Southwest Car Wash Association ADVANTAGE-Magazine by Southwest Car Wash Association ADVANTAGE

ADVANTAGE Publication of the Southwest Car Wash Association

Third Quarter 2014

SCWA On the Road Again â&#x20AC;&#x201C; Denver

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President’s Message SCWA On the Road Again in Denver - once again proved that car washing is alive and thriving. Hope you had the opportunity to join the more than 180 car wash owners and suppliers for the recent SCWA Car Wash Tour in Denver, Colorado. Be sure to check out the pictures found on page 22 of this edition of ADVANTAGE. Clayton Clark SCWA car wash tours and round SCWA President tables discussions are always very motivational for me. First just being around many of the most successful car wash operators in the business is fun and informative. However it goes much deeper. The SCWA Car Wash Tours always bring out the leaders in our industry and it is inspirational to be around these role models. What is unique and inspirational about leaders in the car wash industry? Giving Back and Participation. SCWA events like Denver make me more aware of the importance of giving back. We all know that some people have a “what can you do for me”? mentality. What I saw in Denver and have seen in our other SCWA meetings and tours is the car wash industry has more of the “What can

The Denver Tour was a great example of car washers “giving back” – learning new ideas and sharing solutions. I do for you?” I believe when we help others, we achieve more ourselves. At the very core of the SCWA mission is this concept of networking and partnership. Our car wash members are so willing to be included in the tour and have other car wash owners come by their wash. The Denver Tour was a great example of car washers “giving back” – learning new ideas and sharing solutions. And everyone wins. The other idea that was so evident in Denver - car wash professionals must participate to truly be successful. This can be difficult amidst the distractions of this digital age and the time pressures many face. But we can not afford to miss a moment professionally or personally. When we participate, we are more valuable to ourselves, our families and our businesses. It is really about partnerships and what we can accomplish together. This is much like being on a team. You may be happy sitting on the bench, but those who truly excel are those who actively participate – who are present and focused. We had almost 200 attend the Denver event and had to close registration. This shows the huge desire of the car wash community to be present and participate.

SCWA offers many opportunities to be present. Attending the car wash tours and round tables; the annual convention and Car Wash EXPO are opportunities to share our challenges and find solutions. These are just some of the SCWA opportunities to network and be a part of a much larger partnership. Instead of thinking of the other car wash owner as a competitor – true leaders work together to make each other better. The most motivational vision you can have for yourself and others is to give back and participate – to share and be the best. Many people don’t yet realize that excellent performance in serving other people is an absolute, basic essential for survival in the economy of the future. Many individuals and companies still adhere to the idea that as long as they are no worse than anyone else, they can remain in business. That is prehistoric thinking. We are now in the age of excellence. Customers assume that they will get excellent quality, and if they don’t, they will go to your competitors so fast, people’s heads will spin. Thanks to everyone who attended – who shared their washes for the tour and to all the sponsors of the Denver Car Wash Tour. I believe everyone left a winner. Speaking of events - Mark Your Calendars Now – Thanks for being a part of the SCWA Family.

San Antonio Car Wash Tour October 14

2015 SCWA Convention and Car Wash EXPO February 22-24, 2015. More information and registration is on the new SCWA website www.swcarwash.org

Industry Briefs Nation’s Largest Car Wash Chain, Mister Car Wash, Acquired by Leonard Green & Partners, L.P. Mister Car Wash, the largest car wash chain in the United States, was acquired by Leonard Green & Partners, LP, one of the nation’s preeminent private equity firms, announced Mister Car Wash’s President and Chief Executive Officer, John Lai. This transaction, unprecedented in the car wash industry, poises Mister Car Wash to capitalize on an accelerated acquisition strategy while strengthening its leadership position through additional investments in people, stores and technologies, according to Lai. Harris Williams & Co., a member of The PNC Financial Services Group, Inc. (NYSE: PNC), acted as lead financial advisor to Mister Car Wash throughout the ownership transfer. Under previous ownership by ONCAP, a middle market private equity firm, 3

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ON THE ROAD AGAIN

Advantage Mister Car Wash grew 232% since 2007, adding 99 car washes and 25 lube shops. The company currently operates 134 car washes and 32 lube centers in 14 states. In anticipation of continued expansion, Mister Car Wash recently moved its entire Tucson-based corporate operation into a brand new office building situated in the heart of the sunbelt city’s revitalized downtown core. “We’ve built one of the most sophisticated operating platforms in the car wash industry and now, with our newly consolidated corporate footings and the strength of Leonard Green’s backing, we’re perfectly positioned to grow at an even faster clip” said Lai. “As a result of our incredible growth trajectory,” Lai added, “Mister Car Wash is creating an amazing number of new career opportunities for our people. As a people business, this is a compelling, competitive advantage.” The company is headquartered in Tucson, Arizona and has nearly 4,800 employees, servicing over 15 million vehicles annually. Ira Feinberg, car wash owner/operator, author, and equipment supplier to the industry passed away recently following a long battle with cancer. In addition to authoring the book “Make Your Fortune Washing Cars,” he regularly contributed articles to industry trade magazines. Ira Feinberg was well known for training operators in the art of washing cars, earning the sobriquet the “Dean of Clean.” Ira Feinberg was born in Brooklyn, NY in 1930, and from an early age was involved in the quest for the creation and independence of the state of Israel, culminating in his joining Israel’s first army and serving in Israel’s war of independence in 1948. In 2008 he produced a documentary, “My Brother’s Keeper,” as a tribute to the efforts in this regard of the men and women of the Haganah. Ira Feinberg is survived by his wife, Yaffa, neé Hausfater; his children, Juliette and Bryan; and four grandchildren Borrower Beware. Coast Commercial Credit sounds the alarm about a new lending scheme that can negatively impact cash flow and the future ability to operate a business. A number of car wash operators have been receiving calls from telemarketers offering easy working-capital loans in as little as 24 to 72 hours, according to the company. These types of loans come with extremely high interest rates, typically ranging from 70 percent APR to over 100 percent APR. They are called Merchant Cash Advance (MCA) or Business Cash Advance (BCA) loans. These loans are tied to merchant card accounts or bank accounts. MCA/BCA lenders debit the merchant card or checking account on a daily basis and take as much as 50 percent of a business’s daily

