Simomiz Hot Wax
- Thread starter steve569
- Start date
Sparkleclean
Active member
How much are you paying and what size? Where are you? C.A.R. Products (division of dubois chem and affiliated with blendco) has a “foaming repel with carnauba wax” that is great, and cheaper.
robert roman
Bob Roman
Does it really matter that much?
Assume COG is $1.00, price margin $4.00, and contribution $3.00.
100,000 X 0.25 X $3.00 = $75,000
If COG is $0.50, 100,000 X 0.25 X $3.50 = $87,500
So, by using product that cost half as much, net operating income was increased by a whopping $12,500.
Of course, this holds true if the take rate remains the same. In other words, if customers believe you are trying to cut a fat hog by switching ingredients (name brand to no-name brand), they may not be willing to buy at the same rate. If that’s the case, then the difference in margin would be even less.
Another school of thought is the old gas station operator approach. Go into mechanical room and turn back the dial on soap and wax after the service technician leaves. For example, I know operators that have cut back from between four and six ounces per application to two or three ounces. There is also the shell game. Advertise name brand product but use cheap no-name brand.
Generally speaking, there is more opportunity to make money through average sales than unit variable cost.
steve569
Active member
Thanks for your response. I don't have the exact number in front of me but it is in the $8-900 range for a 30 gal barrel. I am in the KC area.
steve569
Active member
I understand what your saying. I guess I question in today's world if you are turning out an equal product if the name brand product really matters.
As for your illustration I would not mind having an extra $12500 in my pocket.
thoffmanjr
Member
Using the Mr. Foamer Foaminator II Rain and almost cut the application cost in half. Use the G&G Gold LED's to improve the brightness and color. The rain version of the foamer also helps coat the car better since the foam can travel to the surface without falling apart on it's way to the car. I think we are at about $0.50 per car with the same dilution as the $1/car guys. Just less hitting the ground and going down the drain.
Jerry
Member
you're paying a little too much for a drum. talk to your salesman(maybe buy 2 at a time) or call another distributor who reps it, someone will sell it to you for less than $900. thats insane.
You should be around .70 cents per application.
washnshine
Well-known member
I use simoniz and like it, so I would not switch brands.
The thing about using a generic brand of this product is you can still call it "hot wax" or "hot carnauba wax." Keep the same foam, colored lights and hot water and the absence of the brand may not matter as much if the results are equal. They are still getting "Hot Carnauba Wax" by name and product.
The problem was when operators went to a generic version of "Rain-X". The product name of "Rain-X" was synonymous with the brand. So if you went to a generic product, you had to go with names like "Rain Repel" "Weather Shield" etc. Customers easily knew it was no longer the authentic product.
I would not recommend using a generic product and advertising the brand named product - that is false advertising.
The thing about using a generic brand of this product is you can still call it "hot wax" or "hot carnauba wax." Keep the same foam, colored lights and hot water and the absence of the brand may not matter as much if the results are equal. They are still getting "Hot Carnauba Wax" by name and product.
The problem was when operators went to a generic version of "Rain-X". The product name of "Rain-X" was synonymous with the brand. So if you went to a generic product, you had to go with names like "Rain Repel" "Weather Shield" etc. Customers easily knew it was no longer the authentic product.
I would not recommend using a generic product and advertising the brand named product - that is false advertising.
John Logan
New member
Sparkleclean
Active member
you are definitely paying too much for it, that's why I asked. it sounds like you are paying list price, my guess you can get it 20-25% less, maybe you have to sign a contract to get it but what your paying is high. if they balk I would just say how am I supposed to compete when other operators are paying 20% less then me??
bryan church
New member
We use a Dosatron that is feed with a 1/3 hp Dayton booster pump.
robert roman
Bob Roman
If you believe this, then why didn’t you choose generic in the first place? Why does generic boast cost savings but revenue generation not so much? Reason is Johnnie come lately.
Brand does heavy lifting then aftermarket prospects share by offering cheaper product and/or equipment solution. Most of the difference in price for commodity like chemical is economic distance (shipping).
