Exterior Conveyor Survey

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1 ALNSurveyCOVER:ALNSurvey/6COVER T H E 6/18/14 9:59 AM V O I C E O F Page 33 T H E C A R C A R E I N D U S T R Y Results from the Auto Laundry News 214 Convey Survey

2 Results From The Auto Laundry News Convey Survey214 he 214 Auto Laundry News Convey Survey was conducting through a mailing of questionnaires to a random selection of our subscribers who own and operate exteri convey car wash businesses. The infmation presented in this rept results from an analysis of data provided by respondents from locations throughout the United States. vs. Sites This rept represents part two of our first attempt at separating exteri washes from full- and flex-service operations in our annual convey surveys. A rept on part one, our survey of full- and flex-service operations, appeared in the March issue. F comparative purposes, respondents are, on occasion, separated into two main categies: exteri-only operations and express-exteri sites. A third categy, exteri washes with off-line full service, is employed when relevant. -only participants make up 54 percent of the total response, express-exteri sites account f 33 percent, and exteris with off-line full service round out the total with 13 percent. As was the case in the March survey rept, there is some fluidity in how operats view their washes. F example, although many consider automatic pay stations and free self-serve vacuuming essential elements of the expressexteri fmat, only 57 percent of respondents identifying as such employ the fmer and 67 percent offer the latter. On the other hand, 21 percent of exteri-only respondents make use of automatic pay stations and 35 percent offer free self-serve vacuuming. Revenues Overall, 74 percent of respondents rept increased income compared to the previous year. The graphic on page 4 provides a partial four-year perspective. -exteri participants outperfm exteri-only respondents: an astounding 94 percent of the fmer rept income growth; 66 percent of the latter do so. Even me impressive: not a single express-exteri operation repts declining income, while 25 percent of exteri-only washes do so. -exteri operations rept an average income growth of 12.2 percent over the previous year. -only respondents, who made progress, rept 13.9 percent average growth, while those who experienced reversals rept an average decline in income of 9.8 percent. DAYS ENDS DAYS ENDS EMPLOYEES 2.8 FULL-TIME PART-TIME 4. ENDS EMPLOYEES 2.6 FULL-TIME PART-TIME 2. COMPETING CONVEYOR WASHES IN AREA NUMBER OF COMPETITORS MORE THAN 5 OPERATORS REPORTING 8% 24% 28% 17% 11% 7% with Off-line Full Service DAYS EMPLOYEES 4.9 FULL-TIME PART-TIME 8.8 AUTO LAUNDRY NEWS JULY

3 PERCENTAGE OF WASH BUSINESS DONE BY DAY OF WEEK BY REGION MON TUES WED THURS FRI SAT SUN Pacific Alaska-Califnia-Hawaii-Oregon-Washington Mountain Arizona-Colado-Idaho-Montana-Nevada- New Mexico-Utah-Wyoming Midwest Iowa-Kansas-Minnesota-Missouri-Nebraska- Nth Dakota-South Dakota * * * * * * * Central Illinois-Indiana-Michigan-Ohio-Wisconsin South Central Alabama-Arkansas-Kentucky-Louisiana Mississippi-Oklahoma-Tennessee-Texas Southeast Delaware-Flida-Gegia-Maryland Carolinas-Virginia-West Virginia Mid-Atlantic New Jersey-New Yk-Pennsylvania New England Connecticut-Maine-Massachusetts- New Hampshire-Rhode Island-Vermont * Too Few Responses º PERCENTAGE OF WASH BUSINESS DONE BY SEASON BY REGION WINTER SPRING SUMMER FALL Pacific Mountain Midwest * * * * Central South Central Southeast Mid-Atlantic New England * Too Few Responses OPEN SUNDAY 97% OPEN 24 HOURS % 9% 4% DAILY TRAFFIC COUNT ANNUAL WASH VOLUME MONTHLY IMPULSE SALES 36,6 64,84 $219 28,8 73,789 $35 36 AUTO LAUNDRY NEWS JULY 214

