Southwest Car Wash Association -Advantage- 2nd Quarter 2016

ADVANTAGE 2016 Convention & Car Wash EXPO February 28 - March 1 Arlington Convention Center

Publication of the Southwest Car Wash Association

Second Quarter 2016

2016 Wade Welch

Golf Classic Highlights SCWA Car Wash Tour • Kansas City • AUGUST 9th Register at www.swcarwash.org

ADVANTAGE

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PRESIDENT’S MESSAGE WELCOME to this edition of the SCWA ADVANTAGE.

As I write this second President’s Message I have completed my first SCWA Board Meeting as President and also my first 2016 SCWA Exhibitor Council Meeting as Chair. Every year the SCWA Board holds a Board Leadership Retreat where Dave Swenson we spend time discussing the SCWA Preside­­nt progress and programs of our association. We also invite exhibitors to participate in the Exhibitor Council Meeting the day prior to help us evaluate the most recent EXPO & Convention. These meetings mark the start of our new association year – the SCWA New Year. As I sat in the meetings and heard so many positive statistics and strong benchmarks – I started to think about what really makes a successful association like SCWA. I think one thing that makes SCWA successful is the consistent evaluation and goal setting that takes place in meetings like these. Our Executive Director posed several important questions for all participants or Board members to answer. As an example: 1. What priorities did we set for SCWA or the EXPO last year and did we achieve our priorities?

2. What program goals did we accomplish? What goals did we not accomplish?

3. What do we need to carry over to this year and what do we need to change or eliminate?

4. What took up our time and did not help us accomplish our objectives?

Are we staying consistent with our overall mission of being “member focused and driven”? And the critical question – if we had only three things we could accomplish this next year – what are those three goals? What matters most?

This culture is sustained by leaders who know that they are responsible for maintaining the organization’s ability to deliver on the things that really matter. These leaders hold themselves accountable for progress toward meaningful ends that cannot easily be accomplished during a single term of office. Bottom line - leaders who have vision that produces consistency.

I also realized how important this same process and principles are in our car wash businesses. If we take the time to make sure we stay “customer focused and driven” and set reasonable business goals we can be successful.

Then the ultimate question will be - What is taking up your time that doesn’t produce results or help you accomplish your goals?

Be sure to mark your calendars for the Kansas City Regional Car Wash Tour & Round Tables, August 9.

You can go online to register. In late October we will be hosting the SCWA Regional Car Wash Tour in Austin.

Of course the first BIG SHOW of 2017 is the SCWA Annual Convention & Car Wash EXPO, February 26-28, 2017 at the Arlington Convention Center.

I encourage you to take advantage of the strong SCWA member resources and network whether it be the insurance program discounts through Midlothian; the Mentor Council; the Water Conservation Alliance; the Charity Car Wash Program; the Hire a Military Veteran Program; the Credit Card Processing program; the expertise of the SCWA legal counsel or any of the other resources.

Thanks to all our members who have helped SCWA be a strong car wash advocate. — See

you in Kansas.

INDUSTRY BRIEFS Parker, Colorado - The Chaparral High School Girl’s Soccer Team was able to raise $1,250 at their car wash fundraiser hosted by Kwik Car Wash.

Kwik Car Wash donated 50% of their wash sales from the fundraiser’s duration to the group, while team members and volunteers vacuumed and towel-dried cars for additional donations.

“We would like to thank Kwik Car Wash for their amazing support!” exclaimed CHS Soccer Fundraising Chair Heather Rawnsley. “Our fundraiser was a huge success. The players had fun bonding together and raised a lot of money for their program. Kwik Car Wash made it such an easy and enjoyable experience. We are lucky to have them in our community!”

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ADVANTAGE Dallas, Texas - On May 25, Tommy Terrific’s Carwash presented a local high school student with a $5,000 scholarship for college tuition. Tommy Terrific’s is an express exterior car wash located at 5021 Ross Avenue in East Dallas. The “Live Terrific” scholarship, established this year, is available to seniors currently enrolled in nearby Woodrow Wilson High School.

Tommy Terrific’s owners, Tom and Kim Miller, are passionate about education and community involvement. They founded the “Live Terrific” scholarship to reward, and help ease the financial burden of a student who contributes to community betterment.

“As part of a growing company, we are positioned to give directly back to our community by helping a local student further their collegiate goals.”

- Kim Miller “Since we opened in 2013 we’ve employed several Woodrow Wilson students and felt they were a natural fit to partner with.”

Applicants were asked to answer the essay question, “How are you terrific in your community?” and submit a financial aid questionnaire. While academic achievement and extracurricular activities were noted, students were encouraged to focus on specific examples of community betterment, and how their involvement influenced their higher academic goals.

David Juan surpassed more than a dozen finalists to win the inaugural scholarship. Juan has been accepted to the University of Texas at Arlington. He is pursuing a degree in architecture following his experience with the 2015 Mayor’s Intern Fellows Program where he worked with a civil engineering/architecture firm, and various volunteer engagements serving the homeless.

“Architecture is a great major because I can work to make my community a better place,” shared Juan.

“I want to build affordable homes for those who are not as fortunate.”

Earlier this week Miller met Juan at Woodrow Wilson’s awards ceremony luncheon and presented the “Live Terrific” scholarship to him. “It was such a joy to meet our first scholarship recipient and extend our well wishes to David as he begins his college career,” said Miller.

Carwash Chain offers fun rewards and gaming software to customers. Fabulous Freddy’s, a chain of customercentric carwashes and service stations in Nevada and Utah, has teamed up with OfferCraft, a software company that boosts offers and incentives, to provide games and prizes to it’s customers, according to a press release.

The carwash’s patrons will now be able to play digital games, as they wait for their cars to be serviced or anytime online via Fabulous Freddy’s website, www. fabfred.com and social media channels.

The rewards earned from playing these games are interactive, unlike traditional coupons. For instance, customers can share the rewards they win with their friends can even trade one reward for another.

“We cant to create a fun and energetic environment,” said Freddy Smith, founder of Fabulous Freddy’s.

“The goal of our company is to provide a fabulous experience to everyone and their vehicles that is they highest in quality, convenience, value and service.

Teaming up with OfferCraft will help provide that fabulous experience to our customers.”

OfferCraft’s software platform “blends gamification tools with deep insights into human psychology,“ which helps to deliver more engaging and entertaining incentives for customers while driving more purchases.

“Freddy and the team have been wonderful partners,” said Aron Ezra, CEO of OfferCraft. “Instead of just shoving a coupon in a patron’s hand, we wanted to turn their marketing effort into genuinely fun experiences that give customers yet another reason to visit Freddy’s instead of going somewhere else.”

Founded in 1998, Fabulous Freddy’s operates eight locations featuring full-service carwashes with detail shops, express lube services and 24-hour convenience stores with gasoline.

Phillips 66 Lubricants consolidates brand portfolio.

Phillips 66 Lubricants announced it will consolidate its lubricants portfolio into two brands, Phillips 66® and Kendall® Motor Oil, beginning July 1, 2016.

The company reported moving away from a tri-branded strategy will help to elevate Phillips 66 Lubricants‘ profile as a national supplier of lubricants and better positions it for the future.

As a result of the consolidation, the company will optimize its product portfolio mix and develop a full line of lubricants for every need under the Phillips 66 brand.

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SCWA CAR WASH TOUR & ROUND TABLE Kansas City, Kansas • August 9, 2016

REGISTER TODAY! www.swcarwash.org Overland Park Marriott 10800 Metcalf Avenue • Overland Park, KS 913-451-8000 For more information on the SCWA Car Wash Tour & Round Table Discussion or to register please visit www.swcarwash.org or call the SCWA Headquarters at 800-440-0644.

ON THE ROAD AGAIN

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SCWA Car Wash Tour & Regional Round Table

ADVANTAGE “We believe this new direction will help to build long-term equity for our brands and enable us to compete more aggressively in the marketplace,” said Bryan Faria, manager of finished lubricants for Phillips 66 Lubricants. ”Consolidation simplifies the brand portfolio, while also allowing us to increase marketing support for two distinct brands,” he continued.

The consolidation only affects the Phillips 66 Lubricants business, and Phillips 66, Conoco® and 76® fuels brands will remain intact.

Longmont, Colorado - Main Street Car Wash recently closed its door to undergo a $3 million renovation, according to Daily Camera.

The six-month remodel will transform the old facility into a Breeze Thru Car Wash, which will be its second location in the city.

Jody and Emily Rouse, previous owners/operators of the carwash, opened Main Street Car Wash in 1998.

John Agnew, owner Breeze Thru stated that the 3,443-square-foot carwash will be closed until the renovation is completed.

