Detail Survey Cover:Detail Survey Cover T H E V O I C E 12/24/13 O F 10:45 AM T H E Page 33 C A R C A R E I N D U S T R Y Results from the Auto Laundry News 2014 Detailing Survey
2014 Detail Survey he 2014 Auto Laundry News Detailing Survey was conducted through a mailing of questionnaires to a random selection of subscribers who provide detailing services at their car care businesses. The information contained in this report results from an analysis of data provided by 126 respondents from across the United States. This is the first of five industry-segment survey reports that will appear in Auto Laundry News in 2014. INCOME COMPARED TO LAST YEAR 58% 16% 2013 INCOME LESS THAN IN 2012 RESPONDENT POOL PROFILE For comparative purposes, respondents are, on occasion, separated into three main categories: freestanding detailing shops (Freestanding), detail shops run in conjunction with a car wash (Car Wash Combo), and mobile detail services (Mobile Services). A fourth category, detail shops run in conjunction with a business other than a car wash (Other Combo), such as a gas station, fast lube, etc., is employed when WINTER SPRING SUMMER FALL Pacific 21 17 46 16 Mountain 15 31 30 24 Midwest 14 19 47 20 Central 15 32 32 21 South Central 21 23 33 23 Southeast 30 26 23 21 Mid-Atlantic 13 31 32 24 New England 17 32 24 27 KEY PERCENTAGE OF DETAIL BUSINESS DONE BY SEASON BY REGION Pacific Alaska-California-Hawaii-Oregon-Washington Mountain Arizona-Colorado-Idaho-Montana-Nevada- New Mexico-Utah-Wyoming Midwest Iowa-Kansas-Minnesota-Missouri-Nebraska- North Dakota-South Dakota Central Illinois-Indiana-Michigan-Ohio-Wisconsin 2013 INCOME MORE THAN IN 2012 26% 2013 INCOME SAME AS IN 2012 Results From The Auto Laundry News South Central Alabama-Arkansas-Kentucky-Louisiana- Mississippi-Oklahoma-Tennessee-Texas Southeast Delaware-Florida-Georgia-Maryland Carolinas-Virginia-West Virginia Mid-Atlantic New Jersey-New York-Pennsylvania New England Connecticut-Maine-Massachusetts- New Hampshire-Rhode Island-Vermont OPERATOR PROFILE Freestanding Detail Shop Mobile Detailing Full-Service Conveyor Car Wash Exterior-Only Car Wash Self-Serve Car Wash In-Bay Automatic Oil Change/Lube Gas Station C-Store relevant. The categories break down as follows: Detailer Type % of Total Freestanding 45 Car Wash Combo 38 Mobile Services 12 Other Combo 5 PERFORMANCE In every survey since our 2011 report, the percentage of respondents, overall, reporting improvement in their business over the previous year has grown. That trend continues. In the current survey 58 percent of participants, overall, report such progress. That compares to 53 percent who recorded improvement last year and 40 percent who did so in 2012. Mobile Services put in the best performance with 80 percent of respondents in this category reporting improvement compared to 57 percent of Freestanding shops and 50 percent of Car Wash Combos. Overall, the percentage of respondents who experienced reversals in business fortunes remained unchanged from one year ago at 16. All Freestanding shops offer their retail customers both separate and combined interior and exterior packages; they don t afford wholesale customers the same choice. While 77 percent of Freestanding shops do complete interior/exterior wholesale packages, only 63 percent offer wholesale customers the option to choose either an interior or an exterior packages. For Mobile Services this gap is even wider: 40 percent versus 20 percent. Car Wash Combos, too, exhibit this disparity: the figures for this category are 77 percent and 70 percent. FUTURE Overall, 15 percent of respondents plan expansions in the next 12 months. Detailers are sticking to detailing while Car Wash Combos are looking at both wash and detail opportunities. 12% 12% 7% 2% 9% 1% 4% 45% www.carwashmag.com 35
