Underserved Markets

[Ferg4343]

Happy Friday everyone,

Does anyone have a formula or process that they use to identify markets that're still underserved for a express exterior model?

 

[washnshine]

Happy Friday everyone,

Does anyone have a formula or process that they use to identify markets that're still underserved for a express exterior model?

I don’t believe there is such a thing as underserved markets for express exteriors in this day and age. And if there is, by the time anyone figures out the formula, 2 - 3 more express exteriors will be built in the area in question.

 

[I.B. Washincars]

IMO, with all of the overbuilding presently, the underserved areas have long been exhausted.

 

[Wash4Life]

IMO, with all of the overbuilding presently, the underserved areas have long been exhausted.

Agreed. The question is when those markets will show the oversaturation.

 

[Greg Pack]

The new paradigm apparently is you can build a wash in a market big enough to support a dollar general.

But personally I would start looking for a Walmart or Chic Fil A in the market as a minimum

 

[washnshine]

There is a company - Auto Valet, that builds all of their washes in abandoned Toys R Us stores. They repurpose the building for and express exterior with indoor vacuums. Probably cuts down on construction costs quite a bit. I’ve visited 2, and the indoor vac concept is great for weather extremes and comfort.

 

[AnalyticWash]

Happy Friday everyone,

Does anyone have a formula or process that they use to identify markets that're still underserved for a express exterior model?

These are generally closely guarded formulas...and most of the large players are using a lot more data then you have available to build them.

 

[I.B. Washincars]

In my hometown of 11K, Tidal wave is building a new tunnel. There is already an EE and 6 IBAs. All are quality washes.

 

[soapy]

It used to be a rule of thumb was 25000 people per tunnel and 10,000 people per IBA. My town of 70,000 has 10 express tunnels and another one in the planning stages, 10 IBAs.

 

[OurTown]

It used to be a rule of thumb was 25000 people per tunnel and 10,000 people per IBA. My town of 70,000 has 10 express tunnels and another one in the planning stages, 10 IBAs.

Does your town support a much larger area than the city limits? That may make a difference. The rural towns have a lot more services than could normally be supported with only it's own population. There's a rural Ohio 14K pop town that has multiple SS washes, in bays and now two EEs.

 

[soapy]

I know for sure that many are not breaking even but the owners have deep pockets and can sustain them for a while.

 

[OurTown]

I know for sure that many are not breaking even but the owners have deep pockets and can sustain them for a while.

I have heard that too about a large-ish chain in central Ohio but I don't understand this business tactic.

 

[Axxlrod]

I have heard that too about a large-ish chain in central Ohio but I don't understand this business tactic.

Those large chains aren't selling washes... they're selling memberships.

 

[washnshine]

Those large chains aren't selling washes... they're selling memberships.

True, but no matter what you are selling, being in the red is being in the red.

 

[Ferg4343]

Great insight guys, we're looking to build here in smaller 25k to 95k populated areas in the Midwest. We sent 30 markets and 15 specific sites to Wash Equity Advisors to start our siter eval process. None of these markets are over 100,000k in population and some lack quality EE. May be a chance to also redevelop some older tunnels in the Midwest as well.

We'll see how this goes, we'll keep you guys updated.