Advise for Potential Operator

[CleanUp]

I'll be in the market for something new to do with myself in a couple of years and stumbled on the idea of buying a car wash. I have read quite a bit on here about the good, the bad and the funny. I would like some serious advise from you operators. Advantages, disadvantages, pitfalls, etc. I currently live in the Florida Panhandle and would probably look to find something there. I don't see myself building from scratch, and would lean toward a SS/IBA setup to start with.

Thanks in advance.

 

[Jim L.]

How much money ya got? I might be able to fix you right up!

 

[raisetheprice]

If you aren't mechanically inclined (I am, but not near enough in some electrical areas), don't even think about it. Honestly, if I had it to do over again...we'd have done storage units. And maybe I'll do some of those too in the future, who knows. Problems in that industry too, but usually never as immediate as a carwash demands and WAY fewer crucial moving parts. I bet a storage unit owner never was completely down due to a $5 part failing on Saturday morning. Land costs are more as you have to have more, but if your storage is in a city's growth path...you'll have alot more land to sell than a carwash needs when the time comes. If a carwash is all you have to do and don't want/need to keep working your real job, it's a piece of cake.

 

[MEP001]

I'll be in the market for something new to do with myself in a couple of years and stumbled on the idea of buying a car wash.

Between that comment and the fact that you're in Florida tells me that you're not ready to build or run a successful car wash. You asked for serious advice...do your homework and you'll see that it's not a cake walk.

 

[MikeV]

One thing you might try is to find a car wash that you might be interested in and ask the owner if you can help him operate it for a year or so. You will then know if this is what you want to do.....If you can find an operator that will let you do this.

 

[CleanUp]

MEP001 - I really wasn't looking for a judgement as to whether or not I am ready to own and operate a successful car wash. I can get plenty of opinions right where I'm at. Simply looking for some advise based on the experiences of other owner/operators who have been in this business as part of my research on this industry. Nothing worthwhile is a cakewalk, except maybe winning the lottery.
Jim, I'm not really in a position right now to make the time or capital commitment to any business, but out of curiosity is yours located on Kelly?

Again, to those that take the time to relay their experiences and give any advise, thank you in advance.

 

[Louise]

I am also located in the Florida Panhandle. I built about 3.5 years ago. I would be happy to show you around my wash and answer any of your questions.

Let me know if you would be interested.

 

[mac]

Even though the economy is in a so called mess, times may be right for an investment. Warren Buffett is buying right now. There are a lot of operators in Florida who got in and spent way too much. Some of these have gone belly up, and others will. If you drive around some and do some investigating, you might find one of these that the bank wants to get rid of. Getting them for 50 cents on the dollar is common. I'm an equipment dealer in FL and could evaluate one for you if you find it. Keep your eyes wide open and your hand firmly on your checkbook. Good luck with your venture.

 

[Jim L.]

Jim, I'm not really in a position right now to make the time or capital commitment to any business, but out of curiosity is yours located on Kelly?

Nope, not on Kelly?8116 U.S. Hwy. 98 in Navarre. I also know or other successful washes in Pensacola, Pace and Pea Ridge that can be had for the right price.

 

[CleanUp]

Jim, I certainly wouldn't mind seeing your operation and picking your brain but I'm out of town for a little while. I might just drop by when I get back, and have had a chance to do some more research.

 

[MEP001]

MEP001 - I really wasn't looking for a judgement as to whether or not I am ready to own and operate a successful car wash.

I apologize for what was a hasty reply and ultimately not advice. In my defense though, I've seen a lot of people build or buy car washes that knew little or nothing about operating them, and ended up struggling just to pay the bills, or worse, oversaturating a market. There's also a severe overbuilding problem in some areas because too many people think it's an "easy money" investment when it's not. My comment was to give you a "reality check," meant to have you take a second look at your own thought processes that led you to decide to buy or build a wash.

If your eventual plan is to be an owner/operator, consider working at a wash for a few months, cleaning and doing general maintenance. It can be a good all-around learning experience.

