| "I bought my first car wash in 1989 in Saint Paul | | | | marker in hand wrote two words that would |
| Minnesota and then City of Saint Paul decided | | | | forever impact the car washing industry, "I don't |
| they were going to tear up the entire length of | | | | know... I guess it's a Wash Card" he said as he |
| the main road that my wash was on. I had a | | | | happily wrote the letters on the front of the plain |
| brand new wash and traffic through the wash | | | | white card before handing it over to his newest |
| was at an all time low once construction started. I | | | | customer. |
| was certain it was going to ruin me if I did not | | | | Success is Setting Yourself Apart from the |
| figure out something to drum up more business." | | | | Competition |
| -Dan Yarusso | | | | It did not take long for Dan to realize he had |
| Nearly every car wash operator has read an | | | | something that no other car wash that he had |
| article or has seen a presentation on the benefits | | | | ever heard of could offer to customers. He went |
| of accepting credit cards and loyalty cards. In fact | | | | to the local police departments and small |
| there are dozens of equipment manufacturers | | | | businesses in the area and got all of their washing |
| that now offer built-in credit card acceptance and | | | | business which carried him through road |
| loyalty card programs. Car wash operators in | | | | construction. He approached anybody that would |
| 2007 can't swing a stick at a car wash trade | | | | be interested in having an "account" with the local |
| show without hitting the latest cashless | | | | car wash. Within no time he had six local police |
| acceptance solution for the car wash. But how did | | | | and sheriff departments on account and |
| cashless acceptance within the car wash industry | | | | WashCard and was soon catching the eye of |
| all start? | | | | other local car washes. The first few washes in |
| The Origin of Cashless Card Systems in the Wash | | | | town that approached Dan asked if he would build |
| Industry | | | | them a card system. He politely turned them |
| Eighteen years ago accepting credit cards in the | | | | down because it was the only thing that allowed |
| bay was unheard of and loyalty programs were | | | | his car wash to maintain a competitive advantage |
| nothing like they are today. The concept of a | | | | over any other wash in town. "Why would I give |
| loyalty program consisted of discounted tokens, | | | | them the ability to directly compete with me?" |
| token notes, and coupon books. Seventeen years | | | | remarks Dan. "Once somebody had my |
| ago the concept of card-based cashless | | | | WashCard they would never even consider |
| acceptance in the wash bay was only realized and | | | | washing anywhere else." What experience had |
| evangelized by one man in the wash industry | | | | shown is that a business that used to buy $50 |
| while the rest of the car wash industry was | | | | dollars in tokens or token notes a month would |
| content selling tokens and coupons. You may | | | | invariably double or triple their monthly washing |
| remember seeing a guy at the ICA trade show in | | | | expenses when they were put on an open |
| the early 1990's with a fish tank in his booth that | | | | invoiced account. |
| had goldfish and a card reader in the bottom to | | | | It did not take long before word spread about the |
| demonstrate the readers ability to work in "wet | | | | "wash with the cards" and wash owners from out |
| conditions". That man with the fish tank was Dan | | | | of town offered Dan good money to build them |
| Yarusso and he started a company back in 1990 | | | | their own card system. Eventually he agreed to |
| called WashCard Systems. Based out of his | | | | build and install WashCard systems for several |
| garage in Hugo Minnesota, Dan started his | | | | other car washes throughout Minnesota and Iowa. |
| business as a one man show. In an interview with | | | | Taking the Show on the Road |
| Yarusso I had the opportunity to learn that | | | | As interest in cashless payment systems would |
| WashCard was not originally invented to be sold | | | | start to catch on Dan Yarusso had some difficult |
| to other car wash operators. In fact it was | | | | decisions to make. He could either keep his full |
| created out of a necessity to market his own | | | | time job and continue selling WashCard locally on |
| struggling car wash. | | | | the side or he could take his "idea" on the road. |
| Dan recalls, " I bought my first car wash in 1989 | | | | According to Dan, in retrospect the decision was |
| in Saint Paul Minnesota and then City of Saint Paul | | | | an easy one to make. He then spent the better |
| decided they were going to tear up the entire | | | | part of ten years traveling to the numerous trade |
| length of the main road that my wash was on. I | | | | shows with his card readers telling car wash |
| had a brand new wash and traffic through the | | | | owners about the profit building potential of adding |
| wash was at an all time low once construction | | | | a card system to their car wash. With the |
| started. I was certain it was going to ruin me if I | | | | success of so many car wash owners due to |
| did not figure out something to drum up more | | | | their WashCard program it was inevitable that |
| business." | | | | there would finally be some new cashless |
| What was to be a profitable little side business | | | | products on the market. As it turns out several |
| was quickly becoming a huge stress factor for | | | | customers of WashCard felt so strongly that a |
