For some people, car wash industry statistics is just a bunch of useless numbers. But for a car wash or auto detailing business owner, understanding car wash industry statistics is essential for the success of his business. According to Six Sigma Online, “Statistical facts can help determine the value of any given business procedures. Managers who fail to recognize the importance of statistical analysis could very well doom their business enterprises to failure.”
How does your car wash industry analysis and understanding help your business?
5 Essential Uses of Car Wash Industry Statistics
1. Market Research
There are various ways to conduct car wash market research. It is important to note though, that a lot of your marketing plans and strategies can be completed efficiently when analyzed with car wash industry statistics.
Let’s take choosing the location of your car wash business as an example. With over 60,000 car wash businesses located nationwide, picking a location can’t be based on “gut feel” alone. You would not want your car wash to be located in the middle of several car washes where you would have to fight tooth and nail for customers. Or you might make the mistake of choosing a location next to a no traffic area. Truly, it would be difficult for you to increase youir capture rate.
Some detailing business owners calculate the capture rate based on the traffic count. The traffic count may be obtained from your local government. Once you have that data, the approach is to multiply capture rate and average traffic. An example given by a car care online magazine, Auto Laundry News is as follows: “For example, capture rate of 0.00829 times traffic of 29,000 equals 240 cars a day. If the wash is expected to be open 312 days, annual sales volume would be 75,000.”
The purpose of this statistical data is to make sure that even if only a small percentage of the traffic stops by your car wash, it would still be enough to sustain the business and earn profit. The same car magazine however, cautions that you have to take care in calculating the capture rate. As you continue with your car wash business over the years, capture rate will not be so accurate anymore as you will have loyal customers who will be coming back. In short, you may still have 75,000 washes a year, but it may not necessarily be 75,000 different individuals.”
The traffic count and capture rate will be useful in picking the best location for your car wash franchise as long as you understand the information and know how to use it. Apart from that, it will also help you determine whether a full service car wash, self-service car wash or a tunnel car wash is best for your chosen location. In addition, you can also use current statistics to get to know more about your competitors’ profile. Do you want to know more about the latest trends in the detailing business? You can use car wash industry statistics to get in tune with the latest trends.
2. Inventory of Supplies and Car Wash Management
As with any business venture, preparation is the key for a successful car wash and detailing business. Being aware of car wash industry statistics is very useful in ensuring that your car wash is ready for your customers. Knowing how many cars a day will stop by for a wash will help you determine the volume of stock to keep in your inventory, at least to start with. Let’s say you have a tunnel car wash. How many cars will go through? How many gallons of water will you need? Statistical data released by Statistic Brain on Car Wash Industry Statistics will tell you that the average number of cars washed per year in a tunnel car wash is 45,750 cars. Meanwhile, BrandonGaille.com estimates that it takes 38 gallons of water to wash one car. You can then base your initial stock of supplies on these figures.
When starting a car wash business, it is important to accomplish realistic financial assumptions. Since you have not yet started, your assumptions will be hugely based on car wash industry statistics. How much is your annual sales going to be? Again, this will be based on your projection of the number of washes you will do in a year. Let’s say that your projection is 75,000 washes per year. If your car wash cost, for example, is $10, then you can roughly estimate an annual sales of $750,000. Just be sure to consider the different services that your car wash may offer and their respective rates.
Another essential use for car wash industry statistics is ensuring that you deliver quality service. Knowing the busiest season and the busiest days can greatly help you in ensuring that you have the right number of people at the right time. According to Statistic Brain, Saturday is the busiest day of the week with 25% of the weekly washes, while winter is the strongest season of the year with 32% of the sales. Understanding these car wash industry statistics can help you create a more efficient staff schedule. It would also be a good idea for you to have full inventory on these days. You would not want to turn a customer away just because you’re out of washers or car shampoo, would you?
Bookkeeping is another aspect in the car wash business where you can put car wash industry statistics to good use. In an article entitled “Accountants in the Big Data Age Better Know Statistics” posted in Accounting Degree.com stated that in an age of Big Data, statistical analysis is becoming an increasingly powerful tool for accountants. For a car wash business owner, it is important to know that statistical models and methods are best used to determine retirement and other benefits of your employees.
Understanding car wash industry statistics provides car wash business owners the tool and confidence to make smarter decisions. These figures will ensure you that you won’t go about your car wash business blindly. It is important to note that knowing the numbers is not enough. You have to understand them to know how to utilize them for the success of your car wash and detailing business.
Just like car wash industry statistics, the car wash and auto detailing world is dynamic. Unravel more car wash industry tips and car wash management trends by checking our blog.