Newbie Evaluation

[nubf14]

Looking at a 4 bay SS in the Carolinas. The wash has been closed for a few years. The equipment is old but the owner stated it worked when closed (2 pumps don't spin). Was going to try to repair it but if not replace the equipment. On a side street facing a Food Lion grocery store but visible from the Stop Light of 22,500 VPD 4 lane road (has turning lane). No financials are available so this would be shot in the dark. Also, thinking of going 100% cashless with Nayax. I know everyone loves the quarters/dollars but I was thinking of just moving all-in on Cashless. Have a friend that went cashless in laundry and never looked back.

Any and all constructive feedback is appreciated. Small lot .3 acres $125k.

Rough numbers: 22500 x .05% = 1125 * .7 (cashless) = 787 cars a day. Am I in the ballpark??

 

[MEP001]

I believe there will be a lot of work and money involved in going all cashless. If you do, I would highly recommend a system that allows for prepaid/rechargeable cards and fleet cards. You may still need or want a central paystation to sell those cards for cash, otherwise if the wash is in a rural or low-income area, you're probably going to alienate about a third of potential customers if you go completely cashless. I know one operator who built a wash with Hamilton D.A.N. acceptors on almost everything. He really pushes the prepaid cards and says he gets lots of sales of them.

 

[nubf14]

I believe there will be a lot of work and money involved in going all cashless. If you do, I would highly recommend a system that allows for prepaid/rechargeable cards and fleet cards. You may still need or want a central paystation to sell those cards for cash, otherwise if the wash is in a rural or low-income area, you're probably going to alienate about a third of potential customers if you go completely cashless. I know one operator who built a wash with Hamilton D.A.N. acceptors on almost everything. He really pushes the prepaid cards and says he gets lots of sales of them.

Thanks. I was budgeting a loss of 30% for cashless but I really feel deep down that is an old legacy number. I have not met even a low-income person without a debt card. And yes I agree it will need some type of discount system to reward the customers. Any experience with replacing a 4 bay system? Budget 15k-20K per bay?

 

[MEP001]

I would suggest rebuilding what you have. I can't tell much from your photos, but it looks like stainless steel so it'll last forever. The high pressure side is simpler than it looks, and yours could be simplified further. Overhauling it yourself will at the same time teach you how it all works.

I have not met even a low-income person without a debt card.

Most of my customers work cash-only - my nearest competition who accepts credit cards says only 10% of his income is from cards. That's WAY off the average.

 

[Waxman]

If your rough numbers are to signify ( hopeful) cars per day using your wash, the multiplier I used when building new was .003, or 3/10 of 1%. I never hit my # based on D.T.C, so for me, it wasn't conservative enough.

I think cashless is a bad idea. You never want to limit the ways in which a customer can pay you for your service. Thinking from the customer perspective is best in a car wash business. Yes, the trend is towards cashless consumers, but it's not 100%. It's about 50% who pay with credit when given the option. Can you afford to operate on 50% of your potential gross receipts??? Why try?

 

[nubf14]

I would suggest rebuilding what you have. I can't tell much from your photos, but it looks like stainless steel so it'll last forever. The high pressure side is simpler than it looks, and yours could be simplified further. Overhauling it yourself will at the same time teach you how it all works.


Most of my customers work cash-only - my nearest competition who accepts credit cards says only 10% of his income is from cards. That's WAY off the average.

Thanks.

 

[nubf14]

If your rough numbers are to signify ( hopeful) cars per day using your wash, the multiplier I used when building new was .003, or 3/10 of 1%. I never hit my # based on D.T.C, so for me, it wasn't conservative enough.

I think cashless is a bad idea. You never want to limit the ways in which a customer can pay you for your service. Thinking from the customer perspective is best in a car wash business. Yes, the trend is towards cashless consumers, but it's not 100%. It's about 50% who pay with credit when given the option. Can you afford to operate on 50% of your potential gross receipts??? Why try?

Thanks, great info to think about.

 

[nubf14]

If your rough numbers are to signify ( hopeful) cars per day using your wash, the multiplier I used when building new was .003, or 3/10 of 1%. I never hit my # based on D.T.C, so for me, it wasn't conservative enough.

I think cashless is a bad idea. You never want to limit the ways in which a customer can pay you for your service. Thinking from the customer perspective is best in a car wash business. Yes, the trend is towards cashless consumers, but it's not 100%. It's about 50% who pay with credit when given the option. Can you afford to operate on 50% of your potential gross receipts??? Why try?

So are you thinking .001 should be conservative enough? That definitely changes things but depending on if I can repair all the equipment still might work. It does worry me that it was shut down for a few years but it could be the owner was just not willing to do the upkeep/upgrade.

