Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Chief Seattle<br />“You must teach your children that the ground beneath their feet is the ashes of your grandfathers. So ...
The Suquamish Car Wash<br />People of the clear salt water<br />
The Car Wash Business<br /><ul><li>45+ Billion Dollar Industry.
2.3 billion vehicles washed annually.
10K to 40K Monthly Gross Revenue not uncommon (Depending on Site).
70% to 80% Gross Margins (Unleveraged)
Home washing trend is headed down
Professional car washes are very eco-friendly
More vehicles than ever on the road
Can be a 24 hour profit center
No accounts receivable
Real Estate Investment</li></li></ul><li>Where do people wash?<br />
Initial Site Analysis<br /><ul><li>Demographic & Traffic Analysis
Formal Site Survey
Competitive Analysis
Pro-Forma / Cash Flow Analysis
Historical Financials (Existing Car Wash Sites Only)</li></li></ul><li>Demographics & Traffic Flow<br /><ul><li>Age, gende...
Household income
Housing density & growth
Kind of housing
Number of vehicles
Per household
Local businesses
Traffic Counts</li></li></ul><li>Site Survey<br /><ul><li>Location, location, location
Proximity to retail (Cluster Development)
Site Access
Stacking Space
Speed limit
Visibility
Competition (S.W.O.T.)
Access to utilities
Neighborhood
Use www.demographicsnow.com</li></li></ul><li>Competition<br /><ul><li>How close are the nearest car washes?
How many less than 1 mile?
How many less than 3 miles?
How many less than 5 miles (or 10+ miles if area is mainly rural)?
What kind of car washes are they?
Self-Serve
Tunnel
Express Exterior
Full Serve
Flex Serve
In-Bay Automatic
Touch free / Friction / Combination
Any acquisition possibilities?</li></li></ul><li>Competition<br /><ul><li>What is the condition of the competition’s site?
Clean?
Well marketed?
User friendly?
What is the condition of the competition’s equipment?
New or well maintained?
Consistent maintenance problems?
Down Time?</li></li></ul><li>Pro-Forma Analysis<br />
Pro-Forma Analysis<br />
Pro-Forma Analysis<br />
Washing Attitudes<br />What Are Customers Looking For?<br />Quality of wash<br />Less work<br />Faster overall<br />Conven...
Types of Car Wash Models<br /><ul><li>Self-Service
In-Bay Automatic
Touch Free
Friction
Hybrid Touch Free / Friction
Combination In-Bay Automatic and Self-Serve
Tunnel / Conveyorized
Full Service
Flex Service
Exterior Only
Express Exterior
Addition of “detail” operation</li></li></ul><li>Self-Service Car Wash<br />
Self-Service Car Wash<br />
Why Self-Service?<br /><ul><li>Lower initial investment
Very low labor costs
24 hour operation
Broadly based market
Small inventory
Minimal fixed costs
Expansion potential with addition of in-bay automatic(s)
Steady business in all weather & climates
Usually a planned vs. impulse purchase</li></li></ul><li>Self-Service Car Wash<br /><ul><li>Typically one self-serve bay p...
National median of revenue per bay is roughly $1,455.00.
Over $2,000.00 on West Coast
Upcoming SlideShare
Loading in …5
×

AutoWash PME / Suquamish Tribe Presentation

496 views

Published on

General outline of car wash strategies. Please do not share outside of your organization.

  • Be the first to comment

  • Be the first to like this

AutoWash PME / Suquamish Tribe Presentation

  1. 1. Chief Seattle<br />“You must teach your children that the ground beneath their feet is the ashes of your grandfathers. So that they will respect the land, tell your children that the earth is rich with the lives of our kin. Teach your children what we have taught our children, that the earth is our mother. Whatever befalls the earth befalls the sons of the earth. If men spit upon the ground, they spit upon themselves.”<br />
  2. 2. The Suquamish Car Wash<br />People of the clear salt water<br />
  3. 3. The Car Wash Business<br /><ul><li>45+ Billion Dollar Industry.
  4. 4. 2.3 billion vehicles washed annually.
  5. 5. 10K to 40K Monthly Gross Revenue not uncommon (Depending on Site).
