Have any of you had any success in approaching gas stations with failing or closed washes, to either rent or sign a lease deal to take over the bay?? I have a local wash that has been closed for probably 4-5 years and would love to install a touchfree in it. Just have no idea where to start. The people that are there are useless to speak to.
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Gas stations washes
- Thread starter pgrzes
- Start date
robert roman
Bob Roman
Start at the beginning. Is there still a need for a carwash at this site location?
Arguably, there is still a need for c-store and fuel because the store remains open.
However, why has the wash been closed for 4 to 5 years?
Operators normally abandon a business when sales are less than fixed cost.
Average cost of capital is $4,000 a month plus $6,000 or so for direct labor cost.
Operating expenses (per unit variable cost) is about $1.50. Average price is about $7.00.
So, breakeven point is about 9,500 units.
Conservative gas/wash rate today is 150.
Gallons per month = (9,500 X 150) / 12
Gallons per month = 118,750 to breakeven
So, sanity tests are how likely are sales greater than 118K gallons per month and/or gas/wash rate less than 150 (less means better)?
Arguably, there is still a need for c-store and fuel because the store remains open.
However, why has the wash been closed for 4 to 5 years?
Operators normally abandon a business when sales are less than fixed cost.
Average cost of capital is $4,000 a month plus $6,000 or so for direct labor cost.
Operating expenses (per unit variable cost) is about $1.50. Average price is about $7.00.
So, breakeven point is about 9,500 units.
Conservative gas/wash rate today is 150.
Gallons per month = (9,500 X 150) / 12
Gallons per month = 118,750 to breakeven
So, sanity tests are how likely are sales greater than 118K gallons per month and/or gas/wash rate less than 150 (less means better)?
As someone who has done this three times in the past, let me just say. Lay down till that thought goes away. There are too many things that will kill this. If the site were good for a wash there wouldn't be a dead one there now. The owner most likely thinks this is a great idea. But because the owner won't have any skin in the game he won't give a flying burrito as to weather the bay is clean, or if it's working and cleaning well. The cashiers will hate the wash, as that will be where most of the complaints come from.
rph9168
Carwashguy
If you are considering this you need to find out why the wash failed. Then you should probably do a new pro forma. Ultimately I agree with Mac that unless the owner has some vested interest in this other than owning the building this is probably doomed. In the past I have seen agreements where the owner supplied the equipment and you provide operating costs and split the proceeds. This used to work well when the wash was in the original cost to build the c=store and wash.
