In today’s business world, success rarely gets handed to you on a silver platter. In the UK alone, over 7.5 million businesses were officially formed in 21/22. And unless you’re in a niche industry with a very unique selling point, then it’s likely that you’re going to have vying eyes on your competition, fighting for the loyalty of your target audience.
When it comes to car wash businesses, success is always dependent on the ability to get more car owners to use you than your competition in your local area. Of course, to do this, first and foremost you need to be offering the best service out there. And to ensure this, you need to have a good understanding of what your competition is offering… and then get to work on ensuring your offerings are better.
Enter: Competitor Analysis.
The best way to learn as much as you can about your competition is to do a competitor analysis of all of the local car washes in your area. You will be able to use the information that you discover during the analysis to leverage your strengths against the weaknesses of your competitors.
What is a Competitor Analysis?
In a nutshell, a competitor analysis for your car wash business involves deep evaluation of your competition in terms of their product, sales and marketing strategy, identifying possible opportunities for your business to outperform them. By finding out as much as you can about your competition you will be in a far stronger position to make the necessary changes to your car wash business, growing at a much faster rate.
How to carry out a Competitor Analysis as a car wash business?
Having as much useful data about your competition is extremely valuable when it comes to making your own business plans. The more you know about what types of services and products your competition offers to its customers you can get to work on gaining an advantage over them. Let’s take a look at the steps needed when carrying out a competitor analysis as a car wash business.
Car wash business: 6 Steps to completing a Competitor Analysis
Step 1 — Gather up the Names of the Car Washes in your Area
First things first, you need to get familiar with your competition. Make a list and get researching all of the local car washes in your local and surrounding areas, making a list on a spreadsheet featuring details such as their pricing, website, social media channels and location (this will come in handy later).
Step 2 — Perform a SWOT Analysis
Once you have gathered the list of your competition it is time for you to collect the necessary data in order to come up with an actionable plan. The best way to do that is complete a SWOT Analysis on each of your competitors.
SWOT Analysis or ‘strengths, weaknesses, opportunities, and threats’ analysis is an evaluation technique that can be applied to any business regardless of industry. This tried and tested technique produces data that can be used to justify changes that should be made to improve the company’s operation – and in your case, how to run the best car wash business in your area!
Step 3 — Look Closely at your Competitor’s Website
In today’s digital world, it’s important for most companies to have an online presence even if they are brick-and-mortar businesses. In fact, the modern consumer has come to expect to find what they need online. According to HubSpot, over 61% of mobile searchers are more likely to contact a local business if they have a mobile-friendly site.
So, you should also pay attention to your competitor’s website to keep tabs on them. Here you will have access to a whole load of useful information about them including pricing, services, and customer reviews. You can use this to your advantage, perhaps by updating your prices to be more competitive or offering discounts.
Step 4 — Use Market Mapping to Analyse your Competition’s Products and Services
Market Mapping is an effective tool that involves using a graph to plot your competitors and their offering to get a greater understanding of how your offer stacks up, and most importantly, how your car wash business can fill a gap in the market. When doing this, you’ll want to record details about your competition including annual revenue, market reach, product and service range, pricing, and growth rate.
Step 5 — Look into How They Use Technology in Their Business
Technology comes in a number of forms in the business world. When it comes to modern car wash businesses, those who invest in digital solutions to drive their business are reaping the best results. From digital signage to contactless payment solutions – providing your customers with the best customer experience and a high number of options will help keep them coming back time and time again. Checking out what your competition is using will enable you to see how you can level up.
At PSD Codax, we have 25 years of experience developing leading innovative car wash technologies for businesses across the UK. If you need any help and support in maximising the profitability of your car wash business, check out our website here.
Step 6 — Look into Their Social Media Accounts
Social media is one of the most powerful tools used by companies around the world to build a strong online presence. While car wash facilities are brick-and-mortar businesses, using online marketing through social media channels helps you to connect with your target audience and build brand awareness.
According to Smart Insights, over 59% of the world’s population uses social media, with an average daily usage of 2 and half hours. And with features like paid advertising the ability to target based on location, it can be a pretty valuable tool for car wash owners. Pay close attention to your competition’s social channels and what strategies they are using to connect with their customers.
As a car wash owner, knowing how your business stacks up against other local competition is one of the most powerful tools for growth. By following the above steps, you will be able to paint a nice picture of what you are competing against, allowing you to take advantage of your strengths and expose the weaknesses of your competition. Ultimately, this is the best way to stay ahead and offer your customers the best possible experience
Stay Ahead of the Competition with PSD Codax
As market leaders in car wash technology, we have all the experience and know-how to provide you with the technical support you require to level up your business and stay way ahead of the competition. For more information on any of our products, please feel free to contact us today.