The car wash industry is growing, with demands for car washes steadily increasing in recent years. But, even with this growth, some car wash businesses still fail. Across the board, a whopping 20 percent fail within their first year, and almost half close within the first five years. It’s a challenge to start a new business of any kind, and car wash startups are no exception.
In our years of experience as car wash builders, we’ve seen our share of poor businesses float belly up for the most trivial mistakes. Luckily, we’ve compiled some common mistakes in this list so you can learn from them and do better.
1. Bad Design
Due to poor site arrangement, approximately half of all car washes constructed “fail” before they open. Most hopes of developing a consistent brand are dashed by difficult-to-navigate mazes and layouts built one-off to accommodate unusual packages. Poor design can frustrate the customer experience, making them less likely to return to that “confusing” car wash.
2. Unsuitable Location
Investors and operators mistake cheap property for a jackpot deal. A low price on land usually indicates you have a poor site and location unless you have the expertise and extreme luck of locating an underserved area. So said, the rule of thumb is, the more you spend on property, the better your car wash will likely perform and the lower the chance of flopping. Conversely, the less you pay on property, the worse your car wash will probably do, and your risk of making upgrades on the inexpensive site will be high.
3. Ineffective Customer Service
Some of the most common business errors are caused by misunderstanding your consumers or believing you know what they want. Doing cheap shortcuts to save money and assuming that your clients are completely happy without studying their needs or soliciting feedback is a formula for disaster in any organization.
You should also be mindful of client satisfaction levels and respond swiftly when you have dissatisfied customers. Missing or disregarding the indications of a disgruntled consumer can swiftly escalate. Trust us, a simple negative online review can get ugly quickly for your prospects.
4. Inadequate Equipment Maintenance
A car wash business relies heavily on specialized equipment which, like any other piece of equipment, requires regular maintenance and will eventually degrade over time. Starting a car wash business demands a significant initial investment in excellent equipment and supplies, and it is critical to preserve this investment. Neglected or improperly maintained car wash equipment may become decrepit or cease to work correctly. Customers will be put off by rusty machines, and you will gradually lose business.
5. Pricing Concerns
Take a close look at the pricing of items and services if you’re curious about why small enterprises fail. For example, it is tempting to set your car wash pricing lower than the competitors in the first year of operation to attract consumers, but this is not a long-term plan. Businesses that do not alter their pricing beyond the initial promotional period risk losing money over time. Setting your rates too high might also be an issue. Customers will avoid your place if the rates are too high.
No one sets out to fail in business, yet it happens. It simply takes a glance at failed businesses to realize that individuals don’t always get it right the first time. This, however, does not prevent individuals from learning from their mistakes and beginning anew. You are on the correct route to car wash business success if you know what mistakes to side step. With Complete Carwash Solutions, you can outwash competitors by a mile by starting with the best car wash equipment or even buy an up and running carwash for sale in Calgary!