  6. 6. 70% to 80% Gross Margins (Unleveraged)
  7. 7. Home washing trend is headed down
  8. 8. Professional car washes are very eco-friendly
  9. 9. More vehicles than ever on the road
  10. 10. Can be a 24 hour profit center
  11. 11. No accounts receivable
  12. 12. Real Estate Investment</li></li></ul><li>Where do people wash?<br />
  13. 13. Initial Site Analysis<br /><ul><li>Demographic & Traffic Analysis
  14. 14. Formal Site Survey
  15. 15. Competitive Analysis
  16. 16. Pro-Forma / Cash Flow Analysis
  17. 17. Historical Financials (Existing Car Wash Sites Only)</li></li></ul><li>Demographics & Traffic Flow<br /><ul><li>Age, gender & ethnicity of customer base
  18. 18. Household income
  19. 19. Housing density & growth
  20. 20. Kind of housing
  21. 21. Number of vehicles
  22. 22. Per household
  23. 23. Local businesses
  24. 24. Traffic Counts</li></li></ul><li>Site Survey<br /><ul><li>Location, location, location
  25. 25. Proximity to retail (Cluster Development)
  26. 26. Site Access
  27. 27. Stacking Space
  28. 28. Speed limit
  29. 29. Visibility
  30. 30. Competition (S.W.O.T.)
  31. 31. Access to utilities
  32. 32. Neighborhood
  33. 33. Use www.demographicsnow.com</li></li></ul><li>Competition<br /><ul><li>How close are the nearest car washes?
  34. 34. How many less than 1 mile?
  35. 35. How many less than 3 miles?
  36. 36. How many less than 5 miles (or 10+ miles if area is mainly rural)?
  37. 37. What kind of car washes are they?
  38. 38. Self-Serve
  39. 39. Tunnel
  40. 40. Express Exterior
  41. 41. Full Serve
  42. 42. Flex Serve
  43. 43. In-Bay Automatic
  44. 44. Touch free / Friction / Combination
  45. 45. Any acquisition possibilities?</li></li></ul><li>Competition<br /><ul><li>What is the condition of the competition’s site?
  46. 46. Clean?
  47. 47. Well marketed?
  48. 48. User friendly?
  49. 49. What is the condition of the competition’s equipment?
  50. 50. New or well maintained?
  51. 51. Consistent maintenance problems?
  52. 52. Down Time?</li></li></ul><li>Pro-Forma Analysis<br />
  53. 53. Pro-Forma Analysis<br />
  54. 54. Pro-Forma Analysis<br />
  55. 55. Washing Attitudes<br />What Are Customers Looking For?<br />Quality of wash<br />Less work<br />Faster overall<br />Convenient location<br />Ease of use<br />Cost<br />Safety of vehicle’s exterior<br />Value<br />
  56. 56. Types of Car Wash Models<br /><ul><li>Self-Service
  57. 57. In-Bay Automatic
  58. 58. Touch Free
  59. 59. Friction
  60. 60. Hybrid Touch Free / Friction
  61. 61. Combination In-Bay Automatic and Self-Serve
  62. 62. Tunnel / Conveyorized
  63. 63. Full Service
  64. 64. Flex Service
  65. 65. Exterior Only
  66. 66. Express Exterior
  67. 67. Addition of “detail” operation</li></li></ul><li>Self-Service Car Wash<br />
  68. 68. Self-Service Car Wash<br />
  69. 69. Why Self-Service?<br /><ul><li>Lower initial investment
  70. 70. Very low labor costs
  71. 71. 24 hour operation
  72. 72. Broadly based market
  73. 73. Small inventory
  74. 74. Minimal fixed costs
  75. 75. Expansion potential with addition of in-bay automatic(s)
  76. 76. Steady business in all weather & climates
  77. 77. Usually a planned vs. impulse purchase</li></li></ul><li>Self-Service Car Wash<br /><ul><li>Typically one self-serve bay per 1,500 people
  78. 78. National median of revenue per bay is roughly $1,455.00.
  79. 79. Over $2,000.00 on West Coast
  80. 80. In-bay automatic’s at self-serve locations have a national median revenue of $8,397.68.