As for $12,500, that’s white noise for a wash doing 100,000 cars. I wouldn’t put my take rate at risk for the sake of possibly gaining some white noise.
robert roman
Bob Roman
Remember, you first said “works well.”
When something works well, it implies there isn’t a problem. So, why fix it if it ain’t broke?
Just saying
When something works well, it implies there isn’t a problem. So, why fix it if it ain’t broke?
Just saying
I'm paying $900 + for a 30 also. Would love to know how to get %25 off that. Can you share the details?
thoffmanjr
Member
We are using 2 - 5 gpm hydra flex ports. One of them uses the 5 gpm injector and the other is plain water with a valve to throttle it a bit. We then run a 3/4" Boston hose to the arch. We've had success with a dosatron in the past too.
Sparkleclean
Active member
sure, we operate several washes, a couple years ago we were in the market for hot wax machines for all of our locations. we bought the add on kit for our g-5 units through harrells ($5,000 each, used to be new England car wash) and we bought our tunnel machine directly through simonize at the car wash show in Nashville. (also $5,000) because we bought our machine directly through simonize for our tunnel they will sell us chemicals directly without going through a distributor like harrels. but they wont ship any product to my g-5 site because they didn't sell me that equipment, and they refuse to steal business from their distributors. (understandable) so I just order extra to my tunnel and drive it over myself (only 10 minutes down the road) when we bought the machine they tried to get me to switch all of my chemicals to them at (3) sites. if I did all 3 I would get a 30% discount off all chems, if I did 2, I would get 25% off, and if I did none but just bought hot wax through them they still offered me 20% off list price. so I pay 6 and change per 30 gallon drum right now.
the problem is if you are in a distributor network your kind of screwed. but if you aren't under a current contract with them you may be able to sign one to get a discount. harrels recently built a 2 bay pro touch wash not far from me, they told the owner if he didn't sign a chem contract with them he wouldn't get "fast" service calls.... but they didn't offer him a discount. he is now screwed. all because they bullied him with fear of bad service after the guy spent hundreds of thousand with them building the wash. but another operator in the opposite direction used to work for harrels and he signed a contract with them last year and they gave him the discount for a 2 year contract.
so you can buy direct through simonize
enter a contract with a distributor
or if your already under contract and paying too much threaten to break the contract.... tell them you are going to go with a cheaper competitor because you cant keep operating with other people paying 20-25% less then you are. be offended and threaten to leave, they give you the discount or lose your business completely. just don't do the "threaten to leave" thing more then once....it wont work, you just become known as the complainer.....
on a side note, has anyone ever been sued for breaking a chemical contract?
Sparkleclean
Active member
Its not the only way, just one of the ways i see that is possible to get a lower cost. I was asked how i got my price, my answer was buy your equipment direct through simoniz, especially if you are in a distributor network. But if you already have the equipment either sign a contract, or complain like hell until they lower your cost.
I hate the chemical companies, they are always trying to get me to switch and the first thing they say is we will match your current pricing and want to know all of my costs. Why would i tellnyou that so you can match, give me your best price to BEAT my guy and maybe we can talk!
But if your paying too much, and you are not under contract, i would demand a lower price or threaten to walk, they either lose your business or give you the discount. If you have been buying chems from the same place for a while, and think you pay too much, why not sign the contract to get a 20% discount?! Shop yourself around to the other chem companies and use their quotes against your current supplier. And if tour in the market for a new machine buy through simoniz themselves. We bought a motor city wash works hot wax machine through them. Same cost as going through motorcity.
Earl Weiss
Well-known member
- Joined
- Aug 31, 2007
- Messages
- 6,204
- Reaction score
- 781
- Points
- 113
Yep, had 5 or 6 reps claim they could match cost per car what I was paying for those items I got from KR. They brought samples, tried and failed with very few exceptions. One said he would match it if I gave him the exclusive. I asked why I would do that if I did not have an exclusive now. No answer.
