“I see the self service industry moving more with automatics….just for the reason of diversifying their capital income for the convenience of the customer.”
“We are quickly moving towards a cashless society. The problem….has been the expenditure of capital to make this a reality…, not to mention the fees…..”
We have already become predominately a cashless society. The few places I can think of where people pay more with cash than plastic is at a flea-market or casino. Cash tends to dominate in areas dense with check cashing outlets.
Where is self-service segment heading?
Spending on self-service equipment has dropped to just 4 percent of the total market, down from 18% in 2005. Recently,
SSCWN closed.
Consider a region of 30,000 people worth $2.0 million in annual wash revenues.
Many regions this size have no conveyors. The population is usually in-bay at gas stations and self-service with wands, combo vacuums, in-bay and perhaps some dog-washes.
Assume the area has 10 self-service washes each generating revenues of $200,000.
What happens under shrinking market and less demand? Some operators will suffer at the expense of others, there is no other way.
Why is a region like this at risk? Read the article starting on page 36, PC&D, January 2012, a carwash rookie, a young woman, discovers early success with exterior express.
With all due respect to the newbie, here are some of her quips.
- I was looking for a recession-proof business
- You need to look for three things when analyzing a site; traffic, demographics and purchase price
- The express concept is new in Charlotte
- The wash outsources titration
This comes from someone with no prior experience and only opened one year.
As long as stewards keep serving up this type of kool-aid to others on how easy the carwash business is, many self-service markets remain at risk.