One million. The number has such magical connotations. Think of the impact of one million dollars or the first time McDonald’s served its one-millionth hamburger. Last September, Boomerang Carwash joined the millionaire’s club less than two years after the company launched its brand name. And with 1.3 million washes sold by February, Boomerang is well on the way to its projected goal of 2 million washes by the end of this year.
Boomerang Carwash was started by ACS Inc. Founded in 1995 by Paul Stagg, the company is well-known for the development of self-serve carwash facilities; carwash chemical distribution; and carwash-equipment distribution, installation and service. ACS also has been responsible for the development of almost 100 “upscale” carwash facilities.
The company originally built six carwashes under the Rapido Rabbit franchise, but felt the established $3 price point was counterproductive, says Fred Wood, legal/consultant for ACS. In 2005, ACS bought out the franchise agreement and rebranded under the Boomerang name.
In January, ACS was acquired by Drive Clean Holding, an investment group from northwest Arkansas led by Scott McLain, Mike Bennett and Mitchell Massey. “We are properly capitalized and have specific expansion plans for the Boomerang Carwash brand,” Bennett explains. “We have our sights set on developing targeted markets in the Southeast and Midwestern United States.”
Recipe for Success
Since it was founded, Little Rock, Ark.-based Boomerang has aggressively expanded and now operates 16 express exterior facilities in Arkansas, Louisiana, Oklahoma and Tennessee. Additional sites are under development in Kansas and Missouri. Drive Clean Holding has outsourced all future developments of Boomerang carwash facilities to Growth Ventures LLC, which is led by McLain, president and managing member.
To enable this rapid expansion, the company principals developed a recipe for success. “We want to expand the business fairly aggressively with Arkansas as the center,” McLain says. To date, stores are located in states contiguous to Arkansas. However, the company will consider other areas. “If an opportunity comes up for us to move into a strategic market, we would need to be able to have multiple locations,” he asserts. Having multiple stores in a market will allow Boomerang to distribute the development and management costs among several locations in the area.
Although the criteria for site selection have several elements, there are certain general points that must be met. “We look at traffic counts, retail locations, zoning, cost of the site, number of residences in the area and mean household income,” McLain reports.
After a new site has been identified, Boomerang staff do a site-adapt package. “We have a standard design that we adapt to each site, but every site is a little different,” McLain emphasizes. Although the criteria continue to improve and evolve with each store, the company has a set of engineering documents that are adapted to each individual site. This includes a design that allows for local zoning and design codes.
The company is also environmentally conscious. Each Boomerang store uses approximately 40 gallons of water per wash and recycles 50 percent of all water used. Soaps are biodegradable and dirt and road-grime debris is disposed of properly.
To enhance branding capabilities, all Boomerang washes have a standard look achieved by using a panelized metal structure. Each building features upscale architecture that complements the neighborhood, yet is readily recognizable. The exterior of the store, signage and graphics will be virtually the same in every community where Boomerang builds, McLain emphasizes. This ensures the company’s brand and signage are very recognizable.
The equipment installed in all Boomerang washes is part of the design protocol. “Our primary equipment suppliers are Sonny’s The Car Wash Factory for tunnels and vacuums, and Innovative Control Systems for the POS systems,” McLain shares. Last year, Sonny’s featured Boomerang in a case study for express tunnel design effectiveness.
More Than a Name
Customers can count on every Boomerang location to offer the same service and prices. All tunnels are a three-minute conveyor ride and vacuums are free. Carwashes are equipped with easy-to-use auto sentry stations that allow a customer to choose a wash from the menu and pay using a credit/debit card, cash or prepaid card. If cash is used, the auto sentry gives back change in $1 increments. There are three choices of washes: the Good priced at $5 offers the basic wash, spot-free rinse and dry; Better for $8 adds tire shine, clean and whitewall clean. The Best, for $10, offers basic wash plus Simoniz double bond protectant, triple foam polish, tire shine and rim cleaner. Boomerang offers a 30-day shine guarantee — if the vehicle does not bead water for 30 days, Simoniz will refund the customer $3 on the double bond protectant.
An attendant helps the customer guide his vehicle onto the conveyor. The automated express tunnels allow customers to stay in their vehicles during the wash process. And best of all, clients can save on their wash costs with a prepaid wash card that carries a discount value up to 15 percent.
