When push comes to shove in the face of economic constraints, resilient entrepreneurs have a knack of coming up with new franchise opportunities that can withstand the roughest of business conditions and circumstances.
Take the auto industry for instance. It had to take quite a few hard punches from the oil crisis. Then, the housing and financial meltdowns caused slumps in sales throughout most of its sectors. Eventually, US car manufacturers responded with drastic overhauls. These resulted in building smaller and more fuel-efficient vehicle models.
Car Wash Industry Roll With the Punches
Likewise with the car wash industry. When sales dipped due to rising employment and decrease in disposable income, it responded on multiple fronts.
First, industry players made car wash easier for motorists by offering user-friendly touch screen technology that sped up their wash experience. They also made it easier for customers to make payments. For example, businesses in the industry started accepting debit cards. Moreover, they brought in systems that clean, shine, and protect vehicles better. New franchise opportunities that use innovative equipment and practices started to come to the front.
The tough economic times also meant that small to medium-sized businesses had to roll up their sleeves. Especially when it came to thinking of innovative ways to increase their income streams. Mobile businesses, in general, became ever more popular. Mobile car washing and detailing was no exception to the rule. This meant that customers could have their vehicles washed and detailed at a time and place convenient to them. This is also a cost saving for them as they do not have to go out of their way to drive to a detailing outlet.
Despite the decline during those tumultuous 2000-2010 years, conveyor belt car washes fared better than others. Nonetheless, car wash equipment sales started to pick up in 2011.
Eco Concerns Spur New Franchise Opportunities That Are Green
Back in 1977, the Environmental Protection Agency (EPA) issued its Clean Water Act. It put into place stipulations that protect and preserve our environment by disallowing the discharge of pollutants into a storm sewer system or into a city street that drains to a storm water inlet. The EPA recommended that companies and individuals alike wash their vehicles at car washes. This was and is a big plus for car wash owners.
Further on in June 2006, the EPA introduced its WaterSense Program. Its purpose was to educate the nation on the importance of protecting our water supply. It recommends using less water or water-efficient products and techniques.
Throughout, both car wash business owners and vehicle owners have been educated in the importance of water protection and conservation. If a business fails to comply with the Clean Water Act stipulations, it would get stiff penalties and/or other unfavorable consequences. At the same time, vehicle owners continue to learn about constructive green practices that are in the interest of their own well-being. Thus, they are more likely to choose service providers who do the right thing on the right side of the law. Even more so, providers are coming up with new franchise opportunities that focus on innovative services such as cleaning cars with steam! Even our European neighbors are trending towards waterless products and detailing services as well.
State of the Car Wash Industry
According to industry reports, the car wash industry has a low market share concentration. For example, the top 4 companies take in 6% of the industryโs revenue. The rest is made up of large numbers of small scale operators. This poses ample potential to those who have a passion for automobiles and are interested to be in the driverโs seat of their own business. Moreover, research shows that owner-operated car washes deliver the best quality services.
New franchise opportunities such as cleaning cars with steam have proved to withstand the beating from the downturns. They are ripe for the harvest now that the administration increasingly upholds and enforces eco-friendly stipulations.
DetailXPerts has been in the car detailing business since 2006. We have weathered the sub-prime crisis of 2007 and the 2008-2010 financial crises that resulted thereafter. While marginal players struggle to stay in business, we have used that period to shore up our systems, practices, and operations to function even more efficiently in providing new franchise opportunities. Discover more about our eco clean business and how you can become part of it now!