  81. 81. About 50% of self-serve locations have at least one in-bay automatic
  82. 82. Additional revenue available from vacuums & vending.
  83. 83. National median monthly vacuum revenue: $221.87
  84. 84. National median Monthly vending revenue: $583.17
  85. 85. 51% of self-serve car washes do not have an additional profit centers such as: gas, c-store, lube, fast food or coin laundry.</li></ul>Source: 2007 Self-Serve Benchmarking Survey Report<br />
  86. 86. Self-Service Car Wash<br /><ul><li>More payment options now available
  87. 87. Credit cards
  88. 88. 39.8% of locations accepting
  89. 89. Can increase revenues 15 to 60%
  90. 90. Bill acceptors
  91. 91. Loyalty cards</li></li></ul><li>Self-Service Land Requirements<br /><ul><li>2 Bay Self Serve = Approx. 9,000 Sq. Ft.
  92. 92. 4 Bay Self Serve = Approx. 13,500 Sq. Ft.
  93. 93. 6 Bay Self Serve = Approx. 17,500 Sq. Ft.
  94. 94. 8 Bay Self Serve = Approx. 21,500 Sq. Ft.
  95. 95. 4 Bay SS + 1 Auto = Approx. 15,500 Sq. Ft.
  96. 96. 6 Bay SS + 1 Auto = Approx. 19,500 Sq. Ft.</li></li></ul><li>Self-Service Model Comparison<br /><ul><li>Low Total Investment
  97. 97. Short Learning Curve
  98. 98. Short Time to Positive Cash Flow (Usually 3 to 6 Months)
  99. 99. Little or No Employee Management
  100. 100. Requires a “C” location or better
  101. 101. Low Revenue Potential
  102. 102. Very low throughput on high-demand days</li></li></ul><li>In-Bay Automatic Car Wash<br />
  103. 103. In-Bay Automatic<br />
  104. 104.
  105. 105. Why An In-Bay Automatic?<br /><ul><li>Requires roughly the same amount of space as a self-serve bay.
  106. 106. 24 hour operation potential
  107. 107. 2.5 to 6.5 minutes per wash depending on wash package purchased. (Self-Serve typically averages 10 minutes per vehicle)
  108. 108. Ability to offer touch free, friction or combination of both, depending on market.
  109. 109. Minimal labor costs. 48% reporting 0 employees and 29% reporting 1.</li></li></ul><li>Why An In-Bay Automatic?<br /><ul><li>In-Bays make up 43% of total car wash units.
  110. 110. Purchases are impulse driven.
  111. 111. Operators washed an average of 19,947 vehicles.
  112. 112. Average daily street traffic count: 23,573
  113. 113. Median gross revenue per car $6.34.
  114. 114. IBA sites reported yearly profits:
  115. 115. 21% $50K to 100K
  116. 116. 14% $100K-150K
  117. 117. 9% $150K-200K
  118. 118. 12% $200K+ </li></ul> Source: 2007 In-Bay Benchmarking Survey Report <br />
  119. 119. In-Bay Land Requirements<br /><ul><li>1 Automatic = 7,000 Sq. Ft.
  120. 120. 2 Automatics = 14,000 Sq. Ft.
  121. 121. 2 Automatics + 2 SS = 18,000 Sq. Ft.
  122. 122. 2 Automatics + 4 SS = 22,500 Sq. Ft</li></li></ul><li>In-Bay Model Comparison<br /><ul><li>Low to Moderate Total Investment
  123. 123. (800K-1.4MIL with land)
  124. 124. Short Learning Curve
  125. 125. Short Time to Positive Cash Flow
  126. 126. (Usually 3 to 6 Months)
  127. 127. Little or No Employee Management
  128. 128. Requires a “B” Location or Better
  129. 129. Low to Moderate Revenue Potential
  130. 130. Low to Moderate Throughput on High Demand Days</li></li></ul><li>In-Bay and Self Service Combination<br /><ul><li>Increased customer flow due to more product offerings.
  131. 131. Ability to generate more site revenue.
  132. 132. In-bay automatic’s produce higher revenue’s when coupled with other bays of car wash equipment.
