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Carwash experts predict economy for 2001 (but not too well)

From: Lance
Date: 31 Dec 2000
Time: 17:20:19
Remote Name: 239.st-louis-71-72rs.mo.dial-access.att.net

Comments

Commentary ON The Economic forecast by Car Washings leading analysts, in Auto Laundry News article December 2000.

Carl Howard of NC who is head of the Southeastern Car Wash Association said that past performance is no indication of future results, with regard to the future of the industry in the impending economic weather ahead. He also stated that the carwash industry followed the trends of automobile new sales. Maybe his business does because he washes cars and has little repeat business. The average carwash has only 15% return customers. Ours is the inverse at 85% at http://www.carwashguys.com

Lamar Skarda of El Paso said that orders for new equipment and new carwashes were strong and this indicated increased demand for the industry in 2001. I question that. First off more market competitors means less market share. Demand to start your own carwash is no indication of future demand of potential car wash customers it is only demand for current greed of new business people who hate their jobs. We have had an increase in franchise buyer inquires to yet only a relatively small increased demand in additional market base. Our customer base grows by word of mouth of current customers and not by increase in dirty cars.

Tom Fetter of The Western Car Wash Association who owns a car wash in San Diego, CA has seen a 140% increase in energy costs due to the deregulation of the CA Utilities. He estimates a $4000.00 increase per carwash, wow.

It seems with crime at carwashes on the rise in Urban areas, environmental restrictions increasing in PA, NJ, OR, WA, CA, GA, AL, and all New England States that we have a significant problem there as well. Alos take into consideration the water drought situation in TX, NM, AZ, FL, NC, SC, GA, and parts of AL. Coin-op car washes are hurt by the problem of new five dollar bills and their changers and the new coins like the Indian one dollar coin of which 700,000 are now in circulation and another 500,000 to be released next year, maybe? By the FED.

Bob Katseff of the New England Car Wash Association was most concerned with labor supply, carwash waste water, safety, HF, water conservation and retention of employees.

Although these industry EXPERTS, say there is a positive outlook for the industry in 2001. I beg to differ and believe their biggest fears will come in 2002 as The Car Wash Guys increase market share and exponential growth into nearly every major DMA. I will predict the car wash industry will come to a literal stand still for all operators who ignore the underlining theme in a service business such as washing cars. Customer Service.

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