INVESTORS RESOURCE GUIDE

If you’re considering venturing into the car wash business, you’ve picked an excellent time. The industry has been enjoying decades of growth with no end in sight. The following guide details some of the steps and challenges associated with choosing to invest in a car wash for the first time. If you are leaning towards becoming a first time investor, it's helpful to read through this guide so you have a better understanding the choice behind buying or building a wash from scratch, the challenges of selecting the right location, the process of financing and building a wash, and the first steps in becoming operational while building towards becoming profitable. With our breadth of industry knowledge and understanding of what makes a carwash successful, Quality Wash Solutions can walk you through the development, construction, and maintenance of your wash and sites and help you deliver measurable results. Whatever your vision may be, consulting with an industry expert like us will help you avoid common, yet costly mistakes, present in every step of the way.

MAKING YOUR CHOICE

WHICH WASH IS THE RIGHT WASH FOR YOU?

Choosing which type of wash you want depends on a wealth of different factors. Your level of involvement with daily operation, hiring of staff, and your level of expertise in the industry are all elements that may impact your choice, in addition to if you’re interested in purchasing an existing site or building your own wash from the ground up. 

If you’re feeling stuck or overwhelmed with the prospect, consulting with the professionals at Quality Wash Solutions can help you in your initial decision making. We can assist you by building a working plan which involves your carwash goals and narrowing down which carwash type is right for you and your business.

Regarding traffic, an ideal location will have consistent, but low volume traffic. Customers that have the time to see your storefront and read your signs will hopefully make the decision to buy immediately. A busy street with a speed limit of 35 mph or slower is ideal, giving you the visibility you need while allowing your customers to comfortably enter your lot.

In terms of converting raw data to probable patronage, a good rule of thumb is to plan for about 1.5% of daily traffic count to convert into customers. You may acquire public traffic count data from your local government agencies and compare the volume passing through each possible site to determine how many people (approximately) you may expect per day. This number is also beneficial for putting together your pro-forma in your financial plan. 

Traffic patterns should also be considered. Your site should be easy to get in and out of without causing traffic “traps” near the entrance or exit. The safety concerns or inconvenience alone of a difficult entry and exit can push customers away from using your facility. 

Consider future traffic as well. Additions to motorways, additional construction in the area, or new infrastructure will certainly influence traffic in the future. Planning for these additions may help you get ahead of the game in some instances.

The community and, more importantly, the traffic that it generates around your prospective wash is also a major factor in your success as an operator. There are several elements that may influence customers lining up to your wash or seeking options elsewhere. 

When you’re considering a site, take a tour through any surrounding neighborhoods and take inventory of what you see. Are there buildings in disrepair or several empty businesses nearby? Are the homes in the residential areas surrounding your site taken care of? Regardless of the shine and polish that you apply to the look and feel of your carwash, if customers don’t feel safe or comfortable in the area that it operates in, you won’t receive the traffic you need to make a profit and stay operational. 

Pay attention to the condition of actual infrastructure in the area as well, including sidewalks, roads, and green spaces. When these elements are in good condition, it speaks to the city’s involvement in the area and the general safety of the surroundings. You may also consult with the local government to check on crime statistics in the area. That being said, don’t rely solely on these statistics or the reputation of an area alone. Use your own eyes and best judgement to determine if a site looks okay to you. 

On the alternative side, is the site that you’re considering in the middle of a particularly affluent business district, chic shopping center, or fine dining restaurant destination? Customers may not associate their elegant experience on the town with a wash and a wax, resulting in less traffic your way. 

One of the best areas to consider is a basic shopping destination. The frequent week-day and weekend traffic ties into the errand-running mindset, resulting in more impulse stops from customers as well as planned trips for local shoppers. 

A little healthy competition can be a good thing, but how close is too close to another carwash in the area of a site that you’re considering?

A good rule of thumb is to keep four to five miles in between yourself and another car wash. That’s not to say there aren’t exceptions; if your competition offers a different service (self-serve vs. express tunnel, for example) or the competition is routinely saturated with customers to the point where another local wash may be necessary, moving a little closer might be warranted. 

When taking note of local competition, don’t forget gas stations or convenience stores that offer automatic in-bay washes on their premises. Check with the local government to see if there are any other car wash permits being pulled at the same time as yours. You don’t want to accidentally encroach on a neighbor.

While you may not have any control over the weather in your area, it can still have a substantial influence over the success of your wash. The general rule of thumb with weather in the carwash industry is the more volatile the climate, the more opportunity for customers to seek out a car wash. 

While people are less likely to get a wash the day before and the day of inclement weather, the day following poor weather sees an influx of customers looking to rid their vehicles of the mud, snow, salt, and grime that goes hand in hand with bad weather. 

Consult historical weather data of the area to spot any particular weather patterns that may indicate busy seasons or even if you feel like a wash is viable in the area. 

While bordering on common sense, you won’t attract customers to your wash if you aren’t visible. Naturally, your facility should be visible from the road and from a distance and, ideally, from all sides. For instances where this cannot be done, such as in a city center, utilize creative signage on the site and/or next to the closest thoroughfare to attract more business.

Know Your Ordinances

If you are considering putting up a massive neon sign with your brand’s mascot on top, a local sign ordinance might kill your vision before it leaves the ground. Understanding local ordinances before you commit to a wash and your idea can prevent costly modifications down the line.

Make sure you check with your city, county and state before putting money down on your architecture or signage.

How to Survey A Site

While all of the elements above are necessary considerations when looking at a prospective site, the best option for a new operator is to hire an expert. An industry consultant will understand all of the points above and more, from the square footage needed for your tunnel entrance to if the site has adequate drainage. 

The upfront costs associated with a consultant are nothing in comparison to the return on the investment; knowing that the site you have chosen for your wash meets all requirements and will work for you and your customers.