I am one of the most positive people I know. Rarely do I ever get in the doledrums, whatever they are. But man, driving around FL right now and looking at different carwashes is depressing. Never see any full washes. Many I see have no cars, even on good days. The banks own a lot of them now. Some get boarded up. One operator I know took the wash's keys to the bank and said, here, take the wash. The bank said just keep operating it, we don't want it either, and forget about the payments. But don't despair! Last night our imperial president gave a great speech, and said if I just hire some new people, why I'll get a tax deduction. I'm running the help wanted ads now.
Not a good time to own a car wash in Florida
- Thread starter mac
- Start date
mjwalsh
6 bay SS w/laundromat
Balancing the positive with the corrective sometimes just baby steps
If they had "broadened" the sales tax beyond just the wax on Florida car washes --- I can't help but think the situation you described would be aggravated even worse. Even though Florida is known much more of a tourist state than here in North Dakota. That is another example in my mind of the "mindnumbing" ---- would you believe that we really are here to help approach of so many political leaders from both parties at every level. We need faith --- but also some healthy skeptism also.
I had a businessman of a generation before me tell me he would much rather do business with people who are not floating their credit too much. His reasoning is that he could bank on their future business more than the deficit people. I really believe there is a good dose of truth in what he confided in me.
mike walsh king koin of bismarck
Mac & others,
If they had "broadened" the sales tax beyond just the wax on Florida car washes --- I can't help but think the situation you described would be aggravated even worse. Even though Florida is known much more of a tourist state than here in North Dakota. That is another example in my mind of the "mindnumbing" ---- would you believe that we really are here to help approach of so many political leaders from both parties at every level. We need faith --- but also some healthy skeptism also.
I had a businessman of a generation before me tell me he would much rather do business with people who are not floating their credit too much. His reasoning is that he could bank on their future business more than the deficit people. I really believe there is a good dose of truth in what he confided in me.
mike walsh king koin of bismarck
robert roman
Bob Roman
Doldrums may be an understatement for a state that has four of the top ten most economically depressed counties in the U.S.
However, when I drive around and look at washes, I don’t see effects that can be blamed on the President.
How many markets in Florida do you know of that were already over-built way before the recession?
How many owners do you know that leveraged heavy going in and then got a second or third to support a life style they couldn’t really afford?
Although there are exceptions, owners who are busy washing cars in Florida today are mostly the ones who didn’t ignore the business.
However, when I drive around and look at washes, I don’t see effects that can be blamed on the President.
How many markets in Florida do you know of that were already over-built way before the recession?
How many owners do you know that leveraged heavy going in and then got a second or third to support a life style they couldn’t really afford?
Although there are exceptions, owners who are busy washing cars in Florida today are mostly the ones who didn’t ignore the business.
Don't think we are the only ones disappointed. Every time he opens his mouth the stock markets go down. The European markets opened down this morning in reaction to his speech and the Stock Market here opened down over 150 points. If this Administration was a horse they would shoot it to put it out of its misery.
Whale of a Wash
5 Washes 36Bays 2Vectors
The problem may be that our customers are unemployed or underemployed and don't have the money to wash.
I think we can blame a president who has spent more than all the presidents combined. Last night he was trying to help the concrete laborers with hwy projects. Most of us in the US are not concrete labor, so not much help.
I think he even said after he spent a trillion bailing out companies if the unemployment didn't go below 9% it would show his program didn't work.
last night he wanted to lower taxes on businesses, but has said always he liked to tax the rich, people making over $250K a year which i think is still the small businessman so how does that work?? His cash for clunkers is still screwing up the used car prices so he is an amazing piece of work. But I should thank him as i did get my own florida--(St Augustine) house that was new at 70% off because the builder after 30yrs went belly up. Not over building or a lavish lifestyle, just no buyers ..
I think we can blame a president who has spent more than all the presidents combined. Last night he was trying to help the concrete laborers with hwy projects. Most of us in the US are not concrete labor, so not much help.
I think he even said after he spent a trillion bailing out companies if the unemployment didn't go below 9% it would show his program didn't work.
last night he wanted to lower taxes on businesses, but has said always he liked to tax the rich, people making over $250K a year which i think is still the small businessman so how does that work?? His cash for clunkers is still screwing up the used car prices so he is an amazing piece of work. But I should thank him as i did get my own florida--(St Augustine) house that was new at 70% off because the builder after 30yrs went belly up. Not over building or a lavish lifestyle, just no buyers ..
