proforma

[kroy]

Anyone have a proforma spreadsheet to share? I'm planning on building a new car wash with a single IBA. It's a small corner lot with a traffic count at about 10,000 cars per day. Looking like my total cost including land, building, and equipment, will run $325,000.
What kind of capture rate should I count on?

 

[chaz]

325,000 all in. Amazing!

 

[Waxman]

I used 3/10 of 1% capture rate.

 

[pgrzes]

Would you care to share your breakdown of how you can build this for $325k all in? I have done 2 rehabs with all good used equipment that I paid .12 on the dollar for and find it difficult how it could be done? Not trying to be negative, just being honest. In my area I have seen guys run into cost overruns for edu's from municipalities into the 6 figures. Good luck if you can do it.

 

[robert roman]

I’ve been involved with about 20 single in-bay projects. Least expensive was $370K most was around $500K. So to keep it interesting, I would look to wash 18,000 cars per year or more.

(18,000 / 10,000) / 312 days = 0.58% or about 60 cars a day

One in-bay on a postage stamp sized lot needs to create a larger presence in order to achieve this or greater.

This means super attractive building, state-of-the-art technology, and mobile marketing and e-commerce. This is where the $500K comes from.

Generally speaking, free-standing in-bay is gross net 60 percent business.

Have you considered leasing property, building, and equipment?

For example, assume you wash a lot of cars, say 25,000. Three to five years out the POS and in-bay will need overhauled. Eight to ten years out the POS and in-bay will need replaced, and building will need a skin package or more.

 

[kroy]

Although I have no car wash experience, I've been doing residential construction for 20+ years and I work for a pre-engineered metal building manufacturer. I can put up a metal building CHEAP. Planning on using some nice architectural metal panels for curb appeal and using block for the wash bay walls. The lot is only 30k because of the small size and odd shape. Even with the busy location, it doesn't really have much use for other business types that would require more space & parking lot area.

30k(lot) + 95k(bldg and site work) + 200k(equip)

 

[mac]

This would be challenging for an experienced operator. You will be at the mercy of the car wash salesman. And you may find this hard to believe, but there are a lot of them out there that really don't know what they are doing. Good luck.

 

[robert roman]

Good luck with that.

 

[APW]

Although I have no car wash experience, I've been doing residential construction for 20+ years and I work for a pre-engineered metal building manufacturer. I can put up a metal building CHEAP. Planning on using some nice architectural metal panels for curb appeal and using block for the wash bay walls. The lot is only 30k because of the small size and odd shape. Even with the busy location, it doesn't really have much use for other business types that would require more space & parking lot area.

30k(lot) + 95k(bldg and site work) + 200k(equip)

You can do it. I did it and I paid more for the lot. I bought a used machine but business was good and within a year I pulled it and put a brand new Razor in.

 

[tdlconceptsllc]

How will the Metal building hold up against the harsh chemicals in the IBA bay over time. Maybe better off brick or block walls to last over time & is this price permits & impact fees included in the price. Concrete work alone will be 60+ or more where I live.

 

[soonermajic]

If you get a loan for $370 @ 5.25 , your payments are about $3k/month. Insurance, lights, water, soaps/chems & a cleanup person would put you near $1800/mon = $4800/month expenses. If you wash only 1000 cars/mon @$8 avg = $8000/month which means over $3000 profit each month (minus miscelaneous & taxes). So you should have ZERO problems clearing over $3000 each month.

I say do it, & don't listen to the Debbie Downers!

Now, the biggest question is what kind of an IBA are you gonna put in? Are there very many IBA's, or tunnels around? If there are nearby tunnels I wouldn't do this for sure. if there are not, I'd do whatever everyone else is NOT doing. You must also have a great distributor!
It's the same theory I apply in my coaching: do what other's are NOT doing. It gives you a niche in athletics, & forces EVERYONE to prepare differently for you, while you prepare the same for ALL of them! IN business, you offer something NOBODY else does.

 

[robert roman]

Debbie Downers, at least I’m suggesting common sense. You say do it because he wants to build cheap. Well, do you want a base hit (1,000 a month) or a home run (25,000 a year)? You can’t hit home runs building cheap.

 

[PEI]

With only a traffic count, I like to use the following for quick minimums:
10,000 / 7 = 1428.57
1428.57 x .01 = 14.28 or 14 cars per day average.
Understand this is a minimum and doesn't provide an accurate number. Lots of factors will drive the number higher. If you can take this number and achieve enough profit that you would be willing to take the risk then move forward and put together a team to allow you to get a truer picture of what to expect. I recommend hiring someone who is not selling you the equipment that can be independent to conduct a proper study for you. They may seem expensive but they will be cheaper than the $325,000 and years of bad credit that you are risking.

Just my 2 cents.

 

[wash4me]

Don’t trust anyone selling equipment.