PC&D MAGAZINE
10 positive trends influencing the detailing industry
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From Volume 27, Issue 2 - February 2003
Attention to Detail
People are keeping cars longer and more dependent on auto-care professionals than ever before.
by: R.L. “Bud” Abraham, Detailing Editor
 
 Related Information
  Why customers are flocking to detailers


The past year hasn’t been very heartening in this country with rumors of a recession, lay-offs in many industries, and a downturn in the stock market.

However, there are a great many things happening that will have a positive impact on the detail business.

#1 Miles vs. age

The important figure for detailers to look at today is not only the average age of the car population, but also the average number of miles a vehicle amasses before it's sent to a junk yard. This number has increased nearly 63 percent over the past 30 years.

For example, in 1960 the average vehicle lasted 92,000 miles. Ten years later it lasted more than 105,000 miles.

The auto industry forecasts that in the next decade the average vehicle will be able to be driven 13 percent more miles – closing in on 200,000 miles.

This is important to detailers because it means the vehicle is on the road longer, and the car will therefore need more maintenance and detailing. Certainly each time it is sold it might be detailed, if not more.


Advancements, such as leather interiors, are driving detail business.
 

#2 Vehicle demographics

Simply knowing the number of vehicles on the road is the critical issue. You must understand the demographics of the vehicles — especially age.

In 1970 there were about 100 million vehicles on the road, 15 percent of which were 10 years old or more. But today close to 40 percent of vehicles on the road are 10 years or older — prime detail customers.

#3 Scrap rates

Longer lasting, more durable vehicles translate into greater potential for a greater number of vehicles.

Back in the ‘80s, once a vehicle got to be 5 to 7 years old, scrap rates were at 20 percent, but today not even 10 percent of vehicles that are 12 or 13 years old are scrapped.

#4 Used-car sales

While dealerships are enjoying increasing sales of new cars, they are also experiencing a huge sales volume in the used-car area. Each one of these used cars must be detailed.

Dealers service 0 to 5-year-old vehicles. Dealership service has 'medium' penetration for 6 to 10-year-old vehicles and low penetration for vehicles more than 10 years old.

With that in mind, the number of core "aftermarket" vehicles (those vehicles older than five years) has been growing rapidly since 1989, translating into more vehicles in the "low dealership service penetration" category.

#5 The used-car market

It has been determined that used-car owners are more apt to have their car detailed than a new car owner. That's good news considering the number of used cars that are sold in the United States.

Used-vehicle sales reached 41.7 million units in 2000 and are predicted to grow even higher.

Keep in mind that the further a car gets away from the warranty and the original owner, the more likely the vehicle will be detailed by an outside shop.

#6 Servicing the older vehicle

With the usable life of a vehicle increasing, motorists are apt to spend more money on an older vehicle.

If a 10-year-old vehicle needed a major repair a few years ago, chances were good that the owner would get rid of it.

Today, the owner will most likely keep the car, repair, detail and drive it another five years.

Now, any repair or maintenance investment in a 10-year-old car is still money well spent.

#7 Government regulations

With all the concern about the environment and pollution, the issue of water discharge entering storm sewers is becoming very important.

Government enforcement of these laws is making the motorist aware of the harmful effects of driveway washing.

The government can be your best friend if you are obeying the laws.

#8 Detail shop counts

Over the past 20 years the number of true detail shops alone has more than tripled in the United States.

In 1980 there were 4,000 detail shops listed in The Yellow Pages — and today there are nearly 14,000.

Of the 15,000 carwashes listed in 1980, only about 10 percent of the washes offered detailing. Of the 17,000 carwashes listed today, more than 85 percent offer some type of detail service.

This does include body shops, auto dealers and fast lube operations that are also offering detailing services.

#9 The business community

Well-managed detail businesses are beginning to take their high, rightful place in the business community in every city of the country.

The fact that so many other recognized and established auto service businesses, such as automatic carwashes, auto dealerships, collision repair shops and quick lubes, are offering detail services gives the detail industry stability and respect.

#10 Advancing technology

Advancing automobile technology is a good thing for the Do-It-For-Me (DIFM) side of the market as the Do-It Yourself (DIY) market simply becomes unable or unwilling to perform even the simplest of automotive service tasks, like washing and waxing their vehicle.

While advancing automotive technology poses a challenge for the DIY market, detailers stand to profit greatly from motorists' increased dependence on professional automotive service, including detailing.

R.L. “Bud” Abraham is president of Detail Plus Car Appearance Systems, Portland, OR, and a 30-year member of the car-care industry.
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