The New and Unexpected Revenue Stream for Canadian Car Wash Owners
Brandi Smith, Marketing Director
Over the past five years, operators in the Car Wash and Auto Detailing industry in Canada have rebounded from recessionary conditions. Rising Canadian per capita disposable income has fuelled demand for discretionary services such as car washes. The result? Industry revenue increasing year over year by 4.6% coming in at $1B in 2019 alone. With predictions of more cars being on the road by 2024, consumers will be spending more on discretionary services like car washes.
Business in the industry has and will continue to boom, but could it be better? Every business owner would say yes. Who doesn’t want to have more revenue flowing in for their business? Oftentimes this comes with heavier investment in activities like ad campaigns to drive foot traffic, however. But what if you didn’t need to make that investment and there was an opportunity to drive new foot traffic every day, and it didn’t cost you a cent? Would you be willing to explore it?
There is a new way to drive foot traffic without any investment in infrastructure or marketing. It’s from a revenue stream you would never expect — the e-commerce explosion. It has fundamentally transformed the way consumers shop for everything from clothes to electronics to groceries and healthcare items. Anything can be purchased online today. And like the Car Wash and Auto Detailing industry, e-commerce sales and revenue continue to skyrocket. It’s a $3 trillion market and is the single largest retail channel in the world with no signs of consumers slowing down their online purchasing behaviours — online orders accounted for 16% of all retail sales last year alone in Canada.
With this upward e-commerce trend, parcel volumes are naturally exploding too. Growth in the parcel industry has been trending at a 20% YoY growth rate. In Canada alone in 2018, parcel volume grew by 5 percent year-over-year to 1.1 billion parcels or 30 parcels per person. While parcel volume is growing, the number of packages dropped off per mile has exponentially decreased for a variety of reasons, including faster shipping expectations with services like Amazon Prime. This in turn has led to more trucks on the road and massive increases in greenhouse gas emissions associated with the transportation industry.
So, what does this mean to car wash owners? How can you tap into this wave of online purchasing behavior to drive foot traffic into their location? Let me explain how.
ShipperBee has launched an innovative, first-of-its-kind end-to-end delivery system designed to move parcels, from this exploding market in a more efficient way — all while driving a whole new customer segment, ShipperBee drivers, to car wash locations across Canada.
Our drivers aren’t couriers or haulers. They’re regular, everyday people — ranging from commuters, stay-at-home parents, students, retirees. Certified, background checked, and rated drivers use our Hive Transfer Mailboxes (Hives) as pick-up and drop-off points for parcels, like a baton in a relay.
Our goal for Hive Hosts is to increase traffic to stores by directing drivers to store locations to move parcels. More traffic means higher potential for new revenue from new customers and loyalty members. Here are four ways that our Hives increase revenue:
ShipperBee makes hosting Hives effortless. We install the boxes at car wash location(s) and pay you every time a parcel passes through it. No monthly fees, no other ongoing costs. What this means is that these parcels create a whole new revenue stream for your car wash and represent nothing but pure profit.
ShipperBee is different from delivery giants. Our drivers aren’t professional couriers visiting dozens of drop boxes a day. They’re not hitting every car wash across the region. They’re regular, everyday people — ranging from commuters, stay-at-home parents, students, retirees — who already drive by your store during their daily activities. When it’s time to wash their car, they’ll wait until their next parcel pit stop to do it: your location! More cars at your bays generate higher revenue. Our drivers are primed to become regular customers.
If you’re like most car wash owners in Canada, you’ve spent a lot of time and money on reinvesting in making your location(s) more environmentally friendly — from environmentally friendly products to technology that minimizes was usage. By partnership with ShipperBee to become Hive Host, it expands your corporate social responsibility efforts and commitment to bettering the planet beyond your car wash. As a Hive Host, you’re helping is change how parcels are moved in Canada that’s better for people and the planet by tapping into unused space in everyone’s car to move parcels. Our collaborative delivery driver network is filled with people already on the road. By leveraging their unused vehicle space, we can reduce carbon emissions by up to 70%+ per parcel. Making this simple shift in how we deliver parcels at a regional level will make a big impact on our environment and the future of our planet.
The Hives offer prime advertising spaces. Place high impact offers for our drivers to see and take action. Invite them to join your loyalty program if you have one or take advantage of special offers while there. Whatever your latest campaign and promotion is, our drivers will be exposed to it every time they visit your Hives.
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