“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.”
Chief Seattle
Port Madison Enterprises
Suquamish Car WashPeople of the clear salt water
The Car Wash Business
• 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
Where do people wash?
38%
18%
14%
16%
14%
At Home
Full ServeTunnel
ExpressExteriorTunnel
In-BayAutomatic
Self-Serve
Initial Site Analysis
• Demographic & Traffic Analysis• Formal Site Survey• Competitive Analysis• Pro-Forma / Cash Flow Analysis• Historical Financials (Existing Car
Wash Sites Only)
Demographics & Traffic Flow
• Age, gender & ethnicity of customer base• Household income• Housing density & growth• Kind of housing• Number of vehicles
• Per household
• Local businesses• Traffic Counts
Site Survey
• 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
Competition
• 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?
Competition
• 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?
Pro-Forma Analysis
Pro-Forma Analysis
Pro-Forma Analysis
Washing Attitudes
What Are Customers Looking For?
1. Quality of wash
2. Less work
3. Faster overall
4. Convenient location
5. Ease of use
6. Cost
7. Safety of vehicle’s exterior
8. Value
Types of Car Wash Models
• 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
Self-Service Car Wash
Self-Service Car Wash
Why Self-Service?
• 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
Self-Service Car Wash
• Typically one self-serve bay per 1,500 people• National median of revenue per bay is roughly $1,455.00.• Over $2,000.00 on West Coast• In-bay automatic’s at self-serve locations have a national median
revenue of $8,397.68.• About 50% of self-serve locations have at least one in-bay
automatic• Additional revenue available from vacuums & vending.• National median monthly vacuum revenue: $221.87• National median Monthly vending revenue: $583.17• 51% of self-serve car washes do not have an additional profit
centers such as: gas, c-store, lube, fast food or coin laundry.
Source: 2007 Self-Serve Benchmarking Survey Report
Self-Service Car Wash
• More payment options now available
• Credit cards • 39.8% of locations accepting• Can increase revenues 15 to 60%
• Bill acceptors• Loyalty cards
Self-Service Land Requirements
• 2 Bay Self Serve = Approx. 9,000 Sq. Ft.• 4 Bay Self Serve = Approx. 13,500 Sq. Ft.• 6 Bay Self Serve = Approx. 17,500 Sq. Ft.• 8 Bay Self Serve = Approx. 21,500 Sq. Ft.• 4 Bay SS + 1 Auto = Approx. 15,500 Sq. Ft. • 6 Bay SS + 1 Auto = Approx. 19,500 Sq. Ft.
Self-Service Model Comparison
• Low Total Investment• Short Learning Curve• Short Time to Positive Cash Flow (Usually 3 to 6
Months)• Little or No Employee Management• Requires a “C” location or better• Low Revenue Potential • Very low throughput on high-demand days
In-Bay Automatic Car Wash
In-Bay Automatic
Why An In-Bay Automatic?
• Requires roughly the same amount of space as a self-serve bay.
• 24 hour operation potential• 2.5 to 6.5 minutes per wash depending on wash
package purchased. (Self-Serve typically averages 10 minutes per vehicle)
• Ability to offer touch free, friction or combination of both, depending on market.
• Minimal labor costs. 48% reporting 0 employees and 29% reporting 1.
Why An In-Bay Automatic?
• In-Bays make up 43% of total car wash units.• Purchases are impulse driven.• Operators washed an average of 19,947 vehicles.• Average daily street traffic count: 23,573• Median gross revenue per car $6.34.• IBA sites reported yearly profits:
• 21% $50K to 100K• 14% $100K-150K• 9% $150K-200K• 12% $200K+
Source: 2007 In-Bay Benchmarking Survey Report
In-Bay Land Requirements
• 1 Automatic = 7,000 Sq. Ft.• 2 Automatics = 14,000 Sq. Ft.• 2 Automatics + 2 SS = 18,000 Sq. Ft.• 2 Automatics + 4 SS = 22,500 Sq. Ft
In-Bay Model Comparison
• Low to Moderate Total Investment • (800K-1.4MIL with land)
• Short Learning Curve• Short Time to Positive Cash Flow
• (Usually 3 to 6 Months)
• Little or No Employee Management• Requires a “B” Location or Better• Low to Moderate Revenue Potential• Low to Moderate Throughput on High Demand Days
In-Bay and Self Service Combination
• Increased customer flow due to more product offerings.
