Looking for advice on this wash.

[jlpiii]

I want to build a couple IBA's. Single glass tunnel, no SS. 3 vacs, 3 post arches, tire shine & portal pay station. I have researched this business for a couple of years. I am a successful business owner, not looking to get out of my current business, just looking to invest in this. I understand the time it will require from me. I am a hands on guy and very meticulous. My washes will be kept clean, inviting and functioning. The locations I have are all within 15 minutes of my house, and even closer to my daily office. I am in the south and my washes will be open year round.

I am looking for advice on the following.

Location Info:

- Corner lot on 3 lane road, can turn in to the location from both directions. (no u-turn required).
- 13k car count per day.
- 12.4k roof tops 1.5 mile radius, 30k roof tops 3 mile radius.
- Large Hospital almost across the street. Other medical plazas and such in the area.
- Full size Walmart 1 mile south
- Large mall (Target, Best Buy Academy, Sears, Jc Penny, Movie Theater, etc...) .5 miles north
- Dollar General across the street.

Land and Loan Info:
- Leased land, $1,500/month. 10yr/10yr renewal option
- Note for turn key IBA. 57' Glass Building, Portal Pay Station, 3 Post Arches, Portal Pay Station, 3 Vacs: $6,500
- Projected operating expenses: $5,000
- Total Monthly Projected Expenses+Note+Lease= $13k/month

Wash Pricing:
- $6, $8, $10, $12
- Free Vac token drop on $10 & $12 washes
- Tire Shine included on $12 wash

Competition:
- Oil Change/Conveyor 1.9 miles south and on intersecting road. Lowest price wash is $4.
- Currently under construction (just broke ground) Oil Change/Conveyor 1.8 miles north.
- Gas Station IBA - Looks terrible and kinda scary.

I will need apprx. 48 cars a day average (1450/month) @ 8.50 average ticket price to break even.

I am told the traffic count will not support a conveyor on this road which makes me feel better about competition. I am hoping to capitalize on after hours washes from the Hospital staff.

I am ready to pull the trigger on this location. I would like some input from current/past owners on this plan.

Thanks!
JLP

 

[Waxman]

my gut says no-go.

i am in northeast; 1 iba 2 ss, detail, used cars.

why i'd pass on this idea:

1. strong competition.

2. IBA won't process enough cars to meet your expenses ( a conveyor would ).

3. you are inexperienced.

4. leased land. with a car wash, you need to own the land. my opinion.

5. traffic count is low relative to cars required for b.e.p. i used 3/10 % capture rate in my projections and found it a bit high until 5 years out.

 

[robert roman]

My input is the plan is flawed.

For example, I do not find enough evidence there is a shortfall in the supply of carwash sites or if the subject would be reasonably convenient and useful to the public.

Based on population, traffic and surroundings alone, location rating is only 60 out of 100.

I would be more comfortable with 80 and above.

For example, Dollar General (across the street) usually locate its no-frills box stores on C+ or B-Grade sites because almost half its customer base earns $30,000 or less.

So, my advice is to take a step back and perform a thorough location analysis and feasibility study.

 

[Waxman]

3/10 of 1%= 39 cars per day. you want to be safe with your projections, not optimistic; just in case.

 

[rph9168]

I don't see any numbers on income level or total population but even without that information the numbers are very iffy based on the demographics, competition and the leased land kills it for me.

 

[MudMoney]

Leased land is a deal killer in this business.Work your tail off and get booted for the effort.