Projected Volume

[imserve]

Greetings,

Thinking about buying a lot to build a 1 or 2 bay IBA. Small town but close to larger towns with frontage on a state route with traffic count of 11,500.

Competition would be a C-Store about a mile on this road, other side of town

What is the best way to project volume? Are there independent companies that do volume studies for this industry?

Thanks

 

[Carwash_Guru]

I'm pretty positive the way that its calculated would be by just setting up some equipment and take traffic count and assume that 1% of that daily traffic would use your wash. Now with that being said a good carwash thats only competition would be a C-store, I would project a higher number due to the fact it would have better customer service, relations, and quality.

 

[imserve]

Thanks
I already have the traffic count....just don't know how much of that traffic I can get

1% is generally a good capture rate ?

 

[Carwash_Guru]

From what I’ve seen and learned yes, generally 1-2% is a good rate. Now it’s could be plenty more, that’s just the rates most use.

 

[imserve]

Any other thoughts out there?.......

 

[mac]

That traffic count isn't that high. What is the population around a 5 mile radius from the site? I definitely would not start with two IBAs. You would be looking at at least 300K in equipment, plus land, building, and fees.

 

[imserve]

Is about 15,000 in a 5 mile radius

 

[soonermajic]

15k is pretty good, but 11,000 traffic count isn't (considering starting up fresh). I'd take Mac's advice & start w/ 1, but secure a 2nd IBA from same company @ a discount (if you choose to use them again).
I had a touchless, & added a friction beside it. Smartest move I've made, & I've made a bunch of em!

 

[imserve]

Thanks for the input....

Would a capture of .75% of traffic be realistic? That would be 85 cars per day. If so, is that a good number for 1 bay or 2 bay?
I would definitely look at friction......
I know they clean better..are margins also better? What other reasons for friction over touchless?

Also, the lot would be for dual purpose, a warehouse type building in back for another business I own along with road frontage for the wash so not all the investment for land would be for car wash

 

[mac]

Capture rates are not carved in stone. There are too many variables. For instance you could be right on an interstate and have an amazing traffic count, but you would get no cars from it. Just met a couple who bought their first wash and it has a count of 30 to 40,000 cars per day. They have the wash in good shape and cleaned up, and they are grossing around $300 per week. The speed is 50 mph.

 

[imserve]

Capture rates are not carved in stone. There are too many variables. For instance you could be right on an interstate and have an amazing traffic count, but you would get no cars from it. Just met a couple who bought their first wash and it has a count of 30 to 40,000 cars per day. They have the wash in good shape and cleaned up, and they are grossing around $300 per week. The speed is 50 mph.

Do you have any ideas why it is that low?

 

[mac]

It didn’t help that the three previous owners were all jerks who could not run a lemon aid stand.

 

[Dayead]

15k is pretty good, but 11,000 traffic count isn't (considering starting up fresh). I'd take Mac's advice & start w/ 1, but secure a 2nd IBA from same company @ a discount (if you choose to use them again).
I had a touchless, & added a friction beside it. Smartest move I've made, & I've made a bunch of em!

Sooner, ever think about tunnels? I own an in-bay and self serve wash and am looking to expand. I am split between selling what I have and buying an express tunnel or just buy/build another in bay/self serve which is working well for me now. Any thoughts would be awesome! Thank you.

 

[Waxman]

I used 3 /10 of 1% for cash flow projections. Traffic count is a tricky number to rely on for overall sales. It's merely a guideline. There are other important factors to consider: speed limit is a huge one. So is egress. Visibility and curb appeal matter alot in how many cars you will wash.

Then consider what you are offering the customer: wash quality, ease of use, reliability of equipment, cleanliness of your site, price point, add on services, vending selection, number of vacs, extras like towel dry station or prep bucket. I kept adding things as money allowed: 51 selection vending machine, 2 more vacs, mat brusher, air dry for SS bays and credit card acceptors in the bays.

I had to keep adding things and tweaking services and price and finally, 13 years in, I'm pleased with results. I offer detailing and used car sales at my wash and I also have an 8 plex apartment building. It took all these things AND ME being at the business 6 days/week to make it 'go' $$$.