Small Town IBA Startup!?

[Isaac 24]

I am endeavoring to do my due diligence with the prospect of starting a car wash in a small town of 3,000 population.

I have a fairly accurate number for the cost of the project but my difficulty irises in generating a revenue projection.

To give some context, the town population is 3000 and the annual average daily traffic is 4k at my specific location.
This number is fairly accurate, as it was done by the state about 300ft down the road from the prospective location.
The towns average household income is 58k if that plays a roll…. I don’t know.
The town I live in does not currently have any car wash option except for a couple individuals that details vehicles for about $90, the nearest car wash is a hr and half drive
The car wash would be located centrally in town on a 25mph road within eyesight of main st.
About 68% of the non local traffic will drive rite past the location.
We live in a 4 month winter every year.
I plan on putting in 1 IBA, specifically considering the Mark VII Softwsh DF with a self serve bay and 2 vacuums

The nearest I can figure from industry standards is .55% capture rate per day 7days a week on average.

Does anyone have experience with a population in similarity?

Are my number unrealistic or skewed?

 

[Timmb]

You could have written almost the same scenario that I operate in. Give me a call when you get a chance.

518-469-1319

 

[CheetahExpress]

We started Cheetah Express in 2016 in a low income rural town in South Texas with a population of approximately 5,000, The only competition was a rundown self-serve with an old touchless that never worked. The place was a real eye-sore. The nearest working IBA was more than a 30-minute drive. We bought a lot, and built Cheetah from the ground up with 1 IBA, a PDQ One-Touch. It was booming from the date it opened, with folks coming from surrounding areas where there were no decent carwashes. There were days when the lines were so long, that many customers just drove away. In 2018, we sold the One-touch and put in a WashWorld Profile; and in 2022, added another bay with a WashWorld Razor. For being in a small Texas town, our wash has been remarkably successful, for which I am forever grateful. Good things can happen in small towns. Like Timmb above, give me a call if you want to chat. 361.547.3059. This is the office landline, so just leave a message and I'll call you back.

 

[Waxman]

I used 3/10 of 1% for my projections 20 years ago. I have one WW Razor and 2 SS bays. I serve about 20,000 with 2 competing iba's and 2 competing ss bays.

That projection was a little high for me. DTC x .003, but my wash is on a B- location; 40 mph where customers go 50+ . Location and egress are big factors.

 

[Axxlrod]

I'll be the contrarian.

Construction and equipment costs are way up. 3000 population is very low, as is 4k car count. .5% capture rate is 20 cars per day.

Yikes.

 

[washnshine]

And the big X - Factor. Will there be an express exterior or two close enough (and that might not even mean the same town as you) to take a major bite out of your wash. I know EE’s generally don’t build in a population of 3000, but they do build in areas that have a cumulative larger population count when considering the overall greater surrounding area.

 

[water guy]

What state is this in?

 

[Isaac 24]

What state is this in?

California

 

[CheetahExpress]

And the big X - Factor. Will there be an express exterior or two close enough (and that might not even mean the same town as you) to take a major bite out of your wash. I know EE’s generally don’t build in a population of 3000, but they do build in areas that have a cumulative larger population count when considering the overall greater surrounding area.

Yes. We also took into account the overall greater surrounding area. Although there are only approx. 5,000 living within the city limits, the town is adjacent to a large recreational lake with approx. 12,000 living in subdivisions on the Lake; farms and ranches in the area, as well as nearby oilfield and construction projects.

 

[Dan kamsickas]

California

Not trying to be a wet blanket but California is easily the least business friendly state.

Equipment alone for what you are proposing is easily $250K+. Add shipping, install, permitting(good luck in CA), construction, environmental approval(again good luck in CA), etc, etc, etc. Not saying it's not doable but it's going to be tough.

 

[New Washdog]

Not trying to be a wet blanket but California is easily the least business friendly state.

Equipment alone for what you are proposing is easily $250K+. Add shipping, install, permitting(good luck in CA), construction, environmental approval(again good luck in CA), etc, etc, etc. Not saying it's not doable but it's going to be tough.

I can make a strong argument that Vermont is right up there regarding business friendly, just google ACT250! But I do believe the juice may not be worth the squeeze due to traffic count alone.

 

[Dan kamsickas]

I can make a strong argument that Vermont is right up there regarding business friendly, just google ACT250! But I do believe the juice may not be worth the squeeze due to traffic count alone.

Well, your senior Senator is a Marxist and he keeps getting reelected.

 

[TMoliver]

OK boys this is no place to call all of the kettles Black. Even if Dan is correct.

 

[Axxlrod]

As a CA wash operator, I can concur that CA is the least business friendly state.

My employees are now grumbling about wanting raising due to fast food now paying $20 per hour here. Thanks Gavin!

 

[New Washdog]

Well, your senior Senator is a Marxist and he keeps getting reelected.

Sad truth!