4 % 41% 29% OTHER BUSINESS ON SITE 21% 18% ONLY EXPRESS 9% 1% SELF-SERVE GAS SALES C-STORE FAST LUBE DETAIL OTHER 14% Wheel Cleaner Undercarriage Spray Rust and Inhibit Triple Foam SERVICES OFFERED ON THE CONVEYOR Clear-Coat Protectant Spot-Free Rinse Tire Dressing Hot Wax Heated Dry Hand Dry 89% 91% 87% 91% 58% 43% 1 23% VACUUMS 1 12 INDIVIDUAL CENTRAL NUMBER OF STALLS 12% TYPE 88% 48% 52% TUNNEL ENTRY % 57% ONLY EXPRESS 57% 73% 9% 3 YES 6 NO FREE 67% YES 33% NO % Live Greeter Auto Pay Station Help Loading Convey AUTO LAUNDRY NEWS JULY

5 PERCENTAGE OF OPERATORS USING FOLLOWING EQUIPMENT TUNNEL LENGTH FRICTION WASH 78% TOUCHLESS WASH HYBRID WASH FLAT BELT CONVEYOR OVER AND UNDER CONVEYOR 11% 11% 84% ONLY 12 FEET EXPRESS 19 FEET SURFACE CONVEYOR 1% WASHING CURTAINS STATIONARY MITTER CURTAINS MOTORIZED MITTER CURTAINS 27% 12% 7 OPERATE COIN-OP BAYS ON SITE PREP GUNS COMPUTERIZED CONVEYOR SERVICE 7 6 ONLY EXPRESS HIGH-PRESSURE FLOOD ARCH WAX ARCH 41% 88% 41% 29% FOAM APPLICATOR TOP BRUSH TIRE BRUSH ROCKER BRUSH WRAPAROUNDS WINDOW SIDE BRUSH REVERSE OSMOSIS SYSTEM AIR DRYERS DRYING CURTAINS 7 63% 69% 78% 39% 98% % NUMBER OF BAYS NEW WASH BUILT WITHIN THE PAST YEAR WATER RECLAIM SYSTEM TIRE DRESSING APPLICATOR WATER REPELLENT ARCH BUBBLER ARCH 2% INCOME: CURRENT YEAR VS. PREVIOUS YEAR 61% NOT AVAILABLE 19% 74% 9% 2% 19% 43% 4 6 PURCHASE PRICE OF THE NEW PROPERTY (LAND ONLY) $675, MONTHLY RENT (too few responses) COST OF IMPROVEMENTS (BLDG., LANDSCAPING ETC.) $1,833, COST OF EQUIPMENT $68, MORE SAME AS LESS 4 AUTO LAUNDRY NEWS JULY 214

6 ADVERTISING & PROMOTION 53% 31% 5 5 of operats advertise 7 of operats advertise 13% % NEWSPAPERS DIRECT MAIL RADIO TV YELLOW PAGES SOCIAL MEDIA 47% 63% OPERATING COSTS / Operating Costs (AS A PERCENTAGE OF TOTAL REVENUES) ACCESS TO THE INTERNET 87% YES RENT EQUIPMENT & BLDG. MAINTENANCE 15.8% 4.4% CHEMICALS 7.% WEBSITE 54% YES LABOR UTILITIES INSURANCE FULL SERVICE % ADVERTISING & PROMOTION 2. EQUIPMENT ON LEASE % CUSTOMER CLAIMS.8% 5 GROSS REVENUE PER CAR 48% GROSS REVENUE PER CAR 4 33% 38% 3 27% 24% % 3% % % % $4-$7 $7-$9 $9-$12 $12-$15 $15-$18 $18+ $8.19 AUTO LAUNDRY NEWS JULY

7 HOW FAR DO CUSTOMERS COME? (Percent from within 2-mile radius, 3-mile radius, etc.) LABOR COSTS 83% 9% 43% 81% 4% miles 2 3 miles 4 miles 5 8 miles miles 1 miles AVG. WAGES PER HOUR PER EMPLOYEE 8% PAID MINIMUM WAGE 12% PAID MINIMUM WAGE to $8 PER HOUR 57% PAID $8. to $1. PER HOUR 23% PAID OVER $1. PER HOUR EMPLOYEE UNIFORMS FULL PARTIAL NONE 21% OPERATORS SELLING GASOLINE YES 13% NO 87% % JAN 31% 8% PERCENTAGE OF OPERATORS REPORTING AS THEIR BEST MONTH OF THE YEAR 9% 1% 3% 3% 2% % % % FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC 42 AUTO LAUNDRY NEWS JULY 214

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