A dual automatic carwash offers fewer worries, higher profits
by: Tim Jones

Are you tired of cleaning up other people’s messes at your self-serve carwash? What about replacing spray guns, swivels, hoses and foam brushes? If you are tired of this labor-intensive business, there may be an alternative for you.

Dual automatic locations are a lucrative means of carwashing without the headaches of a self-serve. We at National Car Wash have developed three such sites to date and currently are in the process of developing two additional sites. We’re doing this simply because these types of sites have been easier to deal with, from construction to operation.

First, a dual automatic site does not require a large piece of real estate because the footprint of the building is not as large as an automatic with self-serve bays. Many smaller parcels of land that are eligible for dual automatics would not be considered large enough for an automatic with multiple self-serve bays. Depending on local building codes and setbacks, a dual automatic location could be built on as little as 50 feet of frontage. We currently have a location that is on 60 feet of frontage. Often, these parcels of land are not large enough for any other commercial use and therefore are less expensive.

A dual automatic building is also easier and cheaper to construct than a building with self-serve bays. All phases of construction—from site prep to the parking lot—are cheaper. In most cases, we can be operational within 90 days of breaking ground. It is often easier to deal with local building and code officials because there isn’t the stigma associated with the self-service industry. We have built our facilities a few different ways. Our buildings for dual automatics with on-board dryers are 48-feet wide by 38-feet long, while our buildings for dual automatics with stand-alone dryers are 48-feet wide by 52-feet long.

We are currently building the latter for drying quality and productivity purposes.

I know what you’re probably thinking. Depending on customers to drive through a stand-alone dryer correctly and get their cars dry may seem far-fetched. But our experience has been that customers do eventually learn to exit slowly. It passes the drying responsibility over to the customer instead of placing the responsibility on the machine itself. A countdown timer should be visibly located at the exit. We give the customer 60 seconds to drive through the dryer. Also, stand-alone dryers eliminate the drip of the gantry onto the car while the car is being dried, thereby increasing dry quality and the elimination of spots. Also, productivity is increased because a car may start another wash cycle while the car in front of it is in the dry cycle.

The equipment
Equipping a dual automatic site is a large piece of the puzzle. Would you open a candy store that sells only the candy that you like? No, you would carry a wide variety of candy that appeals to a large customer base. This would result in higher sales. The same is true for a carwash. Equip your wash to appeal to a larger customer base. Offer your customers a choice between touch-free and friction.

According to our documentation from locations with dual touch-free automatics, the automatic that is closest to the equipment room captured 60 percent to 70 percent of the business during normal wash times. On a new site, we placed a touch-free automatic closest to the equipment room and a friction wash farthest away from the equipment room. Interestingly enough, a sales comparison between the two resulted in a 50-50 split, with no loss in sales volume from the touch-free wash. This told us a few things. First, that we had been hard-headed for years. Second, that customers’ perceptions of friction washes have changed. Since our experiment, all of our new sites with two automatics have been equipped with a touch free and friction wash. These sites have automatic sales that outperform our older sites with dual touch-free automatics. This is because we are simply appealing to a larger customer base.

It is also a good idea to equip dual automatic sites with combination vacuums and car-care products. We equip the vacuums and vending machines with dollar-bill acceptors so bill changers are not required. The machines still accept quarters, but change is not required. Also, when adding perimeter vacuums, we place them on vacuum islands with backlit awnings. This is added signage to further draw attention and market the site.

Operations
Dual automatic sites require less janitorial attention than sites with self-serve bays. Clean-up time for the sites is minimal because most customers wash their cars and leave and do not spend time detailing on site. Also, automatic sites do not offer the local landscaper and farmer the choice of spraying mulch or animal feces out of the back of their pick-up trucks.

One good employee can care for multiple sites, with the number of sites based on the proximity to each other. We feel that if all of our sites were dual automatic sites, we would have one-fourth the number of employees we have now. With a payroll of approximately 75 employees, that would be a major savings on labor.

Automatic sales can be boosted when it can be cross-marketed with gas sales. We have experienced sales increases of up to 25 percent when carwashes are sold at gas pumps. This requires that the automatic site be in close proximity (next door) to the gas pumps. The big-box providers are ideal for this situation. The usual deal requires hardware placed on the gas provider’s premises. This may be connected through wireless communication. The gas provider collects the carwash purchases, keeps 15 percent of sales for its trouble and then sends you a check for the balance. It is customary, but not required, to give the gas customer a $1 discount at the gas pump to entice the purchase. But this deal is good for both parties. The gas provider and carwash owner experience increased sales through cross-marketing. It is an opportunity that we are pursuing vigorously.

The minuses
What are the negatives of dual automatics? The only possible detriment that I can think of is that automatic carwash sales are more weather-sensitive than self-serve sales. People are more reluctant to spend $5 to $8 when inclement weather is predicted in the near future.

Dual automatic sites can be profitable ventures, but like everything else they depend on location. Based on our experience, a second automatic can produce more return on your money than six self-serve bays because it requires lower land costs, building costs and labor costs. I cannot recommend dual automatic locations enough. They have been profitable for us, and I’m sure countless others. Don’t miss this opportunity.

Reproduced with permission from Virgo Publishing, Inc.
Copyright © 2005 Virgo Publishing, Inc.