Wednesday, August 4, 2010

Letter to the President

Believe me: this is not a political statement. My hope is that our Company would never appear biased. The purpose of this blog, as stated in our very first posting, was to provide readers with a unique perspective regarding our Tucson customers, our employees, and our small business. That being said, we felt some of this information might be enlightening to our President as well. Recently our President has been touring the United States, stopping in to visit small businesses to get a feel for the economy and our struggles on a ground level. I appreciate this endeavor. And to that end, here is a copy of our letter to the White House.

Dear Mr. President:

We are writing to you to provide you with a brief picture of our small business. We appreciate the challenges placed before you and we empathize with you. As a small business in Tucson, AZ, we have our challenges as well. This letter is not a complaint; we have no intention of whining (it’s never done us much good anyway). What this letter is, is an honest and straightforward attempt to provide you with a ground level view of the issues we face, the goals we still have, and the entrepreneurial spirit we refuse to give up. Above all, we want you to know that we still believe in this Country. And we want to make sure that, in at least some small way, we are a part of the efforts aimed at bringing America back to prosperity.

As a little background, let me tell you that my business partner and I own and operate two car washes in Southern Arizona. We have about 60 employees. We do not come from wealthy families, so to achieve the dream of owning our own business we worked and saved until (in 2002) we were able to purchase our first car wash. Since that time, we have put everything into our business to assure we deliver great customer service and an exceptional product. We believe we’re succeeding on these fronts; we wash a lot of cars and have an extremely loyal fan base. We love what we do. And we think it shows to both our customers and our employees.

But working hard and loving what you do isn’t always enough. We’ve gone through (and are still going through) an extremely challenging period. Like so many other businesses, we’re struggling.

I wish that there was one clear problem I could point to. I wish there was one blatant, giant, issue that, if resolved, could get our business back on track. But of course, things are more complicated than that. There isn’t one cause. And there certainly isn’t one, single universal solution (I assume you would understand this more than just about anyone).

In terms of our business, things started down an uncomfortable road with the increase in Minimum Wage. For a car wash, whose Labor accounts for over half of its expenses, this increase created a significant strain. Unfortunately, we had to cut jobs. I don’t necessarily disagree with Minimum Wage increases, but for small businesses, it simply equates to a cost increase that can not be born (at least in the short-term) by the consumer. In other words, you can’t raise your prices to match a Minimum Wage increase, because your customers won’t be your customers anymore. And to add even further weight to our troubles, shortly after this cost increase, the economy began its slide. “Raising prices to cover the increase” never even became an option. We were more concerned about customers continuing to simply drop by. Our product was still a great one, but unemployment, pay cuts, and general fear have a considerable impact on what the public views as a prudent purchase. It is what is. And so cash got short and we went looking for any and all refinancing options in hopes of freeing up working capital and gaining a little bit of breathing room. Sounded like a good idea. Only … I’m sure you can imagine how that turned out.

The truth is: I wake up every morning worrying about whether or not we’re going to make it. I worry about paying my mortgages. I imagine the shame of failure. I think about what a tragedy it would be for a business like ours to go under—not just for me personally, but for the thousands of customers who have come to love us and the 60 employees and their families who depend on us. This fear is real.

But doom and gloom isn’t the real point of this letter. You’re out attempting to get a look at “the ground level” of our economy. I appreciate that. And I think you also need to know that, for all the bad news generated, there is still a lot of heart out here too.

At least where our small business is concerned, here are some of the bright spots I see.

First, these hard times have made us a much better business. In order to survive, we’ve had to re-engineer our entire business model to make it more efficient. When we do come out of this bad economy, we’ll be stronger than ever.

Second, this economy has made us a more generous company. That may sound odd, but it’s true. It is our belief that an economy will prosper only when all areas in the community get their footing. We became concerned about the impact the economy was having on our local charities and not-for-profits. And in an endeavor to help them, we created a fundraising program that is far more proactive than anything we’d done during the “good times.” Our two little car washes are now partnering with (and raising money for) over 20 local and national charity organizations in Tucson. Not only this, but we’ve created our own scholarship program in order to send a high school student (who otherwise wouldn't have had a chance) to go through two years at our local community college (full tuition paid). I mention this, not to brag, but to show you signs of hope. When times get tough, America needs to find its generous spirit—its one of the things that truly makes us great.

Finally, I believe this economy has bettered the relationship between employer and employee. There is no question that our employees seem to value and appreciate their jobs more these days. But likewise, as an employer, we've found ourselves much more involved with our employees too. We’re more empathetic to their financial struggles, because we’re all in the same boat. Furthermore, we know that in order to keep customers, we have to have happy employees to deliver our desired service. And having happy employees requires more than writing a paycheck—it involves listening, partnering, and helping in non-financial ways. As an example, our Company is now offering both free Financial Planning Classes and free English Classes to our employees. We may not be able to provide them with all the financial benefits we’d like to, but we’re also learning there is still a lot we can give. And this translates into mutual appreciation and an improved working environment. Again, it’s better than it was in the “good times.”

I of course have no misconceptions: I realize that it is very, very unlikely you will ever read this. But on the off chance that you do, I’d like to extend an invitation for you to come visit us. We’d love the opportunity to show you, firsthand, the challenges we are facing, as well as the solutions we are implementing. And if we don’t meet, well, know this: Metro Car Wash wishes you the best in your efforts to rebuild this economy. We understand that there is a monumental task set before you, Congress, and the American people. We also know America has always been greatest in the face of trial. For our part, we’re going to keep on fighting at the ground level. We’re going to continue to be inventive, continue to focus on our customers, and continue to strive to be the best business in Southern Arizona.

Respectfully,

Metro Car Wash

Don’t know if he’ll read it, folks. But until next time …

Stay clean my friends.

-DJ DripDry

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