Convenience & Impulse Retailing Article

Category: Dog Wash

Issue: Jul/Aug 2010

Pet project

Self serve dog washes can help C&I operators clean up

HIM!

  • 41% Of all convenience shoppers own a dog

AT A GLANCE

  • More and more C&I operators are becoming aware of this new opportunity to make a low cost, low maintenance investment that is capable of generating steady cash returns.
  • While service stations are a key market for dog wash units, they can also be highly effective at traditional convenience and impulse outlets.
  • A dog wash unit can attract a new clientele, attract a bigger spend from existing clients, and – by adding product lines to sell to dog wash customers – C&I outlet operators can further capitalise on the pet lover sales opportunity.
  • A dog wash unit that services just 40 or so dogs a week is capable of paying for itself in little more than 12 months ... it doesn't require a particularly high turrnover to pay for itself quickly because it is a very high profit operation.

The fact that the average Australian is getting busier and busier has been an absolute boon for Convenience and Impulse outlets which are always eager to give customers what they want when they want it.

Categories like energy drinks, hot food and nutritious snacks have been growing quickly to meet the increasing demand from in-a-rush, on-the-hop consumers. But where has all of this rushing about left the poor Aussie pet? Are our once-pampered pooches being neglected in the lightning-paced lifestyles of the new decade?

Of course not!

Dog care, like all areas of modern life, has simply adapted to cope with the new and ever more frenzied time pressures that pet lovers, like everyone else, face. The emergence of the self serve coin operated dog wash at a growing number of fuel outlets, and convenience and impulse operations, is a case in point.

Although there are a number of different suppliers in the Australian marketplace, all of these dog wash units are similar in as much as they are stand-alone, coin or token-operated, vandal-resistant, stainless steel cabinets, with a tub and a housing for the controls which dispenses the necessary chemicals. They are very similar in operation to self-serve car washes. However, they require much less space and infrastructure.

Basically, customers select the type of shampoo or conditioner they want on the dial and use the spray nozzle to wash their dog. The units have warm water and a dryer to get the dogs dry before they leave the area. Some locations add some shelter and a fence, but it depends on the site, and the units require very little maintenance.

Convenience is the driver

As with car washing, the main customer driver is convenience. They are quick and easy to use and don't mess up the pet owner's home. Trends such as smaller living spaces and high-rise urban living make it increasingly difficult to wash a dog at home so these units have increasingly come into their own.

The ongoing success of the coin-operated dog washes overseas suggests that there is still enormous opportunity for further growth in this country. Clearly, service stations are a key market for the dog wash units, but they can also be highly effective at traditional convenience and impulse outlets.

Leading dog wash unit suppliers like Tru Blu Dogwash and Doggy Delight Dogwash are eager that all C&I operators are aware of the opportunity available to them to make a low-cost investment that is capable of generating steady cash returns.

And the message, it seems, is getting out there. Tru Blu Dogwash already has more than 300 units in operation, with many sites boasting multiple units.

"The units are certainly becoming more popular as time goes by," said Tru Blu CEO, Willy Benter. "It is now becoming such that dog owners are expecting to see these units, and smart operators are moving to meet this market demand."

Mr Benter says that anecdotal evidence from existing clients suggests that people will travel to visit a dog wash at a store and then spend extra cash in the outlet while they are there.

He says a dog wash unit can attract a new clientele, attract a bigger spend from existing clients, and – by adding product lines to sell to dog wash customers – C&I outlet operators can further capitalise on the pet lover sales opportunity.

Rick Aitken, the manufacturer of Doggy Delight Dogwash, which has units throughout Australia and has even exported to several other countries, couldn't agree more.

He says that a self serve dog wash will bring increased turnover for the store and greater profit.

"The units operate using coins or tokens that may be purchased from the store," he said. "When people are in the store, impulse buying of drinks, papers, magazines etcetera often occurs ... if you have the only dog wash in the area people will travel to use it."

Terry O'Keeffe, the distributor of the Doggy Delight Dogwash in Queensland, is seeing the same trend.

"People may just take their dog out for a walk for half an hour, get the dog washed and then walk home again," he said. "It gives them a reason to go to the store and once they are there they will buy doggy snacks, or snacks or drinks for themselves... it is just human nature… they will buy something else."

Acceptance is growing

He says that the units have been around for around 10 years in the Australian marketplace but are now getting a much wider acceptance.

"Of course when something new arrives you always get people who just have a look at first to see how it performs and then you also get those early adapters who just go for it," he said.

"What we are seeing now is a really high level of interest from a much higher number of different sorts of outlets."