Finding Superior Help
To maintain its standard of service, Boomerang looks for the ideal employee. “Carwashing is historically a family-owned or single-unit entrepreneurship and there is not a lot of data,” Stagg explains. Experience has taught Boomerang that the ideal manager is a well-rounded, mechanically inclined individual who can handle paperwork and related office skills and be able to market the service. “The manager also must understand and be willing to get involved in the community.” The company uses various methods to find employees including newspaper, recruiters and online service. However, networking is the company’s most effective way of securing employees. “We form relationships in a market as we build washes and recruit from within the local industry.”
Boomerang’s salaries and benefits allow the company to attract the quality of employee to meet its criteria, McLain points out. The company’s employment offering is very competitive with other types of retailers, not only carwash retailers. Employees receive extensive on-the-job training. “One advantage we have now is we have several facilities where a new manager can train as an assistant manager before assuming responsibility for his own store,” he says. “We have sets of tests for the trainee and use these facilities to develop real-world best practices.”
The Logistics of Branding
Boomerang has identified three primary marketing strategies to promote its brand. These strategies rely on determining the best location for each facility. “This is one of our biggest marketing assets,” Colvard advises. “With the right traffic patterns and built on the right side of the street, half the marketing battle is over.”
As the locations begin generating revenue, Boomerang takes a portion of the region’s income for various marketing expenses. The company has developed a manual that gives the manager several marketing programs. “Reaching out to the community is one of most effective marketing tools we use before we spend considerable money on media, billboards, etc.,” Colvard remarks.
The manager takes the carwash into the neighborhood in the form of a prepaid card and, in effect, can put the carwash into a person’s pocket. “This is a very effective means of branding our name and advertising the wash,” Colvard asserts. In addition, the manager takes wash cards to the local Chamber of Commerce, other businesses, charities and residential communities. He can give free carwash cards to hundreds of potential customers so they can experience Boomerang’s quality. Colvard is confident that customers who try the carwash once will come back.
Grand Opening for Charity
“When we enter a market, we find a recognized charity such as a homeless shelter or a children’s charity to support through the carwash’s grand opening day,” Colvard shares. We use the carwash all day long to raise money for the charity — washes are free, and any donations go to charity.” Often managers, who know their communities, can advise corporate which agency needs assistance. Donations through this program average almost $2.50 per car.
Some of Boomerang’s charity partners include St. Jude’s Children’s Research Hospital in Memphis; the Juvenile Diabetes Foundation; and Sunbeam Family Services, a nonprofit agency that provides services to low-income children and youth, working-age adults and senior citizens living in the Oklahoma City area.
The grand opening gives the company the basis for spreading the word to the public about the new wash. Once the site begins to generate revenue, the company will implement brand-building with the local media. Marketing and advertising costs can then be shared by all locations in that area.
Another community component is the Drive Clean program, aimed at developing student awareness of the dangers of driving under the influence of drugs and alcohol. Boomerang works with local schools to issue a free carwash card to students who commit to driving free of illegal substances during formal dances and other special events.
It’s About Quality
The popularity of express exteriors is growing and with time, they will change consumers’ buying habits because of the quality, convenience, value and speed, Stagg remarks. Ultimately, customers will wash their vehicles more frequently. A Boomerang wash will do well in areas where the demographics support it. However, he insists there are still great opportunities for self-serve automatics in areas where the demographics do not support an express exterior.
“In order to provide a good product,” Stagg contends, “We have certain business baselines that we are not going to change.” In terms of a business model, this means the company’s sole focus isn’t just making money at the expense of its customers, so to speak. If the weather isn’t conducive to carwashing one day, Boomerang doesn’t increase the speed of the conveyor the next day to make up for it — maintaining quality is always the first priority. In doing so, the organization can build a brand that offers the kind of consistency consumers find at a Starbucks or McDonald’s.
Boomerang’s research indicates the consumer is more focused on quality and convenience than price. This bodes well for the company’s customers, who enjoy a short ride-through time and multiple locations. But beyond convenience, Boomerang’s steadfast strength is its focus on quality. “Americans are in love with automobiles, and people spend a lot of money on their vehicle as their personal space,” Stagg observes. Making their automobiles look good, in turn, makes them feel good as individuals. “We endeavor to capture that emotional attachment by offering a quality convenient and consistent wash,” he concludes.