ExpressMarch / April 2015

2 Executive Director’s Message

4 How to Choose the Right LED for Your Business

10 Make Time for Your Annual Business Checkup

11 Your Car Wash is like a Stage Show - Use that to Your Advantage

14 California Legislative Update WCA has You Covered

15 WCA Offers Surety Bond Discount to Members

18 Phoenix Roadshow & Car Wash Tour

22 Exempt VS Nonexempt Employees - Know the Difference

24 When Your Car Wash Becomes a Crime Scene and Other Tales from the Tunnel

27 Capitalizing on Profitable Opportunities

28 A Letter from California Labor Commissioner Julie Su

30 Industry News

I am thrilled to be writing my first member message as the new Executive Director for WCA. As a matter of fact, you will be seeing a lot more new and exciting things happening with the association including the new look of our Express newsletter – I hope you like it!

I am also pleased to announce a new WCA member benefit that provides members with an exclusive surety bond discount through Bond Services of California. We are taking a fresh look at all our member benefits and encourage you to take full advantage of everything your WCA membership has to offer.

Also new this year is our trade show partnership with ICA. The Car Wash Show 2015 will take place in Las Vegas April 23-25 and trust me you won’t want to miss it. Not only will the show feature 300

exhibitors from all over the country, displaying the latest that the industry has to offer, but it will also feature exclusive WCA education and networking opportunities. If that does not excite you than this definitely will – admission to The Car Wash Show 2015 is FREE for all WCA members. That is right, as a member benefit, WCA members receive one complimentary pass to the show. If you haven’t already taken advantage of this offer, I encourage you to do so today.

If you want to learn more about receiving a free pass to The Car Wash Show 2015 or the new surety bond discount program, please contact WCA membership coordinator Will Hixson at 800.344.9274. You can also find more information about The Car Show 2015 at www.TheCarWashShow.com.

Thank you for the opportunity to serve as your Executive Director. Stay tuned for more new and exciting news!

Kristy Babb, Executive Director, WCA

Executive Director’s Message

Meet Our Board 2014-2015 Officers Board of Directors

PresidentBrad HooperRossmoor Car Wash Los Alamitos, CA

Vice PresidentJason JohnsonQuick Quack Car WashCarmichael, CA

Secretary/TreasurerFrank PhalenZIPP, Inc.Santa Barbara, CA

IPPChris BuscagliaZoom Car WashStockton, CA

Mark GoddardSupersonic Car WashOgden, UT

Scott HornerTerrible HerbstLas Vegas, NV

Herschel KilgoreMission Viejo, CA

Marla MayerWeiss Guys Express WashPhoenix, AZ

Sander RomickHWB Car Wash, Inc.Burbank, CA

Gene StudentSuperior Auto ExpressSylmar, CA

Doug ChristHi Performance Car WashCentennial, CO

Page 2

How to Choose the Right LEDfor Your BusinessThe reasons to change to LED lighting are now fairly well documented and known

throughout the car wash industry. Owner operators understand the higher quality light from LEDs, the elimination of annual maintenance and the dramatic power savings resulting from LED lighting vs. metal halides and fluorescent lighting. If you’ve already made the switch, you likely have already recouped your investment, as the average payback is around 2 years.

For the rest of the industry that has not upgraded, the question is no longer if you should change or when you should change. It is now “how to select the right LED light?”

There are multiple LED lighting manufacturers today and selecting the right light can be difficult and confusing. Michael Call, VP Sales Marketing at Mile High LED Systems, hasoutlined the basic steps to follow when choosing an LED light for your car wash. Or, just look for products by Mile High LED Systems and be assured that the lights recommended are chosen specifically for car wash environments.

The following four steps are designed to guide car wash owners and operators to selecting the right LED light for their car wash. The four steps involve 1) identifying the light output needed, 2) identifying quality products, and steps 3 and 4) choosing between seemingly comparable options.

Step 1 – Determine how much light you need.

The first step is to identify the amount of lumens (a measure of light output) for your wash. It’s easy to start with your existing lights as a baseline.

If you are happy with the light output you have, find an LED fixture that is within 10% of your current lumen output. Use table 1 as a reference to see the amount of lumens at different metal halide and LED wattage levels. If you want more light, increase the LED wattage.

