Value of CC, Air, & Dollar acceptor

[Rocketman]

Happy New Year all,

While researching and comparing locations, I've obviously come across SS locations in varying stages of attention ranging from closed,to run down, neglected, minimal use, to exceptionally and expertly run. Said expertly run location is well lit, maintained in perfect working order and cleaned several times a day in spite of being run unattended.

My questions therefor are two-fold.

1.) What is the value that a buyer should consider at a location that has all of those upgrades already implemented and in place?
2.) What are the costs associated with adding those upgrades to a location that does not have those features?

 

[MEP001]

Neither of those questions can be answered with anything even remotely accurate, not even a ballpark figure.

 

[Eric H]

It's too difficult to predict how much it will cost to add CC, air, and bill acceptance, there are too many variables. One site may require the complete replacement of the meter boxes to accommodate the added equipment needed. Another site might have meter boxes that have plenty of room and are essentially plug and play.
As far as valuing a site for purchase, the exceptionally run site gets a 5x gross multiplier while the run down or closed site gets close to land value only.

 

[mac]

Eric has good advice. It definitely adds value. If the meter box housing is big enough, figure around 2 grand to add all. Like any project, add 20%.

 

[Rocketman]

Thanks Eric and Mac for taking the time and providing some substance. I work full time and have owned a laundromat for over 13 years. Obviously not the same business models but there are some similarities. When I evaluate a mat for example a different value / figures is used based on the machine brand, age, condition etc.

For the car wash I suspected a value could be factored in when those expenditures have already been made. Contingent on the meter housing as pointed out by both Eric and Mac.

The one that I am interested in and have been watching it grow from both a customer and possible owner perspective has performed all of those upgrades with great results. That air dry now keeps me in his bays an additional 6 minutes or more from what it used to be when I just did the wash and pulled around to dry my vehicles. Now I use the air dry to blow off the door handles, mirrors, wheels etc. Keeping the meter running once the customer is in the bay is the name of the game correct?

Other interesting and related questions since I have some attention. What is considered an average quantity of IBA washes for a SS car wash that has 1 IBA? Is it 1k vehicles a month? 2 - 3K? Obviously it depends on location, pricing, and competition but what would be some numbers that are considered average, fair, declining, or troublesome for example?

Thanks in advance for the help and discussion.

 

[Joswhaha]

Rocketman,
I am a new car wash owner and can offer limited advice but I can offer a little. When I was looking at car washes for sale, the location really made a big difference regardless of upgrades or maintenance. I would try to buy a property in the best possible location since you can upgrade everything except the location.

I bought a 20 year old poorly run/neglected wash and am in the process of taking care of the issues. I have 1 IBA and 6 Self Service Bays. So far, I have only upgraded meter doors, added credit card acceptance, repaired numerous maintenance issues, repaired a few vacuums. I have probably spent 14k just on that and hundred of hour or so far.

What I am getting at is, if the different car washes are equal in location you would probably be money ahead to buy one already upgraded. That upgraded one also probably already comes with a stronger customer base…

 

[Rocketman]

Hi Joswhaha,

Thanks for taking the time to provide a response replete with some background and recommendations. Congratulations btw on your recent acquisition and good luck to you. It very much sounds as though you are taking all of the correct actions with your location.

Your point about the existing customer base is an excellent one and is in fact another reason why I find this particular business and location very appealing to me. I have found during my moderately paced search that alot of places are lacking in customer base, exposure, updated equipment, cleanliness etc. I came across a very good candidate about a year ago but it made little geographical sense to me as I knew that my temporary living arrangements as a result of a long term work assignment would soon be coming to an end.

In any event this one is appealing and it has all of the necessary upgrades already implemented. I continue to do my research and coordinate with this owner as he is getting close to exiting the business due to his age and bucket list items that he is getting ready to cross off, Interestingly enough, his timeline and plan work with mine as I am beginning to take a look at what all I want to do and when I plan to finish my career. I am not the stay at home in a rocking chair type and like the challenges and opportunities that these type of businesses (i.e. laundromats / car washes) present.

We'll see. In the interim, I will keep reading, asking, looking, and coordinating.

Thanks again.