• Ability to generate more site revenue.• In-bay automatic’s produce higher
revenue’s when coupled with other bays of car wash equipment.
• Increased opportunities for marketing promotions.
• 24 hour operation potential
Tunnel Car Wash
Why a Conveyor / Tunnel Car Wash?
• Ability to process high volumes of vehicles.
• Should be able to wash one car for every foot of conveyor length per hour.
• Fastest growing business model• High profit potential
Full Service Tunnel Car Wash
Full-Service Tunnel
Full-Service Tunnel
• Full Serve is a destination model. Similar to a steak house.
• Requires less land than other tunnel models.
• Usually a shorter tunnel since most of work is done with employees.
• Requires more labor (Entry Level Labor).• Average full service tunnel has 14
employee’s.
Full-Service Tunnel
• Longer sales process to customers.• Extra services such as detailing, windshield repair,
dent removal, lube service, and carpet cleaning are often available.
• Customer does not stay in vehicle during the wash.
• Usually has a waiting area or lobby with retail for customers. (i.e.: gift shop, coffee bar, news stand, etc…)
• 42% of customers have a household income of $75,000 or more
Full-Service Model Comparison
• High Total Investment• Long Learning Curve• Long Time to Positive Cash Flow (Usually 9 to 24
Months)• Difficult to Extreme Employee Management• Requires an “A” Location With Specific Characteristics• High to Extreme Revenue Potential• Moderate to Moderately High Throughput During High
Demand Periods (Depends on Staff Efficiency).• Tougher Model With Northwest Weather Patterns
Exterior-Only Tunnel Car Wash
Exterior-Only Car Wash
• Standard model in many markets.• Usually one employee prepping the
vehicle and one collecting payment.• Lower price points.• Limited Wash Selection.• Site signage carries most of the
responsibility for pricing.
Exterior-Only Model Comparison
• Moderate to High Total Investment• Moderate Learning Curve• Moderate Time to Positive Cash Flow• Moderate Employee Management• Requires a “B” Location or Better• Moderate to High Revenue Potential• Moderate to High Throughput on High
Demand Days
Express Exterior Tunnel Car Wash
Express Exterior Tunnel Car Wash
• Hottest trend in car wash market currently.• Set-up for high volume (150+ cars per
hour).• Promises short wait time. Never more than
5 minutes.• Limited Wash Selection.• Site signage carries most of the
responsibility for pricing.
Express Exterior Tunnel Car Wash
• Price & speed bring in a broader variety of customers.
• Customers will often wash more often.• Employs advanced equipment technology in
tunnel to avoid manual prep.• Less land required than flex serve but usually
more than full serve due to designated vacuum area.
• Common to have a base price of $3.00 to $5.00• Average sale price $7.00 with 7% of exterior
express washes receiving $12.00+ per wash.
Express Exterior Tunnel Car Wash
• Requires less labor than a full serve tunnel• Average exterior express tunnel has 4 or fewer
employee’s• Minimal or no shrinkage do to fewer
employees and pay stations. No lobby sales area as well.
• Most often has free vacuum’s for use on the site.
• Often has multiple gated pay stations.• Customer stays in vehicle during the wash.
Express Exterior Model Comparison
• Moderate to High Total Investment• Equipment Selection and Maintenance is Crucial• Moderate Learning Curve• Moderate Time to Positive Cash Flow (Usually 3 to
12 Months)• Some Employee Management• Requires a B+ Location or Better• Moderate to High Revenue Potential• Exceptional Throughput on High-Demand Days
Flex-Service Tunnel Car Wash
Flex-Serve Tunnel
Flex-Service Tunnel
• Able to cater to those customers wanting a full service wash as well as those wanting an express exterior wash.
• More employee’s required then express exterior wash.
• Typically 6 to 10 employees.• Makes it more difficult for competition to come in.• More land required for the multiple stations
required for both full & express service.• Separate “express” line for those choosing that
option & also to maintain conveyor line speed.
