Friday, March 11, 2011
Why You Shouldn’t Complain About the Price of A Car Wash (at least not in Tucson)
Only wait, wait, wait! Let’s not completely jump the gun here. There are some places where your money still purchases real value – where it can go a long way, and where you can really get a bang for your buck. It’s not all doom and gloom out there, really. And while you may find this hard to believe, a professional car wash is one of those purchases (at least in Tucson … and OK, at least at Metro Car Wash).
First of all, I’d like to point out the results of a little research I did. I took a look at what prices have done for various products since the year 2000 (around the time Metro Car Wash just got rolling in the Old Pueblo). The information is eye opening, but it can also give you stomach cramps too. In just 10 years …
The average cost of a movie ticket went from $5.39 to $7.89 (an increase of 46%).
The average cost of gas increased by 70% per gallon.
The average price of eggs increased by over $1.50 per dozen (who knew chickens had this type of bargaining power?).
The price of milk increased by 11%, a US stamp by 33%, and coffee and tea by 100%.
What makes matters even worse, is that the Median Household Income only increased by 26% in that same time (making these prices even more expensive on a relative basis).
Not news to jump for joy about, obviously. Actually, rather depressing. The kind of thing that might really be a buzz kill … unless, of course, you spend money at Metro Car Wash (you just knew I’d get back to this).
Since 2000, here’s what we’ve done:
The price of our Express Wash (exterior only) is still $3.99. In 10 years, it hasn’t changed one single bit.
The price of our Uptown Metro Wash (your car cleaned inside and out, tire shine, clear coat protection, etc.) has gone from $17.99 to $12.99, a decrease of 28%.
And the average price of a Metro Detail is now $35, down 22% from where it was 10 years ago!
And to be fair: most of the other car washes in town have kept their prices low too. As a Tucson service, getting a car wash is cheap. It’s cheap compared to other places in the country and it’s cheap compared to prices of 10 years ago (something that is rather amazing when one considers increases in Minimum Wage, power costs and utility costs).
Put simply, a car wash is a great value.
OK, you say, But I still need to pinch pennies, and a car wash isn’t necessary.
In defense of this, I’ve already written a blog about why washing your car is important (you can link to it here), including protecting the resale value of your auto investment. But assuming you understand that keeping your car clean is actually important (like brushing your teeth and washing your clothes), you might be inclined to say you can still do it yourself (and save money).
Here’s what we have to say to that:
The average time that it takes for a person to wash their car in their driveway is between 1 to 1 ½ hours. It should also be noted that this task is most often undertaken when you have 1 to 1 ½ hours of free time, like the weekend (which means this is 1 to 1 ½ hours of your precious weekend not spent playing with the kids, watching the game, or golfing).
At Metro Car Wash, our Uptown Metro Wash takes 15 to 20 minutes and we offer free coffee and free Wi-Fi while you wait (free coffee, even though its price has increased by 100%!). Not only this, but you’ll be getting specially formulated soap and wax that protects your paint, something you aren’t getting in your driveway (unless you spend more time and money).
Additionally, the average driveway washer uses 77 gallons of water to wash a single car (hard to believe, I know. But true). The average professional car wash, on the other hand, uses almost half of that (approximately 45 gallons per car). And at Metro, we actually recycle this water and use it to irrigate landscaping and wash more cars.
So, this is good news, right? At least we like to think it is.
Sometimes its good to step back and think about the value in the products you buy, to slap yourself on the back for not wasting money and being a savvy buyer. And if you’re a user of a professional car wash, then slap yourself on the back again because:
You’re maintaining the resale value of your investment, while looking good at the same time; you’re doing this while spending at levels less than ten years ago; and you’re managing to save time and the environment simultaneously.
How can that not be a valuable purchase?
Feel good about your purchase, folks. And stay clean my friends!
--DJ DripDry
Friday, October 1, 2010
Does A Bad Economy = Forgetting How To Work?
There’s been some good news, of late, coming out about our economy. Nothing earth-shattering, but we’re hearing that the Recession has (officially) ended and that people are starting to spend a little more money. Put another way, experts are saying they may be feeling a pulse.
And in Tucson, I think we’re beginning to feel that pulse a little as well. The streets are more crowded, restaurants seem busier, and at Metro Car Wash we’re beginning to see more and more of our customers. That’s all good news and makes me very happy.
Then my wife made the following comment the other day: “Have you noticed how bad the service in Tucson seems to be lately?”
I thought about what she said, and then had to agree with her. We began discussing how our last few restaurant outings had been less than stellar (at places where we normally receive great service); we mentioned the lack of help and assistance we’d received in the last few retail stores we’d been to. My wife scratched her head and then made this suggestion: “Do you think that in this bad economy, people have just forgotten how to work?”
On the surface, it seems like maybe a silly statement. But the truth is: I think she might be right. I know this, because at our car wash, we actually have a real-life example of this phenomenon every year; we call it our Post-Monsoon Slump.
For most of the year, Metro Car Wash is a pretty hoppin’ place. Each of our locations washes around 300 to 400 cars each day. And for the most part, we do it without breaking too much of sweat (figuratively speaking of course, because actually, it’s a very sweaty job). We process cars quickly, our systems flow, and the employees do their jobs efficiently and effectively. But then the monsoons come. Every July, August and September our car counts literally get cut in half as customers stop washing their vehicles in anticipation of the next rain storm. It’s understandable, really. And there’s nothing we can do about it.
