I'm seeing new owners getting into the business, and mostly they are doing OK. These are people who are buying washes as a short sale or a bankruptcy. They may not be making a whole bunch of money, but they aren't losing money. Three recent examples: 1. A six bay self serve with 2 automatics. Original owner had around 2.3 million, new owner got it for 700K. 2. A five self serve and one auto. Original owner had around 800K in it. New owner got it for 330K. 3. A four bay self serve. Original owner had around 700K. New owner got it for around 230K. None of these three were in the business before, and it looks like they all did just fine. When, or if, the economy turns around, they'll be doing nicely.
New blood in the business
- Thread starter mac
- Start date
Greg Pack
Wash Weenie
Pat Crowe years ago insisted GIM of washes had gotten too high, pointing to volatile economic environment he had weathered at one time. Time eventually proved he had a valid point.
I got my start in this business in the early 90s by picking up a few failed SS washes. I got them for a third of their cost when they were new. So I will attribute my (perceived) success in this business to snapping up a few washes at good prices.
I recently looked in my metro area for a wash or two to purchase and they seem to fall squarely into two categories: complete failures that the owners or banks still wanted too much for, or they were owned by well-capitalized owners and they weren't for sale at a bargain price. I even looked at some washes I built here in the early 2000s and sold in 2005. The entire package could be bought for about a third of what I sold them for, but the revenue had dropped 75%, or even more from what they were producing when I owned them. Mismanagement over a few years crippled them but the expresses came into the market for the coup de grace. No true bargains to be had in my market. I've given up on finding one, and paid my home mortgage off instead.
I got my start in this business in the early 90s by picking up a few failed SS washes. I got them for a third of their cost when they were new. So I will attribute my (perceived) success in this business to snapping up a few washes at good prices.
I recently looked in my metro area for a wash or two to purchase and they seem to fall squarely into two categories: complete failures that the owners or banks still wanted too much for, or they were owned by well-capitalized owners and they weren't for sale at a bargain price. I even looked at some washes I built here in the early 2000s and sold in 2005. The entire package could be bought for about a third of what I sold them for, but the revenue had dropped 75%, or even more from what they were producing when I owned them. Mismanagement over a few years crippled them but the expresses came into the market for the coup de grace. No true bargains to be had in my market. I've given up on finding one, and paid my home mortgage off instead.
In our area I would add a third category - washes built where they never should have been built. There are several around me that have simply been closed and are boarded up looking for someone to buy the land and knock them down which has happened in several instances recently. I think Mac is right. If someone can buy a wash at a bargain price and make ends meet for now they should do well in the future. The problem is to make sure the wash is not a loser due to location or competition.
Express Exteriors have taken their toll on automatics as well. It seems like an automatic connected to a c-store or related business like an oil change can survive since it is not the primary business. The free standing washes seem to be hit the hardest by them.
Express Exteriors have taken their toll on automatics as well. It seems like an automatic connected to a c-store or related business like an oil change can survive since it is not the primary business. The free standing washes seem to be hit the hardest by them.
washnvac
Well-known member
mac;59556 A six bay self serve with 2 automatics. Original owner had around 2.3 million said:
Natella
New member
This is how I am hoping to get into the business. Pick something up cheap and learn the business. Even if business is flat for a few years until the economy picks up again, its still worth it