receipts. These loans are designed for start-ups and borrowers with bad credit. However, these lenders have been heavily soliciting experienced operators with good credit. Similar to how Payday Advance loans can cause personal financial failure, MCAtype loans can cause financial insolvency of a business, the company says. For operators who can’t get funds elsewhere, MCA or BCA loans could be a loan of last resort. However, for operators not on the verge of failure, other sources do exist. Low-doc loan programs and other conventional loan programs are available for both experienced operators with good credit and those newer to the industry who have average credit. Automechanika In Chicago. Messe Frankfurt, producer of Automechanika, the international brand of automotive trade shows, and Advanstar Communications, one of the largest trade show organizers in the United States, will join forces to launch Automechanika Chicago. The show will be the 14th Automechanika event around the globe and will take place April 24-26, 2015 at McCormick Place, which will serve as the show’s home on a biannual basis. Automechanika Chicago will showcase the newest tools, equipment and products in the market and will be the largest U.S. trade show dedicated to high-end technical training and management classes for automotive technicians SWS FSB Ad - JP.PDF

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Advantage and shop owners. Michael Johannes, brand manager of Automechanika, said the show’s shop-friendly environment “will allow visitors, from technicians to shop owners, to really get a feel for the new product offerings through the various demonstrations, management seminars and technical training sessions. With the number of diverse product categories exhibiting at this one event, attendees can experience the latest advancements in a very efficient manner.” Mister Car Wash Buys Octopus. Mister Car Wash has announced the acquisition of six original Octopus locations in Albuquerque, NM from the Jurkens family. John Jurkens opened his first Octopus Car Wash in Rock Island, Illinois in 1953. The Albuquerque locations were purchased in 1967, and the family has been there ever since. “Coming to the decision to sell was not an easy one. However, we are confident that Mister Car Wash will respect the legacy my father and family has built among our long-standing employees and within the industry,” said Joel Jurkens, CEO for Octopus. With this acquisition, Mister Car Wash now operates 134 car washes and 32 lube shops across 14 states. The company is headquartered in Tucson, AZ, has more than 4,800 employees, and services over 15 million vehicles annually.

SCWA Member Highlight Frequently SCWA members are featured in national publications. The following article recognizes SCWA member Jay Wyatt, Mighty Wash.

Jay Wyatt – Mighty Wash

Q: How many years have you been in the car wash business and what type of car washes do you own? A: We have been in the car wash business for just over 2 years. We have locations in Odessa, Midland and Lubbock. The types of operations range from Express/flex

to full line/detail. We have another property in Odessa that will be a Super Center on four acres and include a restaurant and RV/truck wash. We also have a property in Irving that will be developed as a car wash. Q: What was your business prior to entering the car wash business and what motivated you to get into the industry? A: Durable Medical Equipment. We were motivated to enter the car wash business to take advantage of the existing technology gaps. We saw an opportunity to raise the level of car wash operations through use of newer technologies. Our partner, Dr. Rice was the technology catalyst. Q: What are the three biggest challenges you see for the car wash industry in the next three years?

A: Water issues; health care/Obamacare; and maintaining a competitive level against newer facilities. Q: What advice would you have for the “newcomer” to the industry? Listen carefully to your customers and design your business model around what your customers want. Do not listen to anyone but your customers. Don’t be afraid to step outside the traditional business model. Finally - set yourself apart with outstanding customer service. Q: How long have you been an SCWA member and what do you consider the best benefits of your membership? A: 2 years. I appreciate the industry updates – and all the resources available that can benefit members when we get in a bind and help us be more successful. I especially appreciate the SCWA Annual Convention and Car Wash EXPO to learn to industry trends and innovations. The SCWA Water Conservation Alliance is a good educational tool to help others understand the car wash industry does not use much water. Q: What is your biggest achievement? A: Success in two different markets. Q: What person has had the most influence on your business life? A: Steve Jobs Q: What is something most people may not know about you? A: I grew up on a farm and have learned the car wash business is not much different – it is seven days a week. 7