  133. 133. Increased opportunities for marketing promotions.
  134. 134. 24 hour operation potential</li></li></ul><li>Tunnel Car Wash<br />
  135. 135. Why a Conveyor / Tunnel Car Wash?<br /><ul><li>Ability to process high volumes of vehicles.
  136. 136. Should be able to wash one car for every foot of conveyor length per hour.
  137. 137. Fastest growing business model
  138. 138. High profit potential</li></li></ul><li>Full Service Tunnel Car Wash<br />
  139. 139. Full-Service Tunnel<br />
  140. 140. Full-Service Tunnel<br /><ul><li>Full Serve is a destination model. Similar to a steak house.
  141. 141. Requires less land than other tunnel models.
  142. 142. Usually a shorter tunnel since most of work is done with employees.
  143. 143. Requires more labor (Entry Level Labor).
  144. 144. Average full service tunnel has 14 employee’s.</li></li></ul><li>Full-Service Tunnel<br /><ul><li>Longer sales process to customers.
  145. 145. Extra services such as detailing, windshield repair, dent removal, lube service, and carpet cleaning are often available.
  146. 146. Customer does not stay in vehicle during the wash.
  147. 147. Usually has a waiting area or lobby with retail for customers. (i.e.: gift shop, coffee bar, news stand, etc…)
  148. 148. 42% of customers have a household income of $75,000 or more</li></li></ul><li>Full-Service Model Comparison<br /><ul><li>High Total Investment
  149. 149. Long Learning Curve
  150. 150. Long Time to Positive Cash Flow (Usually 9 to 24 Months)
  151. 151. Difficult to Extreme Employee Management
  152. 152. Requires an “A” Location With Specific Characteristics
  153. 153. High to Extreme Revenue Potential
  154. 154. Moderate to Moderately High Throughput During High Demand Periods (Depends on Staff Efficiency).
  155. 155. Tougher Model With Northwest Weather Patterns</li></li></ul><li>Exterior-Only Tunnel Car Wash<br />
  156. 156.
  157. 157.
  158. 158. Exterior-Only Car Wash<br /><ul><li>Standard model in many markets.
  159. 159. Usually one employee prepping the vehicle and one collecting payment.
  160. 160. Lower price points.
  161. 161. Limited Wash Selection.
  162. 162. Site signage carries most of the responsibility for pricing.</li></li></ul><li>Exterior-Only Model Comparison<br /><ul><li>Moderate to High Total Investment
  163. 163. Moderate Learning Curve
  164. 164. Moderate Time to Positive Cash Flow
  165. 165. Moderate Employee Management
  166. 166. Requires a “B” Location or Better
  167. 167. Moderate to High Revenue Potential
  168. 168. Moderate to High Throughput on High Demand Days</li></li></ul><li>Express Exterior Tunnel Car Wash<br />
  169. 169.
  170. 170.
  171. 171.
  172. 172.
  173. 173.
  174. 174.
  175. 175.
  176. 176. Express Exterior Tunnel Car Wash<br /><ul><li>Hottest trend in car wash market currently.
  177. 177. Set-up for high volume (150+ cars per hour).
  178. 178. Promises short wait time. Never more than 5 minutes.
  179. 179. Limited Wash Selection.
  180. 180. Site signage carries most of the responsibility for pricing.</li></li></ul><li>Express Exterior Tunnel Car Wash<br /><ul><li>Price & speed bring in a broader variety of customers.
  181. 181. Customers will often wash more often.
  182. 182. Employs advanced equipment technology in tunnel to avoid manual prep.
  183. 183. Less land required than flex serve but usually more than full serve due to designated vacuum area.
  184. 184. Common to have a base price of $3.00 to $5.00
  185. 185. Average sale price $7.00 with 7% of exterior express washes receiving $12.00+ per wash.</li></li></ul><li>Express Exterior Tunnel Car Wash<br /><ul><li>Requires less labor than a full serve tunnel
  186. 186. Average exterior express tunnel has 4 or fewer employee’s
  187. 187. Minimal or no shrinkage do to fewer employees and pay stations. No lobby sales area as well.
  188. 188. Most often has free vacuum’s for use on the site.
