Carwash In Walmart Parking Lot

[tobaccofarmer]

Seriously forget about traffic count and forget about this wash, would you consider an automatic that washes 25000 plus a year good business? or average or below average?

 

[Jimmy Buffett]

I would consider that outstanding! 68 cars per day rain or shine. I would love that at my wash.

 

[cleaning up mud]

If it's this wash, why isnt still open? Im just curious????

 

[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”

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

Prior to the end of the car wash construction boom and housing market bubble in 2005 and the economic and financial crisis in 2008 and 2009, many car wash developer’s idea of due diligence, with respect to evaluating the supply/demand balance in a specific market for a new wash, was to take traffic count at the site and multiple it by 0.006 (rule-of-thumb capture rate) to estimate anticipated demand for car wash services.

For example, if measured traffic counts (typically annual average daily traffic) were 25,000 vehicles a day, a capture rate of 0.006 would equate to 150 car washes a day.

The “count the cash” is a humorous reference to the notion of “build-it-and-they-will-come.”

The “LOL” is me laughing at the realization of the numbers of developers/investors who actually bet millions on such a naïve assumption.

After watching the video, I would have to assume the developer accepted a subordinate location on the “property” just to get the wash built.

I would also have to assume the investor knew little about the business because the wash is not located immediately adjacent to the gas pumps.

Experience has shown the gas/wash rate for tie-ins drops dramatically if the wash is not located immediately adjacent to the gas pump islands.

As such, I would also have to assume the distributor glossed over this fact to get an equipment sale.

With the exception of the pay station, this wash is basically an entry level gas station car wash and not a retail format.

So isolated, it may benefit from a make-over and remarketing the gas tie-in. However, the best alternative may be to remake the wash as a free-standing retail store and market it as such, making it glow in the dark, so to speak.

I would consider an in-bay express wash conversion and remodel the building.

As it currently stands, I believe you may be chasing your tail by pursuing the same in-bay format; slow process speed, fair quality, few products and services, no dryer and no amenities.

The site sort of pails when you compare it what is available on the market today.

 

[tobaccofarmer]

Thank-you all for the input. I still believe there is a market for a good touch free wash and since most of them are junk and don't clean there is a niche market for someone who takes it seriously and is dedicated at ensuring a consistent clean car. The only reason I am even interested in current site is the fact that it resembles my current two sites minus vacuums with a machine I know and have parts for. I wouldnt even consider a mini tunnel or likewise especially when employees are involved. The whole reason I am in the automatic business is to avoid employees and do everything myself. Bottom line on this site is getting in for a price that is attractive enough to even want to take on yet another location. Cost of entry is huge and for the right price anything can work. Converting to mini tunnel etc would not allow me to be any different that anyone else, but being the only touch free that cleans in market allows this kind of site to atleast work because I can assure you customers notice real fast a site that cleans and a site that doesnt. But in the end is another site really worth it? only I can decide on that.

 

[PEI]

I have a twin Laser4000 site parked in a Wal-Mart in NC and it averages about 120 cars a day. It is highly profitable and if you can get a deal on the location, it is probably worth it.

 

[tobaccofarmer]

Great to hear from someone who acually has a walmart site and runs it right! Thats a respectable average and hope you continue. Thanks again for the feedback! Maybe Walmart can be good for something after all? hahahha

 

[robert roman]

By all means, you are the only one to make the final decision.

However, I will leave you alone with a final thought.

Several years ago, touch-less out sold friction in-bays by a ratio of roughly two to one in terms of equipment sales dollars.

Today, the ratio is almost 1:1.

In other words, sales of touch-less in-bay have dropped by roughly 50 percent over the course of just three or four years.

This isn’t a blip on the radar screen.

Why the sea of change?

 

[rph9168]

I would add to what Robert has stated that every major manufacturer of touch free machines now also offer a friction machine as well. The reality is that friction machines are making a strong comeback.

 

[Mr.Aap]

There is a real ebb and flow between touch free and friction......

 

[Jeff_L]

I couldn't get the video to pull up, says it's private and that i must log in. I logged in and now it says "sorry, this video is private". Guess I'm an outsider.

 

[PEI]

While nationally, friction might be coming back on touchless it is not always the case. You have to know your market. I have another laser 4000 site in a grocery store shopping center that has run five friction units out of the market. That market had touchless or SS as the only options for almost 30 years. People have been told for too long that friction hurts their cars to trust it in that market.

What I'm trying to say is know your market, friction isn't always the best choice.

 

[tobaccofarmer]

The sales data between friction/touchless doesnt surprise me a bit. Like I said before most touchless sites are not setup right and dont clean worth a crap so over time customers get frustrated and wont be back, where as with friction as long as the machine is working it has a better chance at getting film off without as much involved. I think C store sites and touchless dont work because it takes allot more time and care and setup to get touchless cleaning right, not to mention adjusting.....so on and so on...so C stores can't keep up with that, fortunetly for the independant its where you can have a niche over the competition and provide something no one else can. Basically if a customer has a choice touchfree or friction they want touchfree but also a clean car and fortunetly to get a clean car touchfree involves allot more than meets the eye, so thats why friction is making comeback because most have given up on touchfree cleaning which is great for the rest of us that actually do clean touchless because now we are becoming the minority! so I hope they sell as many friction units as possible because as long as there is a touchfree that cleans it doesnt matter anyway.

 

[dirty harry]

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

I think it means projected washes per day, also known as "capture rate"

 

[tobaccofarmer]

Jeff fixed video

 

[my2cents]

What happens if Walmart finds another location nearby and builds on a better site then shuts the one down with the car wash? I have a closed walmart less than 5 miles from a newer site they just opened. Hope there is more to draw from than just Walmart

 

[Wash-it]

Wal Mart wash locations can be top performers and some can be less than desireable. The thing with Wal Mart locations is that they may not always be "Wal Mart" sites. In other words, Wal Mart will eventually relocate their operation to a different location. INEVITIBLY. It happens! And, when it does, it leaves kind of a "ghost town" behind. So, if the wash is already in trouble, and has triggered a negetive customer perception, it may not be the best investment. Shop around and find the next growth area in this town & buy the lot (do not lease) & build the wash facility that best suits the area. Better yet, follow (or get in front of) Mcdonalds Corp, they have already performed extensive research regarding location. Just saying.

 

[tobaccofarmer]

The walmart was built in 2003, so 8 years I guess. If they scrap this walmart and build another then I will go work at the new walmart and hope a meteor crashes into the carwash and destroys it. Fortunetly its an area where everything was built within the last 8 years so still fairly new. But is anything possible sure, if I worried about everything I would be working at walmart, maybe not a bad idea after all?