IBA Revenue Projections

[kdersch]

Has anyone ran any sort of projection for an IBA to justify new build or purchase? I’m running into a snag with my purchase due to lack of current financials and determine if the buy is feasible. I do know that the current financials are much less than before due to a few issues. The owner alleges that he does well revenue wise though.

The best I’ve been able to do so far is project revenue based on past water usage using revenue figures from 3 years ago to determine revenue per gallon expended.

This wash is in a unique spot with fluctuating traffic. It’s near a bowling alley with 20 lanes/restaurant/16 sand volleyball courts, a YMCA, the Middle School/High School, and all of the High School sporting venues. My population span is 36,000 3 mile, 95,000 5 mile, and 178,000 7 mile. Average vehicles per home is 2+ and age is 40.

There is 1 other touchless IBA at a gas station 3-4 miles away and a handful of self serve only washes 5-7 miles away. 5-7 miles away also have 7-8 tunnels (all express with feee vacs). Most all of the completion is the same competition since this was was constructed.

Any thoughts or insight?

 

[JLanman]

Can you use industry stats for your analysis? These stats are from a few years ago.



Here is another site that has some cool stats

20 Car Wash Statistics in 2021 That Will Surprise You | DetailPro

Car wash and car detailing are some of the industries projected to see a boom in the coming years. Yes, the pandemic may still be ravaging economies

www.detailpropos.com

 

[kdersch]

Can you use industry stats for your analysis? These stats are from a few years ago.

View attachment 4031

Here is another site that has some cool stats

20 Car Wash Statistics in 2021 That Will Surprise You | DetailPro

Car wash and car detailing are some of the industries projected to see a boom in the coming years. Yes, the pandemic may still be ravaging economies

www.detailpropos.com

Thank you Let me see how this compares to my revenue/gallon comparison. The two years has a pretty wide spread unfortunately giving me quite the variable range.

 

[JLanman]

I see this guy on linkedin a lot also. Not sure if he is a good resource or not as I have not worked with him, but he sure does post a lot about Car Wash Loans.

WHY CAR WASH LOANS ARE NOT APPROVED | SBA Capital

It is often thought that car wash funding is one of the most difficult to obtain and this can be very true. Car wash loans are often not approved due to a combination of reasons. Many of these loans would be approved if properly structured and underwritten. In this article we look at real...

sba-capital.com

Anyone know if this is a good resource to use?

Jim

 

[Waxman]

The numbers you posted seem too high for IBA car count and too low for self serve.

I used 3/10 of 1% daily traffic count. So 10,400 in my case x .003= avg hopeful daily car count. IBA.

 

[kdersch]

The numbers you posted seem too high for IBA car count and too low for self serve.

I used 3/10 of 1% daily traffic count. So 10,400 in my case x .003= avg hopeful daily car count. IBA.

That seems very low based on my traffic counts. I know that this site has made $175k annually in the last few years and was making at least double that 5-10 years ago. My figures do show 2-3x revenue previously but they are rough being based off of the water bill.