October 1, 2004

6 Min Read
More Than Soap & Bubbles

More Than Soap & Bubbles

Success is car-wash construction is all in the planning

By Sara Cooper

Contrary to the popular saying, If you build it, they willcome, a successful car-wash site requires a lot more than construction todraw customers. First and foremost, you have to make the right decisions duringthe planning process. This requires an understanding of site selection, buildingmaterials, financial commitment and city regulations.

Craig Eilers, western regional sales manager for the JimColeman Co. in Yakima, Wash., has spent more than a decade operating self-servecar washes. In his more than 25 years in the industry, he has seen a lot ofoperations come and go. He hates to see operators who, failing to gain properguidance, end up spending a years time and $15,000 to $20,000, only to end upright where they started, empty-handed.

Talking Numbers

The two top questions asked by new car-wash operators are: What will the business cost me? and How much profitwill I make? Of course, every car wash will vary, depending on location,number of bays, price of land and numerous other variables. But knowing the highs and lows of the game will at least keepan operator from being pummeled by excess zeroes.

Bill Sartor, operator of Quality Car Wash Inc. in San Antonio,Texas, says while $50,000 per bay is the cost that has been quoted in theindustry for years, it hasnt quite cut it for the quality of facility heworks toward. He says operators in todays market should consider spending$80,000 to $90,000 for a fi rst-class facility that will be competitive withother washes.

Bob Ivory, owner and manager of five self-serve car washes inArizona and Utah, says a basic facility, consisting of six self-serve bays andan in-bay automatic wash, will cost around $600,000 ($300,000 for equipment and$300,000 for the building) plus the cost of land. Including an automatic washalters costs considerably.

Eilers points out an operator can easily spend $15,000 to$20,000 just in the initial planning, before bids are confirmed and permits arein place. For a four- to five-bay self-serve wash, operators are looking at aminimum of $500,000. For a quality facility with eight self-serve bays and twoautomatics, costs can total as much as $1.5 million. Those operating in colderclimates should add an additional 10 percent to the construction budget for floor heat, doors on automatic bays, water-heating systems and other winterizingnecessities.

There are a number of business-expense studies prospectiveoperators can obtain from consulting firms, equipment companies or tradeassociations to help them create their construction budgets. These groups canalso assist in determining how much profit to expect from a car-wash venue,including income from coin-operated vacuums, vending machines and self-servebays.

Eilers has seen several car-wash sites break even in five tosix years. At an average site, however, operators can expect to be successfulwithin eight to 10 years. Sartor is hoping to have his most recent site paid offwithin seven years, but says it could be closer to eight or nine depending onthe economy and interest rates.

Every operator will approach the business a littledifferently, depending on his ultimate goal. Some will simply wait for thebusiness to recoup the cost of land, then demolish the facility and lease orresell the property. Most, however, are looking to build a permanent, high-endsite.

Site Selection

Finding an affordable, properly zoned site in the rightdemographic area can be a challenge. An operator needs to decide what area wouldbe the most accommodating for his customer base. Eilers suggests choosing alocation close to middle-to upper-income residential neighborhoods. Also lookfor areas with condominiums or apartments, as typically, it is blue-collarworkers who use self-serve washes.

It is not necessarily in an operators best interest to beon the busiest street in town. Medians and numerous traffic lanes can make itdifficult for customers to enter the facility. It is important, however, tohave good exposure. Eilers says only about 25 percent to 30 percent of themotoring public uses car washes. Building in an area where a facility will benoticed can attract customers who never considered using a self-serve sitebefore.

Ivory looks for sites near convenience stores and gasstations, because visitors to these businesses are many of the same customerswho will use a car wash. Plus, they are usually on corner lots, which get a lotof traffic. While property in these areas is expensive, one of the biggestmistakes an operator can make is to skimp on land, Ivory says. Cities will oftenrequire a certain amount of stack room on the property, and the last thingan operator wants is traffic jams that frustrate customers who cannotadequately maneuver around the site.

Eilers suggests purchasing 5,000 square feet of land per bayas a rule of thumb. A car wash with four to eight self-serve bays and one to twoautomatics will require anywhere from 20,000 to 50,000 square feet. You may haveto purchase a larger piece of property to keep the cost per square foot at areasonable rate. You can then develop additional plans for the property, such asadding a profit center or leasing out part of the site to another business.

Building materials

Building materials should be sturdy and aesthetic. One of thefirst decisions that will need to be made is whether to pave the lot withconcrete or asphalt. Both can make be attractive, and costs vary by region.Concrete will usually last longer20 to 25 yearsif mixed and laidcorrectly. Asphalt typically needs to be overlaid every eight to 10 years. Innorthern climates, asphalt is most common, because it tends to be less expensivein these areas. Eilers says a site can still maintain an upscale appearance withasphalt, as long as it is sealed properly and kept clean.

Brick and block are durable materials for car-wash building. Eilers has had good luck with glazed CMU blocks, which areeasy to keep clean. Because blocks can be expensive, a lot of operators will usethem to construct the wash-bay walls only, then use more traditional materialsfor the building exterior.

Some companies use vinyl or fiberglass prefabricated wallsections that are snapped together and filled with concrete. According to Eilers, this type of car wash is quick to erect,and provides for a durable, weather-resistant finish that requires cleaningabout every six months. While the materials for this type of construction can beexpensive, overall costs will be about the same as other options because ofsavings in labor.

New operators should visit other car-wash sites in their areasto get an idea of what materials hold up best in the climate. Too many get into the business hoping to rush through planningand make a quick buck. Eilers cant overemphasize the importance ofresearching the industry and talking to as many operators and equipmentmanufacturers as possible before making important construction decisions.

Sartor adds that operators should get competitive bids oneverything from equipment to architects. Well-planned construction is crucial to making a car-wash dream a reality.

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