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Replacing working IBA's for new equipment, when does it make sense?

Kramerwv

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Still looking for more perspectives on these questions:

Does anyone have feedback on replacing existing working equipment for new, faster, & cheaper to maintain equipment. Did you see an increase in revenue even with the same customer base?

Does anyone have insights into what your daily capacity for your IBA's needs to be in order to maximize value from your customer base?
It’s difficult to ever know exactly how much capacity a wash needs, but about any of the new systems will be faster than where you are now so you’ll have the potential to serve more customers. A big key will be keeping your current quality with the faster speed, especially if you’re limited in ability to raise prices. Assuming you can, then revenues will surely increase. Try to calculate estimated volume increase and then add the benefits of reduced chemical and water and taxes and see how long it takes to pay back your proposed upgrades. Only you know what ROI you need to pull the trigger.
 

Msaxonii

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If the ones you pull out are still functional and you don't think it'd be cursing another operator, you could always recoup some by selling them to some other poor sap to give them a second life.
 

getnbusy

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I would most likely stick with two touch-free. We have well dialed in chemistry and clean very dirty cars with our existing set-up.

While having one be touch might bring in some new customers we have way to many tunnels in our area that are all touch.
I would highly recommend that you buy one of each if not 2 frictions. I know exactly how you feel about doing a great job cleaning with the touchfree. Ive got 2 of them and im proud of the cars we turn out. However, before you buy you should come to North Carolina and ride around any town and watch which carwashes are backed up. Side by side the friction washes are killing the touchfree 4 to1 at least. Im seeing carwashes every single day that have as many as 5,6,7,8 in line for friction and the touchfree dry as a bone. And im not talking about junk carwashes. Im talking about 2 top shelf machines side by side. I love my touchfree machines but im in this to make money. Sometimes what i like and what the customer wants aint always the same thing.

I don't think 20k to maintain 2 machines is too much money. If not changing method of wash, I would ride it out longer. Speed up your machine some and make other tweaks. When yo uupgrade, go full bore
 

Car_Wash_Guy

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In my AO, it's exactly the opposite. The touchless sites, including mine, are lined up and the IBA frictions are 1/10 the toucless. Here, at least IMHO, if they want friction they'll go to the EE and get an unlimited pass and be in & out in 4 minutes.
 

washnshine

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In my AO, it's exactly the opposite. The touchless sites, including mine, are lined up and the IBA frictions are 1/10 the toucless. Here, at least IMHO, if they want friction they'll go to the EE and get an unlimited pass and be in & out in 4 minutes.
That’s kind of what I was getting from the original poster. If all of his competition is friction express exteriors, he might be the only touchless in town. And if he has his chemicals dialed in and is putting out a clean car, he may want to continue serve that marked segment exclusively. He may not draw new customers with a friction machine. If they are used to express exteriors, they may not be interested in a friction IBA that takes longer and has lines that move slower than the friction tunnels they are used to.
 

Waxman

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Yep; I'm in a pokey little Western Massachusetts town. My competitor is at $17 ( friction rollover ). Pricing can be either market-based or cost-based or a combination of the two. If you have brand new equipment, and your competitor does not, why would you want to match his $12 price? I would go higher. Yours would be new and therefore better. Better is worth the higher price!
 

soonermajic

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I think you do what you've done. Subtract water, chems, repairs, taxes etc from total new cost. Add in how much more you think you can make = good move/ bad move.
Not that difficult. Ha
I had an OLD Touchless did 33 cpd. But it has FULL-TIME preppers 6 days/week. Lines most days. I put in new friction & touchless went down to 31 cpd, but friction did 19 cpd 1st year. So, about $60k cashflow & $24k in payments & lost $6k in touchless revenue = $30k positive casflow = awesome decision!
Side note: touchless does 1car per night, while preppers aren't there. Friction does 7 cpd while preppers are there & 12 cpd while preppers aren't there!
 
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STXCW

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We replaced all our touch free units with friction and sales have gone up considerably as well as ticket price. Wash quality is more consistent and no worries when we get vehicles that haven't been washed in 6 months and would complain because there car didn't come out clean with the cheap wash. We have 1 touch free left, its a double bay with the other being friction and the friction out washes the TF 4:1

And to answer your original question, units removed ranged from 13 years old and a couple being only 6 years old.
 

Kramerwv

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We replaced all our touch free units with friction and sales have gone up considerably as well as ticket price. Wash quality is more consistent and no worries when we get vehicles that haven't been washed in 6 months and would complain because there car didn't come out clean with the cheap wash. We have 1 touch free left, its a double bay with the other being friction and the friction out washes the TF 4:1

And to answer your original question, units removed ranged from 13 years old and a couple being only 6 years old.
What brands TF and Friction?
 

tdlconceptsllc

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PDQ G5, Friction are Surflines and Tandems
Which one is the more user freindly to work on the Surfline or Tandem. I thought on the tandem the HP pump is in the bridge tell me more if you could from someone that has both. Thanks
 

STXCW

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Which one is the more user freindly to work on the Surfline or Tandem. I thought on the tandem the HP pump is in the bridge tell me more if you could from someone that has both. Thanks
They both run off the same controller and electronics so they are about the same to work on. Eliminating all the galvanized components and having all the pumps removed from the wash bay and put in the equipment room has us favoring the Surfline more. Plus our average wash time with the Surfline is 5:30 and top wash is just a tad over 6 min on top wash.
 

twinchester

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I am currently trying to figure out when the right time is to replace our 2 IBA's. Both are currently working but are approaching 14 years in use. Our top wash runs around 9 minutes per car which certainly puts a limit on our throughput on busy days.

