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New to Carwash Management, Looking for Advice and Guidance

hcwash

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First of all I would like to thank all of the members who contribute to this site. I have learned just as much in the past couple of days browsing the forums as I have in the last year working at an Express Exterior wash.

I recently took over as the General Manager of a Express Exterior Friction Wash. I was previously working at the wash as the maintenance & operations manager when the former GM took a position with another company. I am in my early 20's, so I admit, I am a little wet behind the ears when it comes to managing a business. I do have a minor in Business Management, however a large portion of my knowledge is "theory" and is not necessarily applicable in this industry.

The past two GMs have been mainly focused on sales and marketing and have not had a large presence in the operations/maintenance aspect of the business. This has led to healthy car counts, with the unfortunate high cost of maintenance and service. Since starting at the wash I have been able to complete a large portion of our maintenance and service in house and have cut our expenses in that area considerably. As we approach our "busy" season, I am looking for ways to increase our customer base. We currently do not have any kind of loyalty system in place, however we do sell Valutec gift cards with various bonuses throughout the year. We do not have a computer POS system, just a basic Sharp register with a stand alone credit card machine. I would like to purchase a more advanced system, but am looking to do it as affordably as possible.

We currently run a number coupons in multiple publications and I feel that the redemption rates are too high. I would like to steer toward a loyalty based reward/discount system, but am unsure of the best way to go about it, especially without opening up to potential customer/employee abuse. Any knowledge/suggestions would be greatly appreciated! Thanks!
 

robert roman

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“I recently took over as the General Manager…. previously …maintenance & operations manager….” “I am in my early 20's…..”

“….past two GMs…focused on sales and marketing…... led to healthy car counts, with the ….high cost of maintenance and service.”

“…looking for ways to increase our customer base….do not have any kind of loyalty system in place…”

“We do not have a computer POS system, just a basic Sharp register with a stand alone credit card machine.”

“We currently run a number coupons in multiple publications and I feel that the redemption rates are too high.”

“Any knowledge/suggestions would be greatly appreciated! Thanks!”

Here is what I see.

Absentee owner(s) rely on “for-hire” management for day-to-day operations.

Manager’s pay has been tied to sales performance. So, managers paid suppliers to perform the maintenance and repairs so they could concentrate on selling and promotion.

For some reason, managers quit and now you, early 20’s and with no management experience and, I’m assuming no management training, have been made manager.

This could be an opportunity for you or you could be the next person to go out the door.

When a carwash business is being run out of a cigar box, register and card swipe, by an absentee owner, it’s very difficult to manage cash and redemption of vouchers.

However, touch-screens, software, computer, etc. is a healthy investment. With all due respect, have the owners’ deferred this decision to you?
 

Earl Weiss

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Selling groups of Wash coupons at a discount can spur more and repeat business. I don't know what your base price is is I can give you an example of mine. $3.50 wash 6 for $20.00. $7.50 wash 3 for $20, $11.50 wash 2 for $20. My on site signs advertise them as "$20 Deals". "They make great gifts." I use sequentialy numbered coupons on a 2 layer cardstock with the backside having anti counterfeit features (Guess why?) I do re use coupons if they are in good shape. I also stamp the back with a custom made rubber stamp with our info and expiration date. Inventory is controlled by me and kept daily with # of coupons start plus any new ones added by me, less sales = end amount which is the start for the next day. There is no seperate button for coupons, the loader / cashier enters it as cash, and at the end of the day it is counted as cash as part of the sales reconciliation process. Fleets can buy a larger number of coupons at a larger discount but they are referred to me for the transaction.
 

JeffM

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The capital investment for a quality POS system will be a significant investment. Probably one you need to make; i would advise to do your research and not cheap out as a good quality system will be worth the money. As a Manager, you need access to the right information quickly to be able to make appropriate decisions.

As for your high redemption rates on coupons, why do you feel the need to discount your product? Coupons scream that what your offering for the price on your menu isn't worth the pervieved value. Especially if you provide coupons on an ongoing basis. Customers will pay full price for a quality wash that is consistant every single time and backed with great customer service. Introduce a loyalty program to reward your loyal customers that is attractive, but fair. As you have eluded to already, you will need some technology to make this happen.

You have quite a big job ahead of you. Hope you are up for a challange.
 

rph9168

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Don't make wholesale changes overnight. Seems like you have a good idea on what might need to be done. Attack them one by one. As has already been mentioned a good POS system is a must. If you trust your suppliers I suggest you talk to them to see how they might help. I wrote an article for the April issue of Auto Laundry News about establishing a car wash team that I will email to you. Good luck. You have a lot on your plate right now. I remember that when someone asked JFK how he became a hero he replied "Someone shot the boat out from under me." Looks like you may be in that boat.
 

hcwash

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" With all due respect, have the owners’ deferred this decision to you? "

Yes, I do have the authority to purchase and implement the system, I just have to run the final cost by the owners beforehand.
 

madstack

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Best decision ever to get a POS. Link it to your controller to get cash control.
 

hcwash

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The capital investment for a quality POS system will be a significant investment. Probably one you need to make; i would advise to do your research and not cheap out as a good quality system will be worth the money. As a Manager, you need access to the right information quickly to be able to make appropriate decisions.

As for your high redemption rates on coupons, why do you feel the need to discount your product? Coupons scream that what your offering for the price on your menu isn't worth the pervieved value. Especially if you provide coupons on an ongoing basis. Customers will pay full price for a quality wash that is consistant every single time and backed with great customer service. Introduce a loyalty program to reward your loyal customers that is attractive, but fair. As you have eluded to already, you will need some technology to make this happen.

You have quite a big job ahead of you. Hope you are up for a challange.
The current coupons were implemented by the previous Manager. I do not feel the need to discount our product as heavily and as often. We are the only Friction Wash in town, and have the newest tunnel by almost 15 years. The previous management started using coupons to artificially increase our sales, and while our car counts were much higher, our average price per car dropped considerably. I do want to reward our customers, but offering 1.00-2.00 off each wash seems excessive.
 

JeffM

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Have your car counts been maintained over the last few years? Are redemption rates just as high? You may experience some drop off if coupons are discontinued, but if they like what you have to offer and see the value, you will only lose the price shoppers. If you want to slowly make the move to discontinuing coupons, get rid of your "$1 off any wash" and change your $2 off to $1 off Gold to keep the focus on upgrades. We offered a $1 off any upgraded wash until about a year ago and had very few complaints when we eliminated it.

Focus on wash quality and exceptional customer service and word will get around how good you are. Then you can ditch the discounts completely and regain revenue per car with minimal volume drop off. In most cases, you should see an increase over time.

As RPH said, take things one step at a time. Create a plan and work on your vision every day.
 
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