Generally speaking, the role of an investor is very different from that of an operator. On this episode of The Iron Fox Podcast, Bob Rust, the CEO of Iron Fox, sat down with host Sean Heath as they discussed how advances in technology are changing the nature of investors in the car wash industry.
With technological improvements being introduced constantly, not only have the services grown, but the makeup of the operators has evolved, as well, explained Rust.
“It’s an interesting industry because it’s been growing and consolidating and has been a fun time to be involved in it because of all of the change,” he said.
The carwash industry has traditionally been one of tremendous revenue swings, primarily due to weather. Subscription models are causing significant improvements to that issue, according to Rust.
“If you’ve had a really bad weather month, you might be really hurting for revenue and what the subscription model has done, is that’s really evened out some of that cash flow,” he said.
“It’s evened it out in a great way because it has probably stopped the floor from being so low,” he said.
Being involved in the industry has its own mystique, Rust offered.
“If you tell people at your cocktail parties that you’re in the carwash business, it’s surprising. It’s never, like the first choice for folks. And we like it that way. We like it to be under the radar, in that sense,” he said.