  189. 189. Often has multiple gated pay stations.
  190. 190. Customer stays in vehicle during the wash.</li></li></ul><li>Express Exterior Model Comparison<br /><ul><li>Moderate to High Total Investment
  191. 191. Equipment Selection and Maintenance is Crucial
  192. 192. Moderate Learning Curve
  193. 193. Moderate Time to Positive Cash Flow (Usually 3 to 12 Months)
  194. 194. Some Employee Management
  195. 195. Requires a B+ Location or Better
  196. 196. Moderate to High Revenue Potential
  197. 197. Exceptional Throughput on High-Demand Days</li></li></ul><li>Flex-Service Tunnel Car Wash<br />
  198. 198. Flex-Serve Tunnel<br />
  199. 199. Flex-Service Tunnel<br /><ul><li>Able to cater to those customers wanting a full service wash as well as those wanting an express exterior wash.
  200. 200. More employee’s required then express exterior wash.
  201. 201. Typically 6 to 10 employees.
  202. 202. Makes it more difficult for competition to come in.
  203. 203. More land required for the multiple stations required for both full & express service.
  204. 204. Separate “express” line for those choosing that option & also to maintain conveyor line speed.</li></li></ul><li>Flex-Service Tunnel<br /><ul><li>Correct full service pricing is essential so the operator is not overwhelmed with those wanting full serve services.
  205. 205. Typically no more than 30% of customers selecting the full serve option.
  206. 206. Full service portion should take no more than 15 minutes.
  207. 207. Hours of full service operation should be limited to control labor costs.
  208. 208. All vehicles go through with the customer in the vehicle.
  209. 209. Customers leave the vehicle after the wash for the rest of the services if they so choose.
  210. 210. Free vacuum area should be isolated from full serve vacuum area.</li></li></ul><li>Tunnel Land Requirements<br /><ul><li>28,000 Sq. Ft. Minimum
  211. 211. Most Tunnels are built on 1 to 2 acres of land depending on business model.
  212. 212. Flex Serve can require more land because of the detailing areas.</li></li></ul><li>Flex-Service Model Comparison<br /><ul><li>High Total Investment
  213. 213. Moderate to Long Learning Curve
  214. 214. Moderate to Long Time to Positive Cash Flow (Usually 6 to 18 Months)
  215. 215. Difficult Employee Management
  216. 216. Requires an “A” Location
  217. 217. Moderate to High Revenue Potential
  218. 218. Moderate to High Throughput on High Demand Days</li></li></ul><li>Touch-Free Vs. Friction<br /><ul><li>Friction washes in the 1960’s and 1970’s used unsuitable materials for safe vehicle cleaning (i.e. “weed-whacker” nylon bristles and low grade soaps).
  219. 219. In response, the 1980’s saw the rise in popularity of “Touch Free” washing and a parallel increase in the quality of car wash “soap” chemistry.
  220. 220. However, touch-free washes were more expensive to operate (more soap, more water) and required constant adjustment to provide proper cleaning.
  221. 221. Further, wash quality never equaled friction car washes and friction car washes remained the popular choice. However, touch-free car washes could clean smaller cracks and crevices better than friction units.
  222. 222. The introduction of cloth friction in the mid-1980’s allowed for safer friction cleaning than the nylon bristles, giving consumers a safer option. The main issue with cloth was that it was very heavy when wet and could cause vehicle damage.
  223. 223. The largest shift has come in the last five years with the development of closed cell foam which is very gentle on the vehicle and polishes as it cleans.
  224. 224. Recently, In-Bay Automatics and Tunnels now offer combination Touch-Free and Friction equipment to maximize the cleaning power of both techniques.
  225. 225. Friction still remains the popular choice today with most consumers.</li></li></ul><li>Choosing A Strategy<br /><ul><li>Goals:
  226. 226. Consistently Produce a Clean, Dry, Shiny Car to Build Repeat Washers
  227. 227. Maximize throughput on High Demand Days (Sunny Weekends, Etc.)
  228. 228. Maximize R.O.I.
  229. 229. How much volume are you expecting at the site?