Note, table 1 is based on delivered lumens, not produced lumens. Metal halides pro-duce more light than indicated in table 1, but most of the light produced is lost and is not delivered to the area being illuminated. Delivered lumens is a measure of light where you want it.

For example: A self-serve car wash has 2 x 400W metal halides per bay. Each 400W metal halide delivers 10,000 lumens, so you have 20,000 total lumens per bay.

Page 4

How to Choose the Right LEDfor Your Business

By Michael Call

A 1 for 1 metal halide to LED fixture swap would require finding an LED light in the 87W-100W range (depending on lumens / watt). To double the light, find a fixture with higher wattage or increase the number of fixtures. Your target total wattage would be 350W-400W of LED light per bay.

Step 2 – Finding quality products.

Once you identify the target LED wattage and lumen output, start looking for available lights that deliver the lumens needed. Eliminate from consideration lower quality products quickly by scanning for factors that imply lower quality. These factors include efficacy (lumens / watt), thermal management devices, LED chip types, LED rated life and the product warranties.

Lumens per watt, or efficacy, is critical to achieving the desired light output at a cost savings vs. metal halides and fluorescents. For exterior lights in car washes, 80 lumen per watt should be the minimum threshold. Any less than that and the light will not be efficient to operate and you will not achieve the cost savings over time.

Thermal management devices (like fans and automated wattage adjustments) sound like a great idea until you understand that these are tools used to maintain the right heat within a fixture. A light that has “Thermal Controls” means that after 20-30 minutes of operation, the light heats up and dims to keep it cool. Fans are not reliable and break resulting in much less LED life. Be wary of these tricks used by some lights, as you will not get the same light output or longevity of an LED if these are used. Not all LED chips are created equal. Cree and Samsung make the most reputable and reliable LEDs. If the LED Chip manufacturer is not disclosed, be wary of the light. Most car washes operate lights from dusk to dawn – a lot of hours. Therefore, you’ll want lights that last. Look for 100,000+ hour LED life with 5-10 year warranties. Anything less than that and you risk having the light stop working just as you pay-off the expense.

Step 3 – Compare 5 Year, Total Cost of Ownership.

Based on step 1 and 2, you should now have a list of high quality lights that provide the right light output for your car wash needs. Now, how do you choose which light from seemingly comparable options? We recommend comparing lights on a cost per lumen basis to normalize for different factors such as different lumen output, install costs, and long-term operating costs.

Let’s continue with the example from step 1 and do the math to compare two light options that would provide roughly double the light of 2 x 400W metal halides per bay.

Page 5

Install Costs - Installation cost can vary by light. Do you need to run new conduit? Or just 1 to 1 replacements? Can lights be daisy-chained together requiring only a single line wire? These factors all will impact your install labor costs.

Product Costs - Product costs should be looked at on a cost per lumen basis. This enables you to compare lights with different lumen outputs and different costs across a common denominator.

Operating Costs - Operating costs need to be looked at to ensure you are taking into account the largest expense with lights – running them. Finding the most efficient light source will future proof your investment and ensure you continue to save money from these lights over the next 10 to 20 years.

Per table 1, you’d want ~18000-20000 lumens and 160W-200W per bay (range based on 100-115 lumens / watt). For the sake of this example, let’s say you found two options that will work and appear to be good quality lights (you eliminated lower quality lights per step 2). From here, prepare a total cost of ownership analysis of the new lights after 5 years.

The example outlined in table 2 shows Product 1 being the clear winner. Easier to install with lower install costs, 7% less cost per lumen, 20% less operating expenses over 5 years and 19% less expensive overall.

Step 4 – Aesthetics. Now, compare how the lights look and if they will improve or detract from the look of your facility. A price premium may be worth it to get the right look and maintain consistency throughout your facility.

By following these four steps, you’ll have all the facts to be able to make the right decision for you. Or, just look for the Mile High LED Systems logo and be assured the light being recommended is a best in class light designed for car washes and will provide a strong ROI.

Page 6

MAKE TIME FOR YOUR ANNUAL BUSINESS CHECKUP

You get an annual checkup from your physician to monitor and manage your personal health. Shouldn’t you do the same for your business? To keep your operation in top shape, consider an annual business review. The benefits of such a review are evaluating current performance and better planning of future operations.

