HOUSTON -- Like a fine bottle of champagne, the bubbles just keep flowing for entrepreneurs Bill Lawrence and Clayton Clark, owners of Bubbles the Hand Car Wash.
A restaurateur for 16 years, Lawrence launched the carwash chain after deciding that the industry needed an establishment like a fine restaurant with top-notch service and a quality product.
"We wanted our service to be something special," Lawrence says. "Our service people could be top waiters at any fine steak house."
Bubbles was founded in 1991 with one location. Lawrence says that at the time, Houston's economy was perched and ready for a rebound. Following the energy crash, he saw signs that a vibrant economy was just around the corner.
"As the owner of a luxury automobile, I was apprehensive to take it to just any carwash," he says. "So we came up with this idea of a Neiman Marcus of carwashes. We never doubted it for a minute."
After 15 years, Bubbles has grown from one location to five, with 2005 revenue topping $8 million. It took a year and a half for the partners to open a second Bubbles location. Five years after inception, there were three Bubbles washes in Houston, followed by a fourth location in 1999 and a fifth in 2002.
The partners have relied heavily on marketing and customer retention to keep sales up in a competitive marketplace. Utilizing an extensive database marketing system, customers receive information on the company via mail and e-mail.
Bubbles' database includes information on more than 200,000 customers who are reminded of events such as passing the six-month mark since their last detail. Customers are also provided with coupons to schedule a visit online.
Complimentary transportation to and from work is another perk offered by the company. The shuttle service for detailing customers within a five-mile radius has proven to be a big draw for customers on a tight schedule, Lawrence says.
"When we started out, we had two unique visions we wanted to execute to propel us beyond our competitors -- customer service was at the top of the list," he says. "The second was the standard by which we presented ourselves. The training, the appearance and standards of conduct for us and our employees was paramount."
Bubbles has worked to set itself apart from traditional carwashes with perks such as access to complimentary fax and Internet service, air-conditioned lobbies and free copies of The Wall Street Journal.
"The unique environment we offer our customers is one of our core principles that we embraced then and now," Lawrence says.
The company charges $14.95 for a basic wash, with options ranging up to $33.95 for an ultimate package. Detailing packages run between $44.95 and $200.
But after learning from research that half of all car owners never use a professional carwash and that Bubbles was only reaching 20 percent of the potential market, Lawrence and Clark gave birth to another idea -- after all, not everyone can afford to shop at Neiman Marcus.
So in 2005, Bubbles Express was born.
The Express centers offer faster, no-frills washes that are less expensive than the packages offered at the traditional Bubbles locations. With three locations currently open, a fourth Bubbles Express location is scheduled to open early this fall. And two more stores are already in the works.
Bill DeArman, an investment banker and close associate of Lawrence and Clark, was brought on as a partner to spearhead the new line.
"If you can provide the consumer a high-quality product in less time, for less money, and with a higher standard of customer service than the competition, you have the opportunity to become immensely successful," DeArman says.
He says the partners intend to open four additional Bubbles Express stores per year, with a goal of having a total of 20 locations in Houston and surrounding communities within the next four years.
Despite the lower-cost alternative offered by Bubbles Express, the partners did not tone down the ritzy, high-tech experience. At Bubbles Express, motorists drive up to an attendant wearing a wireless PDA who instructs the driver to tune the car radio to 91.5 FM, where they can choose from three packages offered for $4, $7 or $10. Processed at the window, the motorist is directed to another attendant who loads the car on the conveyer -- with the customer in it -- and for the next three minutes, the car and driver are moved along a 130-foot conveyer while the wash process is explained on the car stereo.
"It is really like a ride," Lawrence says. "Three minutes later, you exit in a perfectly clean, dry vehicle."
With Bubbles and Bubbles Express continuing to swell, Lawrence believes that creating a successful business is no accident. The company now employs a total of 315 employees: 275 with the Hand Wash Chain, 35 with Bubbles Express, and five in the corporate office.
"Having a business plan is No. 1, but you must also not be afraid to modify it as you go along," Lawrence says. "You must be open to changing your plans if the market requires it. Projections need to be conservative, but if you are doing more than expected, maybe you are under-priced."
Lawrence says it is also imperative to be well-capitalized. He and Clark provided the start-up equity for Bubbles themselves, later negotiating credit facilities through some local banks.
One of those banks is Texas Capital Bank, which actually passed on a financing opportunity with Bubbles early on, but later decided to take on the company as a client when the Bubbles Express concept was rolled out.
"The two partners' had a well-researched and extensive business plan and concept, and we felt very comfortable with the expertise they each brought to the business," says Gary Karter, senior vice president of Texas Capital. "We are very pleased they allowed Texas Capital Bank to be their financial partner."
Indeed, Lawrence says it's important not to give up, especially when hard financial times creep up in the beginning.
"Depending on your debt load, you could have a negative cash flow for a year or two, but it takes three to five years for a business to reach its maturity level," he says. "But if you have done your homework and believe in your idea, you will be a success."
Bubbles the Hand Car Wash
Business: Vehicle washing service
Owners: Bill Lawrence, Clayton Clark, Bill DeArman
Found: 1991
Employees: 315 total
2005 revenue: $9.3 million combined for traditional and Express concepts
Projected 2006 revenue: $11 million
Web site: www.bubblescarwash.com
Source: San Jose Business Journal