Dumbfounded with this wash in Bloomington, IN.

[Eric H]

This seems to be similar to this concept. I wanted to do something similar but couldn’t get it to pencil out.

 

[OurTown]

This seems to be similar to this concept. I wanted to do something similar but couldn’t get it to pencil out.

I only watched the first minute or so because I don't have time for the whole thing right now. I met Chris, and from what I can tell United is very fortunate to have him as an employee.

 

[I.B. Washincars]

I'm not sure if it was going to be totally touchless, but the installations in progress were inverted L machines.

 

[jack954]

i think the 24/7 thing we talk about is highly over rated where i am. the tunnels here are all open on sundays and i don’t do much business from 9pm-7am. my best day after salt everywhere with 1 ww razor edge was 199,and i would bet 95% of that was between 7am-8pm

 

[Blanco]

I still think it would cost less than the tunnels they are building around here. Three years ago I was told by a popular car wash lender that the average Express Exterior was coming in at 4.5MM all in.

Its all depends on how crazy you go.

A 2 IBA/4 SS by me cost more than 4 million to build. The building was built with block but wrapped in limestone and red brick. He's got a fully finished painted attic which is also air conditioned with hardwood floors and an almost 3000sq ft separate area up there for storage. Two air compressors that cost 15-20K each mounted on a platform 12 feet in the air at the entrance of the equipment room. Need to service them just push a button and that platform lowers down to the floor. Both IBA'S have a spare pump stand. Push a another button and all the electrical and plumbing is diverted to the secondary pump stand if needed. A generator the size of a large storage container, heated vacuum area and a whole lot more. Fully attended 24/7.

The tunnels that cost a lot is because there are going overkill on the building. When I said the IBA set up cost more I meant a simple block building to support the IBAs comparing to simple 4 wall block building for a tunnel plus equipment. The IBA building it self plus equipment will cost more. A lot more concrete, plumbing. pits, heated floors if necessary, and more.

The equipment in the IBA will cost more if the machine are around 200K each. They may not be maybe there only 120K each which will make up for all 12 extra doors, 6 extra paystations, dryers, and all the other equipment you have to buy multiples of and put the equipment comparable to a tunnel set up. I know a good tunnel is 1M in equipment plus doors, pay stations, and backroom support equipment.

Lets say you do a IBA or Tunnel and spend 2M on equipment which includes everything from your IBA/Tunnel, paystaions, doors, water softeners, boilers, vacuums, vending, signs, changers, canopies, LED road sign and what ever else you can think of. Now the property is at least a minimum 1M cause your not gonna do all this and build on no garbage lot. The property is everything. Thats 3M minimum. Your bare building and concrete at the absolute minimum again is another million. Concrete alone will probably be 300K. Add all the electricians, plumbers. water taps, landscaping, and whatever else to complete it and your easily 4.5 like you said. Most tunnels around me are more likely to be 6 mil.

It will only take about 30 years to make that money back if not more considering all they do after building these beautiful sites is give everything away for free

 

[Blanco]

i think the 24/7 thing we talk about is highly over rated where i am. the tunnels here are all open on sundays and i don’t do much business from 9pm-7am. my best day after salt everywhere with 1 ww razor edge was 199,and i would bet 95% of that was between 7am-8pm

Agreed. I have locations where it's complete dead at night and I have one that is pretty busy at night but located by an auto manufacturer plant and airport. So unless your by other 24/7 business then its not that much of an advantage.

 

[Blanco]

I was amazed at how many locations they had so the numbers must be working.

A lot of locations means nothing. Google zips car wash. 300 locations. 700 million in debt and only 1 mil in cash. Bankruptcy. Its always better to be the owner with a few paid off washes then one with 10 and over leveraged.

The guys making the presentation seemed very sharp and had nothing to sell us. With respect to volume through the place it all
Comes down to location.

THIS. Location is everything.

 

[Blanco]

... all IBA's... maybe it is a larger initial outflow of cash and they see the return with 24/7 operations without requiring an employee be hired

If im spending that kind of money the wash better make enough to have an attendant on site at least 12 hours a day to deal with the BS and for me not have to worry about the extra 60-80k a year it costs.

Plus the attendant will actually probably pay part of their wages make you more money. People like when someone is on site. Brings in repeat business.

 

[Rapidoil]

I think this could actually be a really smart play.

With 5–6 IBAs, they can handle volume without long waits, keep labor lean, and avoid the huge footprint of a tunnel. If the market has the demand and they’ve got their throughput dialed in, this could turn into a cash-flowing machine.

Not every site has to fit the “standard” mold to be successful—sometimes bold builds pay off big. I’m rooting for this one.

 

[AnalyticWash]

It’s a lawyer and state lawmaker building it. That distributor hit the jackpot.

Their distributor is going to be the only one making money off this.

 

[soonermajic]

Probably 80% of sites cant even support 2 IBA to justify them. A six bay IBA better wash over 1200 cars a day.

This is a great example of what happens when a distributor gets his hands on someone with too much money and no experience. Any honest distributor who actually cares about their customer would have told them to slow down. Maybe build the building, get the prep work ready for all 6, but only install 2 and see what their volume is. Expand as needed.