Some things you should evaluate in an annual business review include the following:

• Revisit your business strengths, weaknesses, and opportunities. Is your competitive position improving, or are you losing ground?

• How did you perform relative to your business plan? Did you meet or exceed your objectives? Are sales, profit margins, and cash flow improving?

• Get a pulse on your customers. An annual customer satisfaction survey is a great way to assess performance, obtain insight on potential new products or services, and to let your customers know how much you value their business.

• Evaluate your team. Are you developing a superior team, employing their unique talents, and training them to improve performance? Do you reward on merit or simply on seniority?

• How effective is your marketing? Are your current methods and channels working well, or are you simply doing what you’ve always done?

• Meet with your insurance agent. Is your coverage adequate and appropriate for changes in your business activities and acquisitions?

• Review your business tax strategy. Identify opportunities for tax savings. Are you using the right form of business entity? Are you aware of recent changes in the tax code that might benefit your business?

• How is your scorekeeping? Does your monthly bookkeeping help you measure your progress and profitability? Accurate and timely monthly financial statements are absolutely critical in running any business.

For more information on how to evaluate your business contact

Norm Blieden, CPA 626.440.9511

Page 10

Like actors on a stage being watched by a captivated audience, the car wash attendants, cashiers, and even the management team are also watched by their “audience” – the customers. This is something that I consistently preached to my team back when I owned a full-service car wash.

Give the customers the best show possible - take that extra step and wipe off the invisible spot on the windshield, hand their keys with a smile on your face. A memorable performance will have them coming back again and again.

The star of the show, of course, is your tunnel. Everyone is fascinated by all those moving parts, the colors and the sweet smell of the chemicals (triplecoat), the soapy suds and the shiny car result. (How does all of that equipment start and stop at the appropriate time? It’s simply amazing!) So believe me, the customers are really watching your equipment as their cars are being washed.

This is why you typically have that concerned customer say something like “The wheel blasters didn’t turn on at the right time and missed my wheels!”

Of course, you know that’s not a big deal since you can tidy up the wheels in the drying area; but the customers will feel that they didn’t get what they paid for: the whole show…

It’s also important to stage a show that looks like the high-quality production that you’re always striving for. In the same way that patches on the stage curtain or burned-out stage bulbs can detract from the performance, using duct tape on machinery or jerry-rigging fixes instead of using the proper parts will certainly be noticed by your customers, and of course, by your employees.

Cutting corners not only undermines the stage presentation, it also fosters an atmosphere of risk-taking to the staff. The cost of fixing equipment can be calculated, the cost of injuries to the employees is impossible to predict. Yet many operators still present what would seem to be second or even third rate shows when it comes to employee safety.

How many car washes are using washers that do not have an operating door lock system for the agitator? You may also have heard about the employee who lifted the safety door and tried to get a towel as the spinner is moving. How about the dedicated employee who got his hand stuck (to put it politely) in the conveyor while trying to lift a roller by hand because the roller wasn’t coming up? Then there’s the car wash operator who had a faulty roller door and decided to just remove it - he then told his staff to just be careful!

When it comes to unnecessary employee risk factors, the show must NOT go on.

Remember, think of your car wash as a stage production for your customers to admire and appreciate. Most importantly, this show depends on the well-being and safety of the actors – your car wash staff. As the producer and director of the show, do it right and you’ll have a long-running hit!

MAKE TIME FOR YOUR ANNUAL BUSINESS CHECKUP

YOUR CAR WASH IS LIKE A STAGE SHOW - USE THAT TO YOUR ADVANTAGE!

By Sam Ferno

Page 11

CALIFORNIA LEGISLATIVE UPDATEThis year’s legislative session has kicked off, and members have introduced over 2,000 bills in the first few months. As with every legislative session, the bills range from sweeping reform to code clarification, and many have the potential to either help or hinder the business climate in California. After reviewing the thousands of bills, Political Solutions has identified several proposals that would impact your car wash. These proposals include increases to the minimum wage, taxes on services, mandatory overtime pay on holidays, changes to Proposition 65, employee scheduling requirements, and changes to payroll record keeping.

While many of these proposals are still underdeveloped, WCA and the business community at large will likely develop a comprehensive strategy to defeat or moderate many of these proposals.

Heat Illness regulations:

California has continued to modify existing heat illness regulations, making changes to employer obligations when temperatures reach certain thresholds. We expect that final regulations will be adopted and approved in May, so car wash owners should be aware of the new requirements as we head into the summer months.

