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Developing a new Car Wash Chain

R

R&Dguy

New member
I am a product developer, R&D Guy and architect. Back in November I began researching the Car Wash Industry as I was (am) under the impression that there is plenty of room for innovation. I began by researching the industry, players and various 'pre-fab' and component solutions (i.e. Lighthouse, Genesis, etc.). I also read a lot of business plans. I then developed a solution that addresses the key issues others have addressed with equal or superior performance and also addresses issues other companies have over-looked. A group of LEED architects said it would easily get 'silver certification' and possibly gold.

At this point I would like to find some folks interested in building three of them. Once the numbers are in (after six months of operations), and assuming they performed as hoped, I would then approach an investment bank to build these across the country.

To start with I would approach this with the standard architect/client relationship. Can the experts in here tell me the quickest way to find folks interested in building a new two-bay automatic? I'd appreciate any and all ideas.
 
Those folks would likely be looking at the automatic equipment, so you can try the local carwash equipment people.
 
If you are that confident that you have a real innovation you should build one yourself. There have been several "can't miss" opportunities that have cost others money in this industry (see Rapido Rabbit and others who shall remain nameless).

In today's market it is not easy to get site permits and impact fees can be rather high. Money is also very tight and quality sites are at a minimum. Unless you are willing build your own first to prove your concept or come up with some money to support the project I would be very supprised that someone would go through all that effort and risk losing their money on your idea. The more you are willing to invest the better chance you have of getting someone to partner with you on this one.
 
I always had big ideas about franchising out, but never did. I think you should build three or four of them in your home town. What better way of selling your idea to investors than to show them a couple of working models. A local guy in our area started up abc seamless siding and is in close to 40 states. I remember hearing how he would bring prospective franchisees out to many sites in our town to show the feasibility. No one will buy blue sky, or bs, but can relate to your working and successful models
john
 
it's an idea!

Aaaah, 'IDEAS".

Within any business model or plans, the idea is the easy part. Many people have told me over the years:"you should really FRANCHISE! You'd make tons of money." These people were the ones with regular jobs, at schools, banks and factories. What they knew about the business world could fit in a thimble.

So, I agree with John; try one or two in your area and see how it goes. Isn't it prudent to try this great, innovative idea on your own before you 'release' it to the open market?
 
If I had the cash I would do it. I am totally vested in two other ventures. That's why I am looking for a client who is looking to build. They have the advantage of not having to commission an architect to see what they can come up with.
 
Waxman said:
Aaaah, 'IDEAS".

Within any business model or plans, the idea is the easy part. Many people have told me over the years:"you should really FRANCHISE! You'd make tons of money." These people were the ones with regular jobs, at schools, banks and factories. What they knew about the business world could fit in a thimble.

So, I agree with John; try one or two in your area and see how it goes. Isn't it prudent to try this great, innovative idea on your own before you 'release' it to the open market?
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Unlike an 'idea', I have quotes on the individual part costs for construction and a 3D model ready to cut these parts for fabrication. I know 'ideas' are a dime a dozen. This is way beyond the 'idea' stage. Though I appreciate your thoughful comments, I am simply looking for someone who in thinking about building. What have they got to lose talking to me?
 
No offense, but you sound like so many others on the outside looking in that think this industry is just soo darn easy.
 
Question: Why would someone want to invest $300,000 for two in-bay automatics that combined can only wash at best 20-25 cars per hour when they could invest that same $300,000 in a tunnel capable of washing 100+cars per hour? To quoteTom Hanks from the movie BIG, I don't get it!
 
While your idea may have merit, your timing may be way off. Most operators down here in Florida are experiencing sales off by 20 to 50 % of a year ago. Many washes are about to be foreclosed on. A local banker told me that if Warren Buffett came in to build a wash, he would not fund it. The other thing working against a chain is who is going to operate it. There are many successful operators who visit this site, but they are that way because they are hands on people.The real issue with that is that people only have two hands. Finding talented hands on staff will be your biggest issue. ( I would love to quote you on your equipment package and layout also.)
 
Chiefs said:
Question: Why would someone want to invest $300,000 for two in-bay automatics that combined can only wash at best 20-25 cars per hour when they could invest that same $300,000 in a tunnel capable of washing 100+cars per hour? To quoteTom Hanks from the movie BIG, I don't get it!
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I had the same knee-jerk thoughts at first. But start tearing it apart: first the tunnel equipment is NOT 300k, probably around 450k or so; second open 24 hrs vs. 10 or 12 hrs; third employees (ever dealt with them?). So you really have to look at the market your in as well as just what is capable.
 
I have much the same feelings on this. Some sites are better suited for an automatic and others for a tunnel. In some cases 2 automatics with self service bays will do well where a tunnel would struggle. In others a tunnel is the best choice for the location. I don't think you can always look at the cost of the equipment over the site and demographics for a wash.
 
The SS/IBA model works, just in a different way than tunnels. As a rule, they are not as profitable per dollar invested. But a good operator can run three-five of these in their sleep. Just one part time employee per site. And we don't have to set our alarm clocks in the morning.
 
A lot of responses, I would have been interested before $2+ gas prices. To many banks are owning and operating washes.
One thing I don't understand, why is the grass always greener? Why do so many professional people (doctors, lawyers, architects) think they can do it better? If you really want to make a hit, change the equipment, not the building.
 
The way the CW biz has been these last few years I can't imagine anyone in their right mind wanting to jump in, much less attempt to start a chain and make it fly, especially someone with no background in the business. Look no further than the ashes of Rapido Rabbit...and that guy was supposedly an expert. The dominos are starting to fall in my area (rural) and I can't imagine the guys building these EE washes in oversaturated metro areas. There is a thinning of the herd in progress, this ain't the time to jump in!
 
Michael McKernan said:
A lot of responses, I would have been interested before $2+ gas prices. To many banks are owning and operating washes.
One thing I don't understand, why is the grass always greener? Why do so many professional people (doctors, lawyers, architects) think they can do it better? If you really want to make a hit, change the equipment, not the building.
Click to expand...
That's the thing with these places...once they're built and fail, the next guy gets it for a song and drives it all down further. I've seen it in the telecom biz meltdown...one goes through chapter11, comes out with 10% of the debt, undercuts everybody else and sends them into chapter11. Before you know it 90% of all telecom companies go under or return as a almost debt free company! Too much greed!!!

Five of my neighbours are doctors...it's been easy money for them and they invest stupidly (just because their doctors doesn't mean they have common sense...one of my neighbours is an Orthopaedic surgeon...but can't mow his lawn...gets the lawn tractor stuck because he keeps the discharge to the middle!).

This is the third boom in a row (tech stocks. real estate and now oil) and its getting very messed up.

BigLeo
 
I don't know if the original poster has received a better response privately but I would suggest that if you want to attract someone's attention, you need to share the perceived advantages.
We have all heard many similar ads that promise to be better but all too often they aren't better or are better in one way but worse in another. As earlier posters suggested, if it is really a great idea, you need to build one to prove it.
We are probably somewhat jaded here but the industry has given us reason to be that way.
 
Talk about missed opportunity. My god, Big Leo has five daughters that are doctors! Sure wish I had lived across the street from him. (Don't any of you dare tell my wife I said this.)
 
It's a lot easier to make mistakes with someone else's money.

I am reminded about what it takes to make an Egg McMuffin - the chicken is involved --- the pig is committed.
 
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