AVERAGE TIME REQUIRED TO COMPLETE STANDARD DETAIL PACKAGE FREESTANDING CAR WASH COMBO MOBILE OTHER COMBO 5.0 HOURS 3.7 HOURS 4.9 HOURS 4.5 HOURS DETAIL SERVICE PRICES CHARGE FROM A FIXED-PRICE MENU 41% CHARGE ACCORDING TO PER-CAR ESTIMATE USE BOTH METHODS 12% 47% AVERAGE NUMBER OF CARS DETAILED ANNUALLY 2 0 1 3 FREESTANDING 1,552 CAR WASH COMBO 2,420 MOBILE SERVICE 1,113 EMPLOYEE UNIFORMS FULL PARTIAL NE 10% 70% 20% COMPETING DETAIL SHOPS IN AREA NUMBER OF COMPETITORS 0 1 2 3 4 5 MORE THAN 5 OPERATORS REPORTING 3% 19% 14% 17% 5% 13% 36 www.carwashmag.com
HOW FAR DO CUSTOMERS COME? (% from within 2-mile radius, 3-mile radius, etc.) 62% 35% 40% 8 % 17% 3 miles or less 2 miles 5 miles or less 8 miles or less 10 miles or less CUSTOMER PROFILE RETAIL VEHICLE PROFILE 74% Retail 3% Taxi/Limo 21% Auto Dealers 2% Other (Fleets,Body Shops, Etc.) 17% New (under 1 yr. old) 21% 1-2 yrs. old 36% 3-5 yrs. old 26% 5+ yrs. old OPERATING COSTS AS PERCENTAGE OF REVENUE RENT 13.3% EQUIPMENT/SUPPLIES/MAINTENANCE 6.4% CHEMICALS (incl. soap, wax, compound, etc.) 7.6% LABOR 38.1% UTILITIES (incl. water/sewer) 5.7% ADVERTISING & PROMOTION CAR WASH TODAY 3.5% INSURANCE 4.1% CUSTOMER CLAIMS 0.8% www.carwashmag.com 37
OFFER EXPRESS FREESTANDING CAR WASH COMBO MOBILE YES 59% 71% YES 41% 20% YES 80% TYPE STANDARD EQUIPMENT HI-SPEED BUFFER ORBITAL WAXER PAINT THICKNESS GAUGE 21% VACUUMS WET/DRY VACS CARPET/UPHOLSTERY EXTRACTOR STEAM-CLEANING MACHINE PRESSURE WASHER CARPET SHAMPOOER OZONE MACHINE MICROFIBER CLOTH DETAILER S CLAY SURFACE PREP TOWEL/PAD 44% 30% 48% 40% 52% PERCENTAGE UTILIZING 95% 68% 87% 87% 79% 76% 90% 87% RETAIL CONSUMER PROFILE 56% MALE 44% FEMALE AVERAGE MONTHLY GROSS INCOME (DETAIL ONLY) FREESTANDING $14,282 CAR WASH COMBO $12,295 MOBILE SERVICE * * TOO FEW RESPONSES EMPLOYEE TRAINING IN SAFE CHEMICAL HANDLING YES 90% 10% 40 www.carwashmag.com
RETAIL FREE- STANDING CAR WASH COMBO MOBILE SERVICE COMPLETE INTERIOR/EXTERIOR DETAIL $187.07 $188.09 $181.43 INTERIOR DETAIL ONLY $98.46 $102.26 $104.17 EXTERIOR DETAIL ONLY $106.79 $107.65 $97.00 WHOLESALE AVERAGE PACKAGE PRICES FREE- STANDING CAR WASH COMBO MOBILE SERVICE COMPLETE INTERIOR/EXTERIOR DETAIL $128.33 $142.37 $130.00 INTERIOR DETAIL ONLY $72.37 $81.76 $75.00 EXTERIOR DETAIL ONLY $75.26 $85.29 $82.00 LABOR COSTS PERCENTAGE OF DETAIL BUSINESS DONE BY DAY OF THE WEEK AVG. WAGE PER HOUR PER EMPLOYEE FREE- STANDING CAR WASH COMBO MOBILE MONDAY 17 15 12 TUESDAY 18 12 13 WEDNESDAY 18 16 13 THURSDAY 20 15 19 10% PAID MINIMUM WAGE 33% PAID MINIMUM to $10.00 PER HOUR 37% PAID $10.00 to $12.00 PER HOUR 20% PAID OVER $12.00 PER HOUR FRIDAY 20 21 23 SATURDAY 7 16 20 SUNDAY 0 5 0 www.carwashmag.com 41
A LA CARTE SERVICE PERCENT OFFERING AVERAGE PRICE OVERALL FREESTANDING CAR WASH COMBO HAND WAX MACHINE WAX/BUFF CARPET SHAMPOO UPHOLSTERY CLEANING LEATHER/VINYL (INT.) DRESSING VINYL/RUBBER (EXT.) DRESSING DEODORIZING PAINT TOUCH-UP PAINTLESS DENT REMOVAL WINDSHIELD REPAIR EXTENDED UPHOLSTERY PROT. EXTENDED PROT. PAINT SEALANT HEADLIGHT RESTORATION ENGINE CLEANING WINDOW TINTING PINSTRIPING 74% 63% 73% 74% 60% 47% 49% 21% 14% 30% 61% 64% 13% 14% $69.96 $59.80 $106.04 $72.71 $54.75 $42.29 $52.95 $37.90 $29.69 $25.28 $18.66 $19.86 $46.67 $34.10 $45.67 $99.50 $66.25 $60.00 $60.00 $50.00 $45.50 $111.10 $50.67 $118.67 $52.65 $54.25 $32.75 $37.14 $204.17 $57.86 $179.00 $70.00 5,000-10,000 10,001-20,000 21% 30,001-40,000 12% 40,001-50,000 More Than 50,000 DAILY TRAFFIC COUNT 20,001-30,000 17% 6% 11% 33% AVERAGE GROSS REVENUE PER CAR (CAR WASH SALES ONLY) $14.87 AVERAGE NUMBER OF CARS WASHED PER MONTH 5,763 42 www.carwashmag.com