“The existing carwash was built in 1984 so it was a little outdated,” said Agnew. “We want to make it more efficient.”

Main Street Car Wash employees were given the option to work at the other Breeze Thru location in Longmont during construction.

Agnew reported that about half of the workers took the offer.

Both Breeze Thru locations will continue to operate after the newly renovated carwash reopens the fall.

Agnew said he believes the city can sustain two Breeze Thru locations.

He also noted that the carwash chain has wanted to add a location in north Longmont for a while.

The other Longmont location opened in 2013, and the newly remodeled site will be the company’s fifth carwash.

Breeze Thru also has carwash locations in Fort Collins and Greeley, Colorado, and Cheyenne, Wyoming.

“We’re a growing company, so we are looking to expand,” stated Agnew. “Although it would be challenging, we’d like to get into Boulder.”

Mister Car Wash adds 30th Houston location to growing portfolio - Mister Car Wash announced it has expanded its footprints in Houston, Texas, according to a press release.

By recently acquiring Regency Car Wash on South Main, the carwash chain has added a 30th Houston location to its growing portfolio.

“It’s exciting to reach this store count milestone in Houston, the origin of the Mister Car Wash brand,” said John Lai, president and CEO of Mister Car Wash.

“We’re proud to expand the Mister Car Wash experience to our customers in Houston and to continue building our market presence.”

Mister Car Wash, headquartered in Tucson, employs more than 6,500 team members with nearly 1,200 employees and a regional support center in Houston.

“The addition of this location gives Mister Car Wash presence in a high growth area of Houston and has a strong upside potential,” said Casey Lindsay, director of acquisitions for Mister Car Wash.

The new Houston site will feature Mister Car Wash signature products and wash process and will offer customers Unlimited Wash Club plans.

With the acquisition of Regency Car Wash, Mister Car Wash now operates 165 carwashes, as well as 32 express lubes, throughout 19 states.

San Marcos, Texas - The Wash Tub Car Wash & Boutique announced the opening of its newest location to San Marcos, according to a press release.

Since 1986, the Vizza family has grown its local carwash and service boutique to include 23 fullservice carwashes and detailing centers throughout Georgetown, Kerrville, New Braunfels, San Antonio, Schertz and Round Rock.

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ADVANTAGE The caring for customer relationships, as well as strategic partnerships with likeminded companies such as H-E-B, has helped The Wash Tub stay competitive in the industry.

The Latest location at 1200 Thorpe Lane is supported on one side by Texas State University’s population of more than 35,000 people and met by a corridor to Interstate 35 on the other side.

“The population and development boom along I-35 shows San Antonio and Austin could eventually grow together into a mega, metro-region, presenting a junction and meeting point at (The Wash Tub) for students, commuters, travelers and locals alike” informed the release.

Matt Vizza, president and CEO of the carwash chain, explained that installing new equipment, transferring top-performing employees to lead training efforts and attaching “the brand’s boutique of home, apparel and gift” will help complete the project.

The Wash Tub is excited to join the community of San Marco and is hoping to be a part of the area’s growth, supporting local businesses, universities and athletic programs.

Amarillo, Texas Quick Quack Car Wash opened a new location in Amarillo after 14 years, which is the city where the first Quick Quack location was built, according to a press release. The new wash marks four locations in Amarillo and 20 total locations for Quick Quack.

The chain gave away free carwashes for 10 days as well as free vacuums and a new hand towel drying service to celebrate. The free carwashes were only available at the new location.

“It has been far too long since we opened a new location in Amarillo, and now we are planning on at least one more this year,” said Jason Johnson, president of Quick Quack, “We are especially excited to add hand towel drying at all our Amarillo locations. We are confident that we provide the fastest, cleanest and now driest express carwash in town.”

Quick Quack was a winner of Amarillo Globe-News 2015 Best of Amarillo Awards, and has been selected as the Best of Amarillo every year since 2010, when the carwash category was first introduced.

The carwash chain has 20 locations throughout California, Colorado and Texas.

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TAXES

losses from bonus depreciation can be carried back for two years, thereby generating a refund from Uncle Sam.

Savings - From Another Late Law

ENERGY EFFICIENT COMMERCIAL BUILDINGS

Once again, lawmakers waited until late in the year to pass another “extenders” bill. The new “Protecting Americans from Tax Hikes (PATH) Act of 2015” retroactively extended 50 or so temporary tax provisions, but reaping the benefit of these tax-saving provisions may mean amending an already-filed 2015 tax year. But it can also mean an early start on planning for 2016 and later tax years.

The so-called “Cadillac” tax on the high-cost health insurance plans some car wash operators and business owners provide themselves and key employees will be delayed from 2018 to 2020. But, the big deal for many car wash operators will be the permanent extension of the Section 179 small business expensing deduction.

FIRST-YEAR WRITE OFFS

The so-called “Section 179” deduction allows a car wash business to claim an up-front expense deduction for the entire cost of equipment ranging from computers to conveyors to heaters and wash systems. The amount allowed as a write off in the first year (instead of slowly deducting or depreciating over several years), is now permanently fixed at $500,000 per year (phased out dollar-fordollar as expenditures begin to exceed $2 million in a year).

Beware of the often-ignored potential pitfall with trade-ins. Although up to $500,000 in either new or used equipment purchases can be expensed and deducted, if purchased using a trade-in as part of the price, only the portion of the purchase price in excess of the undepreciated book value of the property traded in will qualify for the Section 179 first-year write-off or bonus depreciation.

Generally, any buildings used for commercial purposes, even garages, fall within the general definition of a “commercial building.” A provision in PATH extends, at least through the 2016 tax year, the above-the-line deduction for the cost of improvements made to improve the energy efficiency of commercial buildings.

A car wash business can get tax deductions for improvements to either new or renovated buildings that save 50 percent or more of projected annual energy costs for heating, cooling, and lighting when compared to model national standards. Partial deductions for efficiency improvements to individual lighting, HVAC, and water heating, or envelope systems are also available.

The tax deductible amount is up to $1.80 per square foot and is available to owners or tenants (or designers, in the case of government-owned buildings) of new or existing commercial buildings that are constructed or reconstructed to save at least 50 percent of the heating, cooling, ventilation, water heating, and interior lighting energy costs.

A partial deduction of $0.60 per square foot can be taken for improvements made to one of three building systems — the building envelope, lighting or heating, and the cooling system. The partial building improvement must reduce total heating, cooling, ventilation, water

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A BONUS WRITE-OFF

Originally created as a short-term stimulus measure, bonus depreciation is back, albeit phased out over a fiveyear period. Bonus depreciation, which permits the immediate deduction of any business equipment expenses, rather than a depreciated tax benefit over time, has been extended at the former 50 percent rate for the 2015 to 2017 tax years, phased down to 40 percent in 2018 and 30 percent in 2019.

Making it even semi-permanent, allows any business that spends heavily on equipment, machinery, and other business property to reap large up-front tax breaks. In fact, overall tax savings from bonus depreciation alone are predicted to reach $281 billion over a 10-year period.

Many car wash operators will find the bonus depreciation break may be more valuable than the Section 179 deduction because the Section 179 expensing deduction is limited to only the taxable income of the business. Although any excess may be carried forward, losses generated by the 50 percent bonus depreciation can offset other income. In other words,

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ADVANTAGE heating, and interior lighting energy use by 16 2/3 percent (16 2/3 percent is the 50 percent goal of the three systems spread equally over the three systems).

On a related note, the ASHRAE (the American Society of Heating, Refrigerating, and Air-Conditioning Engineers) standards required for the energy efficient commercial buildings deduction have been updated in PATH. The provision modifies the deduction by updating the energy efficiency standards to reflect new ASHRAE standards beginning in 2016.

A STEP BEYOND

Those car washes and car care operations whose services extend to fuel sales will be interested to learn about the extension of the tax credit for so-called “alternative fuel vehicle refueling property.” The provision extends through 2016 a tax credit of up to 30 percent of the cost of installing qualified alternative fuel vehicle refueling property. Specifically, the tax credit is for the installation of “non-hydrogen” alternative fuel vehicle refueling property since, under current law, hydrogen-related property is already eligible for the credit through 2016.

WORK OPPORTUNITY TAX CREDIT AND PAYROLL

For a car wash or car care service business thinking of adding new workers, PATH retroactively extended, and greatly expanded, the Work Opportunity Tax Credit

(WOTC) through the 2019 tax year. The WOTC allows employers who hire members of certain targeted groups a credit against their income tax bill. The tax reduction, as opposed to a deduction, is a percentage of first-year wages up to $6,000 per employee ($3,000 for qualified summer youth employees). In situations where the employee is a long-term family assistance (LTFA) recipient, the WOTC is a percentage of first and second year wages, up to $10,000 per employee.

