How have you dealt with your competitors especially if they're bigger than you?

[allthis4adream1]

I am entertaining a wash. However, there is a larger wash less than a mile away that has a c-store, gas station, car wash of course, storage units, lube, and detail. Actually I met with the owner of this wash today and his most profitable part of his business is the car wash. Gave me some insight on the one i'm interested in cause I told him i was interested in buying his. Clear difference is they are an automatic with alot of convenience factors while the one i am interested in is solely a hand wash that can also do work trucks unlike his. How can I beat him? What has everyone else done that has been in this scenario or in general had to compete with nearby competition?

 

[pitzerwm]

Good question, I think I would walk. You sound like a pigeon to me.

 

[Earl Weiss]

Entertaining a wash for sale. The owner is coming to all sorts of pricing. The biggest baffle to me is I am buying the business right. But it doesn't include anything that is bolted down i.e. the Car wash equipment. So what am I paying for? Not the real estate cause I would be leasing the property from him. The past? Most of it can't be proved bc he doesn't report a good portion of his income. If anyone can provide experiences, insight, or what I should know I would be very thankful.

OK, Iam confused.

In the first post it indicates you are buying a hnad wash. In the second it says this does not include equipment - stuff that's bolted down.
Trying to figure out what hand wash equipment is bolted down?

You could only guesstimate income factors by spending a lot of time there.

 

[Reds]

If it was a decent wash, worth the price, wouldn't the competition buy it?

 

[Kevin James]

allthis4adream1
I hate to pop your bubble but buying a carwash on leased land is about the worse investment you can make. There is absolutely no or little value in a car wash that is on leased land. The ROI on a carwash is terrible to begin with and it’s even worse if it’s on leased land. The value of a carwash isn’t in the car wash business it’s in the land it sits on.

 

[robert roman]

In order to compete against a superior force like a multiple facilities car wash, you would want to consider employing niche market retailing strategies.

Look up the definition of niche marketing up on the www for some examples on how you can apply this concept to the car wash business.

As for buying a car wash "cash" business, the price or value of the business is typically a function of net operating income (EBITDA).

The higher the sales volume, the higher the net income and, thus, the higher the price.

Consequently, valuing a cash business is all about income verification and determining an appropriate capitalization rate that reflects the risk associated with the continued operation of the business from the buyer's perspective.

Hope this helps.