Car wash industry came to life in Detroit
The city that put the world on wheels also created the automated car wash industry 100 years ago. In 1914, Frank McCormick and J.W. Hinkle opened Automobile Laundry in Detroit. The modern-day automatic wash came in 1946, when Paul’s Auto Wash opened, moving cars along a conveyor. What started as a niche business a century ago in the Motor City has become a $33 billion global industry, with more than 150,000 retail car wash locations worldwide. Detroit’s innovation spurred an industry — everything from car wash equipment manufacturers to detergent makers. However, pricing is the one area where the industry remains stuck in the past. Drivers like the discounted prices and are reluctant to give them up, said Jeff Stoltman, professor of marketing at Wayne State University School of Business Administration and an expert on consumer behavior. Consumers also crave simplicity, often choosing the cheapest option by default. "That way you don’t have to make it more complicated by upgrading to platinum or silver and understand the differences of each one," Stoltman said.
