Why you need to get market share, now.

You need to get Market Share, now.

Why you very well may lose your wash during the next downturn, and how to stop it.

This post is not for the weak hearted, but it’s necessary. A real friend, as they say, will tell you the truth, even if it’s uncomfortable.

The truth is many of us have had it way too easy. The ease of this model, monthly recurring revenue and how customers love it and are “hooked” to it, has made MOST owners very complacent, overconfident, and have given a false sense of security. When the economy dips, and it will dip, only those who went all in with urgency, humility, and skill will survive.

At the moment there is “enough business for all of us”, at the moment. The reality is, for anyone willing to take the time to study, many items of daily life have gone up not 6%, but more like 20-30% and more. Used cars, food, consumables, labor… it’s all going up significantly.

So when the average family has to start cutting expenses, oh and btw many have the opportunity to drive less, or even go down to one vehicle as they work from home, do you think they are going to cut calories out of their diet? Do you think they’re going to cut their Netlix and Disney+ subscriptions, they’re gaming or entertainment of any kind? No, because that’s not what societies do when finances get tight.

Typically, necessities of life (discount stores), food (obviously), DIY stores (home depot’s), sin and escapism (alcohol, sweets, and entertainment), these are the industries that thrive, your wash isn’t one of those.

Now I’m not saying washes won’t survive, many certainly will. But when your town has 5 of them, or 25 of them, chances are only a percentage will make the cut. There is only so much disposable income to go around, and when things tighten, inevitably businesses will fail, especially oversaturated ones.

Scared yet? I hope you’re at least concerned. This is very real.

To survive, you need to be the alpha, you need to get market share, and you need to get it NOW.

How does one get market share and become alpha? Here are a few key points and fundamentals:

1. 
   Look professional and have a SAFE environment that is well lit.
2. Uniforms
3. Clean Lot
4. Lighting and visible from the road.
5. Great sign that says (CAR WASH) as big as possible, worry about branding after they get on the lot (slight variation for multiple sites).
6. Most of you are invisible to daily traffic.
7. “But everyone knows we’re here!”
8. No, no they don’t, and when you get a good sign you’ll realize that.
9. Electric signs are overrated, read my post about negative space to help shed some light on that (no pun intended).
10. Do less, BETTER
11. Stop trying to be everything to everyone, offer less options, do less “things”, but do those things better and with excellence. It’s just a more efficient way of operating.
12. This doesn’t mean to ignore what the customer wants, it means to focus on what the majority want, and do it better (hint: trained friendly people, clean car, FAST)
13. Interact with every customer possible and SELL MONTHLY’s
14. This is not an exaggeration, MOST, absolutely MOST washes can have double the members they currently have if they applied themselves better, which is the whole reason for this specific writing.
15. Be proactive in your community
16. Work with the schools, veterans, and/or any other organizations you can think of and link yourself tightly to the community. Small gestures can go a long way.
17. Do fundraisers at least a few times a year.
18. Get more efficient
19. I know “your customers love prep.”  But you’re going to have to figure out a way to do it more efficiently and cut some labor.
20. Be prepared to sacrifice and have cash
21. No one wants to hear this, but you as the owner may have to take a pay cut, maybe even a significant one. Be prepared to do that for the long term goal. If/when a pullback happens, outlasting the other guy is one thing you need to do.

For those of us who are a little seasoned in retail business, we’ve been through this before. I hate to be the one to bring this up, but it’s absolutely necessary for those who want to take this seriously. In my opinion, we could lose up to 50% of these types of businesses. When this happens, while the market share in general shrinks, as businesses (washes) go under, you can grab a portion of their market, long term, this will be a benefit as the economy grows again, though it will change. Get the market share, get the market share, go out and please get the market share, it’s absolutely necessary.

Many may not agree with this post, and that’s okay. The absolute best thing that can happen to you and myself, is for me to be wrong and this post to be unnecessary. I’ll embrace that any day. However it’s better for all of us, if you prepare as if it is going to happen, there is no negative to this besides some hard work and intention. Good luck.