 

[Eric H]

Here's my advice: When business is slow you have no money to do anything, when business is good you have money but no time to do anything. When business is slow your wife wants a new car, when business is good your wife complains that you don't spend any time with the family.

 

[pitzerwm]

Right on Eric. A friend who had a number of rentals, came by with his wife (a good Catholic, four children) and told me that he was tired of the rentals and asked about getting into my business or something else. I told him that "he couldn't afford it", he said "No, I will sell the rentals". I said no you don't understand "to be successful in what I do you will need to work 24/7, your wife will start sleeping with the milkman and the kids will start calling you Uncle Dan" She turned beet red and he understood immediately. He stayed with the rentals.

 

[CleanUp]

Thanks for the advise and comments guys. I know that no matter which route I decide to take it'll be alot of work, it's going to be alot of work just to get things initially set up. No matter what I'm looking forward to being my own boss.

 

[Jason Studer]

I can not speak for an in bay wash, But selfserve is pretty layed back, low maintainance, if the equipment in newer. I have a 4 bay selfserve in Minnesota, so I have to deal with garage doors, garage door openers, infloor heat, boilers, and the extra cost of the heat. If you are down in Florida, I would say to start with selfserve, and go from there. don't get me wrong, there is still alot of work that needs to be done. Not a full time job by any means.

The question someone asked earlier, was how handy you are? I would agree that no operator can afford to be paying to have things repaired, it needs to be done in house, and I mean everything, from electrical, plumbing, heating, (does not apply to you) any and all the repairs and maintance that goes along with the wash industry.

 

[CleanUp]

Thanks for all the replies. I seem to have reached a roadblock in my research, however.
Can someone direct me to some recent statistics on the PPM and MPD of the "average" SS in the SE United States (NW Florida would be great). I would try and gather this information myself, but am currently not in a position to have access to any of the local washes. Just some generic numbers would be a great help.
Thanks again in advance!

 

[mac]

There are two industry magazines that publist annual surveys that have the info you want. They are Auto Laundry News and Professional Carwashing & Detailing. They might charge a small fee for a copy, but it is still the only source out there. The info will be a little dated though. It won't reflect the current slow down. All my customers are off some from last year. Some are onlt down 5 to 10%, while it's over 50% for others. And the banks are getting many washes back. I generallt tell investors that if their business plan works with the survey numbers, you can be pretty safe to assume it will work. The surveys are composits of every wash out there, both new ones and 30 year old ones. I always thought the survey numbers were lower than most new washes in general. As always, location plays a huge part.

 

[bigleo48]

Here's my 2 cents,

Whenever you want to enter into a business, you make a list of what is missing/under-serviced in your area. Then you look at which ones suits you and your lifestyle & budget. Your "idea" of a carwash is not an original one and my friend who is a distributor gets many inquiries daily.

The pros and cons are posted everywhere it seems. Pros: little inventory and staff, mostly cash business where people pay you before they use it (so no real accounts receivable) and the margins draw the flies to the light. Cons: 24hr going concern, large capital outlay, very competitive landscape, potential disruptive technologies, etc

I spend 2.5 years of research before moving ahead. I can fix almost anything myself and I do almost everything. I have a great location and built it right. Yet, I still have a day job for a few years to come.

BigLeo

 

[CleanUp]

I am still in the initial research phase of things, and am finding quite alot of useful information right here. Using the generic spreadsheet from the library section on here the numbers just aren't adding up at the moment, but I have time on my side and still have alot of research to do before I commit to anything. Thanks again for the info and advise.

 

[PaulLovesJamie]

the numbers just aren't adding up

Yeah, that about sums it up IMO.

I've been ready for a second wash for years ,so I look at every one that comes up for sale in my area. I have the capital, experience, etc - I could pull the trigger within hours. But every time one comes up for sale... the numbers just dont add up. So I walk away. Every time for 10 years now.

good advice on this thread, you'd do well to pay very close attention.