But here’s the interesting thing: In the first month of monsoons, our employees go crazy with frustration at the lack of work available. They hustle through their tasks like they’ve been trained to do, but then find that there isn’t another car in line to work on. They get bored. They tell me it feels like the days last longer. They miss all the cars; they miss the fast pace, the high-demand, and the excitement. But that attitude only lasts for a while. By September, their perspectives have changed. Instead of being frustrated, they’ve acclimated to the new (slow) pace of business. They don’t notice that we don’t wash many cars. And they don’t realize that their hustle is gone. They don’t realize, that is, until the sun comes out and all of Tucson decides to get their car washed.
This is literally something we prepare for every year: motivating our employees to find the spring in their step that they may have lost over the summer. We don’t get frustrated, we just remind our managers that they’re going to have an extra challenge in getting everyone back up to speed.
And so I wonder if this bad economy isn’t having the same effect on businesses everywhere. We have slowed down; there haven’t been as many customers; restaurants and retail stores are less crowded. And it’s human nature to adapt to these new environments.
But if the economy is starting to turn the other way—if we’re going to see people pulling out their wallets again and filling up our stores and eateries—then as managers and business owners we also need to be aware that our employees might have forgotten how to meet that demand. It doesn’t mean they’re bad employees. It simply means that they’ve grown accustomed to a slower work pace. And it’s our job to identify that. Furthermore, it’s our job to provide the proper motivation to get them back into high-performance mode. Because the truth is: when demand rises, if a business isn’t prepared to catch it with consistent service, they’re in big trouble. Using the excuse “we’re really busy” for poor quality or poor customer service is about the lamest excuse out there. It says you’ve stumbled into success and that you’re surprised by it, because you’re really not that good.
So let’s hope this economy is feeling the first pulse of heartbeat. Let’s hope it is getting back on its feet. And while we’re at it, let’s hope that businesses and their workforce rise to meet the new demand with energy and great customer service. In the end, I suppose, that’s the American Way.
Until next time, stay clean my friends.
-DJ DripDry
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
Tuesday, July 20, 2010
Where Are All the Employees?
My wife and I sat down in the bar of a local restaurant the other day. It was mid-afternoon—not a typically busy time—but we seemed to have arrived during a little bit of a rush. It took longer than normal for the bartender to get to us and when he did, he looked a little flustered. He grabbed our order in a hurry and there wasn’t much in the way of friendly customer service (certainly not the normal bartender banter). Then it took too long for our drinks to actually arrive. I leaned over to my wife and made the comment: “This place is really under-staffed.” I spoke with the critical, knowing-edge of a sharp-minded business person. “They need to get their act together,” I added firmly.
The next day, as I walked down the hallway of Metro Car Wash, I overheard one of my customers talking to our cashier. The customer said: “Wow, you don’t seem to have many employees today. Is this going to take a long time?”
I quickly hijacked the conversation. I swooped in and assured the customer that her wait time would be around 15 to 20 minutes and that there wouldn’t be any problem in quickly getting her on her way. I smiled confidently, letting her know she could trust me.
“But where are all your employees?” she persisted.
Together we looked around. It did seem quiet. It reminded me of how much had changed in the last few years—how many more employees we used to have—and then it sheepishly reminded me of my comment about the restaurant needing to get their act together the day before.
The truth is, most business have fewer employees these days. And no one should be surprised by this. It doesn’t matter what your politics are, it’s about economics.
First, we’re still seeing the effects of the increases in Minimum Wage. Minimum Wage increases may be good in the long run, but in the short term, businesses have to figure out how to deal with this increased cost. They have two choices. They can either (a) raise prices or (b) cut jobs. And let’s face it, in this economy, raising prices doesn’t sound like a great idea.
At the car wash, we had to completely re-engineer our Operations Model to be able to provide the same quality, in the same time, at the same price, with fewer people. It wasn’t an easy task. But it had to be done. And the hard work paid off. We’re a better Company for it. We’re more efficient and we’ve kept our prices low. The only problem: it doesn’t change the fact that we’re employing far fewer hard-working Americans.
It got me thinking about the bartender and the restaurant. This establishment was fighting against the same economic forces as any business: a sputtering economy, fewer dollars being spent, and rising costs. They needed to survive, and they were working hard to do so. But one of the things they hadn’t done? They hadn’t raised their prices. The cost of our drinks (and subsequent meals) were about the same as they were a few years ago. As a matter of fact, there were a few specials that might have made things even cheaper.
I had complained about the lack of service. But the truth was, we had just dropped in during an unplanned rush. They couldn’t have known they would be busy then. And they shouldn’t have staffed more employees just for us. Staffing extra bodies to handle a potential rush in a bad economy isn’t a good business decision … at least not if you want to keep prices low for your customers. It was me that had been wrong, because I’d been impatient.
Look, I’m not saying you should ever have to be satisfied with poor customer service. You shouldn’t. But what I am saying is this: Maybe, just maybe, we can all learn to be a little more patient in this rough economic time. If things take just a little longer, because a struggling business is trying to watch their expenses, it might be good to remember that they’re saving you a little money too.
The other thing I’m saying: If we all work together, we just might get through this mess.
And of course, stay clean my friends.
-DJ DripDry