Flex-Service Tunnel
• Correct full service pricing is essential so the operator is not overwhelmed with those wanting full serve services.
• Typically no more than 30% of customers selecting the full serve option.
• Full service portion should take no more than 15 minutes.• Hours of full service operation should be limited to control
labor costs.• All vehicles go through with the customer in the vehicle. • Customers leave the vehicle after the wash for the rest of the
services if they so choose.• Free vacuum area should be isolated from full serve vacuum
area.
Tunnel Land Requirements
• 28,000 Sq. Ft. Minimum• Most Tunnels are built on 1 to 2
acres of land depending on business model.
• Flex Serve can require more land because of the detailing areas.
Flex-Service Model Comparison
• High Total Investment• Moderate to Long Learning Curve• Moderate to Long Time to Positive Cash Flow
(Usually 6 to 18 Months)• Difficult Employee Management• Requires an “A” Location• Moderate to High Revenue Potential• Moderate to High Throughput on High Demand
Days
Touch-Free Vs. Friction
• 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).
• 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.
• However, touch-free washes were more expensive to operate (more soap, more water) and required constant adjustment to provide proper cleaning.
• 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.
• 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.
• 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.
• Recently, In-Bay Automatics and Tunnels now offer combination Touch-Free and Friction equipment to maximize the cleaning power of both techniques.
• Friction still remains the popular choice today with most consumers.
Choosing A Strategy
• Goals:• Consistently Produce a Clean, Dry, Shiny Car to Build Repeat
Washers• Maximize throughput on High Demand Days (Sunny Weekends,
Etc.)• Maximize R.O.I.
• How much volume are you expecting at the site?• Current traffic counts• Future population growth• Current & future surrounding retail
Choosing A Strategy
• Is it an “A” Site, “B” site or “C” Site?• What is the size of the property?• What is the desired business model?
• Self-Service• In-bay automatic• Self-Service / In-Bay Combination• Tunnel
• Full Serve• Exterior• Express Exterior• Flex Serve
• What is the market?• Touch Free• Friction• Combination Touch Free / Friction
Building The Car Wash
• Selecting The Team:• Surveyor• Architect• Engineer
• Civil• Structural
• Equipment / Supplies / Support• General Contractor• Attorney• Accountant• Bank
The Process
• Have a FULL survey of the land performed• Everything is designed off the survey
• Get a “topography” of streets, utilities, etc…• Schedule and complete pre-application meeting
with appropriate jurisdiction.• Bring conceptual drawings to meetings.• Most requirements come out of this meeting.• Especially water and sewer requirements
The Process
• Design Review• If necessary can take up to one month
• CUP (Conditional Use Permit)• If necessary can take up to 6 months to obtain
• SEPA (Environmental Study)• If necessary can take a month or two
• Traffic study may be required• Impact fees may be imposed
Site Layout
Equipment Layout
Equipment Layout
Site Development Worksheet
• Type of car wash.• Property requirements
• Site dimensions?• Zoning?• Utilities?• Lot coverage requirements?• Set backs?• Storm water retention?• Signage restrictions?• Curb cuts?• City engineer & phone number.
Site Development Worksheet
• Site Considerations• Sewer tap fees?• Water reclaim?• Electrical requirements?• Cost to bring gas to site?• Fill for property required?• Curbs & sidewalks?• Landscaping requirements?• Signage requirements?• Other city requirements?
Under Construction
Winning Strategy
+ Welcoming facilities
+ High throughput equipment
+ Excellent wash quality
+ Value
= Satisfied Customers
= Repeat Customers
AutoWash Systems, LLC
• AutoWash Systems Mission:• We are a Trusted Advocate for our Clients in the development
and operation of their successful car wash business!
• Team of the regions top independent car wash professionals
• Broad and deep competency in successful car wash development and operation
• Heavy focus on the professional car wash investor
AutoWash Systems, LLC
• Exclusive focus in car washing• On the 2009 Puget Sound Business
Journal’s 100 fastest growing companies list
• Consistently sought after to represent the leading manufacturers
• 24/7 Tech Support• Since 1982
Eco Friendly Soft Touch / Touch-Free
Eco Friendly Touch-Free
Express Wash