We currently average about 2000 cars per month on our IBA's and we are spending approximately 20k/year to maintain them. I would say around 25-30 days per year we have capacity issues with long lines where I see customers turn away just because they do not want to wait.

Does anyone have feedback on replacing existing working equipment for new, faster, & cheaper to maintain equipment? Did you see an increase in revenue even with the same customer base?

Does anyone have insights into what your daily capacity for your IBA's needs to be in order to maximize value from your customer base?

I hate the idea of replacing perfectly good & working equipment so how do I decide?
I recommend the replacement of equipment when it makes financial sense to do so. Typically new machines bring a 20 to 25% lift in volume and an increase in revenue per car of at least $2.
With your long cycle times you should get a bigger lift in volume. Make sure the new equipment does the CPH advertised. Bay length and dryer type are also considerations.
 

soonermajic

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AnalyticWash, did u ever "$hit or get off the pot"?
If so, what say ye did?
 
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kentadel

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I'll join Sooner in an old thread. Lot's to consider when updating or replacing equipment. You location and market can steer you in the correct direction.
For instance, I have washes in smaller rural locations, where I do/could charge $15/$20 for a wash that takes 6 minutes. Time and price are less of a factor. Customers just want a clean vehicle. These are loyal customers and are use to getting a good wash. These are touchless.
I also have a wash in a market where there is more commuter traffic and see a distinct daily use pattern where a quicker wash is a benefit, and find that price is important because of competition. A 4 minute max wash at a lower price is a benefit. Friction may be a plus if you have a similar location.
Charge enough, give a good wash, sleep well at night.
 

Waxman

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I have 2 competitors, both rollover friction machines. One 5 years old, priced at $17 / top pkg. The other 2 months old, priced at $20 with ceramic coat.

I'm running a 15 year old Side Trac 700 made by Superior Carwash Systems. I just experienced some down time while I replaced drive wheel bearings.

I plan to replace my machine with another touchfree machine because I like the wash quality and the business model. I also like being differentiated from my competitors.

Here's my perspective; it's a good idea for me to reinvest in my business. The hard part was starting it, with financing, the loan approval process, construction, permits, special permits, utilities connections, etc. Then, once it's complete, you have to build your customer base. You have to learn what price point works.

Now, 15 years later, all the hard work is done. My car wash business is well-established. The customers love it. I have the business model more refined to where we have detailing, used car sales and even apartment rentals all helping to generate revenue.

So it's logical to replace older, well-used equipment with new, reliable, efficient, faster equipment. I'm good at repairs, but looking forward to having something brand new and technologically advanced. I want to be able to re-set the machine remotely with a phone app. I want vinyl roll-up doors that reset themselves if hit. I want the peace of mind knowing the machine will go out of service if the bay temp dips too low for too long. I want to apply hot wax, ceramic coat, etc. I want a fast wash with a production arch and pods, where in one front to back movement the car is foamed. I want to be able to do 3x passes over front and backs of cars, or to apply 4 passes of hot presoak if I choose.

I think it's a smart business person that can see the many ways to turn a major capital investment into a better and more profitable business. It will be more of a joy to operate this type of business.
 

Flex- Wand

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Right on WAXMAN,, I feel that . I was looking at the 360 (petit) or the Razor it comes down to who is the better distributor.
 

Car_Wash_Guy

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What has been everyones experience who's replaced machines with increases, if any, in business? I've read as much as 20% increase with a new machine - Is that possible?

I'm wanting the Petit. It's a $200K machine . I'm planning to increase my prices $2 across the board to make the payment as well as increase my gross. I have a large and loyal TF clientele with everything from high end super cars to huge trucks. I'm running a 12 year old Radius with about 90K washed on it. I'm wanting the peace of mind of the new machine. The technology. The increased throughput. Etc.
 

washnshine

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Honestly, any new machine is a new machine. So if you pay 100k or 200k or somewhere in between, the customer will only know it is new and I am sure you will set it up do a great job either way. I’m not saying don’t get the Petit - if you want that and have a good distributor , get it. I am just guessing that any new machine with all the bells and whistles that is set up to clean well and is promoted well will attract new customers.
 

BenW@JCCW

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What has been everyones experience who's replaced machines with increases, if any, in business? I've read as much as 20% increase with a new machine - Is that possible?

I'm wanting the Petit. It's a $200K machine . I'm planning to increase my prices $2 across the board to make the payment as well as increase my gross. I have a large and loyal TF clientele with everything from high end super cars to huge trucks. I'm running a 12 year old Radius with about 90K washed on it. I'm wanting the peace of mind of the new machine. The technology. The increased throughput. Etc.
I have three locations. Replaced the equipment in one last year and that site is up 10% YOY while the other two are down 10%. 20% was accurate for me. I noticed an increase in volume almost immediately when the new equipment went in. Too bad COVID hit. I should note, I replaced a SoftGloss and three Radius high impact units with a new SoftGloss and three Radius high pressure units.
 
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