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Just purchased a SS at a auction. Need input.

bcoggin

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I just purchased my first ss wash. It is a 4 bay unit on a major highway in the middle of a small town. The population is a little over 11,000. There is one 3 bay wash in this town already but it is located as you are leaving town behind a service station. The wash I bought has been closed for years. The mechanical room still has the pumps and everything in it but they are old. The wash was built in 1986 and I believe it is the original equipment. Im not sure if older equipment that has sat dormant for years is worth trying to fix? All the bay timers are shot and will have to be replaced for sure. The 3 bay wash down the road has coin only timers and vacs. I was wondering if it would be benefit me to put a change machine that accepts dollar currancy and credit cards or bay timers that accept dollar currancy. I would like any and all input or ideas that yall could help me start this wash back in the right direction.
 
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I would stick with currency only. i recently bought a wash with a token machine and i lose money every month on the cc fees. It is used sparingly and not worth the effort in my mind.
 

Buzzie8

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Private message me and I will give you my phone # to help you any way I can. I bought a wash built in 1987 at a auction and also own a newer modern SS with 2 In-Bay automatics as well. I need to know more about how everything is working before I can give you any advise. The very first thing that comes to mind is to install an In-Bay automatic but need more information before I would recommend it.
 

robert roman

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Congratulations on your purchase.

“I would like any and all input or ideas that yall could help me start this wash back in the right direction.”

Typically, people who are interested in buying a distressed carwash property will first assess the market potential of the location and site before they buy.

Is there enough potential to justify buying the wash and bring it to a commercially viable state?

You mention a population of 11,000 that has one barebones 3-bay behind a gas station that is open for business and a 4-bay on the major road that’s been closed for years.

Although this is not nearly enough information to reach a conclusion, it does raise a red flag.

So before being led down a primrose path, I would investigate the amount of potential business you could expect to avoid throwing good money after bad.
 

1carwash1

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Well first off, if you haven't already done so, make sure that you can reopen the closed business. I have encountered more than one car wash that either could not be reopened (zoning issues), or would be too costly to bring up to current building standards. With that issue out of the way, I would not rush out and commit to a lot of new equipment. There is a considerable amount of nice used self serv equipment for sale around the country that can be had at very reasonable prices. Since the wash has been closed for some time, I would suggest you also enhance the cosmetics; the idea is to capture the public's attention. As far as the existing equipment goes, If it was properly winterized, it may only need some minor repairs and tweaks to get it functioning again. Most of the issues I have run into, involve corrosion on galvanized pipes and fittings. The problem here is that the corrosion develops on the inside cavities and breaks off during start up clogging unloaders, valves, and nozzles.
I would also suggest bringing in a licensed electrician, plumber, HVAC, etc.. and have the facility inspected. Most importantly, don't rush to reopen until everything is up to snuff. You only get one chance to impress the customer.
If you want to PM me for more ideas, feel free to do so.
Congratulations and good luck.
 
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bcoggin

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Reason this wash closed.

From what I understand the previous owner of this wash was into some shady stuff and it caught up with him. Forgot to mention that there is a separate brick building/bay that had a automatic wash in it that he took out. The machine itself is gone but the pumping unit in the mechanical room is still there. I believe it is a Mark VII Roto Clean. I bought this wash for 28,000.00 which the land alone is worth what I paid for the whole thing. Would you guys think it is woth putting bill acceptors on the wash timers or quarters only.
 

MEP001

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bcoggin said:
Would you guys think it is woth putting bill acceptors on the wash timers or quarters only.
I would go with credit card acceptors before bill acceptors.

Look into what 1carwash1 mentioned. When a business has been closed for too long, you may need a new certificate of occupancy. If it's an old wash that was built before codes are updated, it may need to comply with all the new codes. What will it mean to you re-opening the wash if you have to spend $20k just to bring the electrical up-to-date?
 

trentu

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I'm kinda new in the carwash industry and bought a distressed wash myself and rehabed it. Things I learned doing it: aesthetics make the difference, a new metal wrap and deck with new lighting and RFP/NuWall panels, concrete patch and it looked like a brand new place; not going to take old equipment again and make it work - it probably cost me more in fittings, time, fixes, up/down issues to rehab the inside equipment than if I had bought a "package" from someone (go to a show and find a good price on a package...negotiate) then use the old equipment as piece parts or scrap depending on reliability; put in the latest if you can afford it, have as many functions as you can afford and as many ways to take money as possible, CC, dollar bill, and coin, my CC was slower to accept but is now about 1/2 of income in. Hope that helps
 

rph9168

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MEP has a point. Make sure you can meet all codes and what it will take to get a license to operate. Trentu also makes a very good point. Chances are that equipment that old may cost more to rehab than replace. You might even get a distributor to take it in trade if he thinks there may be some parts he can use. In any case you should consider replacing instead of a rehab of the equipment.

