What would you do?

[coincarwash.ca]

I have a 12 bay selfserve wash...(6 tandam bays)
I have no extra room for vending or extra equipment the way the wash is.
All 12 bays are really only in full use for maybe 15 days of the year.
On those busy days I am probably making an extra $30 for the 12th bay per hour from 10am to 8pm. That works out to $3600 per year.

If I were to close the bay and add an extra bill changer, a through the wall surevend vending machine that vends pop and water as well and an ATM, I know I can make at least $200 per month on the ATM fee's alone and I am sure the better vending selection will increase my vending by quite a bit as well.
Also closing the bay will give me more room in the equipment room to add spotfree, triple foam polish and a water softner. I can then add more up to date features to the wash.

What would you do?
Are there any other sources of revenue (other than a dog wash) that could fit the space?

I think I already know what to do,but I want some other ideas and viewpoints.

 

[Parker]

I would say that your plan sounds pretty good to me. A water softener will also help with soap consumption allowing you to use less depending on your water quality. I think people would spend more in the other bays with the other functions such as spotfree that would more than make up for your loss.

 

[pitzerwm]

You probably wouldn't lose the total $3600 either, they would just wait a little longer.

 

[PaulLovesJamie]

The "$3600" you mention really sounds like a guess, I'd try to nail that down tighter.

That said, I'll assume $3600 is fairly accurate. If that is the case, I would definitely do something - not sure exactly what, but yes, something.

No Spot Free? I have to think you'd make way more than $3600 in spot free alone.
Yes, I'd definitely add TF and a softener too.
Vending - One shurvend? I wonder if that is enough... I would probably want more than that.

Where in the GTA are you, I'm up there on business periodically, I'd like to stop by & see your wash. (PM me if you want.)

 

[Sequoia]

Choices

If I had a 12-bay SS which at ANY time had all 12 bays running the first thing I would very quickly do is raise the price.

Raise the price, lose a few of the lowest end customers, make more money off of the other 95% of your customers, and then feel very comfortable closing one bay to improve the wash features and add more services for customers.

This is the kind of dilemma I would like to have ....

 

[Jim Caudill]

#1 I can't imagine having a need for 12 SS bays.
#2 If you have that kind of traffic, you should be looking at selling something else, besides car washes.
#3 How about opening a "drive thru" for beer and cigarettes.

 

[Greg Pack]

Why not an IBA or short tunnel?

 

[MEP001]

I like the plan of closing off an "extra" bay, especially if it will let you add functions that are almost essential nowadays. We make a bundle off of vending with many selections at a central location, and I'm sure the extra time sold with spot-free nets us in the 5-figure range each year. Since your changer area is already established, I'd do something to draw attention to the new one, maybe even remove the old changer altogether to get your customers to find your new vending.

I seriously doubt you could make as much with a pet wash, and you'd be adding more labor. Same with a "drive-thru."

 

[Earl Weiss]

A local guy bought a 16 bay from the old National Pride Chain. He added 2 IBA and used 2 bays for equipment rooms to support them. HAve you thought of an IBA?

 

[PaulLovesJamie]

OK, I have to agree with Duane. If it were me, I'd end up buying software that can do some monte carlo simulations on pricing, and very seriously consider that as my first order of business.

How is the self serve segment up there? I've noticed that the gas stations do a better job with car washing in the GTA than they do around here, is that why you're not looking at IBAs?

 

[bigleo48]

I have rarely seen a carwash that needs 12 SS bays (even in Canada). 12 SS bays requires over 30K pop in a very short radious with no carwash competition (IBA, tunnels, etc) and that's pushing it. So I'm not sure how you came up with the 12 bays in the first place, proper due diligence would have caught that one. Sounds like you may also have access issues if the wash is in a tandem layout and that could hurt business.

My ideas would include items that required some work (detail shop, pet wash etc). I don't think you have the stacking for an IBA (and the oil companies have an almost lock on IBAs in Toronto). Vending (pop and other) do OK in the summer and almost completely dry up in the Winter (70% drop). Private ATM revenues will likely be much lower than you expect as they have fallen out of favour in Canada due to all the bad press and potential new regulation for the banks. Some banks are slowly moving to no fees for x-bank atm use. I know a guy who has one at a semi busy wash and many days has no transactions at all

Renting it out for detailing (if you don't want to do it yourself) could bring in some revenue and have some presences at an otherwise unattended wash. But that brings in it's own problems. No easy fix here...

BigLeo

 

[rph9168]

If you rent a bay out for detailing make sure they have insurance and liability coverage. If would also be a good idea to make sure they do quality work. Most customers will think it is part of your business so any work they do will reflect on your wash.

 

[Bubbles Galore]

I would definitely do SOMETHING. With 12 bays, you have alot of different things you could use one or even two of those bays for. I have 8 bays and I am way overbuilt as just a self serve. There are a few days a month where I will come in and have them full with some people waiting, but that is not very often. For my wash, I am going to put in an IBA, a detailing bay, and a dog wash and still have five very profitable bays. My five bays will all be rehabbed with the best of the best. I like to think that whatever I can offer to get my customers to spend money at my wash will only help. I don't want to be one-dimensional.

Good Luck!