T H E V O I C E O F T H E C A R C A R E I N D U S T R Y

SELF-SERVICE SURVEYResults from the Auto Laundry News

2016

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53

2016 Self-Service Surveyhe 2016 Auto Laundry News Self-Service Survey was conductedthrough a mailing of questionnaires to a random selection ofsubscribers who own or operate self-service car wash locations.

The information in this report results from an analysis of data provided byrespondents throughout the United States.

On occasion, for purposes of comparison, survey responses fromsites with in-bay automatics (sites with) and sites without this type ofequipment (sites without) are tabulated separately. In the current survey,participating locations with in-bay automatics make up 57 percent of thetotal response.

RevenuesAs the graphic on page 55 shows, self serves have experienced some

ups and downs over the past few years.While steadily improving perform-ance over the long haul, this segment of the industry was dealt minorsetbacks in 2011 and 2014. In the current survey amajority of respondentsare again able to report progress. Overall, 51 percent enjoyed greaterincome than one year ago. This compares to 48 percent in the previoussurvey who experienced improvement. Perhaps more telling, only 14percent report a drop in income compared to the previous year — animprovement over the 20 percent who did so last year.

Siteswith continue to outperform siteswithout.While the gap narrowedin the previous survey, it has expanded in the current one: 60 percent of theformer (50 percent last year) report higher revenues, while 38 percent (45percent last year) of sites without do so. Inmeasuring reversals, the separa-tion is less pronounced: 12 percent of sites with report generating less rev-enue than last year (16 percent last year), while 14 percent of sites without

do so (24 percent last year). Sites with realize $1,956 monthly income($1,579 last year) per wandwash bay compared to $1,139 for sites without($1,284 last year).

EquipmentOverall, 57 percent of self-service washes have in-bay automatics on

site, 2 percent have full-service, and 4 percent have flex-serve. Thesenumbers closely track the results in the previous survey. However, thepercentage of locations with an express-exterior wash on site has gonefrom 6 percent last year to 11 percent currently.

As was the case in the previous two years, sites with added newequipment during the previous 12 months in greater numbers than didsites without — 29 percent compared to 18 percent. The disparity wasfar greater last year: 33 percent versus 13 percent. In-bay automatics,handheld wand-bay dryers, and in-bay credit card acceptance were themost popular addition— just as theywere last year.

Twenty eight percent of sites with and 32 percent of sites withoutare planning to purchase equipment during the 12 months ahead. Hand-held wand-bay dryers are the number one pick. The graphic below showsfurther detail.

RESPONDENTS OPERATINGAN IN-BAY AUTOMATIC ONTHEIR COIN-OP LOCATION

43%NO

57%YES

NEW EQUIPMENT

Credit CardAcceptance

12%

Bill Changer

7%

In-BayHandheldDryer

24%

In-BayAutomatics

17%

Results From The Auto Laundry News

29% of operators plan to add equipment in thenext 12 months

ACCESS TOTHE INTERNET86% YES

WEBSITE42% YES

Others

18%

Self-ServeEquipment

5%

LEDs

12%

Reclaim

5%

AUTO LAUNDRY NEWS MAY 2016

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54 AUTO LAUNDRY NEWS MAY 2016

0

5

10

15

20

25

30

35

40

MARCH FEBRUARY

37%

15%12%

APRIL

ATTENDANT

20%

39%

41%

FULL-TIME

PART-TIMENONE

13%

42%

45%

15%

38%

47%

20%

39%

41%

18%

51%

31%

2011 2012 2013 2014 2015

PERCENTAGE OFWASH BUSINESS

DONE BY DAY OF WEEKPERCENTAGE OFWASH BUSINESSDONE BY

HOUR OF THE DAY

MONDAY10% TUESDAY

7%

WEDNESDAY9%

THURSDAY10%

FRIDAY18%

13%

21%

25%

30%

8%

3%

SATURDAY27%

SUNDAY19%

3:00 PM- 7:00 PM

7:00 PM -MIDNIGHT

NOON - 3:00 PM

10:00 AM - NOON

8:00 AM -10:00 AM

WINTER SPRING SUMMER FALLPacific 20 25 36 19Mountain 30 28 20 22Midwest 28 27 22 22Central 37 23 22 18South Central 29 28 16 27Southeast 27 30 18 25Mid-Atlantic 35 31 19 15New England 35 28 23 15NOTE: Some results do not total 100 due to rounding

PacificAlaska-California-Hawaii-Oregon-Washington

MountainArizona-Colorado-Idaho-Montana-Nevada-New Mexico-Utah-Wyoming

MidwestIowa-Kansas-Minnesota-Missouri-Nebraska-North Dakota-South Dakota

CentralIllinois-Indiana-Michigan-Ohio-Wisconsin

South CentralAlabama-Arkansas-Kentucky-Louisiana-Mississippi-Oklahoma-Tennessee-Texas

SoutheastDelaware-Florida-Georgia-MarylandCarolinas-Virginia-West Virginia

Mid-AtlanticNew Jersey-New York-Pennsylvania

New EnglandConnecticut-Maine-Massachusetts-New Hampshire-Rhode Island-Vermont

PERCENTAGE OF WASHBUSINESS DONE BY SEASON

BY REGION

MIDNIGHT-8:00 AM

VOTED BEST MONTHS

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55AUTO LAUNDRY NEWS MAY 2016

0102030405060

INCOME (COMPARED TO PREVIOUS YEAR)

