Beating a dead horse, but flex-serve question

[Soak]

Hi all,
I am new to the industry and I am doing a feasibility study for a new
build. I have read Steve Okun's articles and related flex serve posts/articles.
Looked at couple flex sites outside of my area. Talked to sales folks etc.

I am learning towards an express exterior tunnel, but really on the fence
for flex-serve, due to additional vacuums vs express detail, revenue etc.

Land in my area is expensive and land use regulations for car washes are
not friendly. There are no flex-serve or full-service within 20 miles or more.
We have some detail shops and good mix of ss and tunnels. Few IBAs.
Urban setting with population density.

Finally the question...

How can I gauge demand of flex-service when there aren't any examples
nearby? Is there a way to gauge by looking at the detail shops?
I was thinking of throwing up a tent or whatnot, get some supplies,
and seeing what happens after the build, but I rather have everything
done at the first time.

Any thoughts would be appreciated....

 

[Waxman]

Location is important. My detail shop is separate from the carwash and I am SS and IBA with 4 detail bays.

In the Winter months detailing really dies down between January 15 and March 15. It picks up nicely in Spring, we have a 2 week or so slow down in Summer then the Fall is nice and busy right through 1/15.

I do try and cross-market carwash and detail by offering express aftercare. The biggest challenge is how you market it and staff for it, IMO. A tunnel may do well because of the staff present and the volume of cars on site.

If you plan to build a building for detailing, it may be worth hiring a carwash consultant who has knowledge of detailing. There are a few on here (ACF) who have done what you are talking about.

These days, a consultant could be the best $ you spend in planning a project; especially if the consultant gives a 'thumbs down' on the idea.

 

[Greg Pack]

The one local guy I know who tried flex at a local express dropped it quickly. He just felt it wasn't worth the hassle. If it makes enough money as an express I think you will be happier. Less labor problems, fewer customer issues.

I would build to be compatible to conversion to flex serve format. If you can't do enough volume as an express you would have some ways to get your ticket average up by converting to flex. Plus, when you sell, the potential buyer may see some untapped potential in the market by converting.

 

[robert roman]

I don’t believe you are beating a dead horse.

Configuring the business model is an important aspect in determining if you will be able to achieve your goals and objectives; economic and financial as well as lifestyle.

A lot also depends on your motive.

If you are concerned primarily about money, then an express exterior might fit you. Find a suitable location, build it right, hire some attendants and a manager, dress them in shirt, bow-tie, cap and smile, charge low prices and you are off to the races. Just hope that someone with more money than brains doesn’t build another one in your trade area.

On the other hand, if you are looking at carwash as a full-time vocation that you can wrap your arms around and embellish, you may find after a year or so that operating an express exterior becomes fairly boring because it is a one-trick pony. Besides managing 2 or 3 employees, maintaining equipment, cleaning up and monitoring performance, the most challenging aspect is marketing and promotion to keep the competition at bay.

Generally speaking, one gauges demand by first reaching a conclusion about the public need for a new wash (any category) based on an analysis of demand/supply balance. In other words, is there unmet demand in the defined trade area and will the new wash be reasonably convenient and useful to the public because it meets this demand. This is a topic I discussed in my last newsletter.

After judging the need for a new wash and its likely performance, there are several ways to gauge the demand for specific products and services. The most common are analogue-based procedures (as you referred to), estimating relative buying-power, examining lifestyle characteristics of households and using industry benchmarks.

Hope this helps.

 

[Soak]

Thanks all. I come from a different industry and mostly, business is business.
I plan to stay in car wash industry, but who knows, maybe I will flame out
and lose my shirt.

However, I am under no illusion that this industry will be easy to crack and
expect to get kicked in the teeth a few times.

Thanks all in advance!