Help for a Noobie - Number of vehicles, Spend per vehicle?

[gjmcguinness]

Hello Everyone, I am completely new to this industry and I am currently looking to purchase a SS 4 bay with 3 vacuums. These appear to be great investments, but I am struggling to understand / confirm an approximate income and average maintenance costs, etc. to justify the purchase. While I know everything varies region to region, I am located in Canada, I am wondering if there are some good rules of thumb to go by? Example based on the amount of cars passing by is there a general percentage of the vehicles that would stop and an approx. spend per stop? (I know the spend varies, as I have seen anywhere from $ 1.50 to $ 4.00 to start the wash). Just looking for any help? I have seen some posts that indicate average operating costs to be approx. 53% of your gross income. As well as an average per bay of $ 1,000 - $ 1,500 per month per bay and $ 200 - $ 300 per month per vacuum, but I assume these are US numbers and was hoping someone might have similar values for Canada? Also, this car wash seems to be in good shape and is now approx. 10 years old, what major items should I check and / or plan to replace? Example, hot water heater, etc.

Thanks in advance for any help!

 

[MEP001]

This "spend per stop" is going to vary wildly depending on many factors: type of payment accepted, general operational quality, average income of customer base, number of different functions, cost of chemicals and utilities, etc.

 

[Greg_T]

FWIW, some figures from Australia, in Australian dollars.

- Takings per bay each month approx $2000
- Costs approx. 47% of takings (for our particular situation, remaining 53% goes to loan repayments)
- Town of approx 1500 people, with probably another 500 in surrounding areas
- We take both cash and credit card. Cash is still the majority of our income.
- Our wash is also about 10 years old, and our main issue is minor leaks, particularly on systems with alkaline chemical content. Please note that we are in a very mild climate, so no issues with lines freezing up, heating water etc. Our coldest overnight temperature is just below freezing.

As a newbie, be prepared to be a jack of all trades - janitor, maintenance man, customer relations officer etc. etc.

Good luck!

 

[gjmcguinness]

FWIW, some figures from Australia, in Australian dollars.

- Takings per bay each month approx $2000
- Costs approx. 47% of takings (for our particular situation, remaining 53% goes to loan repayments)
- Town of approx 1500 people, with probably another 500 in surrounding areas
- We take both cash and credit card. Cash is still the majority of our income.
- Our wash is also about 10 years old, and our main issue is minor leaks, particularly on systems with alkaline chemical content. Please note that we are in a very mild climate, so no issues with lines freezing up, heating water etc. Our coldest overnight temperature is just below freezing.

As a newbie, be prepared to be a jack of all trades - janitor, maintenance man, customer relations officer etc. etc.

Good luck!

Thank you Greg! I appreciate your feedback!

 

[OurTown]

Hello Everyone, I am completely new to this industry and I am currently looking to purchase a SS 4 bay with 3 vacuums. These appear to be great investments, but I am struggling to understand / confirm an approximate income and average maintenance costs, etc. to justify the purchase. While I know everything varies region to region, I am located in Canada, I am wondering if there are some good rules of thumb to go by? Example based on the amount of cars passing by is there a general percentage of the vehicles that would stop and an approx. spend per stop? (I know the spend varies, as I have seen anywhere from $ 1.50 to $ 4.00 to start the wash). Just looking for any help? I have seen some posts that indicate average operating costs to be approx. 53% of your gross income. As well as an average per bay of $ 1,000 - $ 1,500 per month per bay and $ 200 - $ 300 per month per vacuum, but I assume these are US numbers and was hoping someone might have similar values for Canada? Also, this car wash seems to be in good shape and is now approx. 10 years old, what major items should I check and / or plan to replace? Example, hot water heater, etc.

Thanks in advance for any help!

The best place to find what you are looking for is in the accounting books of the wash you are looking to buy. Compare how busy it is and the prices to other nearby washes. At 10 years old I wouldn't think there's very many big items that need replaced yet but it depends on what was installed. If you are serious about buying it then post some photos here and we can guide you better on what to check for.

 

[gjmcguinness]

The best place to find what you are looking for is in the accounting books of the wash you are looking to buy. Compare how busy it is and the prices to other nearby washes. At 10 years old I wouldn't think there's very many big items that need replaced yet but it depends on what was installed. If you are serious about buying it then post some photos here and we can guide you better on what to check for.

Thank you OurTown! I don't have any from the inside, but if I am able to get, I will post. Thanks again.

 

[Mchas]

Sit across the street and count cars and time on the timer for a few hours on different days and you’ll get a rough idea.

 

[soonermajic]

Sit across the street and count cars and time on the timer for a few hours on different days and you’ll get a rough idea.

I did exactly this, on my newest purchase, May 2021. Was VERY helpful, & lemme know they were very honest. Which can't be said many times in carwash biz.

 

[gjmcguinness]

Sit across the street and count cars and time on the timer for a few hours on different days and you’ll get a rough idea.

LOL, I was doing this when I saw your message. I have been trying to do this on and off to try and get a good idea as well! Thank you.

 

[Bill Capron]

Before I bought my wash I went to the water department and got consumption records for the previous year.
I then went to the wash and bought $5 worth of water. I sprayed it into a five gallon bucket.
Then I did the math, so many gallons for $5 vs so many gallons bought from the city. This gives you a base for revenue.
It does not account for vacuum sales or foam brush but gives you a good idea of how accurate the financial’s they show you are.

 

[gjmcguinness]

Before I bought my wash I went to the water department and got consumption records for the previous year.
I then went to the wash and bought $5 worth of water. I sprayed it into a five gallon bucket.
Then I did the math, so many gallons for $5 vs so many gallons bought from the city. This gives you a base for revenue.
It does not account for vacuum sales or foam brush but gives you a good idea of how accurate the financial’s they show you are.

That's a good idea, I never would have thought of that! Thank you for your help!

 

[DavidM]

Water usage is not a great way to estimate revenue unless you have a lot of detail. A couple things that can make a significant difference: weep in cold weather locations, RO units that take 2 or 3 gallons to make 1, varying tip sizes in the bays, leaks, pavement cleaning or even a seller that knows someone will try to look at water usage so he uses extra water for a month or two.

 

[gjmcguinness]

Thanks DavidM, all good points to keep in mind.