  230. 230. Current traffic counts
  231. 231. Future population growth
  232. 232. Current & future surrounding retail</li></li></ul><li>Choosing A Strategy<br /><ul><li>Is it an “A” Site, “B” site or “C” Site?
  233. 233. What is the size of the property?
  234. 234. What is the desired business model?
  235. 235. Self-Service
  236. 236. In-bay automatic
  237. 237. Self-Service / In-Bay Combination
  238. 238. Tunnel
  239. 239. Full Serve
  240. 240. Exterior
  241. 241. Express Exterior
  242. 242. Flex Serve
  243. 243. What is the market?
  244. 244. Touch Free
  245. 245. Friction
  246. 246. Combination Touch Free / Friction</li></li></ul><li>Building The Car Wash<br /><ul><li>Selecting The Team:
  247. 247. Surveyor
  248. 248. Architect
  249. 249. Engineer
  250. 250. Civil
  251. 251. Structural
  252. 252. Equipment / Supplies / Support
  253. 253. General Contractor
  254. 254. Attorney
  255. 255. Accountant
  256. 256. Bank</li></li></ul><li>The Process<br /><ul><li>Have a FULL survey of the land performed
  257. 257. Everything is designed off the survey
  258. 258. Get a “topography” of streets, utilities, etc…
  259. 259. Schedule and complete pre-application meeting with appropriate jurisdiction.
  260. 260. Bring conceptual drawings to meetings.
  261. 261. Most requirements come out of this meeting.
  262. 262. Especially water and sewer requirements</li></li></ul><li>The Process<br /><ul><li>Design Review
  263. 263. If necessary can take up to one month
  264. 264. CUP (Conditional Use Permit)
  265. 265. If necessary can take up to 6 months to obtain
  266. 266. SEPA (Environmental Study)
  267. 267. If necessary can take a month or two
  268. 268. Traffic study may be required
  269. 269. Impact fees may be imposed</li></li></ul><li>Site Layout<br />
  270. 270. Equipment Layout<br />
  271. 271. Equipment Layout<br />
  272. 272. Site Development Worksheet<br /><ul><li>Type of car wash.
  273. 273. Property requirements
  274. 274. Site dimensions?
  275. 275. Zoning?
  276. 276. Utilities?
  277. 277. Lot coverage requirements?
  278. 278. Set backs?
  279. 279. Storm water retention?
  280. 280. Signage restrictions?
  281. 281. Curb cuts?
  282. 282. City engineer & phone number.</li></li></ul><li>Site Development Worksheet<br /><ul><li>Site Considerations
  283. 283. Sewer tap fees?
  284. 284. Water reclaim?
  285. 285. Electrical requirements?
  286. 286. Cost to bring gas to site?
  287. 287. Fill for property required?
  288. 288. Curbs & sidewalks?
  289. 289. Landscaping requirements?
  290. 290. Signage requirements?
  291. 291. Other city requirements?</li></li></ul><li>Under Construction<br />
  292. 292. Winning Strategy<br />+ Welcoming facilities<br />+ High throughput equipment<br />+ Excellent wash quality<br />+ Value <br />= Satisfied Customers<br />= Repeat Customers<br />
  293. 293. AutoWash Systems, LLC<br /><ul><li>AutoWash Systems Mission:
  294. 294. We are a Trusted Advocate for our Clients in the development and operation of their successful car wash business!
  295. 295. Team of the regions top independent car wash professionals
  296. 296. Broad and deep competency in successful car wash development and operation
  297. 297. Heavy focus on the professional car wash investor</li></li></ul><li>AutoWash Systems, LLC<br /><ul><li>Exclusive focus in car washing
  298. 298. On the 2009 Puget Sound Business Journal’s 100 fastest growing companies list
  299. 299. Consistently sought after to represent the leading manufacturers
  300. 300. 24/7 Tech Support
  301. 301. Since 1982</li></li></ul><li>Thank you!<br />Any Questions?<br />Chuck (206) 660-1986<br />Chuck@autowashsys.com<br />
  302. 302.
  303. 303. Eco Friendly Soft Touch / Touch-Free<br />
  304. 304. Eco Friendly Touch-Free<br />
  305. 305. Express Wash<br />

×