The car care industry is reaping the benefits of long-term planning focused on automation, efficient capital usage, and migrating its business to subscription models.

Americans are keeping their cars longer. According to Mobility Global, the average age of a passenger car in the US is 14.5 years old, which is an all-time high. This should come as no surprise, as the price of new vehicles has also hit an all-time high of nearly $52,000, according to Catalyst IQ. Higher vehicle prices are pushing people to maintain what they have, feeding the growing demand for car wash and scheduled maintenance.

Other industries can learn from the car wash model to smooth out revenue flows, increase the effectiveness of labor, and operate a greener business. Any industry or business that sees repeat customers can adopt this model, not just car washes.  

Subscriptions over transactions

The car wash industry has adopted the subscription model that has been accepted in other industries. Music and entertainment have moved from purchase to subscription. Memberships are the new economy. Unlimited monthly wash memberships smooth revenue, raise lifetime value, and de-risk weather/seasonality. The next wave of subscriptions is becoming memberships. Subscriptions kept customers paying while memberships keep them continuously engaged by bundling in perks beyond the core product itself. Just as Amazon Prime is a bundle of benefits, car washes are now offering cash back on gas, free oil changes at member anniversaries, as well as discounts on everything people do with and for their vehicles.

Automation that augments labor

In the car wash industry, AI and new point-of-sale systems not only make the job easier for attendants, but they also improve the customer experience. With License Plate Readers, attendants recognize repeat customers and can sell member packages. Current members are able to use automated lanes and drive through without waiting for any assistance. And AI in the tunnel uses computer vision and machine learning to adjust the experience for each vehicle, optimizing operations and reducing damage claims.

Water reclamation for a greener wash

Technology has continuously improved the systems that process and recycle the water used for washes. Multi-stage tanks each handle a different category of clean-up. Underground settling tanks separate dirt and grit. Physical filters remove sand. And ozone treatments eliminate odors and bacteria. With commercial washes using way less water than home washes, the car wash has emerged as a far more environmentally friendly service than washing a car at home!

Lessons and Takeaways

The main lesson from the car wash story is the importance of patience. The car care industry did not wait for a crisis to take action. Instead, they spent years turning their two biggest challenges, namely labor and water, into advantages. They automated their processes before a labor shortage forced them to do so and began recycling water before drought rules came into effect. This shows they planned for the long term, and it is now paying off.
Other industries can take similar steps to car washes by:

  • Encouraging their customers to switch from single purchases to memberships.
  • Introducing automation that makes people do their job better, instead of replacing them.
  • Making sustainability part of their operations because it saves money and works better, not just because a regulator requires it.

If you make these changes now, while business is good, you will be better prepared for tough times. The car wash industry learned this early, and there is still time for other industries to do the same.