| Dan and his family. Dan spent nights and | | | | cashless car wash system was such a great idea |
| weekends at the wash keeping things in repair | | | | that they decided to build and sell systems of |
| and doing whatever he could to keep his | | | | their very own and became the first competition |
| customers happy while the road construction in | | | | for WashCard. As they say, imitation is the |
| front of his wash dragged on. When away from | | | | highest form of flattery. The notion of replacing |
| the wash during the weekdays Dan worked for a | | | | dirty tokens with cards, keys, and bar codes |
| company that designed access control technology | | | | swept through the car wash industry in no time. |
| for security systems. It was with this knowledge | | | | The Status Quo of Cashless Payment Systems |
| of access control technology that gave Dan an | | | | The number of cashless payment solutions has |
| idea how to fix a pet peeve of his. Dan hated | | | | skyrocketed as result of demand from |
| carrying pockets full of tokens around just so he | | | | consumers to use their credit cards or put their |
| could wash down his self service bays. After | | | | commercial vehicles on account at the car wash. |
| weeks of tinkering he had wired in waterproof | | | | Consumers get to use their plastic to pay for gas |
| access card readers into each of his bays. The | | | | and groceries, why not soap and water for their |
| readers were wired into programmed control | | | | cars? By finding a solution that caters to both the |
| panels in his equipment room that were then | | | | consumers desire for credit card acceptance and |
| wired into the bay timers. By sliding a valid card | | | | the ability to offer commercial fleet accounts is a |
| through the reader it would send a signal to the | | | | sure fire way to take advantage of how potential |
| wash bay and started up the wash bay and it | | | | customers are looking to spend their money in |
| would not turn off again until he would slide the | | | | 2007. These days it is just as important how |
| card a second time. | | | | customers can spend their money as it is where |
| Eureka! The Big Breakthrough | | | | they can spend their money. If you are not |
| It was late one weekend when Dan finally got the | | | | catering to the hundreds of thousands of |
| system working. He was running around from bay | | | | card-carrying consumers you are losing money |
| to bay sliding his card that would activate the bay. | | | | every day in potential profits. |
| He then would run back into his office and would | | | | The Future of Cashless Payment Systems |
| verify the bay activity on the black and green | | | | In the future, cash will no longer be the |
| terminal monitor that sat on his desk. With all of | | | | mainstream form of payment. Harnessing the |
| the commotion it did not take long before a | | | | power of the Internet and advanced |
| customer approached Dan and asked him what all | | | | communications technology, multiple businesses will |
| the commotion was about. Dan recalls that he | | | | be tied together within one large payment |
| was perhaps a bit overly excited as he motioned | | | | network. Customers will hold unprecedented |
| the customer into the bay and explained, "Ok, so | | | | control over their account settings. Saving |
| I take this card and slide it through the reader... | | | | receipts and passing out tokens will recede into |
| and now the bay turns on! When I slide the card | | | | the past because Fleet Managers will now run |
| again it turns off! I have a screen in my office | | | | their own activity reports and manage their |
| that records the wash so I can track any washing | | | | account balance online from anywhere in the |
| that I do with this card." The customer standing in | | | | world. Purchasing and managing car washes will be |
| the bay listening to Dan thinks for a moment and | | | | just as secure as online banking. |
| then says, "Thats really cool. So how do I get one | | | | It is clear that advances in technology will be |
| of those cards for myself??" | | | | playing a large role in how businesses such as a |
| Dan ran back into the office, entered a new card | | | | car washes will be operated. There are now car |
| into the system for his first card customer. He | | | | washes that have CEO's and influential investor |
| took a black marker and drew an arrow on the | | | | groups funding continued growth of their |
| card to indicate the direction in which to slide the | | | | company. It is more important now than ever for |
| card through the reader and handed over to the | | | | individual wash owners to re-evaluate how they |
| customer. They agreed to settle his bill on the | | | | are conducting business today. The car wash |
| first of every month for any washing that he did. | | | | industry is full of new technologies and new |
| Several weeks later the customer came back | | | | solutions to bring in new business. Ask your sons, |
| with friend and he too wanted his own washing | | | | daughters, nephews, and grandkids how they pay |
| card. This time Dan ran back to his office and | | | | for goods and services today. Will your car wash |
| returned with the another card marked with the | | | | business struggle or will it thrive when customers |
| arrow indicating it's use and the new customer | | | | that carry no cash become your primary |
| asked, "So what do you call it?" | | | | demographic? |
| Dan pondered for a moment and with his magic | | | | |