Competition in the car wash industry is heating up, but operators have more tools than ever to turn market shake-ups to their advantage, according to insights from the latest episode of the Better Car Washing Everywhere podcast.
Host Matt DeWolf and returning guest Tara Baugher discussed practical strategies for independent car wash owners facing new entrants—particularly larger chains—moving into their markets. Rather than viewing competition as a crisis, Baugher encouraged operators to see it as a catalyst for improvement.
“Competition is not necessarily a concern, but a consideration,” Baugher said. “It comes for everyone eventually. Even if you don’t have any competition in your area, you should at least think about what’s going to happen if that does happen.”
Both DeWolf and Baugher stressed the importance of operators playing to their strengths, especially those deeply involved in their communities. DeWolf cited the home field advantage local operators hold. “You own the market. It is you they are worried about, not the other way around. You have the home field advantage,” he said.
Baugher said operators can weather an initial drop in traffic after competitors open nearby by staying true to their brand and continuing to provide a differentiated customer experience. “The last thing you want to do is panic before competition comes in and start making a bunch of changes that kind of strays away from what you’ve always been,” she said.
The pair advised small operators not to engage in a race to the bottom on pricing or to radically change their wash model at the prospect of new competition. Instead, they recommended incremental improvement and deepening community ties, such as participating in local fundraisers or offering small surprises to customers.
“There are only a few ways you can differentiate,” DeWolf said. “What’s the site look like? How do your people look? What do you cost? Or how do you make people feel? That’s what’s going to keep you swimming in lifelong customers.”
Baugher shared practical examples, including a car wash chain in Ohio that gives out roses on Valentine’s Day and another that hands out Halloween buckets to the first 200 customers. “Operators have the ability to be flexible,” she said. “Those small touches create a lasting memory.”
One pitfall both cautioned against is offering unsustainable discounts simply because a new competitor is opening. “Once you start giving things away, you create expectation and you devalue your offer,” DeWolf said.
The conversation also addressed the psychological toll competition can have on owners, urging a shift from a “fixed mindset” to a “growth mindset”—embracing challenges as opportunities and always seeking improvement. “Competition is a reality of the world. It happens every day in every industry. It does not have to be a bad thing,” Baugher said.
Looking ahead, both agreed that investing in the business, staff and local community remains the most effective defense—and greatest growth opportunity—no matter how the market landscape changes.
“If you stick to what you know and you make improvements, either on a customer journey, maybe even the tunnel, replacing some old equipment, whatever you may do, stick to your guns and it will be okay,” Baugher said.
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