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“Everyone told me MacNeil’s got the best” WHY GARY JONES CHOSE MACNEIL “It’s such a good wash, word gets around that this is the place to clean your car.” Gary Jones

Super Suds Car Wash, North Platte, NE, on his MacNeil 130’ Express Tunnel with wheel and tire add-ons

IN GARY’S WORDS: Customers love it “We did our first 100,000 cars in a year.” Superior components for a superior clean “We’ve got two sets of WrapAround brushes and they just do a miraculous job.” Higher quality, lower maintenance “Even after 100,000 cars it still cleans so well and operates so smoothly.” See for yourself what MacNeil is doing for Gary. Visit www.macneilwash.com/garyjones

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Advantage Q: What is your key to success? A: No one in our management group is afraid to get our hands dirty. We will prep; we will repair equipment – whatever needs to be done. We also have been very active in the community and with community outreach. Once a month we select a charity and donate 10% of the total to a charity. Last month it was Make a Wish Foundation. We have also supported American Diabetes; Children’s Miracle Network; UMC Foundation; American Cancer Association.

Marketing Signage Essentials - Your Best Silent Salesmen

There’s an unsettling notion in the car wash industry that the equipment in the tunnel is the most important aspect in the business. Although how clean a car leaves your facility is important, how can you clean the car if customers never approach your wash to begin with? That’s why you need to create a grand first impression, draw potential customers into your wash with signage, and keep them there by entertaining them. Let’s face it, nobody is inclined to pull into a fast food joint because they advertise a new state-of-the-art frying system;

they go because of how appealing the signage makes the food.

FUNCTION

Your signage is the best silent salesman you have — and you don’t have to write it weekly payroll checks either. Signage should be revisited every few years to make sure it’s still relevant and effective. Car wash owners are moving towards a more graphic-heavy approach to convey instructions and wash packages through iconic images and relying less on just text. Your approach should be simple and easy to understand from a customer’s perspective. A lot of owners get stuck in a tunnel-vision mentality, and they really need to consider the customer’s point of view. Ask employees and customers if your signage is effective, and gather feedback before embarking on a redesign of your signage. Effective signage should do the following: 1. Convey your branding. Cohesive signage throughout your wash and on your grounds will help reinforce brand awareness and keep it in the customer’s mind longer. 2. Increase impulse sales. A well-designed sign can entice people to make a purchase they typically wouldn’t. For instance, someone may come for a regular wash, see a sign for your detail

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Advantage services, and come back later for a cleanup when they need to turn in their lease car. 3. Promote a smooth traffic flow and reduce liability. It is important to promote safety at your wash and you can achieve that by having well-placed, clear instructional signs. 4. Bring excitement. By incorporating LED animations you can turn your tunnel into a grand show. When you bring buzz and excitement you greatly increase the likelihood of repeat business.

BLUE PRINT

Creating effective signage can be a daunting task for the uninitiated or new car wash owner, but it doesn’t have to be. There is a blue print that many businesses follow. It’s a combination of the following: 1. Exterior Signs A monument sign is the cornerstone of your business because it’s the one sign that’s seen from the street and can convey your business to the traffic passing by daily. 2. Exterior Way-Finding Signs Nothing will frustrate a customer more than not being able to navigate properly on your premises. Placing multiple directional signs for wash entrance, wash exit, detail area, vacuums, and vending is crucial.

3. A Welcome Arch This serves a multipurpose approach that welcomes your customers, instructs them to safely get started on the treadle, and confirms what wash was just purchased. This really should be a knockout piece as it’s the first thing your customer sees when pulling into your wash. 4. Safety Signs Every owner has heard the horror stories of cars damaging the expensive machinery inside the tunnel — a very costly mishap indeed. It is one that can be avoided, however, with a simple clearance bar alerting anyone that exceeds that height restriction. Clearance arches are positioned far enough from the entrance to deter any oversized vehicles from even approaching your wash entrance. Disclaimers are also important as they remind your customer in a friendly way what you are not responsible for. 5. Menu Signs The point of purchase is possibly the most important sign you can have. After all, if your menu sign does not clearly show your offerings, how can a customer actually purchase a wash? Wash owners across the United States have increased their wash ticket average just by redesigning their menu in a more customerfriendly manner. Showing wash services through

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Advantage imagery is a popular way to entice customers to purchase higher wash packages. 6. Instructional Signs Instructing your customers on how to load the vehicle properly will save you from any damage to your car wash conveyor. A simple but essential sign that illustrates Car in Neutral, Foot off Brake, and Hands off Steering is important so that the customer knows what they should do to ensure proper treadle alignment. 7. Tunnel Signs As your customers are going down the tunnel, it’s important to notify them each time a service is applied. This can be done with either graphic signs or a complete arch. Graphic fixtures come in various shapes and sizes and typically flash when that service is being applied. The arches double as both a sign and applicator. But graphic fixtures and arches alone won’t cut it anymore. To really make a splash, you need to feature LED animations inside your tunnel. These LED sticks come in various voltages and sizes, and will enhance any service that you have. A multi-color LED light strip can really give your plain foam bath a powerful punch and increase higher ticket sales because the animation show is worth it to the customer.