Considering it's an attorney that owns this probably doesn't know the difference between sae and metric. He won't be spending his Sundays wrenching. So not only does this distributor get a huge sale but also recurring revenue from service of these machines for as long as this place is in operation and has the owner by his coattails.

You don't think you could make it on 300cpd @ $15/avg? That's $135,000/mo!
$1.6mil a year on 300cpd!
Your example would be $6.6 mil a year

 

[Greg Pack]

Wow talk about everyone knowing your business!

Nothing is secret thanks to AI. I searched Google the other day for my own car wash name. In ten seconds it told me who owned it (displaying my name), when it was formed, other sites that may be affiliated that I had owned and sold years ago, etc. and customer reviews.

I understand the six bay IBA concept but being built perpendicular to the road would be scary. Almost all expresses around me are now prepping and some are adding interior services. It's like we've come full circle. Does anyone know of a multi IBA site competing head to head with a good express, and if so how are they doing?

 

[washnshine]

Does anyone know of a multi IBA site competing head to head with a good express, and if so how are they doing?

I think it would take the perfect storm for someone to find out. In my region, there are 12 Delta Sonics, 10 Go Car Washes, 1 Splash and Tidal Wave just built one. That is only a list of the “big players”. It doesn’t include people like me. In other words, I think a lot of places are so saturated, it would not be very likely for someone to even try to compete with an express with a 6 IBA site. You’d have to find a location where the express conveyors builds have not yet exploded - and I’m not sure of there are any places like that. My market would definitely not be the place to test the waters.

 

[lighthousecarwash]

There is one in central Missouri that followed the lead of Amire in Des Moines. He had converted self serve bays to IBA razors. He does unlimited, free vacs, towels, and preps cars. They pull up to the RFID and get the front sprayed off before driving in. I think he has 6 IBA’s now. There are 2 tunnels in town and he put one out of business and the other is national brand so I don’t think it really has to produce big numbers to operate. However, it was for sale with a lease back so maybe they are on shaky ground too. I’ve visited it and it’s not as flashy as the ones in Iowa but it’s impressive watching all the cars lined up on busy days and seeing those razors turning out cars!

 

[washnshine]

If they are prepping then they can’t really leverage the lower labor costs and 24/7 operation that IBA’s can usually provide. I’m sure the customers like the idea of a hand prep and having someone onsite, and maybe that makes it even more competitive with the conveyors. I wonder how many attendants they have and the hours the are on site.

 

[lighthousecarwash]

If they are prepping then they can’t really leverage the lower labor costs and 24/7 operation that IBA’s can usually provide. I’m sure the customers like the idea of a hand prep and having someone onsite, and maybe that makes it even more competitive with the conveyors. I wonder how many attendants they have and the hours the are on site.

8-5. They make tips. Idea is that they can do whatever the tunnel can. They have individual washes priced over $20 to push people to the subscription service. Basically a tunnel business model without the tunnel.

 

[jack954]

do you remember where at in Central Missouri, or what the name of it is? I am in Missouri and I would like to go and check it out. if competing with tunnels, I would think it would definitely need to be in a heavily populated higher income area to succeed, where you have the more expensive cars that don’t want anything touching them.

 

[Blanco]

You don't think you could make it on 300cpd @ $15/avg? That's $135,000/mo!
$1.6mil a year on 300cpd!
Your example would be $6.6 mil a year

Of course you can but you also dont need 6 IBA's to wash 300 cars a day. I dont wash 300 every day but when I do its with just two machines at one site. All these washes are not getting $15 average. That would be ideal and smart way to do it but there most likely trying to "compete" with tunnels and doing the memberships. 3K members which is a lot at $30 a month is 90K. If the place is financed for 4M there note is probably 50K. Add all the utilities, chemicals, maintenance, labor, and taxes your probably close to making a 10K profit on a 4M build every month if it does indeed rely on memberships and they dont exceed 3K members and/or 300 cars a day. This is all hypothetical and quick guestimating obviously. I may be wrong.

 

[Greg Pack]

Still trying to get accustomed to the rapidly rising costs of carwashes in general. The tunnel 1 block down the street from me has been opened 18 months and just sold for 5.6 million dollars. This place was definitely not a high volume site, Looked like it was doing maybe 4K cars a Month. I texted my friend with extensive experience in the tunnel business and his response was "that's cheap, you can't build them for that anymore".

I fear I can't see the forest for the trees.

I could see a potential with a double/triple auto in my area. But six IBAs? I'm not in the snowbelt though.

Touch free washes have virtually disappeared in my metro area. I have people travel 20-30 minutes to use mine because there are non closer, and this is in a suburb. Might be a niche there.

 

[soonermajic]

Of course you can but you also dont need 6 IBA's to wash 300 cars a day. I dont wash 300 every day but when I do its with just two machines at one site. All these washes are not getting $15 average. That would be ideal and smart way to do it but there most likely trying to "compete" with tunnels and doing the memberships. 3K members which is a lot at $30 a month is 90K. If the place is financed for 4M there note is probably 50K. Add all the utilities, chemicals, maintenance, labor, and taxes your probably close to making a 10K profit on a 4M build every month if it does indeed rely on memberships and they dont exceed 3K members and/or 300 cars a day. This is all hypothetical and quick guestimating obviously. I may be wrong.

Agree . 6 iba's is 2x too many. Guy coulda easily went w/ 3 iba's. EASILY