. Share your customer’s pain. 5. Keep your employees in the “company loop.” Let them know what is going on internally. This will make them feel important and feel like valued insiders. Talk to them often and get their feedback on your customer service plan. Remember that employees are internal customers and earning their loyalty is important. 6. Empower your employees to make decisions on the spot. Give them the authority to resolve issues without having to call you, or a supervisor. 7. Embrace change and reward innovation. Ask and act on advice from your frontline employees. Most of the time they are the only interaction your customers have with your wash. 8. Explain to employees the value of each customer. It seems trivial, but I have seen employees that work on tasks at hand and are completely oblivious to the customers around them. 9. Recognize and reward your employees for delivering outstanding customer service. Encourage employee-to-employee recognition for customer service. This is a great moral builder. 47

ADVANTAGE 10. Constantly seek innovation. Ask everyone what they would do to make the process better. Having several viewpoints will help you offer the best solution. Seek and act on customer feedback. Rather than have a customer fill out a survey, talk with your customers and let them tell you what they think of your business. Ask them what changes or additional service they would like to see at your location. Empower your customers.12. Make your customers feel important. Have customer appreciation days, offer goodies, thank them for their business.

SUMMARY There is no better time than now for you to evaluate and revamp your customer service plan. You are potentially losing valued customers because issues are being overlooked. Good customer service is essential to the survival of any business. Exceptional customer service will make you stand out in the crowd. Start out by treating your internal customers (your employees) well, keep them in the “company loop,” and let them do what it takes to send each and every customer away happy. Your bottom line will thank you for it. Wash on! Bobby Willis has been in the car wash business for over 20 years. He owns and operates Cool Wave Car Washes in Virginia.

FINANCE Buy/Sell CURRENT MARKET TRENDS IN CAR WASH OWNERSHIP

This is an unprecedented time in the car wash industry. New product development and improved manufacturing techniques are at an all-time high, and ease of product market casting and deployment has never been greater. In addition, car wash customer satisfaction has never been higher. Granted: low interest rates, generous credit terms, and the boom in the economy introduced by lower energy prices have made car wash owners and operators more revenue and profit than previously. Americans continue to have high per capita car and light truck ownership and this has fueled more car wash opportunities than ever. People ask me every day, “How is the car wash market these days?” I reply enthusiastically that the market is outstanding. Regardless of whether you are a car wash owner/operator or a buyer, the car wash property ownership market is good. Car wash ownership holds as much appeal today as it has at any time in the past, with more potential buyers in the market than ever before. Typically, a well-run car wash with a high traffic count, easy access, proper signage, and proficient service will sell much faster and at a better price than the car wash operation

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ADVANTAGE that has been neglected, has poor service or service selection, or neglected maintenance. The seller and buyer determine the value through negotiation at the time of the sale.

BUYERS

Buyers are looking to satisfy their short- and long-term income goals: short-term daily profits of the operation, and longer-term the eventual sale and exit from the car wash property ownership and operations. Many buyers come from within the car wash industry, but there is no one buyer for a car wash property. However, regardless of the type of car wash service involved (self service, express, or full service), the buyers are usually experienced business people who are looking to expand their operations. Most have other commercial-property investment experience and are looking for something different. Whether it’s a different business model or an alternative type of investment, buyers buy car wash properties because they offer them something that satisfies a need. Many have other automotive properties, often other car washes, and these add to their property portfolio goals.

SELLERS

Sellers are interested in what their car wash will sell for. They want to know what types of locations are for sale, the sales those sites currently generate, whether the properties were recently upgraded, and what services are offered on site. In short, they want to know how their offerings stack up against other properties in competing for a buyer. The answer is: it depends. Buyers have different reasons for wanting to buy a car wash property, just as the sellers decide, for different reasons, to sell. For the seller, the motivation is usually profit. However, it could be any number of unrelated reasons. Some sell because of divorce, sickness, retirement, the need to refinance the car wash, or other reasons. Some sell because they are simply burned out by the car wash operations. These are the easy properties to find: poorly maintained facilities, broken equipment, and trash that seldom gets emptied are dead giveaways. Bankruptcy, while it was quite prevalent in our industry several years ago, is now a far less frequent occurrence.

to provide sales volume and pricing information on similar properties they, and perhaps others, have sold recently. Pricing the property and, eventually, the buyer’s appraisal report, begins with researching other recent sales of similar properties in the same market: same age, same type of operation, similar equipment selection and functionality, similar property size, similar business size, etc. This is known as a comparable sales analysis. This helps determine what other similar car wash properties recently sold for in the market (usually within the past two to four years). If there are no, or too few, comparable car wash property sales in the market, then a search outside of this market may be necessary.

REPLACEMENT COST

If there are new car washes in the market area, the price elements for everything that went into building it, including the land, building, equipment, installation, etc., are known absolutely. These numbers, less depreciation, can be used for valuation of the car wash that is for sale, too. This is known as replacement cost method of valuation. It is part of the pricing mix. It generally does not include business value, which must be valued separately.

BUSINESS VALUE

The business value is a separate type of valuation for an operating commercial property. This includes: profits and losses of the business that is for sale, equipment, leases and options, licenses, trademarks and logos, and other property rights. It is simple really: businesses that show higher profits

PRICE

The types of car washes that are selling are the ones that are priced right. The buyer and seller determine the right price when the property ownership is transferred. Whatever the value is in a particular market, the pricing element is one of the most important considerations for the sale. But it is not the only one. Terms and conditions of the sale can also play an important part in both buyer and seller motivation.