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8. Promo Signs You’ve more than likely seen companies advertise their monthly specials on wind-sign frames before, and this is one effective way car wash owners can bring awareness to extra services, gift books, and local community events. Adding a few of these on the driveway up to the point of sale can increase the likelihood of someone buying an extra service. Again, emphasis has to be placed on the design — it has to be enticing to grab that impulse sale.

LIGHTING

Outside of signage, it’s worth mentioning how important it is to have a well-lit tunnel. By incorporating energyefficient bright LED light fixtures or T5 lights, you can really enhance the likelihood of a potential customer stopping at your wash. Studies show that customers are more likely to stop at a well-illuminated car wash than one that is poorly lit. Aside from enhancing the wash’s visibility, it adds to the security of the establishment. If you have a clean wash, great lighting, effective signage, and an exciting show in the tunnel you will forge a relationship with your customers for a lifetime. Start with a grand impression and leave a lasting one when they depart. Bobby Jones is Marketing Director for T.S.S. Inc., SCWA Member and car wash signage supplier.

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Perspective Business Slow? Four Tips to Make You More Successful Today

For many, the financial crisis of 2007-2008 is a fading memory. For others, vacant lots and boarded up houses serve as daily reminders that the return to better days is still a work in progress. For all of us, there’s a lot to learn from operators that successfully reinvented their washes to not only survive, but ultimately prosper in some of the most challenging markets following the crash. It’s wise to have a plan for the next inevitable slowdown, and these best practices can elevate the value proposition you deliver to your customer, earn their loyalty, and build a foundation for a stronger business. Last week I had the opportunity to visit one of these locations and it’s a story we can all learn something from. Built in 2006, this express exterior opened in one of the fastest growing cities in Florida. New home sales were off the charts, more being built each day, and unemployment was below 4 percent. One year later, while the wash was just starting to build volume, construction came to a screeching halt. Suddenly, an area

that was one of the fastest growing became one of the worst in the country for home foreclosures and financial loss. Once construction stopped, a significant percentage of the population involved in building all those new homes vanished overnight. Those who remained struggled to find jobs and unemployment skyrocketed until it plateaued at 15 percent. To say things were challenging is an understatement. I read that in 2008 the county government considered declaring itself a disaster area to access emergency reserve funding. But here we are today, eight years later, and my friend’s wash continues to hold its own. How? Let’s take a look at what it takes to succeed when business slows.

TIP #1: NEVER CLOSE EARLY

If you were starving, would you suddenly decide to stitch your mouth closed to solve the problem? Of course not; you might reduce activity while you planned for ways to acquire more, or more nutritious food, but stitching your mouth closed would never enter your mind as a solution. Closing your wash during hours when even one customer would expect you to be open makes about as much sense. I’m not saying to necessarily stay open during a tropical storm or other weather occurrence when customers wouldn’t expect you to be there, but never fall into the trap of sending everyone home early because business is slow. You’ve

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Advantage got to be open, in some form, with the brushes spinning, actively searching for the next opportunity to capture more customers, who wash more frequently, at higher average tickets. That is what will define your future, and it just so happens that the slow times are often the best times to find those opportunities.

TIP #2: CREATE WAYS TO LOOK BUSY

Signs are great. Advertising is wonderful. Community involvement is fantastic, but for a retail business trying to capture impulse shoppers driving by its property, nothing is more powerful than looking busy. Passersby see others washing their car and are prompted to remember that they too have to complete that chore. Busy means your service is good. Busy means you deliver value. But how do you create a busy look when you’re not busy? Against conventional wisdom, this operator invested money to keep customers on his property, using the free vacuum service as long as possible. He built a nice control cabinet complete with 20 buckets, each numbered to match its slot in the cabinet. Each bucket contains a bottle of window cleaner, all-purpose cleaner, a body towel and a window towel. Customers leave their keys or license with

For all of us, there’s a lot to learn from operators that successfully reinvented their washes to not only survive, but ultimately prosper in some of the most challenging markets following the crash. the attendant who exchanges it for their complimentary bucket of supplies. Automatic rug cleaners were added for customers to use, also free of charge. On “busy” slow days, an additional attendant is employed in the aftercare area. Their sole job is to keep everything spotless and go from customer to customer to make sure they are satisfied with the wash and have all the supplies they need. It’s ironic that this site was originally built without so much as a vending machine to avoid having customers linger in the free-vacuum area. Today, the wash often looks busiest when things are slow. Those are the days when frequent repeat customers who enjoy spending the most time at the wash plan their visit.

TIP #3: GIVE YOUR BEST CUSTOMERS MORE

As I toured my friend’s wash, I kept hearing the same four words repeated over and over by every customer returning a bucket of detailing supplies. “Thank 17

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Advantage you so much.” It made me pause to think about what really happened to allow this wash to survive against all odds. It’s more than a bucket of detailing supplies. Customers were enjoying the time spent detailing their car because the tunnel and free supplies took away the heavy lifting at a price and service that exceeded their expectations. Listening to them talk to the attendant, it didn’t sound as if they just had

It’s often said that 20 percent of your customers account for 80 percent of your revenue.

tomers who were coming, to keep coming. It’s often said that 20 percent of your customers account for 80 percent of your revenue. Few of us will ever watch as more than half of our traffic evaporates over a couple of weeks, but the question every operator should be asking themselves is “What am I doing to make sure the best 20 percent of my customers would continue to come even if they were struggling financially?”

