Heartland group says car wash operators must recalibrate on costs and pricing

The Heartland Carwash Association is urging operators across its 13-state footprint to take a harder look at their numbers, framing the current climate with a single word: recalibrating. The group argues that owners now face more variables, and more consequential decisions, than at any point in recent memory.

According to reporting from Auto Laundry News, operators are contending with rising utility and property-tax bills, higher chemical and replacement-part prices, steeper construction costs, and shifting financing conditions. At the same time, investments in automation, artificial intelligence, pricing tools, and customer-retention systems are opening opportunities while demanding closer scrutiny of capital spending and return on investment.

Growth versus profit

HCA president Pat Shannon said operators must examine costs, pricing, labor, capital investments, and customers all at once. He warned against assuming that higher volume or improved efficiency will automatically fix margin problems, adding that owners still have to do the math on both technology and pricing decisions.

The association is pressing a core distinction between activity and profitability. "A busy carwash is not automatically a profitable car wash," said Mel Ohlinger of OhmCo, an HCA board member and industry consultant. He noted that holding prices flat for years may feel customer-friendly, but it can leave operators without enough margin to maintain equipment, retain staff, or keep reinvesting in the business.

To respond, HCA encourages operators to understand their true cost per car, evaluate pricing and membership models, continually review labor costs, and weigh equipment and technology purchases against a clear expected return. The group frames cost pressure as a potential catalyst, saying it can expose inefficiencies and push businesses to operate differently.

Pressure across the supply chain

HCA stresses that the squeeze is not limited to wash owners. Manufacturers are reassessing equipment design and pricing, distributors are managing inventory and transportation costs, and suppliers are searching for ways to keep delivering value under their own cost pressures. Decisions in one segment ripple through the others.

The association points to two upcoming events as venues for operators to compare notes. The HCA Carwash Roadshow: Land of 10,000 Washes runs October 14 and offers behind-the-scenes access to Minnesota operations. The group's 46th Annual Product and Equipment Show follows March 23 and 24 at the Tinley Park Convention Center in Illinois, themed "Driving the Future of Car Washing."

Despite the pressures, HCA does not read the moment as cause for pessimism. The group notes car washing has historically held up during tighter economic periods, as consumers maintain vehicles they already own rather than absorb the larger expense of replacement. Its summary message to members: pay attention, stay flexible, know the numbers, and be willing to recalibrate.

Why it matters for operators

The association's framing is a useful prompt to separate top-line growth from actual profitability. A wash running high car counts can still be bleeding margin if prices have not moved in years while utilities, chemicals, parts, and labor have all climbed. Operators who have not recalculated their true cost per car recently may be making pricing and membership decisions on outdated assumptions.

The practical takeaways are concrete: calculate cost per car, test whether current pricing and membership tiers cover rising fixed and variable costs, and treat every technology or equipment purchase as a return-on-investment question rather than an automatic fix. Site visits and peer conversations, like those HCA is organizing, can help operators pressure-test their own decisions against what comparable businesses are doing. The underlying caution is that efficiency and volume alone will not rescue a thin margin.