COMPARABLE SALES

Most buyers and sellers new to the sale of a car wash property frequently do not have any specific idea how to begin pricing the property. Commercial real estate brokers who specialize in the sale of car washes and other automotive-use properties should be consulted. Generally, they will be able 49

ADVANTAGE have more value than those that don’t and, when compared with other similar business sales in the market area, help determine the business value. An audit of the business records may be advantageous to the buyer to aid in determining their accuracy and providing insight into the value of the business operations. Business value must be equal to the value of the real property assets. If it is greater, the overage is called “blue sky” or goodwill value. This is part of the total value of the car wash property including land, building, equipment, and business value. An exception is leased properties, where the lease is valued in place of owned real property. The number of available car washes for sale in a particular market has much to do with what is happening in the local economy, whether commercial property ownership is on the upswing, and if values are increasing in the market. If values are decreasing or the market is flooded with similar businesses for sale, then desire for ownership tends to decrease, causing the asking price to decrease in order to make a sale. Currently, the market is in on an upswing and looks to continue in that direction. There is currently strong interest in car wash property ownership, with more buyers entering the market each day. This is a terrific time to own a car wash property and a great time to make a profit. Mark W. Gerhart is a licensed real estate broker in the state of Colorado, focused on car wash and automotive-use property sales.

BOARD OF DIRECTORS

Treasurer: Don Witt Dallas, TX (214) 358-2575

President-Elect: Tyler Furney Harker Heights, TX (254) 258-6786 Past President: David Swenson Austin, TX (512) 346-8050

Vice President: Andrew Zamora Lubbock, TX (806) 543-2775 Vendor Vice President: Bob Kopko Uniontown, OH (800) 336-6338

DIRECTORS John Agnew Fort Collins, CO (970) 485-0287

Ryan Darby Lubbock, TX (806) 535-7275

Pat Kirwan Wixom, MI (866) 362-6377

Jeff Blansit Dallas, TX (214) 912-1729

Robert Duncan Artesia, NM (575) 308-9248

Evan Lorentzatos Stafford, TX (281) 561-0469

Ronnie Corbin Plano, TX (479) 651-7239

Ian Heritch San Antonio, TX (210) 421-1295

Clay Wilson Lubbock, TX (806) 687-2024

Executive Director: Chuck Space 4600 Spicewood Springs Rd., Ste. 103 • Austin, Texas, 78759 • (512) 343-9023

www.swcarwash.org THE ADVANTAGE is the official publication of the Southwest Car Wash Association. It is published four times each calendar year by SCWA, 4600 Spicewood Springs Rd., #103, Austin, Texas 78759. The officers, directors and members of the Southwest Car Wash Association, as well as The Advantage editors, in accepting advertising for this publication, make no independent investigation concerning the services or products advertised and neither endorse nor recommend or make any claims as to the accuracy and therefore assume no liability thereof. The opinions expressed in the articles are not necessarily the opinions of SCWA and its publisher and therefore makes no warranties and assumes no responsibility for accuracy or completeness of the information herein. (512) 343-9023.

The SCWA members listed below have joined SCWA since our last issue. We Appreciate your Support!

Michael Cheshire

Express Wash Company Colorado Springs CO

Bruce Cummings

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President: DeWayne Hall Oklahoma City, OK (405) 414-1489

WELCOME NEW MEMBERS

Chad Roach

Car Wash Buildings Castle Rock CO

John Schenck

DRN Fort Worth TX

Overleaf Washco, LLC Southlake TX

Peter Denissoff

John Schenck

Synergy Solutions Uniontown OH

Mike Dunham AccaWash Metairie LA

David Edwards Quick Quack Conroe TX

Jeff Fields

ZCW Ventures Southlake TX

Paul Schenck

AKS Car Wash, LLC Southlake TX

Rob Stephenson

STI Conveyor Systems Barrie ON

Jesse Stiltner

J Warner Ventures Bowling Green KY

AutoMat Washes & Supply Camas WA

Bill Flynt

Alex Stoltenberg

Asif Hafeez

Tooney Thepsoumane

Shammy Man Car Wash Plano TX Rainforest Car Wash Cypress TX

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Arcadian Services, LLC Florence AL

David Martinez

Extractomat Portland OR

Seacoast Commerce Bank Austin TX

Jason Van Kooten

Express Wash Company Colorado Springs CO

Sherwin Van Kooten

Quality Carwash Fort Worth TX

Express Wash Company Colorado Springs CO

Enrique Martinez

Steven Vugrin

Quality Carwash Coppell TX

Santos Martinez

NoPileups Boise ID

Vince Ward

Quality Carwash Grand Prairie TX

Geaux Clean Car Wash Baton Rouge LA

Chris McClure

Wesley Werneking

TBD Seattle WA

Ash Patel

Jiffy Stop Edmond OK

Karim Patel

American Dawn Compton CA

Clifford Prout

Goliad Sudz, LLC Goliad TX

Encompass CS Round Rock TX

Brian Wright

Executive Leadership Solutions Fort Myers FL

Sang Yi

Yeree Co., Inc. Dallas TX

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