TIP #4: GET IN CONTROL OF YOUR EXPENSES

their car washed; they spoke as if they just finished washing their own car and were proud of the job they did. This operator created a loyal fan base that has become his best marketing campaign by providing his customers the tools to take pride in a job well done, at a price they could afford. We hear the term loyalty used often, but what is loyalty? According to Wikipedia, loyalty is faithfulness or a devotion to a person, country, group, or cause. When the market turned, many operators cut every corner to reduce spending. This operator ran into the burning building and chose to give more to entice the few cus-

Getting in control of your expenses is not the same as cutting back haphazardly at the risk of alienating your best customers. I saved this one for last, because it should be last. Always ensure you’re delivering a value proposition to the customer that can’t be beat, before looking to do it more affordably. Every day there are new products, services, and practices that can shave electric, water, labor, soap consumption, and other variable expenses at the wash. Whether it’s a new training program or process change to reduce labor, preventive maintenance schedule to eliminate repairs, or equipment upgrade to cut labor, energy, detergent, or all three, most moneysaving projects require time, effort, and investment. Even a simple task such as replacing your bathroom

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Advantage lights with LEDs takes time and money, which is always easier to do when you’re not staring down the barrel of the next global economic disaster. As I sit in front of my computer typing this article, I am glad to report that my friend’s wash is now doing great. Unemployment in the city recently dipped below 10 percent, and all the hard work he put in is starting to pay off as the area comes back to life. New families continue to move into the community and his loyal customers are there, waiting to let them know where the best place in town is to get their cars washed. Good luck and good washing. Anthony Analetto serves as President of SONNY’S The CarWash Factory.

Self Serve Preventative Maintenance Schedule – Self Serve

Periodic maintenance enhances income, as well as, the life of the equipment. Regular cleaning improves the customer’s experience by providing a sanitary work environment. The saying goes, “You can’t clean a car in a dirty bay”, and it also stands to reason that vehicles get cleaner in a spotless bay. Consistent maintenance

and performance checks prevent issues from becoming large expenses.

Daily Task        

Wash bays with high-pressure Drop coins in each meter (bays, vacuums and vendors) to insure smooth operation Operate each bay cycle, check for correct pressure, delivery and leaks Operate vacuums, check hoses, ends and suction Operate bill changer, check for easy bill acceptance and proper change Check chemical levels Pick-up trash on and around facility Empty trash receptacles

Weekly Tasks       

Check pump oil for level and make sure it is free of water Drain water from air compressor Check salt level and refill water softener brine reservoir Clean-out vacuum debris bins Sweep or wash down parking lot Check sediment level in bay pits Check product level in vendors

Monthly Tasks

 Check timer settings for bay lights  Clean filter bags on vacuums

Continued on pg. 25

SCWA in Denver SCWA was recently “On the Road Again” in Denver, Colorado More than 180 car wash owners and suppliers gathered in Denver to tour a variety of outstanding car wash locations. The day started with a presentation and update by Rick Alvarado from the Denver Water Authority. Perry Powell discussed car wash programs and the self serve operators held a special round table discussion on the evolution of the self serve industry. Following lunch, the afternoon car wash tour including Bucky’s Car Wash; Waterway Car Wash; Eco Express; Colorado Car Wash; Car Wash Express; Ocean Express; and Octopus Car Wash. For more pictures of the Denver Car Wash Tour, please visit the new SCWA website: www.swcarwash.org Mark your calendars for the next edition of SCWA On the Road Again, October 14, 2014 in San Antonio, Texas. Registration for the San Antonio event is found on the SCWA website: www.swcarwash.org

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Home Team Car Wash

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Advantage Continued from pg. 21

 Change 5 micron pre-filter on reverse osmosis system  Check hoses, guns, brushes and nozzles for wear

Quarterly Tasks

 Check drive belts for tension and wear  Lubricate locks with graphite

instead of increasing the price, he add an express detail option to his wash menu. Jeff immediately loved the idea and realized the extra income potential. Within a week he added a choice of two express details at $59.99 each or both for $69.99.

RESULTS

Semi-annual Tasks

 Change pump oil  Change air compressor oil  Change activated carbon media on reverse osmosis system

Annual Tasks

 Replace vacuum motors  Clean walls and parking lot with pressure washer  Paint exposed metal From Professional Carwashing & Detailing Magazine.

