Industry Advice for a New Person

[George]

I am completely new to the industry. Have spent the last few months researching and reading about the car wash industry. I really enjoy this forum and people generally seem to give good and fair advice/information. I for one appreciate everyone's input.

If I get involved in this industry it would be a full time career and I would have no other employment.

I know most questions can't be answered with a simple answer because there are dozens of variables that need to be addressed first....

If you were starting out all over again in the car wash industry would you develop express exterior, flex service or IBA? Why?

Do certain washes perform better or worse depending on geography?...... If I get involved it will be in NJ/PA or SC.

In today's market environment would you build from scratch or look to buy an existing wash?

What is the average ROI for leading car washes?

Thanks in advance for any feedback.......

 

[Greg Pack]

I for one feel that if you are in a metro are the express model is the best combination of high income potential and lowest hassle/labor costs. But you must have a large customer base to pull from -50K plus .

 

[George]

Re: A Car wash investment

In advance, thanks so much for your input and time.

Thanks so much for your time and input. Let me play the "if" game.....If I had access to 2mil and was able to construct an automated Express Exterior wash on a busy corner with high visibility (50k plus daily traffic count) in NJ or the PA side of the NJ/PA border and I worked/operated the wash and had 1-2 employees (if that is sufficient) what type of income could I expect to receive after paying employees, insurance, utilities, chemicals and all other costs associated with running a wash??? I really don't have a good understanding on the potential return on investment of the 2mil if I did establish a well placed, well equipped and well run/managed wash. Any help with these questions is most appreciated.

Thanks,
George

 

[Waxman]

It's obvious by your query that you need to immediately contact a carwash consultant. It may be the smartest money you ever spend!

I'd hate to see anyone lose $2MM.

Your question is far too non-specific, vague and generic to answer in a forum such as this one.

How much any carwash nets (EBITDA or otherwise) is so very complicated that few will post a reply. The answer is a solid 'it depends'.

 

[Whale of a Wash]

You can find out some average costs by finding some of the magazines surveys. Also i would find out the average weather conditions in the state you pick, as in my area we lose well over 100 days a year to bad weather, (Rain,Snow,Blizzards,high wind,Looks like rain.) I will lose 15 days of june to rain so I am putting on different pants this month with bigger pockets, not wondering how much i'll make, but how much i'll lose. I don't want to sound negative, but those days are a part of the equation. Also a car wash can be compared to milk cows , they need attention many times a day 365 a year. How many hours a week are you planning to work to get this well run car wash a great ROI ?

 

[mac]

If you do get into this, I would guess that buying an existing wash would be the way to go. There are a lot of washes that banks are taking back.

 

[robert roman]

George,

Put the horse before the cart.

If the wash will be your sole source of income, start by determining how much you need/want to make.

For example, if you need pre-tax income of about $75,000, a good self-service site should do. You can also net $60K or more from a free-standing in-bay or mini-tunnel.

If you need $150,000 or more, an express exterior on a 1/2 acre might get you there.

If you need $250,000 or more, plan on having at least a one acre site, full-service, flex-serve or big express.

Need $350,000 or more, plan on having a multiple facilities carwash.

After settling on some income range, you can go on about the business of solving the location problem; is the location economically desirable and suitable as a carwash site?

If so, will there be sufficient demand to support the construction and operation of the wash at that location at this time?

I have a "Free" carwash investor's guide on my website that you may find of some use.

http://carwashplan.com/investor_s_guide

 

[wood]

Agree with Whale & Mac.

As whale stated the midwest and beyond are having the worst June since....................

I agree with Mac. Last few years have been dismal for most. Weather, economy, etc.... should be many opportunities to buy existing. I would go that route first. Close on deal by September 15th, put your stamp on it with changes, remodel as needed, and roll out your new image December 1st before the season starts.

Price is right, existing properties are zoned and operational. Avoid municipality headaches.

All that being said I still like what I do

Good Luck,
Wood

 

[pgrzes]

If you are looking to get into something inexpensive to try it out I have an express tunnel with 7 ss bays. S.E Pa. PM Me for details.