Would you build this wash?

[Red Baron]

I know the answer already but someone is going to be checking this site which I used as a reference to help him decide if a wash would be viable in his town. He won't be competing with me so don't feel like you need to protect me.

He wants to build a 2/1.

Town is in rural area, population around 1,000.
Traffic count is around 800 cars per day (I think).
No competition in town.
Median income is $25,898.
Speed limit assuming the best road in town is 40-45 mph...I think.
No stop signs, no stoplights.

 

[Eric H]

Is there city water and sewer available? For me this would be a deal breaker.

 

[Red Baron]

Yes, city water and sewer.

 

[Ghetto Wash]

1000 people. On average how much does the average person spend a month washing their car? half will wash at home - probably more with a low $25,000 annual income. Some will wash frequent, some once a year. On average I'll bet its under $5 per month. 1000 people at $5 per month is $5000 per month. Not worth putting the money in a 2/1.

Just my off the cuff opinion.

 

[Kevin James]

There is no way I would even think about doing this. Come on you've be kidding us!! The ROI on a car wash is pretty small in the city. I would think it would be absolutely terrible out in rural Texas with a population of only 1000.

 

[soapy]

A general rule of thumb is 2500 people per SS bay and 10,000 people per auto bay for a wash to be profitable.

 

[I.B. Washincars]

Someone did it here in a town of 8-900. They built a 3&1 against the advise of a relative in the CW business. It has been open for about 3 1/2 years and for sale for 2 1/2. It is a total ghost town. If people would put just an ounce of thought into a tiny town like this they would go have their heads examined for having the thought to begin with. Of that 1000 people, how many are children, how many are elderly and no longer drive, how many could care less if the car was clean? What's left? Definitely not profit!

 

[MudMoney]

I'm with the rest of the operators,it won't pencil ever! Been there on a bank repo and it still was a money pit.

 

[Red Baron]

I agree. There's something though about the car wash business that appeals to people and causes them to ignore the numbers. That's what caused me to build my first 2-bay SS, against yall's advice, and it was a disaster.

I can't count the people from small towns who've caught me at my small town wash wanting advice on building one in their smaller town. They know we do good business -- it's hard to explain to them that I just got lucky on the location and this situation couldn't be duplicated 2 times out of 20.

 

[PaulLovesJamie]

Red, if this person wont take your advice, why would they listen to us?

Unless there is a lot more info than what you posted - and by more info I really mean more customers - my answer to your question is "No! run away! keep running!"

Or maybe he isnt really building a car wash, maybe he's building a $ laundromat?

 

[Red Baron]

Unless there is a lot more info than what you posted - and by more info I really mean more customers - my answer to your question is "No! run away! keep running!"

That's pretty perceptive of you. There is more info - I wasn't being totally straight forward when I said the proposed wash wouldn't compete with me. I said that because I didn't want anyone to give answers based on trying to protect me. I hope that qualifies as a white lie.

It wouldn't hurt my wash a lot, but it would cost me probably $500/mo. It's in a town my son graduated from and where I spent 8 years in the karate school business so we know the town well. Several years ago my son and I wanted to build a wash there but every way I could crunch the numbers, it wasn't going to even come close to paying back. And we tried hard to make the numbers work because we really wanted to build a wash there. And that was for just a 2-bay SS, not a 2/1 like is being proposed now.

The town needs a car wash and possibly they could pool their efforts on a 2-bay SS if it doesn't need to turn a profit, but knowing the demographics/dynamics involved, I can't see a 2/1 ever working there even built on the cheap with used equipment.

The dynamic that works against them is that probably 40% of the town's residents make the 1 hour drive to Lubbock (200k pop) at least once a week, so they either drop by my wash on their way, or wash while in Lubbock. It's just too easy and convenient for them to have access to a state-of-the-art car wash once a week.

 

[Greg Pack]

Wouldn't touch it.

He'd be better off starting a vending route of condom machines in truck stop bathrooms.

 

[Jimmy Buffett]

If he doesn't have cash he will probably never get funding anyway.

 

[robert roman]

If you are concerned with the financial and mental health of your friend, I would pose the following question.

Do you honestly believe there is enough unmet demand in the entire market that would entice someone to open a wash on a street corner and earn a living wage from washing and drying cars by hand?

If not, then there is not enough demand to support a professional car wash consisting of 2 wands and 1 in-bay.