While the maximum WOTC for a car wash hiring a qualifying veteran is generally also $6,000, it can be as high as $12,000, $14,000, or $24,000, depending on factors such as whether the veteran has a service-connected disability, the period of his or her unemployment before being hired, and when that period of unemployment occurred relative to the WOTC-eligible hiring date.

With individuals who begin work after December 31, 2015, the credit also applies to employers who hire qualified long-term unemployed individuals (i.e., those who have been unemployed for 27 weeks or more). The credit with such long-term unemployed individuals is 40 percent of the first $6,000 of wages.

And, when it comes to payroll taxes, the new law requires forms W-2, W-3, and returns for reporting non-employee compensation (e.g., Form 1099-MISC), to be filed on or before January 31 of the year following the calendar year to which

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ADVANTAGE such returns relate. Those returns are no longer eligible for the extended filing date for electronically filed returns.

more fluidly change the status of their business entity to respond to changing market conditions.

THE BUILT-IN GAINS OF S CORPORATIONS

SMALL BUSINESS STOCK

As the economy improves many car care service businesses are replacing much of their equipment and other business assets. Unfortunately, many are also just discovering a corporate-level tax is being imposed at the highest marginal rate (currently 35 percent) on the so-called “built-in gain” of a car wash business operating as an S corporation.

Although S corporations are so-called “pass-through” entities passing along income and deductions to their shareholder, and thus incurring no tax bill, recognizing built-in gain means a levy on the business. That builtin gain is usually gains that arose prior to the car wash operation’s conversion from a regular C corporation to an S corporation, and arises when assets are sold. PATH retroactively and permanently provides that, for determining the net recognized built-in gain, the recognition period is a five-year period — the same period that applied to tax years beginning in 2014.

In other words, the built-in capital gains of an incorporated car wash that has become an S corporation must be held for five years in order to avoid a conversion capital gains tax. Permanently reducing the S corporation recognition period for the built-in gains tax will make it easier for any incorporated business to become an S corporation and to

A number of incorporated car care businesses, start-ups, or existing businesses, use a unique “Small Business Stock” to finance the growth of their operations. The 100 percent exclusion from capital gain that was allowed on the sale or exchange of qualified small business stock held for more than five years by non-corporate investors has been extended.

Under pre-Act law, the exclusion was to be limited to 50 percent of the gain for stock acquired after December 31, 2014. The new PATH Act retroactively and permanently extends the 100 percent exclusion and the exception from minimum tax preference treatment.

Finally, car wash and car care service business owners and operators now have certainty for making capital investments.

But, which of the provisions of the Protecting Americans from Tax Hikes (PATH) Act of 2015 will best help your business reap its share of the $622 billion in tax savings?

Unfortunately, the complexity of the new law may mean professional assistance is required to maximize write-offs for the 2015 tax year as well as in planning to take advantage of all the benefits your business is entitled to in the years ahead.

Mark E. Battersby is an Ardmore, PA-based freelance writer, specializing in finance and tax issues.

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SIGNAGE Six Ways to Keep Your Sign Marketing Relevant

Does your signage increase your monthly volume?

How about spiking your average ticket price? Is it the same signage you had last year or, worse yet, since you’ve opened for business? If you answered yes to those questions you may be in a stagnant marketing cycle with your wash and leaving money on the table. Let’s face it, everyone hates change, right? But change in your business is a necessity when it pertains to growth, and your marketing is one area that can easily make or break your wash.

Success in the car wash business depends on many variables. Although wash equipment varies, as do wash location and chemicals that are used, the one constant that runs through all of them is a great signage and marketing program. The signage at your wash needs to be treated like the equipment inside the tunnel. It needs to be maintained and refined for optimal output. Every operator in this industry will tell you how damaging

an outage due to lack of maintenance can be. Outdated signage can be just as damaging.

Not all your wash packages perform the same sales wise.

An underperforming wash package should be revaluated and adjusted to make it more appealing. Consider adding some more services to your middle wash package, and promoting it through signage. Bug prep for the summer and salt prep for the winter are excellent ways to achieve this. A giant bug prep sign on your lot will remind your customer how important it is to remove bugs from their car and increase the likelihood they will upgrade to that package.

HERE ARE SIX STEPS YOU CAN TAKE TO KEEP YOUR MARKETING RELEVANT: Review Your Signage Plan Quarterly

Meet with your managers and gather feedback from your customers on promotions that are working and those that are not. Keep an open mind when evaluating your signage; think out of the box and consider how you can best showcase your brand. It is crucial to analyze your wash offerings and promotional programs. The minute your customer drives on to your property, you have a captive audience. Why not try to utilize it to its fullest potential?

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ADVANTAGE Update Promotional Items Such as Wind Signs, Die-Cut Antenna Signs, and Banners Throughout the Year to Reflect Seasonal and Holiday Sales

At the beginning of each year, make sure you have the appropriate marketing signage for all the seasons and holiday events. Everybody is so busy that if you put this off, you will more than likely miss an opportunity by not having the signage around the holiday when you need it.

In the grand scheme of wash expenses, this will be relatively inexpensive and will yield the best results. One car wash operator told me he used to ignore holiday sales and seasonal marketing like Christmas gift-card sales, mothers/father’s day sales, and Veterans Day. Last year he started incorporating promotional material to reflect these sales and was amazed at the response he had as a result.

You have to keep your material relevant; think about the frequency with which big-box chains change their onsite marketing signage. They do this as a necessity to keep their image fresh and alive in their customers’ mind.

Look to Your Local Community for Other Opportunities

If you have a local mascot, or well-known seasonal events in your community, it may be a good idea to incorporate that into some promotional marketing. A sign depicting a wash sale for customers who show a ticket to a local area sporting event is a great way to achieve this.

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everything in the tunnel, and have it featured front and center at the entrance to your wash.

Your signage works for you 24 hours a day and will constantly be visible at all times to your customers. When you keep your marketing fresh, you will not only attract more customers, you will also increase your curb appeal by dressing up what would otherwise be a sparse and drab parking lot. This will also set the stage for your main show inside your tunnel and hopefully earn you a lifetime customer. Signage is the least expensive yet most effective form of marketing available, period. How much are you investing in it?

Bobby Jones, an SCWA member and marketing director for T.S.S. Inc., a Warren, MI-based signage supplier. You can visit the company on the web at www.tsscws.com.

MARKETING New For Internet Marketing

You do not need a crystal ball, and you do not need to be a marketing genius to know Internet marketing is changing quickly. Google kicked off the new year with a core algorithm update, and that was just the beginning of new things to come in the first quarter of 2016.

Do you ever feel like just when you are getting a handle on one thing, the ground shifts and everything

Having customers engage with your wash through social channels is very important in today’s market. A simple sign at the end of your wash mentioning Yelp reviews or a Facebook page will increase the likelihood they will connect with your brand online.

Pay Attention to Trends in the Car Wash Industry

One of the more recent trends in car washing is a great foam sheet as the car is pulling into the wash. A lot of customers have grown to expect that show at the beginning now; you don’t want your wash to appear dated by not having one. Making that first impression through an exceptional entry arch paired with a great foam show will position yourself above your competition.

Grow Your Brand

Even if you only have one wash, treat your brand as if you have 20. Personalize your signage at every turn.

Don’t settle for generic run-of-the-mill signs, and invest in your brand identity so it becomes an extension of your business. Instead of buying a standard disclaimer, add a personalized touch by incorporating your logo into the design. Wash themes are a great way to achieve this, using animals, cars, or animated characters — it will give your wash more excitement. Take your theme and put it on 19

ADVANTAGE changes? When this happens, most people will start to panic — don’t do that. The truth is, if you wait even for just a few moments it will probably change again.

Start by arming yourself with some good information; then take a deep breath, and adjust your game plan.

So, what’s new in the digital world so far in 2016?

From organic search and map listings to social media and paid advertising (pay per click), we are seeing big changes across the board. Let’s take a closer look at a breakdown of the latest digital happenings so far this year.

MAPS AND LOCAL SEARCH

The space for map listings and local search is limited and at a premium right now. Google is showing fewer map listings in the top spot than ever before. Currently, you will find three listings displayed on page one; you can access other maps by clicking on “More Places,” but the top slots are reserved for just three businesses.

To help you secure one of those spaces, you must first claim and verify your listing (more information can be found at (www.google.com/business).

You also need to understand that a business with an actual, physical location will be given preference. This is a challenge for many service-based businesses covering a geographical area beyond their physical locations. But, this is a benefit to businesses with brick and mortar locations.

