Framing Wash Economics - Benchmarks / Rules of Thumbs

[shiraziwash]

Good to join this group and happy to be here.

I have taken a key interest in acquiring an existing owner-operating car wash in a major metropolitan area in Texas.

I am looking high level figures / benchmarks to better frame economics. In my reading of previous threads – there are many members who reference benchmarks and rules of thumbs I’d like to better understand – particularly on the volume side.

Questions

Volume

What is benchmark capture rates as a % of annual traffic?​

When looking at population capture / sizing - is it most appropriate to look at 1 / 3 / 5 mile radius? Why?​

What is reasonable days of operations (to account for weather / downtime)?​

What are benchmark annual car counts per IBA? What is the capture on a 2nd IBA?​

What are benchmark annual car counts per self service bay?​

What is IBA and SS car capacity per day (to imply utilization)?​

​

Price

What is average pricing per IBA?​

What is average pricing per self service bay?​

​

Variable Costs

What is an appropriate gross margin – I see 70% cited frequently​

What is reasonable marketing costs as a % of revenues?​

Fixed Costs

What is a ballpark insurance per annum cost?​

What is reasonable hours for maintenance / upkeep (so I can deduce salary expense) for a 2 IBA / 5 SS business?​

 

[JGinther]

I'm sorry, but as you can see from the responses, you will only get honest answers here...(Nobody knows!! Much of it is how you run your business!) If you want numbers to put in those blanks, you will have to talk to a salesman then divide by how many times he called you. The ICA has most of this information available and the car wash mags post annual survey results to give you at least some of the data you are looking for.

International Carwash Association

International Carwash Association provides the car wash industry's leading events, training, research and publications.

www.carwash.org

 

[Roz]

and all the answers to your questions change by your location, local demographics, and the type of competition nearby. Operating expenses can vary greatly just based on the state and county of the wash.

Start with the revenue the seller indicates he is doing, then research the area and wash to see if the numbers are believable. Make offer based on the reported numbers to the degree you feel they are solid. At the end of the day owning a wash has to provide a better return than leaving your money in the stock market in a balanced-risk portfolio.