Carwash In Walmart Parking Lot

[tobaccofarmer]

Wondering what others think of a walmart parking lot location? I am thinking about buying a shut down single bay laser 4000 site that sits in a walmart parking lot, the place is a typical neglected auto that needs a bunch of work but nothing I haven't done before, just alot of work. Wondering if anyone has any experience with such a location? Land is included in sale. Any thoughts on site?

 

[rph9168]

There is an EE in the same parking lot as a Walmart near me. It has had three owners in four years and is currently owned again by the bank. Sites on or near a Walmart are not guaranteed winners.

 

[Rudy]

I had a friend who lost his butt with a 3/2 (3SS,2Auto bays) in a WalMart parking lot. The place didn't even do 1/2 of the pro forma.....

 

[lighthousecarwash]

Wow...I would think a Wal-Mart would be a great location. Most places that bring in a new Wal-Mart flourish with growth and business close to the location. I have seen them put in a few in this area and it completely re-vitalizes the commerical landscape in the neighborhood. Guess things aren't always as they seem.

 

[Whale of a Wash]

There is a wash in a walmart lot about 40 mi from me, 2 iba, and 2 or 3 ss. It does alot of business. There is also a gas station at the end of the lot, and maybe 5 or 6 other stores like a little mall. I think the demographics, and the reason they stop at the store all matter. Most of the people that go there are stopping on the way to their vacation home, so they probably have more money. Some of our walmarts only have one entrance, and are directed to the one exit, so they would have to go by the wash.

 

[MEP001]

There is an EE in the same parking lot as a Walmart near me. It has had three owners in four years and is currently owned again by the bank. Sites on or near a Walmart are not guaranteed winners.

I wouldn't assume any particular reason behind the failure of three owners to make that wash successful. I know of an operator with a wash so close to a WalMart that people assume WalMart owns it, and it does extremely well, mainly because IMO they run it properly. I've seen many, many washes that given their location should be busy but aren't because they're run badly. The two washes that are closest competition to us have been around much, much longer, have much better visibility and are slightly easier to access and even have a lower start-up price, but they're so tight with the chemicals and hot water that many of our customers drive right by them to use us.

 

[rph9168]

Even a great operator cannot overcome a bad location. This EE I mentioned has been run and marketed as well as most. The site is fairly well laid out and has a good line of sight. It also has an easy entrance and exit. It even has decent demographics. It is hard to say why it has not succeeded but if I had to guess I would say that those shopping at this Walmart must be in a hurry to shop and leave and do not consider this as a place to do more than that.

I am sure there are some times when a location near a Walmart may work but in my experience over the years having such a site is certainly no guarantee that the wash will succeed any more than one in another location. The problem I think is that in most cases the operator has to pay a premium price for a site that might be a questionable location for a wash. That additional cost might very well make the difference between success and failure.

 

[robert roman]

Six or seven years ago, most people on this site would probably have said that such a circumstance would be a “no brainer.”

Traffic count times 0.006, count the cash. LOL

Boy, have times changed.

One thing that hasn’t changed is the fundamentals of solving the location problem; is the market economically desirable and is the location suitable as a car wash site?

For example, I have a client with a wash located next to some big box stores and there are virtually no roof-tops for almost three miles. He washes gobs of vehicles.

In one of the poorer markets north of me, there is a wash located next a super center that is doing very well. Several miles north of this site there is an exterior express that appears to be struggling.

Consequently, it is still advisable to do your homework.

What is the supply/demand balance in the market? Is the segment strong? What is the probability that motorists would stop (combined trip)? What pricing will get customers to make an extra trip? Will design, access, signage and marketing be appropriate? Etc.

 

[robtl]

Wondering what others think of a walmart parking lot location? I am thinking about buying a shut down single bay laser 4000 site that sits in a walmart parking lot, the place is a typical neglected auto that needs a bunch of work but nothing I haven't done before, just alot of work. Wondering if anyone has any experience with such a location? Land is included in sale. Any thoughts on site?

Watch the restrictions on the property that might have been put on it by walmart if they once owned the property.
When they build they buy around them and sell off out-lots with restrictions, be careful.

