What are the opportunities for retailers with a car wash operation?

 

By Pierre Leclercq

A trip to a convenience store typically involves filling up the tank, grabbing a snack or picking up last-minute essentials. By adding a car wash, retailers can create a one-stop shop for their customers’ needs, as well as their vehicles.

Historically, smaller c-store companies generate a larger percentage of their total gross profit with other operating income categories such as lottery commissions, car wash or ATM revenue.

The newly released NACS State of the Industry Report® of 2024 Data showed that car washes generated $10,922 in operating income per store per month, but there was a significant difference by store size. A-size operators (1-10 stores) reported $12,971 per store, per month in car wash gross profits, which is 2.7 times the $4,797 reported by D-size operators (201-500 stores).

 

Recurring Revenue

A 2022 NACS report, “Leveraging Carwash Potential in Convenience Retail,” tracked retailer attitudes toward car washes as a profit center. The report noted that car wash subscriptions can help retailers lock in revenue year-round and build customer loyalty.

The report also suggests that retailers should price subscriptions so that the offer provides customers with a discount for washing two to three times or more per month. These types of programs create a steady flow of income and bring repeat business to the store. Each time a customer returns for a car wash, they’re more likely to make additional purchases.

Retailers that offer a car wash subscription often incorporate it as part of their mobile app and award loyalty points for washes, which accrue directly through the retailer’s app.

 

Maximizing Non-Fuel Revenue

While customers are getting their car washed, passengers often come inside the store, which presents retailers with another chance to increase sales. Operators can encourage higher inside sales by offering discounts, or a free car wash for purchases over a certain threshold, such as after five visits.

A car wash can also spread-out income during the day. Unlike many in-store purchases that rely on peak traffic times, car washes can generate income around the clock. Whether it’s a busy morning rush or a quiet afternoon, the car wash can work for a retailer when the store isn’t bustling with foot traffic.

If a store location is in or near high-traffic areas, commuters can stop for a car wash during any part of the day. That’s income flowing in, especially when in-store foot traffic is light, which creates an excellent opportunity for maximizing revenue outside of normal peak hours.

The NACS report noted that downtown or urban areas usually experience lower car wash volumes, especially in business-centric areas with minimal evening or weekend traffic. Similarly, sites along highways, near travel centers, or in areas with many semi-trailers tend to get less wash traffic, as drivers often prefer to keep going or finish their trip rather than stop for a wash.

 

Challenges Create Opportunities

There are significant costs associated with adding a car wash.

Before starting a car wash, c-store operators should also remember that car washes do not market themselves—great signage and promotions at the pump help maximize their car wash’s visibility and can also be a useful tool to promote their overall brand.

In today’s digital age, physical signage is not the only thing that should be considered when promoting your car wash. Running digital advertising like Google Ads as well as maintaining an active social media presence can drive traffic to your site and offer greater visibility that the competition may be lacking.

It’s also important to make sure customers can find you when they search online for the nearest car wash. For guidance and assistance, check out THRIVR (convenience.org/THRIVR), an integrated social media, reputation and listings management solution for c-stores.

 

Pierre Leclercq is the senior VP of sales for Mark VII. The company is the North America subsidiary of WashTec AG of Germany, an international provider of innovative solutions for all aspects of vehicle washing.