To give yourself an edge, focus some time and effort on getting positive Google reviews.

PAID ADVERTISING: PPC

Until recently, you could find three paid ad spots at the top of Google search; and then you would see a right column with ads, and even more ads at the bottom of the page. However, in February, the right-hand column of ads disappeared, and now four ad spots appear on top.

It’s no secret the top spots are the highest performing, but why remove all the ads on the right? As Google continues to move toward making everything more mobile friendly, it makes sense anything not optimized for mobile use will be antiquated.

According to an article on Moz, “Since mobile doesn’t support the right column, Google may be trying to standardize the advertising ecosystem across devices.” What does this mean? There is speculation that having more limited space for ads may drive up the cost per click, and it may also make organic rankings (where you show up on a page when someone searches) even more important; but the big winner just might be social media — where you can reach more people for less money.

ORGANIC SEARCH: SEO

Google confirmed a core algorithm update this past January, but what exactly is a core algorithm update?

Barry Schwartz, who is the CEO of RustyBrick, a New York-based Web consulting firm specializing in customized online technology, explains, “In short, it means that the algorithm that is part of the core algorithm is now

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ADVANTAGE pretty solid and consistent — [meaning it] can just join the family of algorithms that Google knows [works].”

A core algorithm update does not really change anything; it just takes what has been tested, and what we have essentially been told by Google is important, and makes it deeply rooted in the algorithm.

Translated in layman’s terms: When Google started saying it was important to have current and relevant content on your website, Google meant it. It is now “core” to the search engine’s algorithm, and not just a passing fad.

SOCIAL MEDIA

Where are your customers hanging out on social media?

Whether they are on Facebook, Twitter or Instagram, you need to be there, too. This is where you are going to develop relationships with your customers. They are going to get to know, like and trust you through your interactions.

One of the most important factors of social media to remember is: Be social. Do not be too salesy on social media; you can sell other places — like your website.

Social media is about connecting. Be fun, be authentic, be helpful, be the expert but, mostly, be interesting and likeable. Customers will reward you.

Another big component of the digital world in 2016 is that video is flourishing. You can upload a video directly

to Facebook, or you put it on YouTube and share it from there. There are advantages to both, but video is an absolute must this year.

Understanding how to make adjustments in your business is easier when you break all the information down and ask, “What’s the point?” Google and Facebook don’t just “do” things without a strategy. So what are they trying to accomplish with these changes?

In almost every update, we see a few common components. Practically everything ties back to providing the end user with a great experience. It’s important to remember that you, the business owner, are not whom Google or Facebook see as their customer. Their customer is the regular person searching and engaging. Their true allegiance is to their user.

This is why Facebook will throttle posts which are too promotional. Facebook knows the user doesn’t want to see it. This is also why businesses who are continually posting current and relevant content move up in the rankings.

When we put these changes under a microscope and try to determine what they mean and how businesses need to adjust their marketing strategies in 2016, we see two big takeaways: content and mobile. Read on to learn more.

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CONTENT IS KING

Have you ever heard, “Content is king”? Well, it’s kind of true. In actuality, good and consistent content is king.

Content encompasses a lot of things. It includes copy on your website, your blog articles and also your social media posts. Every post, tweet, image, infographic, e-book and video you put out make up your content.

More than anything, your content needs to be authentic.

Find a way to use your content in so it resonates with your audience. Give them what they are looking for, and be mindful that what they are interested in may be different than what you want to sell them, which is perfectly fine.

You have the opportunity to get your audience to know, like and trust you through your content. Be patient — you will reap the rewards in the long run.

GROWTH IN MOBILE

The number of people searching online via a mobile device continues to increase, and Google knows this. The search engine wants its users to have a good experience when they search from their phones. Hence, hearing about things like “Mobilegeddon,” which was an algorithm update designed to reward the businesses with mobile friendly websites with better rankings.

If your website is still not mobile friendly, the time is now. Maybe even more important than improved rankings, are the opportunities to improve your customers’ experiences when they go to your website. After all, if Google thinks user (customer) experience is that important, maybe you should, too.

We further see evidence of the importance of mobile with the decision to remove PPC ads from the right-hand column of Google search, which was not viewable on mobile devices. There is a really big clue in this move. If it’s not mobile friendly, it’s gone.

Internet marketing changes rapidly. But, as long as you keep focused on a few key factors, you will be able to adjust your strategies just as quickly. Always keep the customer experience in mind. Be sure you are making your brand easy and enjoyable for your customers. A big part of that comes from giving them great content and making your online presence mobile friendly. So if you feel the ground shifting, instead of getting scared, get excited; and, move with it.

Katie Harris is a founding partner at Spot On Solutions. Spot On Solutions specializes in online marketing for the cleaning and restoration industry. Harris has a degree in advertising and public relations and worked as an award-winning journalist.

She can be reached by email at katie@spotonsolutions.com.

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2016 SCWA Wade Welch Memorial Golf Classic

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The 2016 Golf Classic hosted a record number of golfers including 28 teams at the Cowboys Golf Club in Dallas.

The event is played every year in memory of long time SCWA member and avid golfer, Wade Welch.

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Thanks to the 2016 Classic Sponsors: Big Man Washes | Classic Diamond Sponsor

Lone Star Car Wash Systems | Classic Reception Sponsor Midlothian Insurance | Classic Lunch Sponsor Rowe | Prize Sponsor

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The Tunnel Experts

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TECHNOLOGY 360 Approach To Carwash Security

All too often carwash crime hits the headlines, seemingly on a weekly ­— if not more frequent — basis across the U.S. A quick view of the recent news headlines on Google clearly paints a picture of the risk all carwashes face in this country: • Posted on Feb. 19, 2016: “Man indicted by Bowie County grand jury in car wash robbery” • Posted on March 8, 2016: “Temple: Local man sentenced after pleading guilty to robbery” at a carwash • Posted on March 12, 2016: “Champaign man accused of attempted robbery” at a carwash • And, “Cumberland County grand jury indicts accused car wash robbers,” posted on March 13, 2016.

Jennifer Spears, sales manager with CarWashCameras. com, sums it up best on the propensity of crime at carwashes.

“Unfortunately,” she says, “owners and operators see it all.”

RISK ASSESSMENT: KNOW WHAT YOU’RE UP AGAINST

Just about most crimes that can be defined under U.S. law can be committed at carwashes of all types in this country. From nonviolent drug deals and theft to armed robbery and assault, criminals for a variety of reasons see

opportunities to extend ill-will on carwash businesses, patrons and employees. And, threats are not just external.

While the majority of this article will discuss external threats to your business, making sure your hiring practices are sound is a good first line of defense against internal criminals. Performing extensive background checks, advises Mike Benmosche, CIC, National Carwash Program specialist for McNeil & Co., especially for employees who will be handling money, is a critical component to your carwash’s security plan.

“It is [also] a good idea to be cautious with people who hang around at the wash. While the employees believe [these people] are just being friendly, it is possible the real purpose is to observe the weak spots that they can exploit as [thieves],” adds Benmosche.

ILLUMINATE PRACTICAL CARWASH SECURITY SOLUTIONS

Spears notes some practical ways carwashes can limit their exposure to crime, including: good lighting; visible signage, which includes information about the property’s cameras, alarms, police patrol, ordinance participation, etc.; and 24/7 cameras that monitor your entire facility.

“Ultimately, you want eyes on your property all the time with the ability to remotely access the cameras at any time from all of your smart devices,” says Spears. “A lot

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ADVANTAGE of criminals look for easy targets. Dark businesses they can slink around at that are unmanned facilities with no cameras are ideal. Why work harder than they have to? So don’t make it easy for them.”

The security and carwash professionals we interviewed for this article all agree that proper, strategic lighting and visible signage in key areas of your carwash are important crime deterrents.

“Exceptional lighting is very important to help deter damage to equipment, [such as] vending machines, automated teller systems and change machines,” notes Benmosche, who also adds an interesting perception is reality best practice. “Wash law enforcement vehicles on a regular basis. Much of this criminal activity occurs on an impromptu basis, so the more difficult you make it look, the more likely you will be passed for an easier prey.”

STAY CURRENT WITH TECHNOLOGY A full-circle security plan involves, well, planning.

Keeping up with new technology can help lower your risk and the costs associated with carwash crime. Attending industry events, such as next month’s International Carwash Association’s (ICA) The Car Wash Show™, is the perfect opportunity to speak with companies about their security solutions and new technologies.

For example, Innovative Control Systems (ICS) is scheduled to introduce a pair of new security solutions geared toward deterring crime before it happens.