Car Washes and the Underground Economy:

The Little Hoover Commission, one of California’s non-partisan oversight committees, has just released a report on their findings about the underground economy. This report, compiled with the input of WCA, presents findings and legislative recommendations to address the underground economy and help support law abiding business. This report looks specifically at the car wash industry, as well as a number of other businesses and the findings focus on the problems of enforcement and regulatory hurdles to legal business operations.

The work done by the Commission has generated much interest by law makers and decision-makers state wide, and WCA will be working closely with interested parties to see that the report’s strongest recommendations are implemented.

To review the report, please visit http://www.lhc.ca.gov

By Teresa Cooke & Margo Parks, Political Solutions

WCA HAS YOU COVERED

Alaska | Arizona | California | Colorado | HawaiiIdaho | Montana | Nevada | Oregon | Utah

Washington | Wyoming

Page 14

CALIFORNIA LEGISLATIVE UPDATE

WCA HAS YOU COVERED

In an effort to enhance WCA’s industry advocacy program and to safeguard

protection from bad laws and damaging legislation that could harm your business

and bottom line, WCA now has year-round legislation monitoring in all 12 member states. Stay tuned for more legislative

alerts and information.

Alaska | Arizona | California | Colorado | HawaiiIdaho | Montana | Nevada | Oregon | Utah

Washington | Wyoming

Page 15

The WCA Roadshow and Car Wash Tour took place February 17 and 18 in sunny Phoenix, AZ. The program began with a spirited networking event that allowed attendees to meet with industry peers and table top exhibitors. During the dinner portion of the evening, keynote speaker, Danielle Marceau of ITR Economics, discussed current economic trends and what business leaders can expect to see coming down the pipeline in her presentation, “The Future is Your Decision: 2015 and Beyond.” The evening concluded with a series of round table discussions on topics including: Dog Washes, Hot Topics-Industry Challenges, Growing Your Car Wash Volume and Revenue with Promotions, WaterSavers: Using Less/Returning Clean, and a Q&A with keynote speaker Danielle Marceau.

With the busses loaded to near capacity, the tour portion of the event, sponsored by WCIA, kicked-off early on the morning of the 18th. During the full day of stops, attendees visited Ocean Blue Car Wash, Tom’s Thumb Fresh Market, Weiss Guys Express Car Wash, Wash Up Car Wash, Proto-Vest (where they enjoyed a wonderful lunch), and Full Circle Autowash. Throughout the day, the group had the opportunity to not only view these sites, but to meet with the owners and share industry tips and knowledge.

On behalf of WCA, thank you to the following sponsors for supporting the event:• DRB Systems, Inc.- Dinner Sponsor• ICS- Corporate Sponsor• Proto-Vest, Inc.- Lunch Sponsor• WCIA- Bus Sponsor• ZepInc- Lanyard Sponsor

Please check back on the WCA website for information on our next Roadshow and Car Wash Tour!

PHOENIX ROAD SHOW & CAR WASH TOUR

Attendees observe operations at one of the tour stops.

A customer demonstrates the onsite dog wash at Weiss Guys Express Car Wash

Page 18

PHOENIX ROAD SHOW & CAR WASH TOUR

WCA President Brad Hooper addresses the audience

Attendees listen to keynote speaker Danielle Marceau of ITR Economics

Page 19

PRICELIST FOR CAR WASH LINT- FREE TOWELS

Los Angeles, CA

Chicago, IL

Houston, TX

Atlanta, GA

Bridgeport, NJ

Contact Karim Patel:Direct 800 419 7186

Direct Cell 310 990 9557Direct Fax 310 223 2003

Email kpatel@americandawn.comCustomer Solutions 310 223 2000

LINT-FREE TERRY TOWELS -16”x27”, 3.00 lbs/dzITEM DESCRIPTION CASE PACK PRICE

1627LFWHITE White 20dz $13.50/dz

1627LFBROWN Brown 20dz $13.50/dz

1627LFGREEN Green 20dz $13.50/dz

1627LFBLUE Blue 20dz $13.50/dz

1627LFRED Red 20dz $13.50/dzSHOP TOWELS -18”x18”ITEM DESCRIPTION CASE PACK PRICE

1700 Natural, Heavy Weight 2500ea $300/Bale

1800 Natural, Standard Weight 2500ea $290/Bale

1760RED Red 2500ea $425/Bale

1760BLUE Blue 2500ea $425/BaleMICROFIBER TOWELS -14”x18”, 1.5/dzITEM DESCRIPTION CASE PACK PRICE

MICROTOWEL Medium Blue Microfiber, 14”x18”, 1.5lbs/dz

20dz $8.75/dz

MICROTWL1627 Black, Frst Green, Red, Ryl Blue, Nvy Blue, Maroon and White, 16”x27”, 2.3lbs/dz

