WINTER2022_SSCWN_1-68-3
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Et tu, tunnel?<br />
TRICKS OF THE<br />
I currently operate my two sites (self serves and IBAs) without any employees. I keep running numbers<br />
to determine if I want to build a tunnel. With 11-13$ an hour it might make sense but I see 18$ right<br />
around the corner for entry level wages. The local restaurants are already at $15 starting for teens,<br />
entry warehouse is at $20, Amazon is at $22. The labor shortage isn’t going away. Can most tunnels stay<br />
competitive without raising membership fees with these labor rates? Does anyone have any models that<br />
have taken rising wages into account? Hesitant to jump into this model given this factor. C-RAY<br />
I wouldn’t touch this model with a ten foot pole.<br />
There seems to be very little ethics involved and<br />
the business model appears to be to just build<br />
right on top of a wash that looks to be successful.<br />
Not to mention the cutthroat pricing and all the<br />
free stuff. The canaries will stop coming out of the<br />
mines soon (actually I think it’s already started)<br />
and you should be able to pick one up for pennies<br />
on the dollar. The industry finally pretty much<br />
killed off the gas station freebie wash, and now it’s<br />
turned on itself. I.B. WASHINCARS<br />
What I see to support that is non-stop advertising<br />
for help wanted and managers working nights and<br />
weekends to cover. Just a matter of time before<br />
they increase prices to cover higher wages so they<br />
can recruit competitively. I just don’t think 40-<br />
50$ Monthly unlimited memberships are digestible<br />
over the IBA prices. C-RAY<br />
I recently retired and now use an express myself.<br />
I pay $17.95 per month for my first vehicle and<br />
$8.95 for the second one. $26.90 keeps my vehicles<br />
washed all month. There is also another express<br />
just 1/4 mile away. I think they look at any<br />
major intersection as the potential for 5 express<br />
washes, because eventually someone will build a<br />
two-story wash... I.B. WASHINCARS<br />
I’ve watched numerous express washes up wages a<br />
few bucks an hour in the last year. Every area is<br />
different but I’d expect $13 to be the new $10<br />
within a year. If you want “okay” employees that<br />
aren’t all in high school and less hiring issues it<br />
should be at least $15. If you want solid people<br />
you’re going to have to offer $17+. The bigger<br />
question is if you want to put tons of time into<br />
managing and hiring employees as well as working<br />
at the wash when someone quits or doesn’t<br />
show up.<br />
The market is accepting higher membership<br />
prices. $40 plans aren’t that rare, even among<br />
major players in the unlimited game. The competitive<br />
building is the biggest risk. People are<br />
only getting riskier and dumber.<br />
All that said, if you’re willing to put in the<br />
cash and the time an express is highly rewarding.<br />
If you’re willing to work your ____ off I recommend<br />
it. MC3033<br />
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WINTER 2022 • 41
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