Operations Wash Menu - Simple Changes Can Increase Revenue

Recently I met with a good friend of mine, Jeff Coplin, co-owner of Matt and Jeff’s Car Wash in Novato, CA. We were discussing how his highest wash package price had plateaued at $34.99. I suggested to him that,

In doing research for a new book I’m writing on how to increase car wash revenue, I called Jeff to get his feedback on adding the express detail to the menu. He had some valuable insights. The following are excerpts from our conversation: RASSAMNI: What is the one piece of advice you can give to other car wash owners about adding an express detail item to the wash menu? COPLIN: In one sentence I would say, if you do not have an express package part of your menu, you cannot sell one. Why did you add two express detail options instead of one? I believe in giving customers choices where the best outcome is always yes and yes. Why did you price each at $59.99 and both at $69.99? Isn’t it a lot of work for only $10 extra? It takes the same time to express detail a vehicle as it takes to clean a vehicle in and out. The only difference is we are paid more for the same time invested in cleaning the vehicle. The idea is to make the combination of both

Site Evaluation Demographic Reports Carwash Market Evaluations

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Design & Development Modular Building Systems Construction Assistance Site-Plan Design Complete Equipment Installation

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Advantage options a “no brainer.” Customers see the value in the extra $10 upgrade. Some car wash owners might say, “Only $10 extra to add the second express detail? Are you crazy? Why not offer to add the second express detail for $49.99? That will increase your dollar per car sales.” What is your response? My intention from the beginning was to sell both options combined for $69.99 and by offering them as separate packages for $59.99 each, made the combination look so valuable. At the end of the day, our labor cost remained the same when we added the express detail to the menu. What matters is not the sales dollar per car, what matters is the total gross revenue at the end of the day.

The number of packages you offer should not exceed three or four, including an express detail package. Was your top wash package affected by adding the express detail option? No, absolutely not. Before adding the express detail packages to the menu, we had 10 percent of our custom-

ers purchasing our top package, and the number today is still at 10 percent. It has not dropped.” Can you tell me what percentage of your customers now purchase one or both express detail packages? A little over 5 percent of our customers purchase the express detail packages. Also, we are offering these packages to our unlimited club plan members at 50 percent off listed price and that generated extra income as well. If your top package sales did not decrease then what wash did these customers migrate from? What shrunk is the basic wash. We recently had an increase in the basic wash price, but we kept all the package prices the same. Customers now see the value in upgrading to a better wash for few more dollars. What other lessons have you learned from this experience? I learned that many of the customers who only bought the basic wash did so not because they are cheap but because they did not see the value in the online waxes and upgrades. However, they saw the value in the express detail and they were willing to pay the higher price for these services.

CUSTOMER BEHAVIOR

Consumer behavior psychologists have conducted experiments about customer behavior at a movie the-

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Advantage atre that confirm Jeff’s pricing strategy is the best for increasing sales dollar per transaction. The experiments went something like this: At the concession stand, the psychologists re-arranged the price of popcorn and offered a small popcorn for $3 and a large one for $7. The result was that 85 percent of the customers chose the small popcorn. When interviewed, customers said they did not see value in buying the large popcorn for $7. Subsequently, the psychologists added a medium-sized popcorn for the price of $6.50. This resulted in 85 percent of the customers choosing the large popcorn. When interviewed, customers said they saw value in buying the large popcorn for $7, only fifty cents more than the medium-sized popcorn.

SIMPLE MENU

Your menu should be simple with few options. Do not complicate the menu and confuse the customers with too many choices. Customers prefer simplicity. Many sales are lost when offers are too complicated for the customer to make a decision. The number of packages you offer should not exceed three or four, including an express detail package. If your company has a wide range of offers, then, to keep it simple, recommend the best and most popular wash package and give customers the reasons why. What made the fast food

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restaurant In-N-Out Burger® famous? Besides having fresh and quality food, it is the simplicity of their menu. Keep it simple. AJ Rassamni, Author of Increase Business 30% in 30 Days, and soon to be published Dirty Cars, Filthy Rich, is a 27-year car wash veteran and owner of Great American Car Wash in Fresno, CA.

Management Employee Turnover The Five Cs to Recruit, Engage, and Retain Staff in the Social Age

The war for talent is over and talent has won. Technology and globalization have dramatically changed the way we work over the last 20 to 30 years. However, very little has changed in how we hire and manage staff, which has led to low employee engagement and productivity and high employee turnover. Instead of doing the routine, tactical, and predicable work of yesteryear, the Social Age requires us to be more strategic, creative, and innovative — more solutions oriented. Yet, for Continued on pg. 33

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Big Man Washes The Complete Car Wash Company S e rv i n g

T e x a s

CONSTRUCTION Design

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EQUIPMENT

B Wash

Sales

Installation

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CHEMICALS & DETAI L Sales

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SERVICE Maintenance

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PARTS Repair

Replacement

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Advantage Continued from pg. 29

the most part we are still hiring for skills and experience and using the same levers we have used for decades (if not centuries) to motivate and manage staff. We must evolve our business practices to remain competitive in our digitally connected, globally oriented economy. With any evolutionary process, a guide or roadmap proves invaluable. When your operation decides to take the leap and join the Social Age, there are five Cs to adhere to so you can maximize employment efficiency and effectiveness, retain your staff, and ensure that your employees are fully engaged on a daily basis: • Correct hiring • Classify and manage appropriately • Compensate fairly • Currencies of choice • Communicate with focus

CORRECT HIRING

We must start this evolution with hiring the right people. Without them, efforts to engage and retain staff become moot. The Industrial Age paradigm emphasized hiring for skills and experience. But skills can be taught and in today’s rapidly changing world, experience is far less important than agility and the ability to learn and adapt. To not only survive, but also thrive in the Social Age, companies need to hire for both culture fit and competencies, those innate abilities that can’t be taught but will make candidates successful in the job. Proper interviewing technique is essential to guaranteeing you get the right hire. Unlike the stock market, when it comes to potential job candidates, past performance is indicative of future results. The majority of interview questions have to be answered with past examples of how the candidate actually dealt with real-world scenarios. Do not fall into the old trap of believing what a candidate would do is what they did do, or more importantly, will do.