20dz $16.50/dz

DETAILING DIAPERS -14.50”x21”ITEM DESCRIPTION CASE PACK PRICE

DIA2PLS4C Diapers, Double Ply Center 10dz $11.05/dz

DETAILING TOWELSITEM DESCRIPTION CASE PACK PRICE

502 All White Bar Mop Terry, 17”x20”, 28oz

50dz $3.65/dz

2407 Glass Towel, 16”x28”, White with pink stripes, 100% Cotton for wip-ing glass windows

25dz $4.65/dz

NT4012A Cotton Absorbent, Blue, 17”x30”, 100% Cotton, 2.7lbs/dz

10dz $5.28/dz

WRAP AROUND SMOCKSITEM DESCRIPTION CASE PACK PRICE

1854 No Pocket or 3 Pocket Smock. Available in Grey, Navy Blue, Red, Maroon, Royal Blue, Tan, White, Light Blue

12ea $12.50/eaBIB APRONSITEM DESCRIPTION CASE PACK PRICE

7759TR No Pocket, 1 Pocket, or 3 Pockets. Braided tubular or fabric ties. Soil release polyester to withstand heavy use.

12ea $3.75/ea

Customer Service 800 821 2221Direct 800 419 7186 - Fax 310 223 2003401 West Artesia Blvd. Los Angeles, CA 90220

Call for other products or visit us online at americandawn.com

Prices are subject to change without notice due to world market conditions (cotton/polyester).

Sizes shown are cut dimensions.

Items are sold by CASE PACK only.

We accept: Visa, Mastercard, American Express, and Discover

EXEMPT VS NONEXEMPT EMPLOYEES – KNOW THE DIFFERENCE

The differences between exempt employees and nonexempt employees can cause a lot of confusion for both workers and employers and it is important that you know the difference. Salaried managers must fit the criteria outlined below: Be paid at least twice the minimum hourly wage based on a 40 hour work week and a 52 week year ($9.00 x 2 x 40 = $720.00 a week x 52 = $37,440 a year). This means if you are paying a manager less than $720.00 per week or $37,440 a year you are in violation of the law and subject to not only having to catch up their pay, but penalty and fines!

An exempt employee must also be paid on a salary basis, not by the hour. In addition, for an employee to be exempt, the employer must be able to prove the employee spent 51% of their time doing exempt duties – this can is determined by the “duties test” and has a very high standard. For example, for supervisors, managers and executives, you must show they spend 51% of their time hiring, firing, scheduling, training, evaluating, etc. This must be construed very narrowly or you will have big problems!

Please double check your compensation structure and that you are in compliance with all labor laws. The Department of Labor Enforcement will be looking carefully at the car wash industry this year and you much rather be safe than sorry.

If you have any questions please call WCA lawyer Gary Bethel at 888-851-1160.

Remember: ignorance is no excuse.

Page 22

By Sander Romick, WCA Legislative & Legal

Committee Chair

EXEMPT VS NONEXEMPT EMPLOYEES – KNOW THE DIFFERENCE

Your carwash insurance experience can be hassle free. You don’t have to spend hours comparing coverage options. You don’t have to stumble through confusing paperwork. And you don’t have to pay expensive premiums.

You can get a specialized insurance policy custom fit to your carwash business with Western Carwash Insurance Agency (WCIA).

Brandi BarthInsurance Placement Specialist

email: brandi.barth@wellsfargo.comwww.westerncarwash.com

License # OB48048

The sooner you call, the sooner you can enjoy these benefits. Ask for Brandi at (866) 415-8663.

For all of your car wash business insurance needs, contact the car wash business insurance one stop shop—The Western Carwash Insurance Agency.

