New Wash

[bigleo48]

Two new washes plus yours went in and you are still making a profit? I have to respect your business skills for that. Just think, if you would have went into it recklessly two years earlier you would have probably kept the two new washes out and been making that mint. I'm not advocating going into things blindly, "I'm just sayin"

Actually, they built after me, one a year after and the other just last year. When I finally decided to go for it, I had switched build location three times before finally buying the lot and building the wash. Had I built in either of the first 'good' locations, I would have lost my shirt when the other two new washes came online, splitting the 30,000 pop 3 ways with 20 SS bays & 5 IBAs. I waited and pursued the best lot available and finally purchased it from a reluctant seller. The reason my wash is doing so well is primarily location. Being next to a Wal-Mart, Home Depot, Best Buy, etc provide me with regional traffic my competitors don't see. So my wash is based on 60K regional pop. "Just saying" isn't the same as knowing. I had a friend in his mid 30s who opened another type of business with high upfront capital expense...he lost it mostly due to his lack of experience. He is looking at retiring when he's 80. "I'm just saying you need a little humility and fear to go with the greed and ambition".

Big

 

[guitarandy]

I don't think that "I'm just knowin" will ever catch up with "I'm just sayin" in popularity!

Anyway, When I look at the ratio of IBA's and SS bays that you have compared to the population of your area I am seeing that my area is short on IBA's and fairly heavy on SS bays.
Good information to have. I may just put in an IBA with 4 vac stations leaving room for addition later.

 

[MEP001]

Two new washes plus yours went in and you are still making a profit?

That's a rare example. I've seen the same thing happen many times, and it can change a car wash's net from "support a family of five well" to "a little extra on the side of a full time job." Usually the guys that come in and build after you have deep pockets, or have been duped by a distributor. Always consider the possibility that you could lose it all back to the bank.

Just think, if you would have went into it recklessly two years earlier you would have probably kept the two new washes out and been making that mint.

Not likely. Again, I've seen distributors dupe someone into building a wash, sometimes costing over $2 million, practically across the street from a well established and well-run wash. In those cases, neither really wins. It becomes a struggle to turn a profit each month.

 

[bigleo48]

guitarandy,

I'm just trying to help you keep things in perspective and make an educated sober decision. But I've seen guys like you before (and I was there once). In my 5 years as an owner operator I have had no less than several hundred people approach me with the same idea..."I wanna build a wash" Guess how many actually ever did build one...none, not one. "I'm just saying"

So you are the one asking, but are you really listening to what the guys are saying? Because we get many newbies on the forum that want to build their own wash and from the questions you are asking, I can tell that you are not too far along (like thinking you can do it for $700K). There is a large capital investment required and the business is frot with peril and competition is just one of them. Gotta do your homework...it's hard boring detailed work, but you'll learn a lot and sleep better with your decision.

Big

 

[MEP001]

I completely agree with bigleo. I can't tell you how many times I've been at the wash and had a customer come up to me and ask "How much does it cost to build a car wash?" You can practically see the dollar signs in their eyes because they think it's easy money. It's not; besides the work involved to keep it clean and working perfectly, there's the worry that something might get torn up or broken into, there's the "no vacation" thing unless you're lucky enough to find a competent attendant, there's the possibility of rain for weeks or even months on end during which time you're paying the note out of your savings...the list goes on and on. Regardless, I also agree that you aren't going to get it built for anywhere near $700,000. Ours cost way more than that, and it was built by a distributor for himself with the equipment at or below cost. Continue your due diligence, "I'm just sayin'."

 

[washnvac]

I can't tell you how many times I've been at the wash and had a customer come up to me and ask "How much does it cost to build a car wash?" You can practically see the dollar signs in their eyes because they think it's easy money.

I always tell them a minimum of $1.2M. That gets the jaw to drop! And that figure is just about right (as a minimum.) As you said, everyone thinks it is easy.

 

[JMMUSTANG]

You need to understand the cost factors and be able to be a jack of all trades to keep the wash running if it breaks down on a weekend or when ever.
My real estate bill 4 yrs. ago was $24,000. Last year it was $46,000 and this year it's scheduled to be around $60,000 (I'm fighting it).
My business has declined in each of those years.
You have to have deep pockets to withstand the down times because many our expenses don't change even if we're closed for bad weather.