CLASSIFY AND MANAGE APPROPRIATELY

Even when you do everything right during the hiring process, you may still be surprised once the employee comes on board. Team dynamics or changing personal circumstances can affect individual behavior and performance. You must continually keep your finger on the pulse of your staff — a daunting task to many managers who either try to devote equal time and energy across the board or who spend time with the wrong people. Employees typically come in three “flavors:” critical people, squeaky wheels, and the fat middle. Most managers end up spending most of their time trying to

grease their squeaky wheels, which perpetuates poor performance or behavior. Counter intuitively, by devoting most of your attention to your critical people, you will bolster the productivity of the whole team. Squeaky wheels? Train, motivate, or move them on. Quickly.

COMPENSATE FAIRLY

Many companies diligently strive to create attractive incentive programs in an effort to engage and retain staff. Unfortunately, these efforts actually may be counter-productive to accomplishing these goals. Studies have suggested that rewards can narrow our focus, innovation, creativity, strategic thinking, and problem solving — the very things needed from a Social Age workforce. Higher pay does not necessarily equal higher productivity. Managers should set their salary benchmark at or a little above market rate for individual functions. Even more importantly, managers should ensure that employees feel they are being adequately compensated for the work they do, and this can only be accomplished by speaking to them directly.

CURRENCIES OF CHOICE

Once your staff feels well paid, real productivity and engagement can be unlocked by tapping into their internal motivators or currencies of choice. What your staff really needs to be fulfilled and to “go the extra mile” is to: Continued on pg. 37

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day o t s u l l Ca ial for spec g. ricin SCWA p

INTEGR TY testing Chris Ewert • (512) 891-7777 cewert@austin.rr.com 8127 Mesa Drive, #C-305 • Austin, TX 78759 www.integritytestingaustin.com 33

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SOUTHWEST

CAR WASH ASSOCIATION

Industry Innovations • Business Solutions • Plus Unparalleled Hospitality

2015 February 22-24, 2015 | Arlington Convention Center | Arlington, Texas

www.swcarwash.org 35

Advantage

Advantage Continued from pg. 33

• Work for someone they trust and respect in a company they support. • Be appreciated and have their voice and opinions respected. • Have a firm career path that allows them to grow and develop. • Realize their underlying motivators. • Be able to do what they do best every day. By understanding and acknowledging your team’s individual currencies of choice, you can help to keep them engaged and decrease turnover. How do you recognize which currencies of choice will motivate your staff? By talking to them. Unfortunately, many managers don’t talk to their staff enough, don’t know what to talk about, or how to structure their conversations.

COMMUNICATE WITH FOCUS

FOCUS is an acronym that describes the best practices in leadership communication. Communication between staff and managers should revolve around: • Feedback: Ensure your team is updated on company information, initiatives, and new hires. Give praise when it is due, and maintain an open door for their questions, concerns, or comments. • Objectives: The heart of sterling performance management is structuring specific and measurable job objectives and holding staff accountable for achieving them.

• Career Development: Many studies list career development as a main factor that employees gauge to determine whether to stay with their current employer or seek a new position elsewhere. • Underlying Motivators: What does your staff need to go the extra mile, and how do they respond to motivational techniques and rewards? • Strengths: According to The Gallup Organization, those innate abilities that make employees unique and good at what they do are the number one predictor of success.

STEP BY STEP

The process of changing the way you hire and manage your staff may appear daunting at first, but experience shows that by taking it step-by-step, you can make significant changes quickly. The result will be a lifetime of more engaged, happier, and more productive staff, as well as more free time, less stress, and higher job satisfaction for yourself and your team. Are you up for the challenge? Kim Seeling Smith is an International Human Resources Expert and Author of the forthcoming book, Mind Reading for Managers: 5 FOCUSed Conversations for Greater Employee Engagement and Productivity. Kim helps companies build healthy work environments and increase employee engagement and productivity in our digitally connected, globally oriented world.

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Did You Know… Fight dementia by learning a second language. In a study of people with dementia, bilinguals developed dementia about five years later than people who spoke just one language. Possible reason; Switching from one language to another in the course of routine communication helps to stimulate the brain. Neck pain could indicate a serious problem. Seek medical attention if neck pain precedes or accompanies a headache–it could indicate an impending stroke….when the pain radiates to your shoulders or arm or is accompanied by leg weakness or difficulty walking–this may be a sign of a herniated disk…if the pain worsens at night or is accompanied by fever or weight loss–this may indicate an infection or another serious condition. Walking provides the same benefits as running. Both activities reduce the likelihood of diabetes, high blood pressure and heart disease. But: You have to expend the same amount of calories walking as you would running. Example: You would need to walk for 45 minutes to burn 225 calories …you would need to run only 21 minutes. Deaths from stroke have dropped by 30% since 1990? Stroke is now the fourth-leading cause of death in the US– not the third. Possible reasons: Greater success in reducing blood pressure…declines in smoking…improved cholesterol levels…better treatment for stroke patients.