Visit WCIA in the center of the show.

Coverage Options:• Carwash Building & Equipment• Commercial Liability• Commercial Auto• Umbrella• Garagekeepers Legal Liability• Personal Property• Employee Dishonesty• Employment Practices Liability• Business Income• Equipment Breakdown• Money & Securities• Workers’ Compensation• Surety Bonds and much more!

When Your Car Wash Becomes a Crime SceneMost car wash owners and operators understand the importance of performing routine checks and preventative maintenance to keep the soap sudsy, the wax hot and dryers blowing. Yet for the most part they don’t plan for or think about situations that will never happen to them. Savvy car wash owners, however, have crisis plans, they run situational drills with employees and get to know local authorities.

Tricia Knott, owner of the Green Forest Car Wash chain of car washes in Southern California, knows first-hand you should “never say never.” It happened Labor Day weekend. The Green Forest Car Wash in Central Los Angeles had been open since May. It was the first dinosaur theme car wash in the Green Forest chain and the second new car wash since opening in 2006. Her focus was on creating a fun, family friendly experience for the residents and bringing new commerce to an area hard hit during the Rodney King riots and largely ignored in the years since.

“I was at home with my family when the call came in from an employee. There was a shooting at the car wash. Not knowing the details, was it random, were we a target, I headed to my car wash, which, by the time I arrived, was now an active crime scene.”

The shooting was between rival gangs and two men were dead, lying 30 feet from a Triceratops replica. The good news was that the car wash was simply in the wrong place at the wrong time, it was not a target. The unthinkable had happened, her car wash was a crime scene and suddenly she and her employees had to become experts in all facets of community, employee, race, media and customer relations.

Since the police were already on property, her first call was to insurance agent, Sam Furno, president, Western Car Wash Insurance Agency. Furno informed her that since there had been no damage to the car wash and the employees were neither injured nor involved, there was no basis for a Workers’ Compensation type of claim.

“With the crime scene under control, thanks to LAPD, my attention turned to my employees who had witnessed the murder and were appropriately traumatized! My concern was for their welfare and safety. The next day we opened for business as usual, but the employees were on edge, their nerves frayed. My employees needed help to get through this.”

Ms. Knott called in the services of the Crisis Network who were able to dispatch a team to the car wash within hours and remained available over the next 30 days.

Dennis Potter, manager of consultant relations and training at Crisis Care Network, a national organization with 3,300 counselors, said helping leadership deal with the situation and organize a game plan for the employees, is the first priority.

“Often we need to calm down senior managers before we talk to their employees. In many situations, leadership’s actions and reactions will have a soothing effect on jittery employees. Yes, a tragedy has occurred, but minimizing the collateral damage to the business and getting back in business is the best for everyone in the long run. You certainly don’t want the incident to define you or your company.”

Potter recommends calling in counselors as soon as possible, especially, if your employees are feeling scared, stressed and out of control. Potter noted that regardless of the time of the incident, the Crisis Care Network can have someone on property within a few hours.

Page 24

When Your Car Wash Becomes a Crime Sceneand Other Tales from the Tunnel

Andre Dixon, Senior Lead Officer, LAPD, 77th Division, agrees and noted that the police department’s watch or incident commander can be a great resource when looking for crisis counselors and that such services are often free.

Dixon complimented Ms. Knott on her handling of the situation and the steps that she had obviously taken to be prepared to run a successful business in Central Los Angeles.

“Tricia prepared for the ‘unthinkable,’ when she installed security cameras throughout the property, paid close attention to lighting, operating hours and keeping her car wash clean and welcoming. Run down properties can be targets for crime and vandals; busy, well-lit properties with security, cameras or guards, not as often. Tricia also has done a great job getting to know the community leaders, neighboring businesses and the officers in the 77th. Meeting your local law enforcement officers before you need them should be in everyone’s business plan,” said Officer Dixon.

Security cameras can be important for full service car wash operators in avoiding another “unthinkable” situation, grand theft auto.

Sam Furno, himself a former car wash owner, said: “A video surveillance system in today’s work environment is a wise investment”. Individuals will think twice before they try a criminal act on your property.

Furno added, “a stolen vehicle is a heart-stopping experience for any car wash owner/operator. Take it from me, I’ve had it happen!