Robert you are right that Obama did not cause the overbuilding of washes. He is just making things worse though in a misguided attempt to "transform the country as we know it." Just learned of another one that went belly up. This was a Greg Fry wash where the poor guy had around 1.4 million in a 6 and 1 auto. Bank is now hoping to get 4 or 5 hundred thousand for it.
There is a lot of blame to go around for the current state of affairs. There were definitely too many washes built too close to each other. The "build it they will come" mentality prevailed for too long spurred on by manufacturers, distributors and over anxious investors or uninformed owners. The economy certainly has not helped but I am not sure there would still be washes going under even if it was in good shape. As any successful operator would agree, to run a wash and make money is hard work. Car washing is truly a "hands on" business that does not run itself.
The ironic thing is that in my area there has also been too many washes built and many have and will go under yet I believe there are locations that would support a wash if it were done right. There are also some washes that have gone under that would probably be able to make it with a good operator. There are others that will probably be torn down and replaced with another business.
It will take time for our economy to recover and probably even longer for our industry to do so. Hopefully we have all learned something from our current situation. We all need to become more responsible for our decisions and actions. Bottom line - the success of a wash is all our responsibility - the manufacturer that made the equipment, the chemical company that supplies the products to make it work, the distributor that installs the equipment and supplies and services the products it needs and the owner that invests in it and operates it.
The ironic thing is that in my area there has also been too many washes built and many have and will go under yet I believe there are locations that would support a wash if it were done right. There are also some washes that have gone under that would probably be able to make it with a good operator. There are others that will probably be torn down and replaced with another business.
It will take time for our economy to recover and probably even longer for our industry to do so. Hopefully we have all learned something from our current situation. We all need to become more responsible for our decisions and actions. Bottom line - the success of a wash is all our responsibility - the manufacturer that made the equipment, the chemical company that supplies the products to make it work, the distributor that installs the equipment and supplies and services the products it needs and the owner that invests in it and operates it.
pitzerwm
Active member
The Fed's artificially created cheap money is what allowed people to finance the washes that shouldn't have been built. No one that have failed used their own money to do this.
This is also what caused all of the current problems, the cheap money created a demand that caused other people to create the supply. When over supply ran out of demand, then you have the crash. Its not rocket science, just simple capitalism, supply and demand.
This is also what caused all of the current problems, the cheap money created a demand that caused other people to create the supply. When over supply ran out of demand, then you have the crash. Its not rocket science, just simple capitalism, supply and demand.
While I agree with you on the availability of money for home loans it has been tough for other types of loans for a while. While rates were pretty good, banks tightened the requirements for washes and other business loans.
Many industry people were predicting over building long before the "$hit it the fan". I think the problem was heightened because no one wanted to believe things would get this bad. As long as someone wanted to build a wash there was always someone willing to accommodate them regardless of how risky it might be. As I said all parties share in the responsibility for so many failures. Due to this situation, it will take our industry longer to recover.
Many industry people were predicting over building long before the "$hit it the fan". I think the problem was heightened because no one wanted to believe things would get this bad. As long as someone wanted to build a wash there was always someone willing to accommodate them regardless of how risky it might be. As I said all parties share in the responsibility for so many failures. Due to this situation, it will take our industry longer to recover.
I am seeing signs that there is a course reversal coming up, which is a good thing. Finally, FINALLY, the electorate is starting to see that the emperor has no clothes, or is just an empty suit, take your pick. The democrats got hammered in 2010. It was sooo bad that the media tried to ignore it, but couple the state returns with the federal elections and it was the worst reversal in history. The washes that are selling are being bought at prices that were in place 20 years ago. And that was when the dollar was much stronger. So we have a new batch of owners coming in and making improvements. It's a start.
In our area not many washes are changing hands at this time. Seems like operators are trying to do whatever it takes to keep their washes running with the hope of either eventually selling or looking for things to improve to the point that they start making money again. The banks have been reluctant to foreclose so where washes are losing a lot of money they have simply closed.
