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Please explain how this makes any sense

Cwajciec

Member
I was going down a fairly major road today that has a ~1 year old Whistle Express Wash operating on it. Looks nice, free vacs, light show; not sure of equipment. Then I noticed right next door; I mean they share an entrance and pavement; a Tommy’s Express wash being built!?!? Why? Who would put another express literally on top of another new express? How is that good business?
 
It's not good business. Thats the Tommys agenda. Luckily this time there opening next to another corporate wash instead of mom and pop like they normally do. Hopefully they both kill each other and foreclose. People dont remember how bad car washes did during the recession. It's a matter of time before that 7M investment does not pan out when the word FREE is printed on their direct mail ads 9 times on a 4" x 8" flyer. If someone can tell me another business that gives anything away for free other then a tire shop for air im open to hear it. The only reason to put another new wash next to a new one is because corporate found an investor stupid enough and sold them a dream. There are people out there with more money than brains and the car wash industry has been capitalizing on that the last five years from tunnels to touchfrees. Anyone truly in this business has the common sense to understand its better to be the only wash in town then the 10th one.
 
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If you have 50-100+ locations and you have a few duds, you're still ok.

Plus, these are huge PE companies and the accelerated depreciation is a thing.
 
Ask Burger King why they build near McDs or CVS why they built by Walgreens.
I don't think car washes relate directly to FF. I know they've been selling it ( SOmnny's, Tommy's ) etc at all the shows. I think we're somewhere between a gas station and FF in terms of customer mentality and decision making/ behavior.

ETA:

I will NOT drive across town to go to a certain gas station or to save $.03/gal but I will to go to CFA.
 
We are a block away from a Kwik Trip which is the the main gas station with touchless/soft touch washes in our area. They built the location two years ago and were getting really nervous since most of their sites have carwashes attached and we just put a bunch of money in upgrades for our wash. Luckily they didn't put a carwash in that site which we were very grateful for. Not sure if it was because we were a block away or they didn't have the room.
 
It happens..
You have to do a really good job and set yourself apart from the others, that's the hard part.
 

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