C-Store (Iba bldg)lease setup advice sought

[kempape]

Does anyone have any insights on setting up a lease with a C-Store ( for IBA- i will install my machine in their existing bldg)?I am especiallly interested in how insurrance concerns can be addressed. Negotiations involve a large C-Store chain . They appear open to idea of the lease, but thrashing out insurance concerns is holding up finalizing the contract .
This project involves me upgrading a few of their currently unused Iba buildings and installing / maintaining the automatics, for either a fee or percentage .[* that aspect of also unconcluded at this time]. Approximately four sites being considered,,,,
Any help /advice appreciated -- thnx

 

[Whale of a Wash]

I would have a lawyer with good contracts, as i have never seen a c-store
without enough money to put their own wash in. The petroleum marketers assoc. around here tells them they can do 20% more in gas and convenience sales with a car wash. Sounds more like you do all the work, and they take the money.

 

[mac]

kempage, let me save you a lot of time and money. Forget this idea. Simply will not work. I've done three over the years and all have failed to make money. I'm in a lawsuit with the current one. Here are some of the reasons it won't fly:
1. If the site was a good spot for a profitable wash, it would already have one.
2. The owners of the site have no skin in the game. They won't care how many washes it does and won't promote it.
3. The wash will be the thing that the cashiers get the most complaints about. When they sour on it the numbers will go down even more.
If you have the money to do this I suggest you invest in gold and/or silver instead. That way after a year you will still have the money and maybe a little more, and you won't have had to go fix things and worry about customer damage. I know other distributors in FL that have also done this, and most of those have been decommissioned. Then again if I'm so smart I would be retired or own a profitable web site about carwashing.

 

[rph9168]

I agree with Mac - maybe not about the investment part but the car wash part. I have never seen a deal with a c-store work for many of the same reasons already given. Unless they have real skin in the game they will do nothing to promote the wash and sometimes not even then. I would steer clear of this one.

 

[DavidM]

I think there could be potential in a relationship like this. There are fairly simple solutions to each of the problems raised.
First, look at the site with a critical eye, is it a decent site? Does the station pump a lot of gas or is it struggling?
"The c-store has no skin in the game and won't promote it" Of course not, its your car wash, you promote it. Why would they promote it and why would you want them to? I would, however, make sure that they are selling car washes at the pumps. Even better, work out a deal to discount the gas if the customer buys a car wash. (the car wash refunds the gas discount to the gas station)

Cashiers at the C-store - maybe you can work with them, offer them free car washes for their own vehicles and give them a simple solution for car wash problems. I would make sure they have the ability to issue a refund, no hassle, and that they have your cell phone number to call anytime there is a problem.

At the right price and with a good relationship with the gas station this could be a winning concept. Remember the forum mantra, you can't expect to just show up and collect money.

I don't have experience with this but I think the potential problems could addressed and this could work.

David

 

[rph9168]

[QUOTE
I don't have experience with this but I think the potential problems could addressed and this could work.

David[/QUOTE]

Unfortunately this says it all. I have a lot of experience with this and it won't work. All of the activities you have described have been tried with little or no success. Very few c-store companies make a serious effort to market their washes and do even less with training or giving incentives to employees that promote the wash. I have actually seen some try this with little success. Most worry more about cashiers giving away washes or stealing washes than working with them to improve sales.

There is no way it is worth the cost of installing an automatic at your cost and making this work. Try asking the c-store company to pay for the automatic and you will run it for them. That should show you where their thoughts are at.