NuStar offer

[Ric]

Has anyone taken NuStar up on this offer.

http://automatic-car-wash.com/index.php?option=com_content&view=article&id=14&Itemid=18

 

[captain cw]

these kind of deals never end well for the operator or the manufacturer.

 

[Bubbles Galore]

Reasons? Not being a smartass, just asking the questions....

 

[rph9168]

There is one key element in either a Revenue Share or Pay per Wash program - VOLUME. Not many manufacturers or distributors will offer either program unless the site has a very good potential for volume.

Usually it is based with some type of equipment lease behind it. The manufacturer/distributor calculates what their lease payment and chemical costs will be and then reach a projected wash count that will cover their responsibilities. If the numbers justify the deal they proceed. I have also seen some that require a payment for a minimum number of washes before the percentage kicks in like after 700 washes or require a pay per wash for 700 whether that number is achieved or not.

There is also the issue of providing the utilities - water/sewer and electricity/gas. As we all know those can be significant expenses which are picked up entirely by the operator.

I am not saying this type of arrangement cannot work but it is not as easy as it sounds to get into one of these programs and they are certainly not risk free. I am not totally familiar with NuStar's program but you probably will be tied to a contract with a projected number of washes and will have to either pay a minimum amount fee or risk no payment until certain numbers are reached while still being responsible for utilities.

 

[Whale of a Wash]

Is there any money left after the owner pays for electricity and water, and the 2-4$ a wash. It would seem more profitable to add another SS bay.
I am not a fan of nu-star as i had 2 comets, and spent nearly $600 a month to keep them running- Swivels -Hoses-hydraulic solenoids- Hydraulic motors, and then track problems. So for them to do the maintenance seems like a good idea, but we were down alot due to problems.

 

[briteauto]

One thing that would really concern me is Nu Star (or any company) controlling your chemical line - particularly with a touchfree machine. How many times have operators had to try a new line of presoaks etc. to accommodate for seasonal changes and/or specific geographic soil conditions.

I don't know how they work this, but if a manufacturer has a hand in this, I'll bet they have some private labeling deal themselves that they will want to use. Then, if things are not up to your specs, will they supply a more expensive chemical, or and additional chemical - if that is what it takes to get the job done? I don't know - just one thought that would have to be worked out before entering into a deal like this.

Also - Nu Star's distributor network is comparatively rather small - that fact alone seems like this would not be a feasible deal for many operators throughout the country.

 

[Waxman]

As a carwash owner/operator, the more things you have direct control over within your operation, the better. Simplified advice pehaps but nonetheless valid. You want control because as circumstances change you can adjust and adapt and stay afloat, hopefully.