RV/ SEMI wash?
- Thread starter HCW
- Start date
Car_Wash_Guy
Well-known member
I can't offer much advice on full/self, but I'd mention that on of my competitors gets a lot of the RV business in our area. He has an outdoor(grandfathered) bay with platforms on both sides. It's always busy.
It is very hard to get semi business unless their are other services nearby. Very few truckers wash their own vehicles. Truck washes only tend to survive at locations with a restaurant, fuel, showers and other amenities truckers use. I know of one free standing automatic truck wash that has struggled from the beginning. However, I have seen oversized bays for RVer's do well.
Waxman
Super Moderator
To me it's too much investment for potential ROI. Big dollars for equipment or a large investment in human resources ( labor). I'd rather find a more passive income stream like storage or apartments or commercial lease/ rental space.
The truck wash here was closed recently, as did all the ones in the past, they don’t seem to stay in business very long. The last one was closed by the state for environmental issues. The owner is in jail now, he didn’t take them seriously.
robert roman
Bob Roman
The property is too small for a truck wash.
Jeff_L
Well-known member
I have no experience with a truck wash, but I would agree with rph. You need the draw of other amenities to get them to use the wash. I wouldn't think they'd take the time to pull off the road just to wash their truck, it adds no value to them like a restaurant, fuel, shower, etc. A truck wash would be something they'd send it through while they're eating or using the showers. I'd figure out something else to do with that lot. Just my opinion.
MEP001
Well-known member
Full-service can be profitable but it requires a lot of equipment and many employees for good throughput. Self-serve truck washes do very well around here, but cleanup for two bays will require a full-time person. The last SS truck bay I took care of had me spending an hour shoveling mud for each truck washed.
Met with city's zoning/planing, no issues with RV but semi was questionable due to the exit location, the entrance is off the main road but the exit is off a side street (residential). As Mr Roman mentioned the lot isn't big enough according to code enforcement official as well, BUT a 40x60 metal building W/large lot is for sale behind us, if purchased, we'll own approximately 2 acres(including our car wash) corner lot. I figured $100K for the building, $50K to modify building (expansion and drainage), $50K in concrete driveway, $50K in 4 pump stands & water softener & RO. Am I even close with my numbers?
It'll be full service exterior only: presoak, foam brush it, rinse, wax, spotfree.
It'll be full service exterior only: presoak, foam brush it, rinse, wax, spotfree.
6t7gto
Member
robert roman
Bob Roman
Start with a sanity test.
Trucks per day = average daily traffic X 0.04 X 0.15 X 0.17
If ADT is 25,000, expect 26 trucks per day.
If exterior price is $45, gross sales would be $1,170.
312 days X $1,170 = $365,040 annual revenue
If operating expenses are 70 percent, net operating income is $109,512
$109,512 / 12 months / 1.5 debt service = $6,000 (rounded)
$6,000 is maximum allowable monthly payment that makes financial sense.
$6,000 is equivalent monthly lease payment for $300,000 in assets.
So, how likely is it that this site location would attract an average of 26 trucks a day from Highway 81, the principal road?
Assume this is possible. So, how likely is it that a truck wash could be developed with $300,000 in assets?
Considering 55’ turning radius and 80’ truck length, pad site would require minimum of 18,000 SF of land and 2,400 SF building.
Assembling nearby lot would provide enough property, barely.
2,400 SF steel building, permits, delivery and install is about $180,000. Hand wash and support equipment is another $75,000 to $100,000. Plus land cost.
This is why developers generally look for site locations with the potential to wash 40 to 50 rigs per day.
Trucks per day = average daily traffic X 0.04 X 0.15 X 0.17
If ADT is 25,000, expect 26 trucks per day.
If exterior price is $45, gross sales would be $1,170.
312 days X $1,170 = $365,040 annual revenue
If operating expenses are 70 percent, net operating income is $109,512
$109,512 / 12 months / 1.5 debt service = $6,000 (rounded)
$6,000 is maximum allowable monthly payment that makes financial sense.
$6,000 is equivalent monthly lease payment for $300,000 in assets.
So, how likely is it that this site location would attract an average of 26 trucks a day from Highway 81, the principal road?
Assume this is possible. So, how likely is it that a truck wash could be developed with $300,000 in assets?
Considering 55’ turning radius and 80’ truck length, pad site would require minimum of 18,000 SF of land and 2,400 SF building.
Assembling nearby lot would provide enough property, barely.
2,400 SF steel building, permits, delivery and install is about $180,000. Hand wash and support equipment is another $75,000 to $100,000. Plus land cost.
This is why developers generally look for site locations with the potential to wash 40 to 50 rigs per day.
I agree with Robert. I have twice worked on plans for automatic truck washes and in the end the numbers just didn't add up mainly because of the location. Even though they were both right off interstates the likelihood of getting enough traffic to justify the cost wasn't there. The location looks like in is in a relatively residential location which is another negative. As I and several others have said, unless the wash is in a trucker destination like a fuel stop, c-store, restaurant it is not likely to make a profit. Truckers do not stop just to get a wash and even RVers are not likely to pull off a freeway for a wash.
Robert, I think your numbers might be too conservative. In FL there just aren't that many places where you can get an automatic wash, much less for $50. If you are right off the super slab and open 24 like the truck stops, my guestimate is more like 50 to 80 per day at a price point around $100. There is also no mention of motor homes. Here in FL there are thousands every day, and they really want a clean rig. $100 for them when done in about 8 minutes is chump change. Just some thoughts to kick around.
"If you are right off the super slab and open 24 like the truck stops, my guestimate is more like 50 to 80 per day at a price point around $100. There is also no mention of motor homes. Here in FL there are thousands every day, and they really want a clean rig. $100 for them when done in about 8 minutes is chump change."
I don't think Robert's numbers are that far off. The cost to get a truck washed varies quite a bit. Bucket washes can go for as little as $50 while semi automated (pressure washed and/or with stationary arches) and a fully automated can run from $75 to as much as $150 depending on the packages. Busy truck washes in truck stops don't do that many per day so I think your guestimate is way off. When I did research on it the number was less than half that. His wash is in Kansas where there are not nearly as many RVs, not Florida. When gas prices climbed RV sales went in the dumper and you don't see nearly as many on the road as you did a decade ago. I used to own an RV and traveled quite a bit with it and got to know many fellow RVers. Most didn't have their rigs washed that often and as far as RVers in Florida goes many are on fixed incomes and not many of them are likely to pay $100 to get them washed. From my experience and research building a truck wash anywhere except in a truck stop would be a loser. Even then unless one can be built for a reasonable amount profitability is not that great.
I don't think Robert's numbers are that far off. The cost to get a truck washed varies quite a bit. Bucket washes can go for as little as $50 while semi automated (pressure washed and/or with stationary arches) and a fully automated can run from $75 to as much as $150 depending on the packages. Busy truck washes in truck stops don't do that many per day so I think your guestimate is way off. When I did research on it the number was less than half that. His wash is in Kansas where there are not nearly as many RVs, not Florida. When gas prices climbed RV sales went in the dumper and you don't see nearly as many on the road as you did a decade ago. I used to own an RV and traveled quite a bit with it and got to know many fellow RVers. Most didn't have their rigs washed that often and as far as RVers in Florida goes many are on fixed incomes and not many of them are likely to pay $100 to get them washed. From my experience and research building a truck wash anywhere except in a truck stop would be a loser. Even then unless one can be built for a reasonable amount profitability is not that great.