As was also brought out make it as cosmetically attractive as possible. Consider cost of maintaining the wash when you consider anything you do to spruce it up. For example - a coat of paint might look great but how much upkeep would be involved and how long will it last. Before you spend any more money on this project make sure you have everything in place to open and operate the wash. You might even want to consider the site for another business or to simply resell the property.
 

soapy

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I will go out on limb here and ask if you have done any kind of proforma so you know what to expect for income from this wash. Lets assume that you put in a nice new 4 bay package with credit cards in the bay and bill acceptors. If you look at some of the surveys about carwashes you might find that on average a single SS bay will make between $1000 to $1500 per bay per month. For an example let us say that with new equipment you will average around $1200 in sales per bay per month. Add in revenue from 4 vacs at around $150 each and you get a total gross revenue of $5400 per month. The average cost of doing SS business is around 35 to 40% on national average without labor, debt service. So you end up with $3240 per month to pay for the new equipment, land and building and pay for labor to run the wash. Will this achieve the profit margin you want?
Generally you need 2500 people per bay to support a wash like this. If there will be 7 SS bays in this town of 11,000 it looks like the town is a little over built for the market. A in bay automatic usually requires about 10,000 per bay. One in bay automatic should average 5 to 6 thousand per month with around the same 40% COGS. It would be unique in the market and basically not have any competition. You would not have any more labor if you did both type of washes. Just some numbers to consider.
 

Randy

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The first thing you want to do is clean up the place, make everything looks nice. Get all the equipment up and running at 100%. Be generous with the soap. I was at a car wash yesterday working on their Bill changer. The owner of the car wash was complaining that business had fallen off. When I told him that he needed to clean to place up he got offended. Clean the parking lot, fix the lights, clean the bays signs, wipe down the vacuums, and give the place a good general cleaning every day. The face plate on the front of his changer was broken and looked like crap, I’d told him a year or so ago that he needed to replace it. After I got done fixing the inside of the changer I went out to test it and there was a guy standing there looking at the changer, when I went to put in a test bill he said “I think I’m going to go elsewhere it doesn’t look like this machine is going to work” and he walked off and got in his truck. I think curb appeal has a lot to do with the car wash image.
 

I.B. Washincars

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I agree Randy. I think the same applies to fragrance machines. They are always broken. I guess that it's good that the customer can easily tell before losing their money, since the containers are always either empty or not working.
 

MEP001

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Giving good product, keeping things clean and working are definitely the foundation of a successful car wash. The first wash I ran years ago started out with me watching after it for a week every couple months while he was out of town. It would bring in about $300 on a good week. I eventually took over everything and got it to a consistent $3500 a week just by cranking up the soap and keeping it clean and working reliably. Do you plan to hire an attendant or run it yourself? It takes AT LEAST two hours a day every day to do it right. If you can't or don't plan on that much attention, you're better off bulldozing it and doing something else with the land.
 

bcoggin

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I plan on doing eveything myself. I own a heating and air company so I should be able to work on everything myself. I hadn't planned on visiting it everyday but if thats what works, I will.
 

Waxman

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revised primrose path

You bought a business before doing any research on your own? That seems very foolish. This is a rough, hands-on type- business that has seen some tough times the last 5-7 years (right when I built mine).

I am here daily, put tons of hard work and effort in, detail cars and sell used cars to earn more revenue and pinch pennies the whole time. The note is being paid as am I, but the return isn't spectacular. That's why I am continually looking for ways to increase revenues and cut costs while putting out a good wash, detail and selling safe, reliable cars.

Your post scares me, but good luck anyway!
 

bighead

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He bought it for $28k. That's the value of the dirt in most of the US.

He can have his hvac guys run most of the plumbing, and even do some of the low volt i'm sure. He can use the refab of the wash for fill to keep his guys busy when he doesn't have a full days' work for them. If he builds his low pressure right, he can be into this place for very close to nothing.

I think the best advice i could give is to enter it slowly. Do alot of it yourself, or fill for your guys. Built it smart. Use your shop boy as the daily cleaner of the wash, and only pull the money yourself. Build the equipment room for expansion and function, and build the meterboxes and bays focusing on cosmetics and room for expansion later on.

Don't drop another $100k in it, built it smart and cheap, and let it pay for itself for a while until you either decide it'll pay to add a tunnel or IBA, or you decide that you can do other things with the property and want to knock it all down.

This thread might help: http://forum.autocareforum.com/showthread.php?t=8811
 

bcoggin

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@ Waxman. I have no note. When I do rehab it. I still won't have a note. I am a pay as I go kind of person.
 

MEP001

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bcoggin said:
I hadn't planned on visiting it everyday but if thats what works, I will.
If you can do that, it should pay off well for you. You're in a remarkable position given what you paid for it.
 

Waxman

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I didn't realize the low price.

Now your mission is to do all we said to do; get educated about the business and keep everything clean and running. Give plenty of product. Crypto pay is inexpensive and I plan to do that myself, so I'd get that.

Slowly add improvements as cash flow allows. Don't forget to advertise and give out tokens and hold charity washes on site. Community involvement has been key for me as customers respond to this type involvement.

Good luck!
 
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