Adapting to price increases

2022-05-21 03:41:14 By : Ms. Mavis Ying

Popular Posts Bright lighting insights How popular are carwashing jobs? Letter to the editor: Carwash site analysis Chasing the dream, not the competition Market Focus: Tommy's Car Wash Systems launches subscription-based maintenance program Connect with us advertise with us

How popular are carwashing jobs?

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Market Focus: Tommy's Car Wash Systems launches subscription-based maintenance program

Popular Posts Bright lighting insights How popular are carwashing jobs? Letter to the editor: Carwash site analysis Chasing the dream, not the competition Market Focus: Tommy's Car Wash Systems launches subscription-based maintenance program Connect with us advertise with us

How popular are carwashing jobs?

Letter to the editor: Carwash site analysis

Chasing the dream, not the competition

Market Focus: Tommy's Car Wash Systems launches subscription-based maintenance program

The Car Wash Show 2022 Exhibit Product Guide

The important industry research provided in this report is brought to you with the assistance of our sponsors. These industry leaders are critical resources to professional carwashing and detailing. Please reference and contact these suppliers and manufacturers for all of your professional car care equipment, tool and product needs.

The important industry research provided in this report is brought to you with the assistance of our sponsors. These industry leaders are critical resources to professional carwashing and detailing. Please reference and contact these suppliers and manufacturers for all of your professional car care equipment, tool and product needs.

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Add Your Listing Edit Your Listing By Category Additional Profit Centers Bus WashesPet WashesTowel Vending MachinesTruck WashesVending MachinesVending SuppliesVendor Accessories Building and Construction Air DoorsBollardsBuildings, CarwashCanopiesCar Care Building & ConstructionCeiling and Wall CoveringsDoors, Door OpenersLED LightingLightingPVC Doors, PrehungShade CanopySigns, DisplaySigns, EquipmentTunnel BuildingsWall Ceiling, PlasticWall Panels, FiberglassWind Doors Business and Industry Resources AdvertisingAdvertising, Promotional ItemsAssociationsConsultantsDirect Mail CompaniesEducational MaterialFinancingInsuranceTickets/CouponsTrade Associations Computer, Payment and Security Systems Alarm, SecurityAuto Tellers/ ATMs /Auto CashiersCameras, Video SurveillanceCash RegistersChangers, Bill & CoinCoin AcceptorsCoin BoxesCoin Chutes & MetersCoin CountersCoin ScalesCoin SortersComputer HardwareComputer SoftwareComputer SystemsControl Panels & SystemsControl SystemsController/Monitor MetersControllersCredit Card ProcessingCurrency CountersDiagnostic EquipmentLocks, SecurityMoney Drawers, TraysPoint-Of-Sale SystemsRFIDsSafety ControlsSensorsSurveillance & SecurityTurnkey Installation Conveyor Equipment ArchesArches, CurtainArches, DryingArches, RinsingArches, WashingArches, WaxingConveyor ChainsConveyor Control SystemsConveyor DrumsConveyor RollersConveyor SprocketsConveyor, FrictionConveyor, HybridConveyor, TouchlessConveyorsConveyors/TunnelsMini TunnelPolishing SystemsRoller Dollies Detailing AbsorbentsAir Fresheners, DeodorizersBuffersBuffing PadsChamoisChamois WringersClay, Detailing SuppliesDetailing SuppliesDetailing TrailersExtractorsHeadlight RestorationLiftsMicroFiber TowelsMittsMobile WashesPaint RestorationPolishing ClothsReconditioning CompoundsReconditioning MachinesSpongesStain RemovalSteam Cleaning SuppliesTowelsWaterless carwash productsWindshield Care & Supplies General Carwash Equipment ActuatorsAdaptorsAir CompressorsAir CurtainsAir Line AccessoriesAir MachinesAir Motor MufflersAir Pressure RegulatorsAir SolenoidsAir System AccessoriesAutomatic Pressure WashBearingsBoilersBoilers, ChemicalBroomsBrushesCarwash equipmentControl ValvesDryer SystemsEnergy-Efficient EquipmentFittingsFoam Washing MaterialsGaugesGauges, PressureHeaters, BayHeaters, DoorHeaters, ElectricHeaters, FloorHeaters, GasHeaters, InfraredHeaters, Radiant TubeHeaters, SpaceHeaters, Waste OilHeaters, WaterHeating CoilsHose AccessoriesHose ReelsHose, VacuumHosesHydraulic SystemsMat CleanersMat HoldersMotorsPit Cleaning MachineryPit CoversRegulators, AirRelaysSoft Cloth Carwash SystemsSwivel FittingsTire Cleaners, MechanicalTire InflatorsTouchfreeVacuum Parts & AccessoriesVacuumsValvesWheel Washers In-bay Automatic and Self-Serve Equipment Boom SwivelsBoomsBrushes, FoamingFragrance DispensersGun / Wand HoldersIn-bay AutomaticIn-Bay Automatic, FrictionIn-Bay Automatic, HybridIn-Bay Automatic, TouchfreeSelf-Serve EquipmentSwivel Repair KitsTimers, ElectronicTimers, Vacuum & BayTokensWand Handles & GripsWands, Self-Serve Water, Chemicals and Fluid Handling Additives, Chemicals & BoostersAdhesivesBug RemoversChemical MixersChemicals, Detergents & SoapsChlorinatorsConcrete Floor CleanersDegreasersDeionizing SystemsDetergents/SoapsDispensersEngine CleanersFiltersFluid DispensersFoamersFragrancesGlass CleanersHydraulic FluidInjection DevicesLine StrainersMetering DevicesNozzlesOdor ControlPaint RemoverpH MetersPipe FittingsPit Cleaning CompoundsPortable Pressure WashersPressure WashersProtectantsPumping StationsPumpsPumps, Chemical FeedPumps, RemanufacturedReclaim SystemsRegulators, Pump & PressureReverse Osmosis PumpsReverse Osmosis SystemsRust InhibitorsScale RemoversShampoo, Upholstery & CarpetSludge PumpsSolventsSpot-Free RinseStorage Tank MonitorsStorage Tank Pump SystemsStorage Tanks, ChemicalStorage Tanks, SteamStorage Tanks, WaterStrainersTar RemoversTDS MetersTire Cleaner ApplicatorsTire Cleaner ChemicalsTire ShinersTubingTunnel CleanersWater BroomsWater Chlorine kitsWater Hardness kitsWater Heating SystemsWater MonitoringWater Reclaim SystemsWater Recovery ComponentsWater Test KitsWater Testing EquipmentWater TreatmentWaxesWeep Water SystemsWhitewall Cleaners