 

[Rfreeman]

I would definitely rebuild what you have that will be a lot cheaper and like Mep said you will learn how it works.

With regard to your location being closed a while, my first wash was closed 3 years due to foreclosure. I asked the neighboring businesses about the wash they all told me it used to be very busy location and that turned out to be true. My 3 rd wash has been closed for 8 years hopefully I'll have it open in a month and old customers are already stopping asking when it will be open.

Ask the neighbors to see if they know the "history" of the wash. Look at historical water bills with city.

 

[Randy]

I'd rebuild the equipment that's there now. Specialty made pretty good equipment back in the day. That equipment doesn't appear to be all that old. From the one picture it looks like the coin box has a bill validator in it and a Cryptopay card reader on it. Can you post more pictures?

 

[nubf14]

I would definitely rebuild what you have that will be a lot cheaper and like Mep said you will learn how it works.

With regard to your location being closed a while, my first wash was closed 3 years due to foreclosure. I asked the neighboring businesses about the wash they all told me it used to be very busy location and that turned out to be true. My 3 rd wash has been closed for 8 years hopefully I'll have it open in a month and old customers are already stopping asking when it will be open.

Ask the neighbors to see if they know the "history" of the wash. Look at historical water bills with city.

Thanks for the feedback.

 

[nubf14]

I'd rebuild the equipment that's there now. Specialty made pretty good equipment back in the day. That equipment doesn't appear to be all that old. From the one picture it looks like the coin box has a bill validator in it and a Cryptopay card reader on it. Can you post more pictures?

Yes Randy boxes where replaced 2-3 years ago because of vandles. I will post some more

 

[traveler17]

Looking at a 4 bay SS in the Carolinas. The wash has been closed for a few years. The equipment is old but the owner stated it worked when closed (2 pumps don't spin). Was going to try to repair it but if not replace the equipment. On a side street facing a Food Lion grocery store but visible from the Stop Light of 22,500 VPD 4 lane road (has turning lane). No financials are available so this would be shot in the dark. Also, thinking of going 100% cashless with Nayax. I know everyone loves the quarters/dollars but I was thinking of just moving all-in on Cashless. Have a friend that went cashless in laundry and never looked back.

Any and all constructive feedback is appreciated. Small lot .3 acres $125k.

Rough numbers: 22500 x .05% = 1125 * .7 (cashless) = 787 cars a day. Am I in the ballpark??

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Absolutely keep the futura. My wash had it when I purchased. Outdated looking but works fine. Was installed in 97’. what part of NC are you in? Wilmington here

 

[Randy]

It looks to me like someone has put in some new equipment since the car wash was built. I'd clean up everything, make sure it works, put on some decals, change the face plate on the changer.

 

[nubf14]

Absolutely keep the futura. My wash had it when I purchased. Outdated looking but works fine. Was installed in 97’. what part of NC are you in? Wilmington here

The Charlotte area. Actually, Fort Mill SC.

 

[CleanMachine]

I would never go cashless. I have cc in every bay and vending and only do about 15% cc. 85% cash Georgia

 

[nubf14]

I would never go cashless. I have cc in every bay and vending and only do about 15% cc. 85% cash Georgia

Yes that is what everyone is saying as well I just don't understand it. 85-90% of drivers us CC to buy gas so how are these customers driving their cars to the wash. Maybe as an industry we don't have a good cashless solution. But I will not go cashless based on the overwhelming response.

 

[MEP001]

FWIW I stopped at a gas station a few blocks from my wash the other day and noticed something interesting. The one I usually use, near my home 20 miles away, I could go look at the purchased amounts and all of them will show a random amount because someone purchased gas with a card. I looked at the pumps at the one near my wash, eleven were for an even $10/20/30 amount, only one had a random amount. So the people in my wash area either don't have credit/debit cards or they're afraid to use them at machines so they're going inside and pre-paying cash. It's a Valero and their Valero card price is actually lower than cash.

 

[nubf14]

FWIW I stopped at a gas station a few blocks from my wash the other day and noticed something interesting. The one I usually use, near my home 20 miles away, I could go look at the purchased amounts and all of them will show a random amount because someone purchased gas with a card. I looked at the pumps at the one near my wash, eleven were for an even $10/20/30 amount, only one had a random amount. So the people in my wash area either don't have credit/debit cards or they're afraid to use them at machines so they're going inside and pre-paying cash. It's a Valero and their Valero card price is actually lower than cash.

Good call I will check around this wash.

 

[OurTown]

When Walmart goes cashless then I'll consider.