“Your insurance policy no doubt includes Garage Keepers Legal Liability, GKLL, so you are covered for stolen vehicles. But that doesn’t make you feel any less violated when you hear those words from your customer, ‘where’s my car?’”

Furno recommends that car washes should have a receipt system that allows the operator to match up information assuring that the keys end up in the rightful owner’s hands. License plate number, car make and model is a good start.

“As long as the car is in your care and custody, you should only hand the car keys to its the right-ful owner or responsible party. Take the steps necessary to safeguard your customer and you will avoid one of scariest situations in the car wash business.”

“As a prior full service car wash owner, and now working in the insurance business, I can say with certainty that it is always better to be pre-pared for any situation that might occur, whether it’s a locked vehicle, custom-er damage, stolen vehicle, etc. Failing to plan because it will never happen to you is truly just bad business.

By Sydney Sullivan Knott.

Page 25

For years, full service car wash operators have increased their dollar per car transactions using the sales of impulse merchandise. Increasingly the lobby has become one of the most valuable assets to any full service car wash. Showroom lobbies have become profit centers with low maintenance, great visibility, product variety, and convenience. Many car washes only have a small area to merchandise and generate a great return on investment.

Until recently, the basic concepts and discussions of utilizing the lobby to create sales of automotive air fresheners and accessories had been limited to this segment of car washes. The current trend of transitioning from full service to express or flex wash is causing operators to forgo merchandise sales, a pertinent revenue segment of their business. As direct and indirect costs for labor have increased over the years, a small group of car wash operators have decided to convert their wash operations, possibly neglecting potential positive cash flow they would have received from the sale of lobby merchandise. In many instances this conversion still requires the operator to hire a cashier or manager to be onsite. In these cases, where a manager is onsite, merchandise sales can have an even larger impact, offsetting the salary of the onsite employee and adding greater sales dollars to each wash transaction.

With ever increasing competition in the express and flex wash markets, the ability to sell retail merchandise becomes that much more important. The additional revenue from retail sales is magnified as the entry level price for an express wash is lower than a traditional full service wash. The sales of merchandise has benefited the full service car wash operator for years and now there are new methods to continue adding sales to each car wash, even those without a showroom lobby.

The most traditional channel to sell product at a converted location or express wash, has been vending machines. However, many operators are contending with challenges which include; the expensive initial purchase, high costs to repair, limit on product variety, and the constant presence of vandals. A new innovative method has been mobile profit centers. These mobile units are customizable, significantly less expensive than a vending machine, and offer a wider variety of retail products. Consumers are visiting all types of car washes with the intent on cleaning their car. During their visit there is an opportunity to add additional profit by offering impulsive products that correlate with their current mindset. Capitalize on these opportunities to increase sales and profit with these new methods of retail merchandising.

CAPITALIZING ON PROFITABLE OPPORTUNITIES

By Michael Klapova

Page 27

Dear Western Carwash Association,

On February 26-27, I sent out nine teams of investigators to ensure that carwashes in the greater Los Angeles area were registered and were in compliance with all state labor laws. We found of 46 inspections, 35 (or 76%) were unregistered. We issued citations totaling over $300,000 under Labor Code section 2064. During that operation, we also found minimum wage and overtime violations and failure to carry workers’ compensation. Citations over the two days totaled over $1.3 million. One of the driving forces behind this two-day operation, and a series of follow-up efforts we will be making over the next few months to enforce the registration requirement, was the good work of WCA.

From the time I was appointed Labor Commissioner in April 2011, I have met with leaders and representatives of WCA regularly. I have appreciated the open lines of communication, dialogue, and insight into the industry provided by WCA. The feedback of WCA early in my tenure was one key factor in my decision to end the use of random sweeps of employers and move to a more targeted use of my resources to combat wage theft and other violations that create an uneven playing field for honest businesses. My goal is to increase compliance with labor laws, not to rack up the highest number of inspections. I am proud to inform you the changes we have made have been good for business, good for workers, and good for the State.

In the ten years prior to Governor Brown’s election, the average citation rate across all industries was 42%, meaning less than half of inspections led to citations. This means employers were regularly subject to investigations where no violations were found, a frustrating situation for them and a waste of government resources for us. Since I became Labor Commissioner, that rate has improved to 80%. I want to thank the WCA for your help in making that happen. We rely on solid information from those with the greatest knowledge to better target our enforcement resources. The leads you share with us about those not playing by the same rules you abide by are critical to our success, and I am grateful for your partnership. We cannot do it alone, but together, I believe we can create a culture of compliance in California that makes it a great place to live, work, and do business.

