Hello Carwash version of the SharkTank

[Strava]

Buy or Pass? Some background info, Gross income is ballpark $60k a year for the last few years. The property is very clean and well maintained. Owner will continue to operate separate unrelated business next door, so will be available for technical support. Avg. Daily Traffic: 5506 & hospital is only a block away on same road.

My #1 question is, What can I do with such a clean & well maintained property to increase business? I don't want to buy a hobby. I would work it like a bastard step child.
In your view would improving the visual appeal with big bright signage make much of a impact?
The IBA needs a blower to dry off cars but other than that and some signage to make the place pop, I cant think of what would increase the income. Would implementation of a monthly wash club work for IBA's or is that mainly for fancy tunnels and ee's.

What type of volume does a IBA need to see before a owner should consider installing a second?

https://www.bhhs.com/commercial-for-sale/pa/181-e-water-street-muncy-17756/pid-2221115006?SearchType=Address&PropertyType=2,9,6,10,13,1,15,11,14&ListingStatus=1&NewListing=false&ApplicationType=FOR_SALE&PageSize=20&Page=1&lead=CompanyKey=PA308&LeadBrand=11413101211000010000

 

[mac]

Well sir, you pose some interesting questions. First and most importantly, do NOT even think of adding another IBA. With the gross and local traffic, it would drive you to bankruptcy. Most any wash can be improved. An experienced operator really helps though. Here's a list of questions:
1. How well does the wash clean? Do the self serve bays all have good show and smell? They need to be. How does the auto clean? My test is the white towel test. Run your car through it and after take a white towel and wipe part of the surface. Do you see ANY dirt on it? If so it could be water quality, low quality chemicals, or both. Setting up a touchless auto is a LOT more than dropping a hose in a bucket.
2. The auto definitely needs a blower. Is there enough space for a stand alone, and is there enough elec capacity to run one. Most will be three 10 hp units. A new stainless blower will run you around 25K installed. There are used ones, but you need to see in person if the thing works. Don't take the sellers word.
3. Ways to increase volume would mostly be a wash membership program. I have Touch4Wash and like it. With any on these you have to go knock on doors. Hospital close by helps as they have some fleet vehicles. You can also print up and hand out to businesses free wash coupons. The Hamilton money acceptor can accept coupons giving a discount or free wash. Hint: people really like free. If you do that carry extras with you and give them out like candy.
4. Promote. Promote. Promote. Many ways to do this. You can arrange with local schools and churches to let their groups use a couple of bays. Ask for a dollar donation from them for each car and give them free time.

All of this will require much labor. If the gross stays close to what it is now, that means you might net around 30K. Good luck with your choice.

 

[Randy]

I drove around Muncy on street view and it looks to me like a pretty low income town. With a population of only 2500 I don’t think you’re going to get rich any time soon. The selling price is probably about right. The prices that the current owner is charging are too low, they should be raised. The place also needs credit cards in the bays and on the vacuums.

 

[Strava]

@ Mac Thank you for responding
How well does the wash clean? I'll do the towel test tomorrow!

Do the self serve bays all have good show and smell? Bays look good and smell good. The current owner really does keep up with the cleanliness and maintenance, but I think he's just apathetic about marketing and promotion. He's owned it for a while and set in his ways.
The auto definitely needs a blower. I asked him about this and he said that there is room for one. He mentioned he was quoted $15/20k to get one installed. I would absolutely install one if I purchase.

Ways to increase volume would mostly be a wash membership program. Can you advice me on the top three money acceptors to look at? I need to find out if the Hamilton that's there will handle stuff like this. I'm thinking it's dated. A was in the next town over has a Portal ti+. I like that it's easy to navigate touch screen. I'll check out the Touch4Wash.
Thank you for the suggestions. : )

 

[Strava]

@ Randy Thanks for taking the time to check it out. I love google street viewing properties to. Your right it is a lower income town, but I have a lot of rental properties in town and it would fit well in to my portfolio. One thing that I forgot to mention is that the was is on a well system so there is no water bill. I had a conversation with the owner this evening when I was sitting in the parking lot. He caught me parked and watching the business. lol But he did mention that his prices where low and suggest that once/if i buy that they should be increased across the board.

 

[washnshine]

Looks like a D&S automatic. This will never clean the back of smaller to mid-sized vehicles and will probably struggle to clean the backs of larger vehicles . It has no capacity to measure/adjust for vehicle length.

Can’t tell by the daylight photos, but how bright are the lights in the bays at dusk/night? Looks like a very closed building design that could make it very dark without the proper lighting.


Are they bays set up with some type of heat to keep them from icing in the winter?

 

[jfmoran]

There are certainly upgrades you can make, blowers for the IBA being a big one. The biggest question I would have, is why, what appears to be a clean, well maintained location doing only $60K? The IBA alone should be doing $60K.

Do the Bays and Vacs take credit cards?

You can never go wrong with a facelift. How's the lighting in the bays and on the property?

You really need to run the numbers to see, if you spend $20-$40K in upgrades, how much of a business increase do your need to justify that investment?

