As competition intensifies in the car wash industry from another wave of investors and growth of existing networks, operators will become more concerned with their market share.
If the Pareto Principle applies to car washing, some would argue success is 80 percent equipment and 20 percent how the customer is treated. More successful operators would say it is actually the opposite that holds true.
As a former auto-body technician, detailer, and car wash operator, I’ve been following along with interest the development of self-cleaning paint.
One factor car wash operators may want to consider moving forward is the notion of homogenization. Homogenization in business is the process of people, products, and places becoming the same.
Success of a car wash depends to a large extent on the qualities of the site location. Site refers to the physical property, whereas location refers to the market area within which a property is found.
Over time, most man-made things become obsolete. MP3 players once required ear-bud headphones connected by thin wires. Now, you can buy them with Bluetooth and wireless ear buds. This is technical obsolescence.
Sometimes I learn a lot about car washing by talking with people not in the industry. For example, one of my friends has a condo in South Dakota they visit in the summer. I asked how he cleans his car and motorcycle there because...
Ridesharing is the sharing of vehicles by passengers to reduce vehicle trips, traffic congestion, and automobile emissions.
Unlike franchises and large corporations that have multiple operations in various locations, mom-and-pop shops usually have a single location that occupies a physically small space. The shop could be any type of business such as...
Market saturation is a situation that arises when the volume of a product or service in a marketplace has been maximized in its current state.
People new to the industry often ask what is the best type of car wash to own and operate. The answer usually given is to choose the type that best suits one’s lifestyle and yet fits into the marketplace.
A viable car wash is one where the owner delivers entrepreneurial objectives such as creating wealth from the business model or exit strategy.
Arguably, the car wash industry is ripening for private equity. For example, growth is projected for industry wash revenues and size of the fleet. Moreover, the market remains fragmented, which is a good play for consolidation.
Twenty years ago, helping others to become better car washers was thought to be good for the industry overall. Arguably, the playing field was more level back then and the beat-your-competitor approach was not prevalent.
On December 5, 2016, Sentinel Capital Partners, a New York City-based private equity firm, issued a press release announcing it had invested in Sonny’s Enterprises Inc. through a recapitalization. Terms were not disclosed.
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