Results from the AutoLaundry News. In-Bay Automatic Survey

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1 SURVY COV:p39-SURVY COV 9/2/13 T H T H H T 9:3 AM V O I C V O O II C C V Page 41 O F O F F O T H T H H T Results from the AutoLaundry News 213 In-Bay Automatic Survey C A R C A A R R C C A R C A A R R C I N D U S T R Y N D D U U S S T T R R Y Y II N

2 Results From The Auto Laundry News 213 SURVY he 213 Auto Laundry News In-Bay Automatic Survey was conducted by mailing questionnaires to a random selection of subscribers who own and/ operate in-bay automatic car wash equipment. The infmation in this survey results from an analysis of data provided by respondents representing 146 locations throughout the United States. WashVolume The improvement in wash volumes recded last year continues in the current survey: 48 percent of operats rept greater volumes compared to the previous year when only 41 percent of respondents were able to do so. While this does not equal the dramatic spurt of 1 points 12 months ago in the percentage of operats making progress, it is a hopeful sign that there is a trend in the making. The flipside of this measurement respondents experiencing declining volumes paints a encouraging picture: 34 percent of operats rept washing fewer cars than a year ago. This is a slight uptick from the 31 percent who recded reversals last year, but still a vast improvement over the close to half who saw diminishing volumes at their wash f each of the four years befe that. The survey shows a growing presence of express exteri washes in markets served by in-bay automatics (IBAs). Last year, 39 percent of respondents repted such competition; this year 46 percent do so. Of the latter, 42 percent say the express exteris have hurt their business (38 percent thought so last year). Respondent Profile Tables 1 (below) and 2, (page ), offer year-by-year comparisons of operat experience levels and multiple site ownership. Table 1 Length of xperience Under years 12% 12% 18% 2 22% - 1 years 33% 2 26% 33% 21% years % 2 2 Over 2 years 2 3% 28% 28% 23% 2% Continued on Page PRCNTAG OF WASH BUSINSS DON BY DAY OF WK MON TUS WD THURS FRI SAT SUN Pacific Alaska-Califnia-Hawaii-Oregon-Washington Mountain Arizona-Colado-Idaho-Montana-Nevada- New Mexico-Utah-Wyoming Midwest Iowa-Kansas-Minnesota-Missouri-Nebraska- Nth Dakota-South Dakota Central Illinois-Indiana-Michigan-Ohio-Wisconsin South Central Alabama-Arkansas-Kentucky-Louisiana Mississippi-Oklahoma-Tennessee-Texas Southeast Delaware-Flida-Gegia-Maryland Carolinas-Virginia-West Virginia Mid-Atlantic New Jersey-New Yk-Pennsylvania New ngland Connecticut-Maine-Massachusetts- New Hampshire-Rhode Island-Vermont * * * * * * * * Too Few Responses AUTO LAUNDRY NWS OCTOBR

3 HOW FAR DO CUSTOMRS COM? (Percent from within 2-mile radius, 3-mile radius, etc.) OPN 24 HOURS OPN SUNDAYS 1% 7 88% 42% 73% 6% 3 miles 2 3 miles 4 miles 8 miles 1 miles miles 6% 3% 9 AVRAG DAILY TRAFFIC COUNT AT BST SIT 24, WASH VOLUM COMPARD YAR TO YAR (IN-BAYS) 48% 32% 2 31% 28% 41% MOR CARS WASHD 28% 23% 2% 18% 18% 16% SAM AS LAST YAR 48% 6% % % FWR CARS WASHD PRCNTAG OF WASH BUSINSS DON BY SASON BY RGION WINTR SPRING SUMMR FALL Pacific Mountain Midwest Central South Central Southeast Mid-Atlantic New ngland * * * * * Too Few Responses ACCSS TO TH INTRNT 86% WBSIT 33% 44 AUTO LAUNDRY NWS OCTOBR 213

4 COMPTING WASHS IN ARA OVRALL NUMBR OF COMPTITORS MOR THAN OPRATORS RPORTING 6% % % 1% OPRATING COSTS (PR MONTH AS A PRCNTAG OF TOTAL ) RNT 19. QUIPMNT & BLDG. MAINTNANC CHMICALS (soaps, waxes, etc.) 7.% 8.3% LABOR UTILITIS (incl. water/sewer) % ADVRTISING & PROMOTION INSURANC CUSTOMR CLAIMS.6% 2.% 3.6% JAN % PRCNTAG OF OPRATORS RPORTING AS THIR BST MONTH OF TH YAR % 3% 3% % 3% % % % FB MAR APR MAY JUN JUL AUG SPT OCT V DC AUTO LAUNDRY NWS OCTOBR 213 4

