New to the Industry.....Investor Question

[Waxman]

The negative posts are meant to save you your valuable time and your money. Taking them as 'negativity by naysayers' proves you have a thin skin and/or are not a savvy entrepreneur, and either of those spell trouble for you.

You are showing ignorance by avoiding 'hand bays' due to silly reasons.

Folks use self wash bays alot in many market regions. Members from your own state have told you their experience, so listen and heed.

Remember why you came to this forum. Was it for advice from experienced industry veterans? Hmmmm. Seems like that's what you got, but you don't like it because it's not what you want to hear.

Here's a thought: do exactly what the distributor (or carwash equipment company president) tells you. Borrow $1MM and put up your single in-bay on the expensive land.

We'll be waiting for your update.

 

[Dalefc4]

I am not ignoring all the other great advice. I was annoyed with the first guy who said I was probably a fake and the other guy that agreed. I am far from a fake and I resent that. All the other advice was and is much appreciated and I am taking it with open arms. My brother and I have decided that maybe buying an established car wash would be the best way to get into the industry rather than taking such a risk opening a new location as our first. That decision came from all the great advice we received here. So thanks for all the advice. I will update once we talk with the bank. The bank will definitely be more comfortable lending for an established business than a new venture.

 

[pgrzes]

Run, Run as fast as you can!!!! The carwash business since the downturn in economy in 2007 is terrible!!! No disrespect to Tom from Autec, but he is in the business to sell equipment. He doesnt have to worry about whether or not the wash makes $$$. Why is there so much good barely used equipment for sale??? Why not buy a wash and refresh it for pennies on the dollar?? I just did a $500,000 remodel for a little over 100k. abundance of equipment for around .08-.15 on the dollar. Most carwashes are available on the cheap if they are underperforming(MOST ARE). Another bad idea in a carwash is a partner(investor). We are telling you these "FACTS" because you asked. Being in the business for past 8 years, I would not do it again. I would find something with a better ROI. Oh yeah I have 7 SS bays November- March, $$$$$$ time. If your bays dont do it then its gonna be a long summer. Best of luck to you. no disrespect to you or anyone else mentioned, just trying to give my .02.

 

[Randy]

You’ve gotten some pretty good advice so far. One more thing you could do if you’re still really interested in the carwash business. Go to some of the upcoming conventions. The International Carwash Association convention on April 22nd – 24th in Las Vegas. http://www.carwash.org/home This a great place for someone who is thinking about getting into the business or someone who has just gotten in to learn more about the car wash business. It not all roses by any means, it’s Damm hard work, 7 days a week.

 

[Greg Pack]

Well, I for one will go on record that after being in this business for twenty years and owning 45 different SS bays at one time or another I won't build another SS bay-ever. Autos are nice, an express tunnel in the right location is even nicer. SS's still have their market but my perception is it is getting smaller and smaller. The vast majority the time I spend on the lot is cleaning up after SS customers, but they represent a small slice of site revenue.

One of the problems I have found with buying existing washes as they have failed already for a reason. I thought during the downturn I would find several washes worth buying for a good deal. It turns out the ones worth having usually have happy owners, and they're not giving anything away. There can be exceptions to this, but if the numbers are really bad be certain to analyze why and whether they can be readily increased.

Also, beware the express wash- If the market is big enough you can coexist but they can suck a lot of volume out of the market. I probably wouldn't build one on a site with 12K traffic flow though.

The lot you mentioned is huge- you can put a 5/1 on .5 acres.

 

[1carwash1]

Perhaps the reason for the negativity is that the propose project appears to be so far out of bounds. I learned a long time ago that most people asking for advice, especially newbies, are only looking for validation of a particular project. Therefore, I typically refuse to engage in such conversations. Quite frankly, Robert may be a bit blunt, but his assessment is usually spot on. Moreover, I don't think any of the ACF members are trying to rain on your parade: these people are, for the most part, seasoned veterans who understand what it takes to survive in the business. In my opinion, the raw bluntness in some of the responses, should be an indication that, perhaps, you should do more due diligence or hire a consultant without a vested interest in selling you equipment. In actuality, you should be thanking these guys for expressing their opinions regardless of whether you agree or not.

 

[soapy]

Industry averages for a IBA average around $5500 per month. You would need to do 3 to 4 times industry average with operational costs to break even.