According to Bill Myers, the company’s director of support, these new products for carwash auto sentries incorporate the use of seismic and sonic sensors. The seismic sensors are similar to those found in ATM machines, which can detect any banging, metal-on-metal contact, drilling, etc.

The sonic sensors incorporate motion detection technology.

“Displays are sometimes targeted and smashed by perpetrators to gain access,” says Myers. “So, at the front of the auto sentry, we’re using a sonic sensor that will know when someone approaches the front of the payment kiosk when the wash is closed.”

According to Myers, once the technology recognizes an abnormality, video and audio warnings are played to let criminals know police have been alerted. “It is something that will scare the perpetrator away, and let [him or her] know that [he or she has] triggered an alarm,” he explains.

“It’s similar to a perpetrator who approaches a house to break in, then leaves when motion detectors turn on the flood lights. Both kiosk deterrent security safeguards can be connected to the operator’s on-site security system.”

In addition to new technologies hitting the market this year, Spears notes that existing solutions are also staying current with emerging trends.

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ADVANTAGE “Surveillance has come leaps and bounds in the last few years with the addition of remote access and smart device apps that give you direct real-time access into your cameras.

So anytime, day or night, you can log into your secure system and look at live and recorded footage for all of your cameras. You can do this for multiple sites as well. And you can integrate with the high-speed access you already have on-site for credit card transactions,” says Spears.

According to Spears, remote access should be a standard feature on any kind of system you choose, such as the popular 1080p TVI or HD-SDI options all the way up to the ultra expensive IP systems.

FINAL BARRIER PROTECTION

The reality is that crime at some level is almost inevitable at your carwash, even if it’s as minor as employees arbitrarily handling out free washes to their friends and family. Any and all crime occurring at your business ultimately is taking money out of your pocket.

Therefore, to complete the circle of security, protecting your business with insurance is a wise decision.

“When all else fails, there are a variety of coverages available to financially protect operators from crime losses.

They can select from insurance designed to pay for loss for the money stolen and any business income loss die to damage to the property at the wash, as well as any structural repairs,” says Benmosche.

However, he adds, there are a few items all operators should be aware of to be sure they carry the right protection.

“Often, a policy offers coverage as an add-on with an enhancement endorsement packaged with several noncrime-related exposures,” states Benmoshe.

Similar to picking the right camera or new technology, working with your insurance provider to match your needs can limit your exposure to risk when it Somes to criminal misconduct. When combining preventative measures, surveillance and protection, carwashes can lower their exposure to crime.

Rich DiPaolo is the group of editorial director/editor in chief of Professional Carwashing & Detailing

LABOR Department of Labor and OSHA - Updates You Cannot Ignore

When employers know the law and maintain a compliance plan, the results are usually positive. But when employers either ignore or are unaware of the most current laws and regulations, the result can be costly in the form of government investigations and penalties.

Car-care business owners and operators need to be aware of and prepared for the proposed changes to the Department

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ADVANTAGE of Labor (DOL) overtime rule, the current regulations on absences for exempt employees, and the new requirements for hazardous communication safety data sheets.

DOL’S PROPOSED NEW OVERTIME RULE

The new overtime rule proposal by the DOL’s Wage and Hour Division increases the minimum salaries for exempt employees.

An exempt employee is typically either an executive, administrative, professional, or highly compensated employee. Keep in mind that all four of these categories are as defined and determined by the government.

The DOL’s position is that the current minimum salaries to qualify for an exemption under the Fair Labor Standards Act (FLSA) are too low for the modern workforce. The DOL’s Notice of Proposed Rulemaking on the overtime issue expressed that currently a convenience store manager, fast food manager, and some office workers might be expected to work 50 or 60 hours a week without receiving overtime pay.

The DOL also requested comment from the public on the question of whether revisions to the current “duties tests,” which determine whether an employee is within one of the four exempt categories, are necessary in order to ensure that these tests fully reflect the purpose of the exemption.

The proposed rule will certainly affect businesses involved in several aspects of the car-care services industry.

The final rule will most likely be implemented in mid-2016, as the DOL plans to rely on data from the first quarter of 2016 in setting the new salary levels.

A RESULT OF INFLATION

The change in policy by the DOL is primarily a reaction to the effect of inflation over time. The DOL expressed that current regulations have left in place an exception to overtime eligibility originally meant for highly competitive executive, administrative, and professional employees.

Under the law, prior to the proposed rule going into effect, a white-collar employee must be paid at least $455 per week (equivalent to $23,660 annually for a full-year employee) to qualify as an exempt executive, administrative, or professional employee.

The Department proposes to set the standard salary level at the 40th percentile of weekly earnings for full-time salaried workers. For the year 2016, the DOL estimates that this may be about $970 a week, or $50,440 a year.

ANTICIPATING YOUR RESPONSE AS AN EMPLOYER

The proposed changes will threaten the exempt status of millions of employees across the United States. Specifically, the DOL estimated that the proposed rule would change the exempt status of five million workers within the first year of its implementation.

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As of the first quarter of 2016 the rule is not yet final but, in preparation, business owners and operators need to consider a number of factors.

For example, the job descriptions and categorization of employees may need to be amended after the change goes into effect. Employers will also need to evaluate whether it is cost effective to pay an employee more money in salary (at least the $50,440 the DOL estimates), or instead continue to pay that employee at a per hour rate with the option of paying overtime rates for work exceeding 40 hours per week.

COMPLYING WITH FLSA REGULATIONS ON EXEMPT EMPLOYEES

Despite all the current attention on which workers will fall under an exempt status moving forward, it is important to ensure your compliance with the current FLSA regulations on partial and full-day deductions for exempt employees.

EXEMPT EMPLOYEES AND PARTIAL DAY ABSENCES

Consider this circumstance: An exempt employee takes less than a full day off from work. Then, you as the employer, take a partial day deduction for the time away from work.

This type of employer action is improper. The FLSA regulations make it clear that employers generally cannot

“It is important to make it clear to the government that active steps have been taken to comply with the FLSA, emphasizing a good faith effort to correct the issues.” dock their exempt employees pay for absences of less than a day without jeopardizing the exemption.

Although, in the hypothetical above, the exemption may be maintained if the partial day deductions were “isolated or inadvertent,” and if the employer reimburses the employees for the improper deductions.

Federal regulations have laid out several factors the government considers in determining whether an employer has an actual practice of making improper deductions, or if the deductions were isolated and inadvertent.

These factors include the number of improper deductions, the time period during which they were made, and whether the employer has a clearly communicated policy permitting or prohibiting such deductions. However, the federal regulations clearly state that the factors listed do not limit other factors the DOL or other agencies may consider. Thus, it is important for business owners and their HR staff to seek legal advice before receiving a DOL letter alleging improper deductions. Employers can even request short training sessions from the DOL itself, or from their state’s workforce commission or similar governmental training program.

In the case where an employer inadvertently finds itself investigated by a government agency, it should

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ADVANTAGE communicate through legal counsel that it has become aware of the error, has reimbursed the involved employees (if it has already done so), and highlight any reasons explaining why the deductions were isolated and inadvertent.

EXEMPT EMPLOYEES AND FULL DAY ABSENCES

The FLSA does permit deductions for absences of one or more full days occasioned by sickness or disability, if the deduction is made in accordance with a bona fide plan.

For example, the DOL has clarified that bona fide leave plans include those that provide 40 hours of paid time off after an employee has completed one full year of employment.

When an exempt employee’s full day off is due to personal reasons other than sickness or disability (e.g., sporting events and weddings) deductions from pay for one or more full days are permitted under the FLSA.

HAZARDOUS COMMUNICATION SAFETY DATA SHEETS

Finally, those in the car-care industry especially need to be aware of the Occupational Safety and Health Administration (OSHA) and its new requirements for all Safety Data Sheets (SDSs) to be in a uniform format, including specific section numbers, headings, and associated information.

The Hazard Communication Standard (HCS) requires chemical manufacturers, distributors, or importers to provide SDSs (formerly known as Material Safety Data Sheets or MSDSs) to communicate the hazards of hazardous chemical products. The revised HCS requires employers to update their workplace labeling and hazard communications program, and to provide additional employee training for newly identified physical or health hazards by June 1, 2016. An overview of the phase-in dates may be accessed at https://www.osha.gov/dsg/hazcom/hazcom-faq.html.

SDSs for chemical products must be readily accessible to employees, and the date of preparation or the last revision to the sheets must be included in Section 16 of the document.

In addition, The SDSs now must be broken down into 16 separate sections with specified titles. It is not uncommon for OSHA to audit businesses to ensure compliance with these types of requirements. Employers should ensure their SDS compliance before they are instructed to do so by the government. One option is to hire a firm to conduct a mock OSHA compliance investigation. A labor and employment specialist can then provide feedback and services to ensure up-to-date compliance.