Add Your Listing Edit Your Listing By Category Additional Profit Centers Bus WashesPet WashesTowel Vending MachinesTruck WashesVending MachinesVending SuppliesVendor Accessories Building and Construction Air DoorsBollardsBuildings, CarwashCanopiesCar Care Building & ConstructionCeiling and Wall CoveringsDoors, Door OpenersLED LightingLightingPVC Doors, PrehungShade CanopySigns, DisplaySigns, EquipmentTunnel BuildingsWall Ceiling, PlasticWall Panels, FiberglassWind Doors Business and Industry Resources AdvertisingAdvertising, Promotional ItemsAssociationsConsultantsDirect Mail CompaniesEducational MaterialFinancingInsuranceTickets/CouponsTrade Associations Computer, Payment and Security Systems Alarm, SecurityAuto Tellers/ ATMs /Auto CashiersCameras, Video SurveillanceCash RegistersChangers, Bill & CoinCoin AcceptorsCoin BoxesCoin Chutes & MetersCoin CountersCoin ScalesCoin SortersComputer HardwareComputer SoftwareComputer SystemsControl Panels & SystemsControl SystemsController/Monitor MetersControllersCredit Card ProcessingCurrency CountersDiagnostic EquipmentLocks, SecurityMoney Drawers, TraysPoint-Of-Sale SystemsRFIDsSafety ControlsSensorsSurveillance & SecurityTurnkey Installation Conveyor Equipment ArchesArches, CurtainArches, DryingArches, RinsingArches, WashingArches, WaxingConveyor ChainsConveyor Control SystemsConveyor DrumsConveyor RollersConveyor SprocketsConveyor, FrictionConveyor, HybridConveyor, TouchlessConveyorsConveyors/TunnelsMini TunnelPolishing SystemsRoller Dollies Detailing AbsorbentsAir Fresheners, DeodorizersBuffersBuffing PadsChamoisChamois WringersClay, Detailing SuppliesDetailing SuppliesDetailing TrailersExtractorsHeadlight RestorationLiftsMicroFiber TowelsMittsMobile WashesPaint RestorationPolishing ClothsReconditioning CompoundsReconditioning MachinesSpongesStain RemovalSteam Cleaning SuppliesTowelsWaterless carwash productsWindshield Care & Supplies General Carwash Equipment ActuatorsAdaptorsAir CompressorsAir CurtainsAir Line AccessoriesAir MachinesAir Motor MufflersAir Pressure RegulatorsAir SolenoidsAir System AccessoriesAutomatic Pressure WashBearingsBoilersBoilers, ChemicalBroomsBrushesCarwash equipmentControl ValvesDryer SystemsEnergy-Efficient EquipmentFittingsFoam Washing MaterialsGaugesGauges, PressureHeaters, BayHeaters, DoorHeaters, ElectricHeaters, FloorHeaters, GasHeaters, InfraredHeaters, Radiant TubeHeaters, SpaceHeaters, Waste OilHeaters, WaterHeating CoilsHose AccessoriesHose ReelsHose, VacuumHosesHydraulic SystemsMat CleanersMat HoldersMotorsPit Cleaning MachineryPit CoversRegulators, AirRelaysSoft Cloth Carwash SystemsSwivel FittingsTire Cleaners, MechanicalTire InflatorsTouchfreeVacuum Parts & AccessoriesVacuumsValvesWheel Washers In-bay Automatic and Self-Serve Equipment Boom SwivelsBoomsBrushes, FoamingFragrance DispensersGun / Wand HoldersIn-bay AutomaticIn-Bay Automatic, FrictionIn-Bay Automatic, HybridIn-Bay Automatic, TouchfreeSelf-Serve EquipmentSwivel Repair KitsTimers, ElectronicTimers, Vacuum & BayTokensWand Handles & GripsWands, Self-Serve Water, Chemicals and Fluid Handling Additives, Chemicals & BoostersAdhesivesBug RemoversChemical MixersChemicals, Detergents & SoapsChlorinatorsConcrete Floor CleanersDegreasersDeionizing SystemsDetergents/SoapsDispensersEngine CleanersFiltersFluid DispensersFoamersFragrancesGlass CleanersHydraulic FluidInjection DevicesLine StrainersMetering DevicesNozzlesOdor ControlPaint RemoverpH MetersPipe FittingsPit Cleaning CompoundsPortable Pressure WashersPressure WashersProtectantsPumping StationsPumpsPumps, Chemical FeedPumps, RemanufacturedReclaim SystemsRegulators, Pump & PressureReverse Osmosis PumpsReverse Osmosis SystemsRust InhibitorsScale RemoversShampoo, Upholstery & CarpetSludge PumpsSolventsSpot-Free RinseStorage Tank MonitorsStorage Tank Pump SystemsStorage Tanks, ChemicalStorage Tanks, SteamStorage Tanks, WaterStrainersTar RemoversTDS MetersTire Cleaner ApplicatorsTire Cleaner ChemicalsTire ShinersTubingTunnel CleanersWater BroomsWater Chlorine kitsWater Hardness kitsWater Heating SystemsWater MonitoringWater Reclaim SystemsWater Recovery ComponentsWater Test KitsWater Testing EquipmentWater TreatmentWaxesWeep Water SystemsWhitewall Cleaners

