Good location for a wash in shopping center?

[wash12]

I am looking into taking over a wash located in a large corporation grocery store shopping center with about 15 other businesses along with a gas station that does around 200k gallons a month. The car wash is attached to the gas station, it is a single bay with an old laserwash 4000 I would completely gut the place and put in a laserwash 360.

The traffic in the area is very strong with all the businesses anyone know what I could expect in daily wash count? I know this is an extremely hard question with a lot of factors but I am trying to figure out what my potential is.

I am gauging on 40 washes a day average, I just don't see with such a high traffic area in a shopping center along next to a gas station that is high volume how I couldn't do at-least 40 washes a day?

 

[soonermajic]

I was gonna say low to mid-30s.

 

[Overachiever]

Will the gas station be selling car washes at the pumps? I think I read a Robert Roman stat in some thread that said something a long the lines of you'd get a car every 100-200 gallons sold at the pump.

I don't think 40 cars per day would be unreasonable if that stat has any truth.

 

[soonermajic]

From personal experience I think it will be closer to 400 gal per wash.

 

[wash12]

From personal experience I think it will be closer to 400 gal per wash.

I am not able to sell at the pump, is this figures with just being located at the gas station?

 

[soonermajic]

correct, that is being tied in to the pumps, as well as my own PayStation

 

[Kevin James]

Ask yourself this question "Why doesn't the gas station run the car wash themselves?" We would never get involved in a situation where we have to share revenue or not own the property. The value of any car wash isn't the business it's the property it sits on.

 

[carwashireland]

I have many washes in gas stations operating on a revenue share agreement. No rent to pay, gas station supplies all services (air, water, waste water, power and insurance!) I find gas stations often have no idea on how to run a wash so a good car wash operator can turn the business around. Just make sure you get a long agreement in place.

 

[wash12]

I have many washes in gas stations operating on a revenue share agreement. No rent to pay, gas station supplies all services (air, water, waste water, power and insurance!) I find gas stations often have no idea on how to run a wash so a good car wash operator can turn the business around. Just make sure you get a long agreement in place.

May I ask how you structured this do they get X amount per wash or how is the split on this?

We are trying to figure out how to split utilities because it is metered with the gas station as they are one building but it is looking very expensive to try and separate so maybe doing some sort of a split like you are doing could work out better.

 

[Earl Weiss]

........ We would never get involved in a situation where we ..................... not own the property. The value of any car wash isn't the business it's the property it sits on.

Of my 4 locations two are rented. At the end of the day it's about making money. Many businesses prefer to put capital to work in ways other than property ownership. Walgreen's is a well known example. You need to figure this into exit strategy as well.

 

[Earl Weiss]

..............) I find gas stations often have no idea on how to run a wash so a good car wash operator can turn the business around. Just make sure you get a long agreement in place.

I have one where the landlord ran the gas station. Did not want to be bothered running the wash. Later he rented the gas station to someone else. I thought I could turn the place around and did. He's happy to collect his check every month.

 

[robert roman]

“I am looking into taking over a wash….The car wash is attached to the gas station”

First part was vague but second wasn’t so I have to assume you plan to rent.

“I am not able to sell at the pump…”

It’s possible to work with rent but not being able to sell at the pump is pretty strong constraint. Reason is up to 70 percent of carwash sales occur at the pump.

Attached implies wash box is located behind convenience store. If so, then exposure is another issue.

Also, when “taking over” a wash and paying rent, the first thing you don’t want to do is to take on a lot of debt (i.e. 360).

Get up and running, cash flow positive, and save some money before borrowing.

If you can’t do this with what’s there, it’s not worth chasing.

 

[Earl Weiss]

The location I share with a Gas station had them selling washes when my Landlord operated it. Now, the new tenant has refused and it has not seemed to make any difference. Perhaps the bottom line is even better since I no longer have to discount those or give them a cut.