SELF SERVE Opportunity Is Knocking - How to Capitalize on a Self-Serve Wash Purchase

Opportunities to purchase existing self-service car washes seem to be everywhere. There may be several reasons sites are available, and the ability to capitalize on these washes has never been better. This article will explore some of these reasons and counsel buyers on ways to capitalize on these investments.

There are several reasons to consider buying an existing car wash, and a low sale price is not the only one. Buyers should exercise extreme caution; potential purchases should be evaluated on an individual basis to fit the buyer’s business model. A so-called “good deal” may prove less appealing once all factors are considered. The reality of daily operations, the location’s future potential, as well as long-term municipal plans for the area should also be deciding factors.

LOCATING AVAILABLE CAR WASHES

Taking the first step to seek out available properties is an important decision. The next step is just as crucial:

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Jacob M. Monty, an SCWA member is the managing partner of the Houston-based Monty & Ramirez LLP. Monty is board certified in labor and employment law by the Texas Board of Legal Specialization. Monty & Ramirez LLP is an employment, labor, and business immigration law firm. Please visit www.montyramirezlaw.com for more information.

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ADVANTAGE locating the right property. As simple as this may sound, locating the right property may prove to be difficult.

The obvious source to find available car washes is a commercial real estate agency. Commercial real estate agencies should have a short list of available car washes or at least properties potentially available for purchase.

“Networking with business associates may be one of the best ways to find business opportunities. These associates will have knowledge and familiarity of existing business owners with a desire to sell.”

Directly contacting car wash owners in your market area is a method to determine area owners desire to sell or their possible competition. Car wash owners may be contacted in a variety of ways. Finding owners at their car wash site may prove to be difficult, since the majority of self-service car washes are unattended. However, most facilities will have contact information posted for customers, or potential buyers may leave a note at the car wash. The Secretary of State’s office and area Chamber of Commerce will also have a list of car wash business locations with contact information.

Additional sources of information include financial institutions or county tax offices. Financial institutions may list available properties and/or car wash owners with a desire to sell. Most “bank-owned properties” have a backlog of delinquent payments or are foreclosed properties. Many times these financial institutions are highly motivated sellers, having no desire to operate a car wash.

Some of these car washes may be closed, while others are operated with bank personnel. Additional properties may be located by reviewing county delinquent tax registries.

MOTIVATION OF THE SELLER

Once a facility is located for purchase, it is worthwhile to determine the motivation of the seller. Personal contact helps determine a location’s true value as an ongoing business. Finding an available property does not always translate into a car wash with an agreeable selling price. As the old axiom states, almost all property is for sale…if the buyer is willing to pay the price. Finding an agreeable seller means the price and situation are right for both parties.

Properties that prove to be most valuable have a proven track record of income and are for sale due to circumstances unrelated to the car wash’s income. It may simply be that the owner is looking to retire or cash-out. Then again, the car wash may be for sale due to an unexpected death or illness in the owner’s family where there was no time to develop a clear exit strategy. The remaining owner or spouse may have no desire to continue in business. Elderly

car wash owners may be unable or no longer willing to operate the car wash.

Other properties may be for sale because the owner has become tired of the business or is bored with the daily operation. Many times these sites have out-dated, unreliable equipment and the current owners are unwilling to make the necessary upgrades to remain competitive. These sites need major aesthetic renovation to promote new ownership and showcase upgrades to the equipment.

Properties available because there is too much competition or the market is depressed require the closest scrutiny. In these situations there are too few customers to make the property profitable regardless of management or upgrades.

These car washes may go through several sale cycles before the business income will support the payment.

Foreclosed sites require individual analysis to determine if the car wash property is a viable site. Opportunities may be missed assuming the car wash was solely the determining factor in a foreclosure. The source of financial distress may

“Some of the best car washes available to purchase are already operating ‘as is’ with a profit.” be unrelated to the car wash’s income. Excessive debt of an unrelated property, an owner’s divorce, excessive personal debt, or involvement in a lawsuit has led to foreclosures and even bankruptcies.

ADVANTAGES OF BUYING AN EXISTING CAR WASH

There are a variety of advantages to purchasing an existing car wash with a proven income stream.

Financing is typically easier to obtain when purchasing an operating business with a proven income history.

Planning and permitting directives are many times bypassed, allowing faster initiation of business operation.

The purchased property immediately generates income and the purchaser is able to focus on improving the income. Existing customers already mentally identify the site as a car wash and will be more likely to recognize improvements to its operation. Remedial regulations are occasionally avoided as the car wash may be “grandfathered” with older, more appealing policies.

Still other advantages may present themselves and more rewards may become evident later in the operation of the car wash. Area improvements, municipal growth, or the addition of local housing may enhance the car wash property or income. These area enhancements may improve traffic count, access, or the value of the property for other uses. Eminent domain (street widening, or utility access) may also serve as a means to sell all or part of the property to municipalities.

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1.800.448.3946 sales@pecocarwash.com pecocarwash.com

ADVANTAGE

UPGRADING THE CAR WASH

The buyer’s initial inspection of the car wash should reveal potential improvements to increase income or reduce maintenance and expenses. These enhancements should be implemented as soon as possible once the car wash has been secured. Original financing should include the purchase price with additional capital for necessary upgrades. Operating the existing car wash as is, lulls new owners into a false sense that upgrades may be made once the car wash creates its own additional capital. This delay in improvements also delays increased income.

Necessary upgrades may be obvious for a facility that is inoperable or partially closed; conversely, operating sites require a bit more discernment. It may be apparent these car washes need aesthetic improvement, but it is also vital that the equipment is reliable with all selections functioning properly. Most upgrades will be incremental with each having a cumulative effect on business income.

The age demographic most likely to use self-service car washes are 18 to 35 years old. In addition, many of the objects washed in a self-service wash bay are not only cars, but also lawnmowers, all-terrain vehicles (ATVs), recreational vehicles (RVs), boats, portable grills, and patio furniture. Survey questions should include security measures, additional features, supplemental offerings, or the addition of bays to reduce customers’ wait time.

Security measures include brighter lighting, security cameras, and car wash staff. Features related to security include barrier fencing or the reduction of clutter to improve visibility. To intensify lighting, incorporate light

“Security cameras and staff not only benefit the site by reducing potential vandalism, but also increase the customer’s sense of security.”

emitting diodes (LEDs). Several U.S. public utilities offer LED lighting rebates to offset initial installation costs.

LEDs provide brighter light, are maintenance free, and are more efficient, reducing lighting costs up to 80 percent.

Adding white wall covering or paints reflecting more light will make the most of the lighting offered. Fencing can reduce unwanted foot traffic and serve to block out unsightly adjacent properties. The reduction of clutter decreases shadows and unnecessary obstacles. Pleasant aesthetics act to draw new customers, retain existing customers, and add to the income of the car wash.

Additional bay features may include in-bay vacuums, tire inflation, hand-held air dryers, rug beaters, in-bay bill acceptance, and/or credit card acceptance. Also, supplemental site offerings should be considered as added revenue centers. Depending on the clientele, site location, and size of the property, these opportunities may include ice vending, pet washes, or self-storage units.

Consider the return on costs of improvements to prioritize upgrades and expansion.

REDUCING MAINTENANCE AND EXPENSES

Long-term savings may be achieved by reducing maintenance and utility expenses. LED lighting may be the initial consideration. However, car wash equipment with higher efficiencies and solid components also provide lower long-term costs. Super E electric motors, pumps with proven reliability, no-slip drive systems, and variable frequencies drive (VFD) inverters serve to reduce consumption and operate longer without replacement.

Further reliability may be realized by using equipment with fewer parts (e.g., single delivery hose to the bay and fewer check valves). Also, choosing equipment with non-proprietary components with a simple design allows the owner to perform self-maintenance and provides higher profit margins.

SOLID INVESTMENT

Self-service car washes provide a reliable income. This style of car washing is relatively low tech, simple to maintain, and can be very desirable long-term income properties. There are few investments that present a more reliable income with the comparatively minimal investment.

Gary Wirges is President of Arkansas-based CustomKraft Industries Inc.

RENOVATION Bring New Life & Competitiveness to an Existing Car Wash

Renovating or upgrading your car wash presents many challenges — but offers numerous benefits. A major plus is that it provides a fresh and up-to-date look that should bring in new customers. With new, competing car washes being built close by, there is a need to look just as flashy and new. There are several issues owners can focus on to increase curb appeal including exterior finishes, lighting, landscape, and signage.

