Built a SS Carwash

[andres]

Hi. I am looking for to built a 6 bay or 8 bay SS Carwash. I was wondering how much does it cost to built? and if so do you know a good general contractor to built it in Southern California.

Thanks

 

[andres]

I got an estimate and it says that is around 800K for a 6 bay and around 1mill for an 8 bay.(Including all the soft cost) Is it too much?

 

[MEP001]

Unless the land is free, yes that's way too much.

 

[Buzzie8]

Here were the items I budgeted for when I built my first car wash:
Land – ($100k – $250K)
Site Work – ($75k – $200k)
Soft Fees Including architectural, engineering, impact, traffic studies, appraisals, loan closing costs, construction permits, etc. ($50k – $150k)
Sewer/Water Tap-Ins – ($10k – $150k) Make sure you research this! It vary’s widely among communities and can be a deal killer.
Site Work including earthwork, foundation, asphalt, and landscaping ($200k – $300k)
Building Construction Including Electrical and Plumbing ($350k – $500k)
Equipment – ($400k-$500k) Includes 2 Auto Bays which you should not build without them.
Signage – ($15k-$25k)
Security System – ($5k-$15k)

Having lived in So California for 4 years back in the early 90's I am assuming you will have other fees for environmental impact reasons. Here is a link to my blog:
http://carwashbusiness101.com/what-does-it-cost-to-build-a-car-wash/

 

[Randy]

Buzzie, LA is a very expensive place to build anything. The last 2 and 2 project we were involved in they pulled the plug at 1.12 million and they owned the land. Most of the costs were State and City permits, water and sewer tap fees. 800K to a Million is in line.

 

[andres]

Thank You all for the comments!

 

[coincarwash.ca]

In Canada...approx 150k per bay...plus 1 million plus for the Land. Prices are crazy!

 

[andres]

Getting a conditional use permit is crazy and time consuming. I guess it will be better to buy an very old run down SS and demolish it and construct over it.
Do I still have to pay for Sewer/Water Tap-Ins? or it is grandfathered.

 

[pitzerwm]

IMO anyone that lives or is trying to do business in CA, is a masochist. When the government tells you that they are going to screw you and every law that they pass screws capitalist, why would you live there, much less attempt to do business there.

 

[Buzzie8]

Buzzie, LA is a very expensive place to build anything. The last 2 and 2 project we were involved in they pulled the plug at 1.12 million and they owned the land. Most of the costs were State and City permits, water and sewer tap fees. 800K to a Million is in line.

$800k for city, st and sewer tap-ins or for total project? My first wash was just under $1.1M (a 3 and 2) and the second wash I built in a very pricey part of town was $1.4 for the same. Both included land. What's interesting is the wash in the older, lower income part of town grosses $100k more than the newer more affluent location.

 

[robert roman]

“….built a 6 bay or 8 bay SS Carwash. ….how much does it cost to built? ….general contractor….Southern California.”

In most parts of LA basin, commercial and residential real estate values declined for the fourth straight year and appear to have bottomed out this year.

Grade-A commercial real estate is now $23 to $25 per SF (utilities at site) and grade-B is about $15 to $17 per SF.

Since 2005, self-service equipment spending has dropped from $102 million to about $10 million per annum.

Since self-service equipment is not flying off the shelf, “new” is being sold on the basis of price.

What is expensive is “building” construction.

I just finished project in Riverside County, construction was $400 per SF (included fees, site work, slab and finished building).

In LA, figure $300 per SF and maybe a little more.

This raises a bigger question. Do you want to build self-service wand site in LA, today?

California, of which many areas are still populated with a high percent of hand washes, is on the cusp of consolidation by $3 express washes with free vacuums.

The express gold rush in CA is beginning to gain steam. As it spreads, it will create a large sucking sound draining away large market share of self-service customer base.

Instead of 6 or 8 wands with limited prospects for growth, you may want to consider building a small-scale wash like a mini-tunnel with free vacuums.

 

[andres]

Robert.

How much is to built a express carwash and was is the minimal lot size that you need. For a SS the minimum is 10000 sqf for the express?

 

[robert roman]

The cost to build can vary considerably.

On high end, some developers have spent, reportedly, upwards of $4.0 million to build an express wash (1 acre and up). The average cost is between $2.0 and $2.5 million (2/3 to 3/4 acre). The low end is roughly $1.0 million for a mini-tunnel (less than 1/2 acre).

For example, I have several clients with small-scale washes on property measuring between 8,000 SF and 15,000 SF.

To put this into perspective, assume you plan a 2,700 SF 8-bay self-service facility on 1/2 acre of land for $1.0 million. It’s a location and you anticipate 50,000 visitors per year and average sales of $5.00 or gross $250,000.

Next, plan a 1,500 SF mini-tunnel on 1/4 acre for $1.2 million. Assume only 30,000 visitors per year but average sales of $7.50 or gross $225,000.

Here, difference in average sales is not economic theory (price elasticity) but value-added. Mini-tunnel cleans, shines and protects in 4-minutes, automatically (no work), little waiting plus free vacuums.

Now, compare business models (cost accounting).

Self-service = $250,000 / 2,700 = $93 / SF building

Mini-tunnel = $225,000 / 1,500 = $150 / SF building

$93 is the rate (unadjusted) at which self-service (plant) generates money through sales.

$150 - $93 / $93 = 0.61 or 61%

This means for every $1.00 in sales self-service generates mini-tunnel generates $1.61.

Most of my clients with mini-tunnel have average sales of $10.00 or $200 / SF building.

$200 - $93 / $93 = 1.15 or 115%

This means for every $1.00 in sales self-service generates mini-tunnel generates $2.15.

An alternative to mini-tunnel would be to plan a dual in-bay automatic.

If you follow the same procedure I described above, you could evaluate “self-service versus dual in-bay” and “dual in-bay versus mini-tunnel.”

Hope this helps.

 

[Buzzie8]

Robert,
I am curious how you account for labor, hours of operation, and the additional equipment maintenance that an express wash requires.

I am not trying to dispute what your saying about the added quality and thru-put that an express offers but want your opinion on these added expenses in the express model. The express washes in my area have one to two attendants and are not opened 24/7/365. I went to my wash this AM and had two cars wash in the rain in my IBA. I did not check, but I am guessing the express wash nearby was not opened.

Just curious.
Buzzie

 

[robert roman]

“….how you account for labor, hours of operation, and the additional equipment maintenance that an express wash requires.”

My discussion was notion of “throughput” – rate at which carwash generates money through sales.

To make an accounting of the factors you described above, would require cost of goods, expense factor and cost of capital.

I could then account for the factors by making measurements of net profit, return on investment and productivity.

“The express washes in my area have one to two attendants and are not opened 24/7/365.”

Proponents of express exterior recommend two seven-hour shifts, two people per shift, seven days a week, 14 hours a day, rain or shine.

Making this commitment creates brand equity and image. Keeping the promise builds trust.

Opening late, closing early or closing when it rains doesn’t.

On the other hand, mini-tunnels can be operated with one person per shift, maybe two people on busy days.

I also have a client who operates a mini-tunnel without any attendants.