For those pet owners living a busy lifestyle there are three main ways to get their dog washed outside of the home. Firstly, there is paying a groomer to do the job; secondly there is hiring a mobile operator to come out to their home; and thirdly there are the coin operated units.

"Coin operated is the cheapest option and is also the most convenient as you don't need to make an appointment to get it done," said Mr O'Keeffe. "It just fits in perfectly with people leading a busy lifestyle who want to get their dog washed when it is most convenient for them."

And it's a big and growing market. According to the publishers of the Urban Animal magazine, 64% of Australia's 7.5 million households own one or more pets. And the pet industry is growing at 10% a year. Even more encouragingly, urban pet owners tend to belong to high income households and are happy to pamper their 'best friend' at any given opportunity.

A piece of the action

So, how do C&I operators grab a piece of the pooch lovers' action? Well, the good news is that these highly profitable dog wash units are suitable for 99% of all petrol and convenience stores, and do particularly well at sites that are open 24/7.

The Doggy Delight Dogwash and the Tru Blu K9000 Dogwash can each fit into areas as small as two or three square metres. Both companies sell their units outright, so there are no ongoing franchise fees or licence costs involved. They also offer full training and follow-up service.

The fact that a good site can 'service' a large quantity of dogs means a unit can repay an operator's faith in the system very quickly.

"The units can be programmed for whatever dollar value and time issued that the operator desires," says Doggy Delight's Rick Aitken. "Most are set at $10 for 10 minutes with additional time available at a $1 per minute."

He says that the cost per wash to the operator – including power, water and product – is around $1, while the average spend per wash per customer is some $12. When you consider that a good site can expect between 60 and 80 washes per week – with some 50% of washes occurring on weekends – the profit potential is simply enormous.

The Tru Blu K9000 unit also operates on a $10 start-up – that is a minimum of $10 must be inserted before the unit will start – giving the customer 10 minutes of washing time. After this point they can add $1 to purchase additional time. The estimated profit per wash with this unit is similar.

"Based on the purchase and setup of the dog wash, it will take approximately 2,300 dog washes to return a C&I operator's investment," said Tru Blu's Willy Benter. "At many sites this point has been reached between 12 and 24 months."

Doggy Delight Dogwash distributor Terry O'Keeffe says his base unit costs approximately $18,000, and all the enclosures add another $6500.

"If a dog wash is servicing six or seven dogs a day, or 40 or so a week, the base unit can pay for itself in as little as 12 months or so," he said. "It doesn't require a particularly high turrnover to pay for itself quickly because it is a very high profit operation."

Both the Doggy Delight and Tru Blu units are very simple to install and all that is required is a power supply, a cold water tap, and drainage into a sewer or septic tank. As these services are generally connected by an electrician and plumber, the tradespeople become familiar with the operation of the dog wash and are therefore a resource for potential future assistance.

The actual installation of the units, other than the service connection, is very simple indeed.

"Installation of the K9000 is not that difficult and it can be completed by anyone with basic handy man skills," said Tru Blu's Willy Benter. "It is simply a matter of levelling the unit and bolting it down by using dyna bolts ... we have 60% of our clients complete the installation themselves but, for those that would like us to do it, we are also happy to complete the installation."

In terms of maintenance the dog wash units are again relatively simple. Mr Benter estimates the K9000 needs a general clean on a 'needs' basis, usually about once a day. This involves rinsing the tub using the override wash down function and takes about three minutes. The filters will need to be cleaned after approximately 23 dogs have been washed and this job takes about five minutes. The cleaning products will also have to be topped up and the unit wiped down with a soft cloth on a weekly basis. The wash gun and dryer hose will have to be replaced every 12months and that job will take about 20 minutes.

Designed with security in mind

Of course, with all external units that contain coins there are potential security issues but the self-serve dog washes have been designed with this very much in mind. Doggy Delight's Rick Aitken says that the enclosure units have a lockable roller door and are very secure but he recommends nonetheless that coins are emptied daily. The unit also has motion detector lights and security cameras.

For its part, Tru Blu recommends that money is emptied from the dog wash on a daily basis.

"Our units are very secure and for units that are outside we have door locks in three positions, with options for high security padlock covers as well," said Willy Benter. "Inside the K9000, the money is located within another locked steal box, separate from the products or the electronics."

He says that the units come with substantial mounts on the bottom so that they can be dyna bolted down to a concrete pad.

It seems then that to a C&I outlet that has the limited space required to house one of these units, there is a genuine opportunity to add another reliable income stream to the business. Self serve dog wash units cater to an emerging pet care trend and offer operators a secure, consistent and low maintenance profit maker ... and the pooches will love it to. Some might say C&I operators would be barking mad to pass this opportunity up!