EXTERIOR FINISH

The exterior finish and colors of an older building can date a car wash. One of the options for exterior finishes is large-format porcelain tile. Porcelain tile is practically impervious and can be installed on exterior walls over most existing finishes. The size of tile has changed considerably from a maximum 12” x 12” to 24” x 48” and even larger. The finish can be smooth, stone-face, or polished. The automotive dealership industry has been using tile for years and now, with the larger sizes and economical cost, they can dress up an older car wash building quickly.

The exterior colors of a car wash building can dramatically change the appeal as well. The sun is a killer on bright colors, and over time reds become pink, blues become grey, and yellows turn white. New metal fascias 41

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ADVANTAGE and trims can brighten up the site. Look for metallic finishes that will provide some sparkle. A good paint job with a lighter color over older masonry can brighten the appearance. If your site has bollards, install plastic covers over them for a quick fix.

Don’t overuse primary colors as this starts to look confusing and tacky. Many operators want to use as much color as possible everywhere on the site, thinking customers will not see them without it. Newer washes are more selective in providing the correct amount of color visibility without going overboard and looking like a box of crayons.

Adding an architectural element to an existing wash allows the chance to change the design of the facility entirely.

Adding a tower element on the front of a wash building or as a standalone structure can give an existing site greater visibility, and allow a new location to place signage.

SIGNAGE

Signage can provide great visibility. Over time, building and pole signage fades and gets dated. Providing fresh sign panels is inexpensive and quick to change.

New signage in backlit channel letters is the current trend. This gives an upscale look and is not overly bold.

If your signage is not back or front lighted, provide new lighting to allow it to be easily read in the evening and at night. Signage can stay illuminated 24 hours to keep your business presence front and center even when you are not open.

INTERIOR

Once you’ve taken care of the curb appeal, be sure to bring the same attention to the interior spaces that customers will occupy or drive through. Wash tunnels or bays need to be as clean and bright as your customers want their cars to be. If your tunnel is dark and doesn’t allow much daylight to enter, add a healthy dose of LED lighting.

Brighten the walls with new white PVC liner panels.

Some liner panels are now available in colors, but stick to white so the tunnel is as bright as possible. Clean the walls and floors often, and keep them clean. If you have wall or ceiling space that will allow adding daylight, consider these options. A concrete block or brick wall can be cut out and reinforced to provide new window locations. Most ceiling/ roof areas can be penetrated as well to allow for skylights.

Lighting from above is beneficial, as it doesn’t take much of

LIGHTING

Lighting can warm and brighten a site quickly and inexpensively. Evening hours can be a very busy time for washing cars. A new car wash will typically have bright site and building lighting, which gives a sense of quality and security. Many customers will not use a car wash that is poorly lit during the evening. The growth of LED lighting has made significant progress in the car wash industry, and owners can install many fixtures and systems themselves. Tube LEDs are easy to install and can light up a wash bay or tunnel very well. Exterior wall and pole lighting with LEDs are readily available and inexpensive.

Be aware of any glare from new light fixtures to avoid blinding drivers when driving around and using the site.

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LANDSCAPING

Fresh landscaping can help a site look new and inviting.

Many older car washes were built with little landscape requirements and seem to be mostly concrete. Look for areas of concrete that can be cut out and replaced with small trees and shrubs. Focus on annual beds along the front of the site and by any driveways and entrances the customer may use.

If concrete cannot be removed, install large planter pots to act as lane dividers and to protect equipment or building corners.

Build small wood trellises around customer seating areas and maybe pipe in some soft music. Provide quality seating for customers or their children. Add WiFi accessibility if you provide detailing or flex services. Everyone is online these days and connection to a strong signal is very beneficial.

One of the biggest challenges with a remodel is having a large enough site to allow for better site circulation, additional landscaping, and amenities like seating areas. Creating additional room on a site for these items might require modification of existing detail, vacuum, and parking areas.

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Comerica Bank

John Park Sr. Vice President, SBA Lending Comerica Bank San Antonio, Texas (210) 771-8878 Jcpark@comerica.com

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ADVANTAGE a hole to provide a lot of light. Skylights usually don’t take much maintenance to keep clean on the inside. A word of caution, though: Don’t locate skylights over any top brushes or equipment that will throw water and soap up high.

RESTROOMS

If you have interior customer areas and restrooms, upgrade these spaces with new tile, paint, and ceiling treatments. Don’t allow a customer to wait in a dingy and dated room while their car is being pampered in an attractive day-lit space. A nice clean restroom is a must in any car wash location. Provide the latest in interior finishes and an attractive countertop or lavatory. Keep it well equipped and make sure it smells fresh. This room must be constantly maintained and monitored. A dirty restroom can offend customers and cause them to choose another wash location regardless of the quality of service.

COST

How much is this going to cost? For every operator, that’s the first question that comes to mind. The budget will depend on how much owners can afforded and how much they are willing to spend to gain or maintain a competitive edge. A $50,000 to $100,000 budget will cover some paint, signage, landscape, and lighting. A $1 million budget could include all of the above in a high-quality finish. When investors are spending between $3 million and

$5 million on a new car wash site, existing owners need to realize the need to spend good money on a great remodel design with high-quality, up-to-date finishes.

Many older car washes are being remodeled to compete with the new flashy washes in their market. The older washes have the advantage of being established and not having to spend millions on a site and building, not to mention spending a year or more to get the wash approved and built. Capitalizing on this advantage and upgrading before it is necessary could steer new washes further away from your site. Thinking first and acting fast could be the saving grace for an older wash in this competitive market.

Trent Clark is an SCWA member, the founder and lead architect with A Plus Design Group, a multi-state-registered firm located in Flower Mound, TX. You can visit the firm on the web at www.apdg.us.

INVESTMENTS Selling A Car Wash HOW TO PREPARE

When you purchased your home, your first impression of the residence was the most important factor in the purchase decision. Car wash operations are a showcase and marketplace for customers, and their appearance

S O U T H W E ST C A R WAS H ASS O C I AT I O N

Down the Road SCWA CONVENTION & EXPO

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ADVANTAGE produces the same reaction for prospective buyers. Many car wash operators keep their locations in pristine condition and could sell their car wash any day, while other sites appear to need hundreds of thousands of dollars in building improvements and capital equipment repairs.

Those that need substantial building repairs and have deferred equipment maintenance issues may realize a lower sale price, if attracting any buyers at all. How should the car wash site be prepared for the sale?

CURB APPEAL

Car wash facilities should be well maintained and cleaned daily. Car washes are in the business of selling “clean.” Maintenance and repair issues are some of the biggest reducers of price in the sale of a car wash property.

If a car wash fails to properly maintain curb appeal, buyers will question its ability to clean cars, too. Keep a site well maintained during the marketing and sales process. Curbs, gutters, and driveways with cracked, heaved, or shattered surfaces should be repaired or replaced. Replace worn or chipped paint striping. Cut the grass or use a professional lawn service weekly.

Pull weeds, old leaves, and trash out of the grassy areas, rocked areas, and shrubbery. Keep grassy areas, trees, and shrubs trimmed and healthy during the growing season.

Dead or dying trees or shrubs should be addressed. Site maintenance begins at the curb.

The replacement or repair of damaged curbs, gutters, and driveways should be completed before you begin marketing the site for sale. Sometimes this cannot be achieved due to the time of year the property is marketed and will need to be disclosed to the buyer.

Quotes for replacing these items should be in hand for the prospective buyer to review. Do not wait until the prospective buyer has seen the site to begin calling for quotes and conducting repairs.

Signs that are improperly hung, paint that is peeling, burned-out lights, or signs that have been damaged by weather should be promptly fixed. Replace burned-out outdoor lights and lenses and install new lights in dark areas. Barring any code issues, your site should be uniformly lit and devoid of any dark areas that can attract the wrong “customers” to your car wash after hours.

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EMPLOYEES

Greeters, cashiers, detailers, and other employees should always have an identifiable uniform to communicate to customers that they work for the car wash and are not street people waiting to steal customers’ vehicles.

Employees should be clean-shaven and free of grime and body odor that might result, for example, from shoveling the pit. They need to be appropriately dressed (no cut-offs, for example), and able to communicate well with customers.

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VACUUM AND DRYER AREA

Hoses and nozzles, shampooers, fragrance machines, and vending machines must be well maintained and operate properly. Replace worn directional and advertising stickers on equipment and vending machines. Replace worn, squeaky bearings and brushes in producers and drive motors. Clean vacuum lines in central vacuum systems, if necessary. Replace filter materials on a regular basis.