Recessions may be linked to mental decline? Men ages 50 to 74 who lived through four or more recessions by their mid-to-late-40s had lower scores on tests of memory, speech and math than men who did not live through recessions. Job loss and the need to take part-time or lower-status work may erode people’s mental abilities. A new blood test detects pancreatic cancer earlier? Early detection and tumor removal can help increase life expectancy for pancreatic cancer patients. Currently the five-year survival rate is less than 5%. Further testing is needed before the test becomes available. Foods with the red heart-check mark from the American Heart Association (AHA) may be high in sodium. The check mark means that the food meets the criteria for fat and cholesterol content and other nutrients important for heart health. But: Foods can get the check mark as 480 milligrams of salt–nearly one third the total recommended daily limit. And: Some foods may be packaged in a way that leads people to consume even more salt. Example: Canned soup may have a portion size of one cup, but consumers may eat an entire two-serving can. Caffeine may improve memory. Participants given 200 milligrams of caffeine in tablet form–the amount of caffeine contained in a strong cup of coffee–performed better on a memory test than people who were not given caffeine. In the test, participants had to identify pictures that were slightly different from ones they had seen the day before.

Advantage Apples really help you live longer? A British study found that eating one apple a day could prevent 8,500 deaths a year from heart attacks and strokes in people over age 50 in the UK. Apples act like statins to reduce LDL “bad” cholesterol, a risk factor for heart attacks and stroke. Cable TV Subscribers watch very few of the channels they pay for? The average American television household watches around 18 of the 189 channels it receives. Some consumer groups advocate “unbundling,” in which consumers would pay for only the channelsthey watch–but cable companies say that would result in consumers paying about the same for fewer channels. People are 50% more likely to be dishonest in the afternoon than in the morning? Reason: Our ability to exhibit self-control to avoid cheating or lying is reduced over the course of a day. Cereal -box characters are designed to make eye contact to build brand loyalty? Characters on cereals intended for adults, which usually are placed on upper store shelves, generally look straight ahead or slightly up to make eye contact with adults. Characters on child-oriented cereals look slightly downward to make eye contact with kids.

BOARD OF DIRECTORS President:

President-Elect:

Clayton Clark Houston, TX (832) 678-3031

Eric Warden Southlake, TX (817) 329-8777

Treasurer:

Past President: Barry Farris Frisco, TX (214) 325-0778

Don Witt Dallas, TX (214) 358-2575

Vice President: David Swenson Austin, TX (512) 346-8050

Vendor Vice President: Bob Kopko Uniontown, OH (800) 336-6338

Directors Larry Ayres Wichita Falls, TX (940) 636-3685

DeWayne Hall Oklahoma City (405) 414-1489

Alan Palermo Houston, TX (713) 946-1600

Tyler Furney Harker Heights, TX (254) 245-8657

Mike Hogan Houston, TX (713) 467-1408

Phil Tutt Spring, TX (281) 414-8872

Tyler Greffin Burnsville, MN (952) 808-3640

Troy Kunkel Fort Worth, TX (817) 808-8769

Andrew Zamora Lubbock, TX (806) 543-2775

Executive Director: Chuck Space

4600 Spicewood Springs Rd., Ste. 103 Austin, Texas, 78759 (800) 440-0644

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 concerningthe 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.

Welcome New Members The SCWA members listed below have joined SCWA since our last issue. We Appreciate your Support! Jim Beetham A Better Carwash Golden CO

Stanley Hays CarWashTVNetwork, LLC Rockwall TX

Dale Birch All Seasons Auto Wash Colorado Springs CO

Weldon Hines Wel-Don’s Car Wash Thorndale TX

Joe Carker JP Bright Inc. Houston TX

Robert Jones Dollar Bill Car Wash, LLC Houston TX

Michael Copeland Nuwalls, Inc. Bailey CO Dan Dailey The Dailey Wash, Inc. Castroville TX Javier De Jesus PECO Carwash Systems Macomb MI Daniel Dearing Dan’s Superwsh Lakewood CO Guillermo Diego Diego Management Houston TX Andy Dominguez Dominguez Properties El Paso TX Carl Fleming Shine Car Washes, Inc. Lawton OK Fran Fuller FCH Enterprises, Inc. Hurst TX Ryan Haag Haag 7 Car Wash LLC San Antonio TX

Sang Kwon Bear Creek Car Wash Euless TX Sergio Martinez King Kleen Car Wash Conroe TX Terry Overland Overland Car Washes Zachary LA Mike Schlote Waterway Parker CO Chris Shamis Rocket Express Car Wash Littleton CO Mark VanBusKirk Spotless Car Wash Southlake TX Jim Weeks Rite Shine Car Wash Lamesa TX Graeme Wright Precision Car Wash Austin TX

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Southwest Car Wash Association 4600 Spicewood Springs Road Suite 103 Austin, Texas 78759

presorted standard U.S. Postage

paid

Austin, TX Permit No. 1142