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Expected income
- Thread starter Brad0505
- Start date
robert roman
Bob Roman
Based solely on population, the total available market in terms of industry wash revenues might be $200,000 or so.
Factors that could influence this estimate (up or down) include market segmentation (i.e. income, age distribution), composition of vehicle fleet, quality of competition, etc.
You think a 4 bay SS in a town of only 3400 people that already has another SS in town has the potential to bring in 200k?? I think you added an extra zero in there somewhere....
robert roman
Bob Roman
Total available market means total potential wash revenues in an area. So, there is no mistake. I meant $200,000. How demand plays out in an area depends on the site location factors.
For example, if per capita income in area is significantly less than national average, then this value would need to be ratcheted downward by applying adjustment factor.
If 30 percent of the market is DIFM and won’t use wands, then potential sales or baseline available to self-serve would be $140,000 ($200,000 X 0.7).
If population is evenly distributed and each wash is similar in store size, layout, and services, then we might expect each wash would capture equal share or $70,000.
In other words, more than population is needed to provide meaningful answer.
robert roman
Bob Roman
What do you find incredulous?
An area where per capita income is $28,000 has more purchasing power than area where per capita is only $16,000.
For example, I’ve seen areas with 3,500 people produce well over $200,000 revenue. I also know “poor” small towns, lots of pick-up trucks, that don’t generate $100,000.
Where I live there are over 3,000 people per square mile. I can count on one hand the number of times I have seen any of my neighbors wash their car(s) at home.
There are entire communities here with thousands of people that seldom wash their car in the driveway.