In response to information provided by WCA, we are also looking into carwashes operating at country clubs and carwashes that operate in parking lots to be sure they are following the same laws you are.

I am also committed to employer education. Along with my friend, Los Angeles City Attorney, Mike Feuer, my office conducted an outreach event specifically for carwash owners in January 2014 at Los Angeles City Hall attended by over 200 carwash owners. We covered topics including the registration requirement, wage and hour laws, successor liability, and the bond requirement. In addition, my office offers free employer education seminars along with the Employment Development Department (EDD) across the State throughout the year. These cover basic wage and hour and payroll tax requirements (not specific to carwashes). For a schedule, please go to http://www.dir.ca.gov/dlse/Training.htm. Make sure to reserve a spot early as these sessions fill up quickly.

A LETTER TO WCA MEMBERS FROM THE CALIFORNIA LABOR COMMISSIONER

Page 28

Early this year, I launched the online registration system for carwashes and again, I want to thank WCA, who I invited to test the system before we went live and to provide feedback. This is just one example of my deep commitment to helping employers who want to comply and making it as easy to do so as possible. Although my office had already reduced the average wait time for a carwash license from 60 days in 2010 to 30 days in 2012 to 25 days in 2014 through streamlining and training, the online system should further reduce the number of days it takes to receive a license after submitting a completed application. Perhaps even more welcome news is the fact that you will only need to input your information one time. When renewing a license, the information will carry over in the system; so if it has not changed, you will not have to waste time resubmitting the same information year after year. If you have yet done so, please check out the online application available on the Labor Commissioner’s website at the carwash and polishing page. https://permits.dir.ca.gov/Carwash/index.jsp

We also have a searchable database, allowing the public to confirm the registration of a carwash. We hope consumers will cooperate and reward compliant businesses; the first step in doing so is to give the public the information they need to identify law-abiding businesses so they can be responsible consumers.

When I became Labor Commissioner, application review was slow, on-line payments were not an option, and all applications had to be submitted in person or by mail. In order to support California businesses that are committed to compliance, one of my top priorities has been to improve in all of these areas and modernize our services so they are efficient, accurate, and user- friendly. I also want to be sure our inspections are targeting law-breakers, putting earned wages into workers’ pockets and sending a clear message to businesses who follow the law that the State is on your side. I look forward to my continued partnership with WCA.

Very truly yours,

Julie A. SuCalifornia Labor Commissioner

A LETTER TO WCA MEMBERS FROM THE CALIFORNIA LABOR COMMISSIONER

Page 29

INDUSTRY NEWSProto-Vest Appoints George Hayden as General ManagerProto-Vest, Inc. is pleased to announce the appointment of George Hayden as General Manager. Mr. Hayden brings 30 plus years of diverse experience in manufacturing, engineering, marketing and quality control to Proto-Vest. Mr. Hayden was previously the General Manger of Amphenol Advance Circuit Technologies in Nashua, New Hampshire. Prior to that, he was Vice President of Operations at Amphenol –T&M Antennas.

Mr. Hayden holds a MS degree in Manufacturing Management from the General Motors Institute in Flint, MI and a BS in Industrial Engineering from the University of El Paso Texas. He has extensive experience in international commerce as well.

Company President, Chris McElroy, said “We are delighted to have “Mick” join us and add his talents to our team. Building on the legacy begun by our founder “Mac” McElroy, we look forward to future growth and expansion while continuing to provide our customers with the expertise and support they have come to expect!”

WCA OFFERS SURETY BOND DISCOUNT TO MEMBERS

WCA is thrilled to announce a new member benefit that we hope you find just as exciting as we do. Through Bond Services of CA, LLC ALL WCA members are now eligible to receive at 10% discount. Bond Services of CA, LLC was established in 2002 and is one of the largest surety bond only agencies in the United States. Through their San Bernardino office, they have established a program that has proved to be successful and efficient in handling Car Wash Bonds since the inception of the requirement last year.

For more information, please contact Nora Cruz ncruz@bondservices.com or909.890.1409or visit their website www.bondservices.com.