All Forum Posts by: Dave Carpenter

Jeff, 

It seems your talking to me as I’m a car wash owner in WI. 
In general, what Jason said is true, however car washes are hyper local (as in 5 Mile radius) so take that with a grain of salt. 

Why the numbers are down for him is hard to say. Does he have good operators while the owner is away in FL. That would make all the difference. How is the location? Car count on roads? Type of equipment? Chemical rep and type of chemicals used. Any of these could make a big difference. 

Happy to try to answer other questions or put you in touch with others who may help. 

Christie, it sounds like while it’s a car wash, there’s not a ton of business value. What are the revenues on this self serve wash?

Keep in mind, if you keep it as a car wash biz, that revenue should cover costs of water, electricity, chemicals, etc as well as the building maintenance. With low revenue businesses it can be really hard to save for building expenses on top of variable costs. 

As was mentioned earlier, if the land is a great location with high car counts you could consider repurposing it. 

You also could explore updating the wash. What’s the demand for washes in the area? It’s usually a very local (3-5 mile radius) business so see what other washes are in that area. Could be an opportunity to grow the business itself. 

James, have you established relationships with commercial lenders? Seems like now would be the time if you haven’t yet. 

Facebook groups offer some of the value you are referring to. The posters aren’t usually anonymous and you can get pretty specific. I’m in a couple for car washes that have value in that way. 

Yup, those are known as IBAs or In Bay Automatic.

it’s a mostly flexible part time job. Until I found a neighbor to help with the day to day, I’d stop by every other day to empty garbage, check the equipment and do odds and ends. Depending on the system and your financial situation they aren’t too hard to work on if you’re somewhat handy. There is a learning curve though. The other option is to pay a service guy to do everything. More expensive (thing $125 per hour) but more passive.

It’s all about the numbers and the age of the building and equipment. 

One other comment: consider this a 10-15hr per week job if they are in bay automatics or self serve. It’s fairly passive, but you will need to be there multiple times per week, or have someone on payroll that will. 

Travis, could be a good deal. Also might not be. 
The first things I’d look at are revenue vs purchase price. Generally it’s a 3-5x multiple. Purchase price of 3x the yearly revenue is for something that needs some work. 5x the yearly revenue would need to be about perfect with new equipment.

without knowing anything, I’d guess the equipment is old and there will be some box expenses soon. The current owner may be trying to get out before he has to pay for those. 

what’s the competition within 3-5 miles in all directions? 

what’s the local perception of the business. Is it liked by many, or the worst place around with terrible reviews? 

Those would be a few things to get you started. I’m happy to answer specific questions if I can. 

@Marcus Auerbach i agree about the small Market. Let me know if you’re selling ;)

I think over the last few years it’s been hard to get the 1% rule of thumb. Rents are higher, but purchase price I’d say is higher than that. 

@Marcus Auerbach you think Cedarburg has options for a duplex house hack? Seems like the prices are pretty high for rentals in Cedarburg. 

I’m between $65 ans $106 on mine in that neighborhood. They are larger duplexes too. 

Happy to pass on my agents info if you want. 

Curious, what are you paying right now?