 

[n175h]

Lots of good comments from some seasoned veterans. Again as was posted earlier I assume you are in the E. Texas, Louisiana area. I'm in south Texas and we are in all out price wars with 25c start times and 25c for 60 seconds. No one has gone out of business, but no one is supporting the whole family either. I'm competing against 2 bankers, a civil servant, a phamacist, and a couple of other folks whose primary line of work is not the carwash. If mine wasn't paid for I'd be in a real pickle.

I've seen lots of 25c washes around Houston, Beaumont, etc. Not familiar with Louisiana, but the demographics might be somewhat similar. A good thing about refinery areas is lots of soot floating around to settle on vehicles. That has to help get the customers in.

good luck

 

[washnvac]

My real estate bill 4 yrs. ago was $24,000. Last year it was $46,000 and this year it's scheduled to be around $60,000 (I'm fighting it).

OK.....you are saying your yearly real estate property tax bill is $60k???

 

[cleaning up mud]

I agree, I don't think you can do it for 700K

 

[dbrewer]

My 2-cents worth. I've owned or co-owned four types of carwashes. A 5-bay s/s, a4/1, a dual bay auto, and the current express tunnel. IMO you would be better served by building a 100-125 ft. express tunnel. You would offer your customers a quicker,cheaper, and better wash. Your cost should be competitive with a s/s-auto. combination. Your final cost is determined by the length of the tunnel configuration. Your only disadvantage would be your loss of revenue after business hours. I've found that that loss is minimual. There is some additional labor cost but that is offset by extra revenue potential. Gota'go.

 

[JMMUSTANG]

OK.....you are saying your yearly real estate property tax bill is $60k???

It will be around that if I don't win my appeal.
Business is bad enough without having to worry about real estate taxes rising when no real estate around here seems to be selling.

 

[guitarandy]

$60k, That's outrageous.

Grab you squirrel guns boys it's time to revolt!!

 

[carwash1]

You Are Crazy To Get In The Business

Learn Some Other Business You Will Be Sorry If You Own A Car Wash

 

[guitarandy]

Wow!
Have you had a bad experience?

 

[teamplex65]

You have inspired me to dig out my proposed numbers from my distributor when we purchased ours 6 years ago. I will post them when i find them.

 

[guitarandy]

That sounds great. I am interested in how the distributors numbers compare to actual numbers.

BTW Thanks to all for the input that I am getting. It is very helpful.

 

[teamplex65]

I was unable to put my hands on the numbers right now but I do remember some of the numbers. It practically guaranteed we would average 100-150 cars a day and do 250-300 on a busy day. These numbers are so far off it isnt even funny and we have a 1.2 million dollar car wash within 3 blocks of a Best Buy, HD, Menards, Wal-Mart, Mall, Grocery Store, Culvers, and many other businesses. Simply put we shoot to average 50 a day, and our busiest day ever was 230.

Lesson to be learned. Call some of the distributors past builds and ask to see there proposed and actual numbers. They should share this info if they arent in your market. Also be leary of the distributor giving you only the washes they know are doing good. Say you'd like to see the complete install list for the past 5 years and call them. Thats my idea to see if your distribitor is hones in the numbers.

 

[teamplex65]

I found them.

We have 2 IBA and 4 SS. 1.2Million with 800K loan and we still put 60K into it a year based on the numbers below. You need deep pockets if you have a loan.

Our distributor guessed that we would have 288 wash days per year (no rain, snow)
Average car washes per day: 200

We ran projections for the bank of good, better best being 125, 200, 230

Our biggest day ever was 233 cars last February.

Since Sept 2007 we have had
-50 days over 125 washes
-7 days over 200
-4 days over 230

In 2008 we averaged 47.33 per day
In 2009 we are averaging 48.28 so far

Granted we have had 2 washes built in the past 3 years within 1 mile of us, but our sales when they didnt exist are about the same as they are now (that should give you an idea of how hard we have worked just to maintain sales).

 

[guitarandy]

My distributor is saying around 35 per day average on my 1 IBA 4 SS.

Compared to your actual numbers he is a little high. Of course the location, competition, traffic count and local climate can make it hard to compare.