Wheel-eez by Cork Industries, Inc.

Professional Carwashing & Detailing is the premiere carwash trade magazine, providing car care professionals, primarily carwash owners and operators, with the information they need to manage and grow a thriving business.

Professional Carwashing & Detailing is the premiere carwash trade magazine, providing car care professionals, primarily carwash owners and operators, with the information they need to manage and grow a thriving business.

ByLawrence Stovall III on April 14, 2022

Clayton Clark, Miron Briley and Richard Terry from WhiteWater Express Car Wash discuss leadership, respect and communication's impact on employee productivity and morale.

Click here to view past issues.

The Wash of the Week features a single location carwash in Florida.

Customers can hit the jackpot at this full-serve in Southern New Jersey.

This wash found success by building a strong community.

Professional Carwashing & Detailing is excited to offer you our research results on the professional carwash industry.

The president of Suds Creative discusses what determines a great carwash location and other industry trends.

Leadership from a carwash consulting and training company give their insights on reaching membership goals.

A quick overview of The Car Wash Show™ and guide to visiting Nashville.

While elevated costs and supply shortages are concerning, the industry has prevailed in the past.

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity ….” Thus starts the Charles Dickens classic, “A Tale of Two Cities.” These words ring true today as we make our way past the last two years of the COVID-19 pandemic, which has caused so much strife, chaos, opportunity and change — even in our own carwash and detail corner of the universe.

We, in the carwash and detail world, have been seeing and feeling a lot of these changes over the past 24 months, but nothing has hit us quite as hard and apparent as the price increases in the chemicals we use to clean and detail the vehicles we make our living on. 

Since March 2021, carwash chemical makers have seen prices increase on all the precursor chemicals used in the making of their carwash and detail products. A shortage of resin has increased the price of plastics that manufacturers use for the buckets and bottles to put chemicals in. Plants, which are used worldwide to produce an array of products from surfactants, acids and bases to phosphates and more, have reduced output because of labor shortages or natural disasters. Silicones have been one of the hardest hit — with average prices going up six times what they were just two years ago.

For those of you that have been around for a while you’ve seen this before. For new carwash owners, what follows is a brief history. 