 

[Ric]

Six or seven years ago, most people on this site would probably have said that such a circumstance would be a “no brainer.”

Traffic count times 0.006, count the cash. LOL

Boy, have times changed.

One thing that hasn’t changed is the fundamentals of solving the location problem; is the market economically desirable and is the location suitable as a car wash site?

For example, I have a client with a wash located next to some big box stores and there are virtually no roof-tops for almost three miles. He washes gobs of vehicles.

In one of the poorer markets north of me, there is a wash located next a super center that is doing very well. Several miles north of this site there is an exterior express that appears to be struggling.

Consequently, it is still advisable to do your homework.

What is the supply/demand balance in the market? Is the segment strong? What is the probability that motorists would stop (combined trip)? What pricing will get customers to make an extra trip? Will design, access, signage and marketing be appropriate? Etc.

Pardon my ignorance but traffic count X .006 = what?

 

[MEP001]

The number of cars driving by you should get to wash.

 

[tobaccofarmer]

Based on deed restrictions it would be hard to do anything else on property but carwash so that is a factor definetly. It is hooked up to murpheys pumps so that is a big plus I guess? Here is a video of property

http://youtu.be/jknbeYANC1s

 

[Buzzie8]

Six or seven years ago, most people on this site would probably have said that such a circumstance would be a “no brainer.”

Traffic count times 0.006, count the cash. LOL

I'm curious about this "old school" formula you quoted. What exactly does it mean?

 

[Whale of a Wash]

From the video the wash is at a strange part of the lot, and when not next to the murphys i seen no traffic, no traffic on the odd street. It needed to be located near an entrance or exit, or near the gas station. If it would make money the gas station would sure want it-- the Petrol marketing guys tell them all they can sell 20% more gas and items with a car wash. The wash is poorly located on the lot-- a Domino's confirms that, as they rely on no walk in traffic. The wash also makes cars turn right on the exit road, another inconvenience. I would rather start new near the gas and where all the cars are and make some money. How much are they asking for the place and how many washes are on the machine. How long was it open. I think your results would be close to the same, even if it was the best wash in town. We have a fleet farm in town, and next to the gas which is near entrance/ exit is a car wash. Almost all of them have 3 laser washes that make me envious with how busy they are. I am sorry , but they put the wash out of they way, and it is.

 

[tobaccofarmer]

Murphey's are not in carwash business and could care the less about it. They sell the most gas in market trade area because they are always the cheapest so selling more gas to them is not an issue. One large issue is the fact that the owner who built 8 of these walmart sites lived 4 hours away and obviously learned real fast how that wasnt going to work. I observed this place from close to new and it did fine in beginning but then as time went by simple things like arch impacts on a friday wouldnt be reset until tuesday and so on and eventually people started to right it off. Its not that the Market trade area customers don't know about it its they have written it off because of complete ignorant owner, so the challenge will be getting people to try again. For what I can get this for, I wouldnt even consider building new even if the absolute best ground was given to me. Good part is only one other slap n scratch for competition at another gas station, and one full serve. Not condusive area for express tunnel. Bottom line is for price I can wash next to 0 cars and it wont break me, just would have been a waste of time and lesson learned on location. What is the command on a 4000 for total washes? I only can find cycles, but for as much as this place was broken I know its as low as any 2003 4000. Anyone here with 4000 have the command for total washes?

 

[cleaning up mud]

I have never seen many single automatics or double stand alones that did much business! They just don't seem to be as popular or get the attention that self serves with an iba do!

 

[tobaccofarmer]

Cleaning up mud, would you consider 25000 cars/year for a single automatic "much business" ?

 

[cleaning up mud]

that's traffic count! does not compute to washes!

 

[cleaning up mud]

read the previous post!! it would still be in operation if it did any business!!!!!

good luck!

 

[cleaning up mud]

Another example why you want to stay far far away from twin distributing. (from youtube)

The hammer on top of the circuit breaker box is warning!

Just kidding!!!!!!!! Who know's!! Good luck!!!!!!!!