EXPANSION PLANS

HIGHER SAME LOWER

2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015

27%24%

36%

52%48%

51%

24%29%

34% 32%35%

29%

49% 47%

30%

19% 20%14%

HOURSOF OPERATION

OPEN SUNDAYS

100%

OPEN 24 HOURS

94%

RESPONDENTS WHOOPERATE A COMBINED

AUTOMATIC/SELF-SERVICE FACILITY

58%AUTOMATICWASHREVENUESASPERCENTAGEOFTOTALINCOME

42%SELF-SERVE

WASHREVENUES

ASPERCENTAGE

OFTOTAL

INCOME

Planning to Buy Planning to Build

0

1

2

3

4

5

MORETHAN 5

COMPETING SELF-SERVEIN AREA

27%

11%

NUMBER OF COMPETITORS OPERATORS REPORTING

0

2

4

6

8

10 BUY VS. BUILD

2009 2010 2011 2012 2013 2014 2015

9%

5%6%

4% 4%

1%

4%

5%

8%

5%

6%

9%

3%

Expansion Plans: Buy vs. Build(in next 12 months)

5 10 15 20 25 30

7%

9%4%

20%

7%

22%

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58 AUTO LAUNDRY NEWS MAY 2016

EXPENSES (Operating Costs As Percentage of Total Monthly Revenues)

ELECTRICITY

CHEMICALS

VENDING PRODUCTS

SOFTENER SALT

COLLECTION

LOT SWEEPING

ATTENDANT LABOR

BOOKKEEPINGREPLACEMENT PARTS

NORMAL WEAR AND TEAR

REPLACEMENT PARTSVANDALISM

VEHICLE DAMAGE

REFUNDS

PIT PUMPING

ADVERTISING & PROMO

FUEL (GAS, OIL, ETC.)

WATER

SEWER

THE AVER-AGE

MONTHLYGROSS IN-COME

FOR VEND-ING WAS

THEAVERAGEMONTHLY

GROSSINCOME

PERVACUUM

WAS

$263

$1,652

THE AVERAGEMONTHLYGROSSINCOMEPER BAYWAS

0 3 6 9 12 15

6.3%

5.1%

5.6%

5.6%

6.5%

1.1%

1.2%

1.6%

*

*

2.3%

5.1%

1.8%

0.5%

2.4%

2.0%

13.2%

$252

*Too Few Responses

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AUTO LAUNDRY NEWS MAY 2016

Yes 57%

45% 55%

No 43%

PRICEVACUUMS

PRICE PER MINUTE

HASHURT

BUSINESS

HAS NOTHURT

BUSINESS

00

55

1010

1515

2020

2525

3030

0

10

20

30

40

50

60

WASH BAYSPRICE PER MINUTE

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

23.6¢ 24.6¢23.2¢26.2¢ 27.0¢

44.2¢ 45.8¢50.1¢ 51.7¢48.5¢

EXPRESSEXTERIORNEARBY

59

WATER SOFTENER

WATER HEATER

COLD WATER RINSE

SPRAY WAX

LIQUID TIRE/ENGINE CLEANER

FOAMING TIRE/ENGINE CLEANER

TRIGGER GUNS

FLOOR MAT HANGERS

VENDING MACHINES

VACUUMS

AIR DISPENSER

FRAGRANCE DISPENSER

CARPET CLEANING MACHINE

BILL CHANGER

SPOT FREE RINSE WITH R.O.

SPOT FREE RINSE WITH D.I.

FLOOR HEAT

FOAMING BRUSHES

SOAPY WATER BRUSHES

VIDEO SURVEILLANCE

BURGLAR ALARM, SAFE

IN-BAY HANDHELD AIR DRYER

DOORS

PRESOAK

MULTI-COLORED FOAM

CREDIT CARD ACCEPTANCE

WATER RECLAIM SYSTEM

SURFACE PROTECTANT

TOKEN ACCEPTANCE

IN-BAY BILL ACCEPTANCE

CURRENT EQUIPMENT

79%

81%

74%

49%

23%

61%

92%

6%

57%

95%

91%

77%

62%

30%

43%

60%

62%

32%

16%

43%

49%

97%

74%

19%

88%

91%

96%

91%

80%

0 10 20 30 40 50 60 70 80 90 100

44%

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60 AUTO LAUNDRY NEWS MAY 2016

0

10

20

30

40

50

0

10

20

30

40

50

60

70

80

0010102020303040405050606070708080

MARKET SIZE

34%46%

20%

33%

21%

71%

9%

66%60% 58%

21%19% 16%8%

4%7% 5% 6% 7%2% 3%2% 2%

7% 8%

93%10 mile

s orles

s

78%8 mile

s orle

ss

71%5 mile

s orle

ss

43%4 mile

sor

less

39%3 mile

sor

less

11% 2 miles

orle

ss

HOW FAR DOCUSTOMERS COME?

1site 2 sites 3 sites 4 sites 5 sites More than 5

AUTOMATICS

0

1000

2000

3000

4000

5000

6000

7000

8000

AVERAGE MONTHLY EXPENSE PERAUTOMATIC

$5,506$5,955

$6,355 $6,579

$7,449

$2,471 $2,300 $2,079 $2,169

$3,382

AVERAGEMONTHLYGROSSINCOMEAND

EXPENSE

SITE LOCATION

AVERAGE MONTHLY GROSS INCOME PER AUTO-MATIC

2013

2014

2015

MARKET INCOMELEVEL

LOW

URBAN

MID

DLE

SUBU

RBA

N

HIGH

RU

RAL

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

PERCENTAGE OF OPERATORSWITH MULTIPLE SITES

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