Here's some resources talking about upgrading marketing and loyalty programs, as well as some companies that provide these services:

https://www.carwash.com/right-start-loyalty-programs/

https://www.carwash.com/time-upgrade-iba/

https://www.carwash.com/modernizing-iba-self-serve-equipment/

https://www.carwash.com/clear-communication-signage-menus/


Everwash http://morewashprofits.com/

Beacon Mobile https://www.beaconmobile.com/

Touch 4 Wash https://touch4wash.com/

Welcome to Coinless Mobile - Coinless

 

[Strava]

Looks like a D&S automatic. This will never clean the back of smaller to mid-sized vehicles and will probably struggle to clean the backs of larger vehicles . It has no capacity to measure/adjust for vehicle length. It is a D&S 5000, thank you for the information. I know zero about what machines are capable of doing what. This is going to be my starter machine, so once I can get some time and education under my belt I can look at up grading.

Can’t tell by the daylight photos, but how bright are the lights in the bays at dusk/night? Looks like a very closed building design that could make it very dark without the proper lighting. I agree with you assessment. I would add lots of new lighting. I want people to be able to see if from outer space.


Are they bays set up with some type of heat to keep them from icing in the winter? All bays are heated. Owner stated he never had a problem with keeping bays open during the winter time.

 

[Strava]

There are certainly upgrades you can make, blowers for the IBA being a big one. The biggest question I would have, is why, what appears to be a clean, well maintained location doing only $60K? The IBA alone should be doing $60K. I feel the same way, but I just don't know. I don't have the background experience to be able to answer that question. Is it just because it's so bland looking? Car count? Population density? Or is it because the owner is apathetic about promoting the place? I would be pretty aggressive about the improvements that I could make and marketing, but I'm curious if it's volume is at the cap for what the town & area can support. I'm sure I can increase the volume some, just not sure by how much.

Do the Bays and Vacs take credit cards? No, I would add cc to bays and vacs.

You can never go wrong with a facelift. How's the lighting in the bays and on the property? I think there is potential for improving the lighting. I would have it lit like a football stadium at night.

You really need to run the numbers to see, if you spend $20-$40K in upgrades, how much of a business increase do your need to justify that investment? This is one of the reason the owner stated that he didn't want to put a dryer in the IBA. He stated he didn't see how spending the 20k would be justified with a minor return. I see his point, but I also know that you have to spend money to make money. I'm looking at adding lighting, a new dryer system, cc readers to the ss bays. www.tsscws.com has some nice lit signage that I would like to add. The last big ticket item that I'm not sure about adding would be the IBA cash taking machine (sry I don't know what the industry term is for them) It has a hameltion now, but I like the touch screen ability's of the Portal TI+. I just really really need to educate myself about which one of those units would be the best to suit my needs.

Here's some resources talking about upgrading marketing and loyalty programs, as well as some companies that provide these services:

Excellent, thank you for the links i'll ready them all!

https://www.carwash.com/right-start-loyalty-programs/

https://www.carwash.com/time-upgrade-iba/

https://www.carwash.com/modernizing-iba-self-serve-equipment/

https://www.carwash.com/clear-communication-signage-menus/


Everwash http://morewashprofits.com/

Beacon Mobile https://www.beaconmobile.com/

Touch 4 Wash https://touch4wash.com/

Welcome to Coinless Mobile - Coinless
[/QUOTE]

 

[washnshine]

There are certainly upgrades you can make, blowers for the IBA being a big one. The biggest question I would have, is why, what appears to be a clean, well maintained location doing only $60K? The IBA alone should be doing $60K. I feel the same way, but I just don't know. I don't have the background experience to be able to answer that question. Is it just because it's so bland looking? Car count? Population density? Or is it because the owner is apathetic about promoting the place? I would be pretty aggressive about the improvements that I could make and marketing, but I'm curious if it's volume is at the cap for what the town & area can support. I'm sure I can increase the volume some, just not sure by how much.

Do the Bays and Vacs take credit cards? No, I would add cc to bays and vacs.

You can never go wrong with a facelift. How's the lighting in the bays and on the property? I think there is potential for improving the lighting. I would have it lit like a football stadium at night.

You really need to run the numbers to see, if you spend $20-$40K in upgrades, how much of a business increase do your need to justify that investment? This is one of the reason the owner stated that he didn't want to put a dryer in the IBA. He stated he didn't see how spending the 20k would be justified with a minor return. I see his point, but I also know that you have to spend money to make money. I'm looking at adding lighting, a new dryer system, cc readers to the ss bays. www.tsscws.com has some nice lit signage that I would like to add. The last big ticket item that I'm not sure about adding would be the IBA cash taking machine (sry I don't know what the industry term is for them) It has a hameltion now, but I like the touch screen ability's of the Portal TI+. I just really really need to educate myself about which one of those units would be the best to suit my needs.

