All Forum Posts by: Dave Carpenter

Sure. For my 2 IBAs, I usually go to each of them every other day for a total trip of 3 hours. I check garbages, check machines, do odd jobs. There’s always little things to work on and I usually spend 3hrs per trip about 4 or 5 days per week. 

@Joshua D.

For what it’s worth, I have 2 washes. Ones 15 mins away, the other is 25. It’s not too bad, but it’s also a part time job (10-15 hours per week) and I don’t have a 9-5 job. Mine are in bay automatic, not self serve.

Steve, congrats on the find. I would figure out who the current chemical supplier is and who the rep is if they have one. If they don’t, jump online and figure out whose around there. They will be way better at checking the place out than a regular plumber or electrician. 
Also, there are a bunch of Facebook groups that would be a great resource. The biggest, and probably the best is TalkCarwash. Jump on there and tell people the area you are in. You will get some great feedback. 
a smaller self serve could be a great 1-2hr per day investment. I also love hearing that the land has other possibilities. 

Elmer, if your financing, a bank or SBA will require an environmental survey which should look into those types of issues. If it’s a wash now, and going to continue to be a wash, there’s less to worry about. If you plant to RE-zone to residential or something else you will want to make sure that the phase 1 environmental survey is clear. 

I feel like there’s so many things to consider when looking to purchase an asset your not as familiar with. 

A few big things I’d recommend you’re clear on are:

1. demand-how many people live in the nearby area? Typically washes draw from the surrounding 3-5 miles. 
2. State of the building-is the building and land in good shape? (This will include the environmental stuff as well.)

3. Equipment-the quality of the equipment can make or break you. I’d the equipment has been well maintained it can work for a long time and provide a quality wash every time. If the equipment hasn’t been maintained, it will nickel and dime you constantly. Which leads me to maybe the biggest piece:

4. Chemical Supplier-figure out right now who the current chemical supply company is and who your rep will be. That person will be your best friend. Most chemical companies along with selling chemicals also offer service. Between those 2 things, you have the large majority of your car washing expenses. If the rep is good, he will be able to help you sort out the smaller problems either over the phone or in person. The company could (and maybe should) be servicing your equipment and will be an important partner. My chemical rep (who is great and been in the industry for decades) had certainly saved me thousand, maybe tens of thousands of dollars over the years. 

With car washes there’s building maintenance, but also plumbing, electrical, mechanical, sometimes air systems. Not to mention learning a brand specific operating system for your sash.  It’s hard to be a master of all of it. 

If there’s enough business, and the equipment and building have been relatively well maintained, you may be in a good position to build on what’s been developed. If the support companies (chemical and service) are lousy, I’d recommend finding new support companies before buying. 

I hope that helps a bit.  

@Elmer Glick

I own a few touch less washes. What type of wash are you under contract for?

There are others on here with farm more knowledge than me, but the first thing that pops out to me is your roofing cost. Assuming a 1500sqft building footprint, I’d say you could do a roof for $10k and probably a bit less than that depending on who you hire. There are folks in Milwaukee that would do a roof for $5000, but you may be compromising on some aspect (price, speed or quality). 

You could also do water heaters for $800 including labor I’d say. I’m not sure this will move the needle enough, but it’s something to consider. 

Many of your other numbers seem pretty close. At least as far is my experience takes me. 

Let’s see what others have to say. Could be a lively discussion!

Self storage is something I’ve considered at my washes, but as others have mentioned zoning is an important aspect.

Is a billboard an option?

I’ve done the taco truck thing a couple times, didn’t really move the needle. I did get a free taco, so that’s fun!

Giving us a little better sense for the property might help spur ideas too. 

@Ryan Deasy

Seems like this may be a good option to pursue. Have you gotten a hold of the rep yet? The numbers and repairs seem to make sense at first pass. If there’s specific questions as you move forward I’m happy to help!

@Ryan Deasy

Seems like a decent deal. For what it’s worth, in WI businesses that are in good shape tend to sell (and appraise) for 5x gross yearly sales. Start there and if there’s anything that might hurt the sale, such as a 30 yr old roof or furnace that’s old, deduct from the 5x number. What type of IBA (in bay automatic) system does it have? I have goldline autocashiers and they’re pretty solid, but not new. Crypto pay will help buy you some time before needing to upgrade that pay station.

One interesting test you could run is join a community Facebook page for that city or area (Keep in mind the market for a wash is typically 2, maybe up to 5 miles.) and ask for people’s recommendation on car washes. If everyone says good things about the one you are looking at that’s a great sign. If nobody mentions this one, but talk about the other 2 nearby that tells you something too.

Also consider that the way to grow the value of a business like this is primarily to increase sales. Is this this one car wash in a small town where you have all the customers you will ever get, or could you take on another nearby wash and offer better product or service.

Last suggestion is to find a couple chemical suppliers in the area and talk with the chemical reps. Those guys know everything about the industry and that area. If both of them say, yeah, that place is solid. Thats a great sign. You also will

want a good rep. They are as valuable as anyone on your team. I am out of town, and my rep called. I’m mentioned that one of my bays was having issues and he stopped over and took a look. Find a good rep and hold on to them. There like in the real estate world. Those guys can save you a ton of money, time and hassle if you do right by them.

Seems like the upgrades in the past 5 years are worth while and now start thinking about how to market and increase sales!

Ryan, happy to help answer questions. I’ve had 2 in bay automatic for a little over 3 years. Tunnels, in bays and self serve are all different models.