Probably can't answer but I'll ask anyway

[IBFLYIN]

I am planning to sell my 3-1 located in Northern Pa. It's a 3 year old facility, Mark 7 Gt auto, split faced block, excellent condition etc. Appraised in 2004 for 405,000 K. Generates 75-80 K per year. Asking 280,000. Am I off my rocker? I remember reading somewhere it's 2.5 to 4 times gross...

Thanks - Scott

 

[MEP001]

Why ask so little if it's appraised higher? All the washes around here I've seen on the market are or were asking twice what they're worth.

 

[IBFLYIN]

I know it's not worth 400k. I was just wondering if 280,000 k sounded reasonable for 75 k in income.

 

[pitzerwm]

The bottom line is that if your happy with $280K and someone else is willing to give it to you then its a good price. I took me 3 years to get my price. Sounds to me if you have that kind of appraisal, you shouldn't have any trouble finding a buyer.

 

[Waxman]

Is the $75-80k gross or net?

 

[IBFLYIN]

I wish it was net! But naw, it's gross.

 

[Waxman]

Sounds low for a fairly new 3/1, Mark VII, split faced block construction. What is the area like? Population? Location? Competition? Tell me more.

 

[IBFLYIN]

Sounds low for a fairly new 3/1, Mark VII, split faced block construction. What is the area like? Population? Location? Competition? Tell me more.

It's located in rural McKean County. Population of 2500. 35 mph speed limit, corner lot. No competition in this town. Only other competition is my other 3/1 15 miles away.

 

[Ben's Car Wash]

Start at $400K.... you can always negotiate down! Besides, we need you to get a good price to keep our markets up

 

[ScottP]

Wow! Here in California that would be a million dollar business. Here you cant even buy a parking lot for $280k. Start high, it will give you some negotiating room.

 

[Bud]

According to your gross, I would say you are in the ball park but may want to start a bit higher. You are listed at about 3.5 times your gross. Another thing, is there room for higher grosses such as price increases?

 

[IBFLYIN]

According to your gross, I would say you are in the ball park but may want to start a bit higher. You are listed at about 3.5 times your gross. Another thing, is there room for higher grosses such as price increases?

Hi Bud, I am already at 1.75 for 4 minutes. The wash has all the more modern options, soft water, hot water (winter only- by choice) spot free, tri-foam, foam brush etc. The auto is 5-6-7-8, and doesn't have a dryer. I don't think a higher gross would be easily achievable with a price increase but it would be with someone who could more closely monitor the wash. I am there 2-3 times a day but as most of you know on some days being there 20-30 times is not enough!

 

[Waxman]

Your prices are too low. IMO you should be at $2/4 minutes SS and $7,8,9,10 for IBA. I assume the following: You offer good pressure, clean facility, plenty of good quality chemicals, and on the IBA you have foam polish with a good show and scent, top quality drying agent, spot free rinse and great blowers. Your machine should NOT race around the car, but rather go at a speed that makes people think it's doing a good job of cleaning! Get those prices up.

 

[Greg Pack]

If mine I would start at about 4.5. Someone that has cash earning 5% in a CD may want to come in and buy it.

 

[Skipper Jack]

Wow, I would like a 5% CD

I am on a financial committee that controls some investments, and we are tickled with our 3.5 % (must maintain very low risk)

I am in western Washington State. While not as expensive as Cali, 280K wouldn't get anything here.