Here's some resources talking about upgrading marketing and loyalty programs, as well as some companies that provide these services:

Excellent, thank you for the links i'll ready them all!

https://www.carwash.com/right-start-loyalty-programs/

https://www.carwash.com/time-upgrade-iba/

https://www.carwash.com/modernizing-iba-self-serve-equipment/

https://www.carwash.com/clear-communication-signage-menus/


Everwash http://morewashprofits.com/

Beacon Mobile https://www.beaconmobile.com/

Touch 4 Wash https://touch4wash.com/

Welcome to Coinless Mobile - Coinless

[/QUOTE]

One last thought regarding the dryer. The way it is set up now, it looks like it would have to be an external dryer outside the building. When you eventually replace the automatic, depending on the system, there may be room for you to have the dryer in the bay. I agree- a dryer is essential ASAP, but after you put that money into it, you will probably keep it beyond replacing your automatic, so make sure it is set up
the way you want it.

 

[I.B. Washincars]

there may be room for you to have the dryer in the bay.

But why would you want the dryer in the bay?

 

[washnshine]

there may be room for you to have the dryer in the bay.

But why would you want the dryer in the bay?
[/QUOTE]

Some operators like the appearance better with the dryer in the bay - having all the equipment inside. It can give a cleaner look to the building exterior. Of course you want to make sure spacing will allow for one car to be washed while one is under the dryer. But a long enough bay will still allow for that with an inside blower. I rarely see external dryers in my region but see the how they are necessary for some locations.

 

[Strava]

Great feed back you guys/gals keep it coming.

So far things we have discussed to improve this wash are lighting ( i think i can research this on my own)

Credit cards for he SS bays & Vac's. Lots of people seem to like Cryptopay

A blower for the IBA, Give me some brand name suggestions so I can read up

How do you guys feel about the IBA's Hamilton pay terminal? I wish it was updated to something touch screen.

 

[Strava]

I went to my towns local carwash last night at about 6pm. I wanted to take some pictures of his Portal Ti+ and see what his prices where. I'm parked at the pay terminal and taking a bunch of pictures like a goof ball about an hour later he sends me a text with 4 free wash codes. He must have his cameras set up to send him notifications for movement at his pay terminal & he saw me taking pictures. He knows im interested in the wash the next town over. I just thought it was funny, luckly he's been really nice about answering some basic questions.

 

[Randy]

The Goldline ACW is a rock solid piece of equipment, I would keep it. The first thing I’d do is install Cryptopay on all the equipment, then raise the prices across the board, Vending, Bays, Vacuums, and the automatic. I’d raise the price of the towels to $1.00, add a tree vendor, Bays I’d go to $2.75 for 3.5 minutes, vacuums $1.50 for 3.5 minutes and automatic I’d go to $7, $9, $10 and $11. But just remember you’re not going to get rich with a population base of only 2370 people. https://worldpopulationreview.com/us-cities/muncy-pa-population

 

[Greg_T]

But just remember you’re not going to get rich with a population base of only 2370 people. https://worldpopulationreview.com/us-cities/muncy-pa-population

Agreed Randy. We are in a town with population of about 1500, and wider catchment of probably around 2000. We have improved our gross income, but you pretty quickly hit your limit. We then have to focus on encouraging customers to spend more on each wash and washing more often, but these are marginal gains.

 

[washnshine]

Great feed back you guys/gals keep it coming.

So far things we have discussed to improve this wash are lighting ( i think i can research this on my own)

Credit cards for he SS bays & Vac's. Lots of people seem to like Cryptopay

A blower for the IBA, Give me some brand name suggestions so I can read up

How do you guys feel about the IBA's Hamilton pay terminal? I wish it was updated to something touch screen.

Take a look at Dryer Pros line of dryers. Good variety and solid. The Spirit model looks good for exterior mount.

 

[kentadel]

I have washes in similar size towns. His wash should have better numbers than that, and it may be that it does. Credit card acceptance, dryers, and raising price would be on my list right after cleaning/lighting/cosmetics to showcase new ownership. Good luck if you purchase.

 

[Strava]

The Goldline ACW is a rock solid piece of equipment, I would keep it. The first thing I’d do is install Cryptopay on all the equipment, then raise the prices across the board, Vending, Bays, Vacuums, and the automatic. I’d raise the price of the towels to $1.00, add a tree vendor, Bays I’d go to $2.75 for 3.5 minutes, vacuums $1.50 for 3.5 minutes and automatic I’d go to $7, $9, $10 and $11. But just remember you’re not going to get rich with a population base of only 2370 people. https://worldpopulationreview.com/us-cities/muncy-pa-population

Your suggestions are exactly what I plan to do. In regards to the population density, I've thought about this a lot this and I would like to find a map that can produce population density by radius & distance. I get that the population of the town is small, but the footprint of the town is small to there is a a lot of population on the other side of the line in on the map if that makes any since. I used to own Subway franchises and they said that people would drive 2 miles on average to go to a subway. Anyone know what it is for carwash? What is the radius that people will drive to go to a wash?

 

[Strava]

I have washes in similar size towns. His wash should have better numbers than that, and it may be that it does. Credit card acceptance, dryers, and raising price would be on my list right after cleaning/lighting/cosmetics to showcase new ownership. Good luck if you purchase.

He's telling me it does *wink wink nod nod* I didnt want to pay that game so I'm going to base my offer solely off his tax returns. I'm figuring for the worst and hoping for the best.