5 1 % 8 81% 76% 7 IN-BAY : OPRATOR PROFIL OTHR BUSINSS AT WASH SIT 2 8% 1% 1 8% 1% 1 1% 12% FULL-SRVIC WASH SLF-SRV GAS SALS C-STOR FAST LUB DTAIL OTHR AND/OR XTRIOR WASH 1% 8% 3% 3% 2% LABOR COSTS 1 AVRAG GROSS RVNU PR IN-BAY CUSTOMR $7.84 DRYING CYCL OFFRD TH AVRAG MONTHLY VNDING/ SALS RVNU: Drop-Shelf $1 Glass Front $48 AVG. WAGS PR HOUR PR MPLOY 8% PAID MINIMUM WAG PAID MINIMUM WAG to $8 PR HOUR 4 PAID $8. to $1. PR HOUR 3 PAID OVR $1. PR HOUR AVRAG DRYING CYCL PRIC $1. CUSTOMRS PURCHASING DRYING CYCL UNDR 1% Operats Repting % 11%-2% % 26%- 41%-% 6%-7% 2% 21% OVR 7% 6 48 AUTO LAUNDRY NWS OCTOBR 213

6 AVRAG GALLONS OF GAS PUMPD PR MONTH 11 THOUSAND GALLONS OPRATORS SLLING GASOLIN 14 86% XPRSS XTRIOR 46% OPRATORS WHO PLAN TO BUILD MOR WASHS IN TH NXT 12 MONTHS XPRSS XTRIOR 3% XTRIOR-ONLY % FULL-SRVIC RSPONDNTS WHO OPRAT A COMBIND / SLF-SRVIC FACILITY 4 SLF-SRV WASH AS PRCNTAG OF TOTAL INCOM AVRAG MONTHLY GROSS INCOM PR SLF-SRV BAY $1,497 6% WASH AS PRCNTAG OF TOTAL INCOM INCOM PR BAY 6% SLF-SRV MPLOY UNIFORMS FULL PARTIAL N 4 42% Present in Market Area AVRAG NUMBR OF CARS WASHD ANNUALLY PR 42% 8% Has Hurt Business 14,718 AUTO LAUNDRY NWS OCTOBR

7 CONVYOR Continued from Page 43 Table 2 Site Ownership Own 1 Site 3% 6% 7% 68% Own 2 sites 33% 23% 2% % Own 3 sites 1% % % Own 4 me sites 1% 1 12% 8% 1% quipment The split between friction and touch-free equipment remains fairly constant. Last year it was 2/7; this year it stands at 24/74 with 2 percent being taken up by hybrid equipment. In the current survey wash material choice is evenly divided between foam and cloth. This is a departure from the previous survey in which foam was employed by 63 percent of respondents compared to 37 percent who used cloth. Is cloth making a comeback, is this result an aberration? We ll see what next year brings. Some operats are actively pursuing greater wash volumes. In the past 12 months, 4 percent of respondents have converted an IBA bay to a convey tunnel; an equal percentage plan on doing so in the following 12 months. Three percent have added off-board services to their IBAs, while a further 3 percent are considering such additions during the coming 12 months. Future Future plans are following a teeter-totter pattern. Three years ago 11 percent of respondents were planning expansions; two years ago that surged to 17 percent; last year the figure was 12 percent; this year we re back at 17 percent. All current plans have one thing in common: avoidance of lab. There isn t a single full- flex-serve wash on the drawing boards. NATUR OF WASH LOCATION RSIDNTIAL 6% COMMRCIAL AVG. GROSS PR CAR PR: $9.88 PLANND QUIPMNT PURCHASS (AS A PRCNTAG OF QUIPMNT TOTAL) 3 VACUUMS 22% DRYRS CRDIT CARD ACCPTANC 13% IN-BAY 1 OTHR OTHR INCLUDS: RVRS OSMOSIS SIGNAG DOORS FRICTION 2 HYBRID 2% QUIPMNT CLOTH % ON -BOARD 3% GLASS FRONT 3% TOUCH FR 7 FOAM % FRSTANDING 6% DROP- SHLF 4 TYP FRICTION WASH MATRIAL DRYR TYP VNDING MACHINS AUTO LAUNDRY NWS OCTOBR 213

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