In 1973, in retaliation for the U.S. supporting Israel in the Arab-Israeli War, there was an oil embargo imposed on oil exports to the U.S. by the Organization of Petroleum Exporting Countries. All petroleum-based products were in limited supply, which caused gasoline shortages and inflation to reach 11% by 1974. 

All solvents, surfactants and chemicals used to make carwash detergents were on allocation. What it meant back then was that operators were going to get a small percentage of their normal order — that is, if you were a “regular customer,” not just a price hopper. 

In 1977, inflation began to rise again, leading to hyperinflation of 13.5% by 1980 where prices soared and seemed to change daily. Carwash chemical manufacturers could barely keep up with the price increases as the income from one order was not sufficient to cover the base manufacturing cost of the next order. It was truly run-away inflation, which did not slow down until 1984.

Recently, in 2008-2009, we saw prices skyrocket when the recession started and then come back down over time as the economy came back to normal. Again, carwash chemical makers were concerned about allocations, swift price increases from the suppliers and the rising cost of transporting the goods due to the rising price of gasoline.

Today’s chaos feels a lot like a combination of the past with a pandemic twist. Suppliers are telling us manufacturing facilities are closing in Asia, Europe, Africa and the U.S. due to labor shortages. Mines and plantations where some of these precursors come from have all but shut down. This has caused almost all suppliers to enact “force majeure,” which essentially means any contract prices are void and “any previous references to list prices will revert to spot pricing based on availability and sold at spot pricing.” This makes pricing a product near impossible.

Then, there is the shipping and logistics problem. Where a single 42-foot container from Asia to the U.S. used to cost about $8,500, they are now running as high as $30,000 or more. In the U.S., our ports are weeks behind in offloading cargo and there is a shortage of qualified truckers and vehicles with the certifications to conduct business in California and clear cargo from the ports.

So, what is everyone supposed to do? Here are some suggestions.

First … stop, take a deep breath and remember everything is going to be alright. If you already have a relationship with a chemical supplier, now is the time to strengthen it. There are a lot of angry folks out there that want to blame someone for the price increases, but your suppliers aren’t the ones to blame. In fact, they have the same interests that you have. 

Your business is important to them and theirs should be important to you. Suppliers have kids to feed and provide clothes for, just like you do. Therefore, it is critical to work with them for solutions that fit your goals. 

If you don’t have a relationship with a chemical supplier, this may be the time to start one. Shop around for the right fit for you and don’t just consider the price of their products. It is important that you can work well together and that they understand you and your business. This relationship will pay off when times are tough.

Second, raise your prices. The service station next to you has no problem raising the price of gas or the grocer raising the price of meat when they must — you shouldn’t either. One of the biggest worries is, “but I’ll lose my customers.” Yes, you may lose some customers, but if you maintain your quality and standards, you’ll keep the majority and might pick up a few new ones.

The deadly trap a lot of carwash owners fall into is lowering quality to keep prices the same. This is a death spiral that you don’t want to enter. If customers leave for price they may come back if they can’t find the same quality for a better price, but if you lower quality and they leave for a better experience, they will never be back. 

Third, talk to your customers. If there was ever a good time to get customer feedback it is now. They are feeling the effects from all sides, just like you are, and an open conversation lets them know you care and that you are on their side. Find out what they like and don’t like about your carwash. This will help you understand how to make their experience at your wash better. Use this as a time to solidify your relationship with the customer. 

Fourth, consider moving to powder detergents. There are a lot of excellent and versatile carwash powder detergents on the market. These were very popular from the 1960s and into the early 1990s, but fell out of favor for liquids because it takes a little effort to convert the powder into a concentrate. Powders are by far the most cost-effective product for your carwash. Why? Because it doesn’t require shipping water since you are supplying it on-site.

Fifth, “beware of Greeks bearing gifts.” We all know this lesson from the story of the Trojan War where the Trojan high priest warns the king not to take in the wooden horse as a gift. The king does and the rest is Greek tragedy. 

There are plenty of folks that will approach you and tell you they can make the exact duplicate of some product/brand you use for a considerable savings. They’ll have a great story, and before you know it you’ve committed and paid for their products. The only problem is once you’ve bought it and it doesn’t work as advertised, they become impossible to get a hold of and then just vanish into thin air. 

Whatever path you choose, remember, this too shall pass. It always does. Markets level off, things move to a new pattern and the industry adjusts. People adjust too. 

Lawrence Stovall is president of San Antonio-based AutoBrite™ Company, manufacturer of the ModBrite™ mini-express tunnel suitable for IBA and self service operators, innovative belt conveyors, carwash chemicals and detail products. Lawrence has owned multiple businesses and is a retired Officer and a graduate of the U.S. Naval Academy. When not working, he spends time reading, hunting and enjoying his Texas Hill Country home with his family. He can be reached at [email protected] or 210-736-1892.

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