CHANGERS AND/ OR CREDIT CARD SYSTEMS

Self-service operators must maintain and upgrade chips on bill changers. Credit card swipes must work and should be cleaned. Credit card processing systems should have hardware and software upgraded to keep up with technologies and processing regulations.

OFFICE

Remove any unnecessary clutter from the office. Spare parts and conveyor transmissions should be removed from the office and properly stored. Fix any paint peeling from the walls and replace broken or discolored ceiling tiles. Repair any non-functioning light fixtures. Make sure heating and cooling systems work.

CUSTOMER WAITING AREA

Gondolas and other merchandiser units, coolers, coffee bar, vending machines, video games, etc. must be clean, well stocked, and appropriate for the operation.

These should be replaced with new commercial grade furnishings, coverings, and/or fixtures.

BAYS AND TUNNELS

Car wash bays and tunnel prep stations should be neatly organized and clean. Any broken high-pressure pumps, prep guns, or hoses should be promptly repaired or replaced and disposed of. High-pressure hoses that are leaking or worn have a poor appearance to the prospective buyer.

All bay systems should be in good working order.

Check in-floor hydronic heating systems, and replace

“A crowded and cluttered lobby area makes fewer sales, as customers may prefer to wait outside, thus reducing the chances for additional sales. Ripped and torn couches, dirty or torn carpeting, broken shades, and non-functioning light fixtures must be addressed.” or repair cracked or heaved concrete slabs. Address any side brush arms that are lying on the tunnel floor or held back by bungees, straps, or ropes. If the site has broken equipment or shows evidence of not being maintained, the buyer’s perception is that nothing on the site has been maintained. Missing or broken windows or doors must be

replaced or repaired. Equipment that cannot be repaired or further maintained due to manufacturing discontinuance or parts not being available must be replaced.

Signage, message boards, and directional instructions should be professionally printed with clear concise lettering and be easily readable at a distance.

DETAIL SHOP

The detail shop area should be neat with chemicals and detailing equipment stored properly when not in use. Be sure the Safety Data Sheet (SDS) binder is present near chemicals.

Floors should be clean with no grease. Roll doors must work properly with no squealing wheels or loose tracks.

EQUIPMENT ROOM

A clean, clutter-free equipment room is the best. One that has parts taped to the wall, or has pump oil on the floor is a demonstration of an inability to clean up and properly run the operation. Empty soap barrels should be removed from the equipment room and stored appropriately or properly disposed. Use proper chemical-management practices. Have safety gear available in working condition, with rescue and first-aid systems in place.

Excess or old parts inventory should not be stored on top of the chemical barrels, mixing tanks, or boilers. Make sure all electrical faceplates are in place on receptacles, switch boxes, or junction boxes.

No loose wiring should be visible anywhere in the facility, including low-voltage control wiring such as controller and telephone wiring. Plumbing should be in good shape with no leaks. A trickle of water running constantly to the floor drain is a very bad sign of deferred maintenance. Replace any broken or stuck valves or old hydrominders before marketing the property. Perform annual boiler maintenance.

Be sure appliances have adequate replacement air and combustion air supply vents and that the automatic vent systems are operating properly. In colder climates, make sure the weep system works properly. If there is a water softener system, be sure the membrane is working properly and that the dissolved solids are within limits. Charcoal filter units only last a few years; replace them if there are signs of wear or if they fail tests. Reverse osmosis systems should also work properly and have TDS testing supplies available. Water storage tanks and booster pumps should work properly and pressures maintained throughout the system. Test water weekly. Record these test results in the separate water log. All equipment maintenance should be recorded in a maintenance log and be available for the prospective buyer.

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EQUIPMENT INSPECTIONS

Buyers almost always obtain an inspection report on the equipment. The reports are very revealing as to the condition of the equipment. These include pictures and descriptions of the problem and its cause along with a recommended course of correction. If necessary, hire a car wash equipment dealer to inspect and repair the wash before beginning the property marketing process.

SUMMARY

A clean, well-maintained car wash property is easier to sell to a prospective buyer, and generally sells for a higher price, than one plagued with problems.

Mark W. Gerhart, an SCWA member and a licensed real estate broker in the state of Colorado and focuses exclusively on automotive-use properties, concentrating specifically on car wash property sales.

DID YOU KNOW More than 45% of American adults pay no income tax? That means 77.5 million US households owe nothing to the IRS – half because they have no taxable income, and half because they have tax breaks that eliminate their tax liability. The richest 20% of American pay 87% of all income tax collected by the IRS. US centenarians are living even longer? Death rates for Americans age 100 and older fell steadily between 2008 and 2014 (latest data available). There are more than 72,000 Americans who have celebrated 100 birthdays or more.

The US is becoming a tax haven? The US is has resisted new global financial-disclosure standards, so wealthy foreigners are taking money from places such as Switzerland Bermuda and the Cayman Islands and putting it in the US. Well-to-do foreigners still must comply with their home countries’ tax laws, but they may be concerned about extortion and believe their assets are safer in the US. Cocoa may be a brain booster? People with impaired blood flow in the brain who drank two cups of flavonolrich cocoa per day for one month did better on memory tests than similar people who drank flavonol-poor cocoa.

Choose chocolate with at least 35% cocoa or cocoa solids.

Short people are at higher risk for heart disease? A person’s risk for cardiovascular disease rises by 13.5% for every 2.5-inch decrease in height. That means that a fivefoot-tall person has an average 32% higher risk for heart disease than a person who is five feet, six inches tall.

More young women now live with their parents?

Than at any time previously studied? Among 18–34 year-old-women, 36.4% lived with their families in 2014 (latest data available). That was above the previous peak of 36.2% in 1940. The percentage of men in the same age group living at home was even higher–42.8%.

WELCOME NEW MEMBERS The SCWA members listed below have joined SCWA since our last issue. We Appreciate your Support!

Lisa Blansit Duck Creek Interest Dallas TX

Linh Le Crystal Car Wash League City TX

Tim Cerini Car Wash Medics Sarasota FL

Tim McGinty McGinty Car Wash McGregor TX

Wayne Cobb C&B Maintenance Houston TX

Brett Patton Austin Highway Car Wash San Antonio TX

Brian Coleman BBC Wash, LLC Carrollton TX

Andres Santano Cordillera International LLC Houston TX

Alireza Hashemi Apple Car Wash, LLC Houston TX

John Shoemake Klassy Kleen Carwash, LLC Jonesboro LA

John Howell Auto Spa West Monroe LA

Greg Todd West Side Car Wash Claremore OK

Chul Kim Celebrity Car Wash Flower Mound TX

Bradley Trochta Scrubs I/Scrubs II Brenham TX

BOARD OF DIRECTORS President: Dave Swenson Austin, TX (512) 346-8050

President-Elect: DeWayne Hall Oklahoma City (405) 414-1489

Vice President: Tyler Furney Harker Heights, TX (254) 245-8657

Treasurer: Don Witt Dallas, TX (214) 358-2575

Past President: Eric Warden Southlake, TX (817) 329-8777

Vendor Vice President: Tyler Greffin Burnsville, MN (952) 808-3640

DIRECTORS Jeff Blansit Dallas, TX (214) 912-1729

Robert Duncan Artesia, NM (575) 308-9248

Brett Meinberg Centennial, CO (720) 934-7289

Ryan Darby Lubbock, TX (806) 535-7275

Ian Heritch San Antonio, TX (210) 421-1295

Clay Wilson Lubbock, TX (806) 687-2024

Wes Dawson Dallas, TX (972) 986-7239

Evan Lorentzatos Houston, TX (281) 561-0469

Andrew Zamora Lubbock, TX (806) 792-9285

Executive Director: Chuck Space

4600 Spicewood Springs Rd., Ste. 103 Austin, Texas, 78759 (800) 440-0644

www.swcarwash.org THE ADVANTAGE is the official publication of the Southwest Car Wash Association. It is published four times each calendar year by SCWA, 4600 Spicewood Springs Rd., #103, Austin, Texas 78759. The officers, directors and members of the Southwest Car Wash Association, as well as THE ADVANTAGE editors, in accepting advertising for this publication, make no independent investigation concerningthe services or products advertised and neither endorse nor recommend or make any claims as to the accuracy and therefore assume no liability thereof. The opinions expressed in the articles are not necessarily the opinions of SCWA and its publisher and therefore makes no warranties and assumes no responsibility for accuracy or completeness of the information herein. (512) 343-9023.

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SOUTHWEST CAR WASH ASSOCIATION 2016 Convention & Car Wash 4600 Spicewood Springs Road EXPO February Suite 103 28 - March 1 Arlington Convention Center Austin, Texas 78759

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AUSTIN, TX PERMIT NO. 1142