Sell or double-down?

[CaptnBuck]

Where in SC you located. How many bays and vacs? I’m assuming no automatic…is there room to add. What are your prices and times

In Spartanburg, SC and at $3 for 5 minutes.

What is the CPD on the street you're on. That could give us all some idea of if there is potential to grow more.

It's 10k cars per day. It's a small corner lot that is close to downtown and a new apartment complex.

 

[Car_Wash_Guy]

I toyed with the idea of taking some sort of legal action, but unfortunately I don't have any documentation. I fell for the oldest trick in the book and went with their verbal word that it averaged between $2k and $5k a month. "We didn't keep good records..." But the industry data supported those numbers. It was a partnership of 3 friends, one of which was the listing agent. In hindsight, there were soooo many red flags that I either ignored or found some justification. But I definitely agree that the sellers knew they were selling a lemon to a sucker. It worked out great for them. Not so great for me.

Did you do any due diligence? I would've hung around that wash 12 hours a day for 60 days straight if that were the case and you wanted to verify gross

 

[CaptnBuck]

Did you do any due diligence? I would've hung around that wash 12 hours a day for 60 days straight if that were the case and you wanted to verify gross

Woulda, shoulda, coulda... it's clear that I'm an idiot who got in over his head and didn't do enough preparation upfront before taking the plunge. I've learned that people suck, that's for sure. And that I just need to stay stuck in a 7am-6pm job with a steady paycheck and no responsibilities outside those hours or those walls.

The consensus is to sell and walk away. The numbers don't work and I don't have the time to put into it. Lesson learned.

 

[cleancars24]

When I did it, I put out more water, more pressure, more soap and stated so on a bay sign right above the coin meter. When I did it I only had 3 HP motors and Cat 310 pumps. I did have to install a 5 HP motor, but many systems already have 5 HP and maybe yours does. I installed a bigger pump, but you may not have to, depending on how "super" you want it to be. A simple pulley change may get you to where you want to be. I went with an 08 tip and 1500 PSI, and it was definitely super. The good ole boys loved it.

What's one step above a "Super Bay"? Im in the process of building out a wash and Ive got a 10HP motor with a Arimitsu 10GPM pump im going to put into one of my bays. I was going to call it a super bay but i might be grossly underselling that term? I figured setting it at about 1400psi but ill have twice the flow as a traditional pump. More water=faster work. My logic was offer something that nobody else has and by inviting the mudders and dirt moving equipment to that specific bay it will keep the majority of mudders and such out of my other bays.



My thoughts on your predicament is probably get out when you can. I agree with the others you need to have the drive to make it work, Sounds like you are right on the edge of making it profitable, and it might be doable. BUT you gotta have that drive and passion. Good luck man.

 

[Car_Wash_Guy]

Woulda, shoulda, coulda... it's clear that I'm an idiot who got in over his head and didn't do enough preparation upfront before taking the plunge. I've learned that people suck, that's for sure. And that I just need to stay stuck in a 7am-6pm job with a steady paycheck and no responsibilities outside those hours or those walls.

The consensus is to sell and walk away. The numbers don't work and I don't have the time to put into it. Lesson learned.

I get it. I tried to bring an express tunnel back to life. I'm into it for about $750k. It sucks but like they say gotta know when to hold and when to fold.

How much are you in the red a month ?

 

[OurTown]

In Spartanburg, SC and at $3 for 5 minutes.


It's 10k cars per day. It's a small corner lot that is close to downtown and a new apartment complex.

It might take more work and some time, but I think it has a lot more potential than it is bringing in currently.

 

[Greg Pack]

PM sent

 

[soapy]

I built from scratch 33 years ago with one wash. It took me a couple of years to show a profit. I knew I had a good location with great visibility. Lucky for me I had enough money squirrelled away to keep the doors open. I have noticed in my area that it takes one to two years before a business is accepted by the public and for it to take off. Most new business fail in the first year. Not knowing the logistics or competition of your area it is hard to give you a solid answer. NOt sure who is carrying your note but if it is the original owner you could negotiate with them for better terms as I am sure they do not want to take it back.

 

[Waxman]

one easy thing you could do is raise prices immediately. that would likely help.

 

[water guy]

I built from scratch 33 years ago with one wash. It took me a couple of years to show a profit. I knew I had a good location with great visibility. Lucky for me I had enough money squirrelled away to keep the doors open. I have noticed in my area that it takes one to two years before a business is accepted by the public and for it to take off. Most new business fail in the first year. Not knowing the logistics or competition of your area it is hard to give you a solid answer. NOt sure who is carrying your note but if it is the original owner you could negotiate with them for better terms as I am sure they do not want to take it back.

That's Gospel Soapy !No Bs! And Yes its after 5.

 

[sjb]

It sounds like you’ve turned the corner. So best of luck in all your decisions…

FYI…. 29 years ago my Car Wash was in a scary arse location in town and I was only doing 2 to 3 a month…. Now we are one of the last SS in town, and it is a different story…. So Lots to consider…

Again, Best of luck!
sjb

 

[mud puppy]

I don't have anything else tied to the loan, and taking a loss is a guarantee either way. I don't want to default on the loan for a lot of reasons, but I don't think it shows on my credit report so I don't have that to worry about. Owning a car wash was never my goal so it was really a mistake from the start and yes, a hard lesson to learn.

You say owning a car wash was never your goal. I'm curious why did you purchase it in the first place. The answer to that question may be the answer to your question of should I sell. If you are not getting what you wanted out of this transaction, it's time to move on. Awful hard to work for something you don't want.

 

[Maddog716]

Are you doing any marketing or advertising? We have done quite a bit online with minimal to zero cost and we have seen a little over a 35% increase in a couple of weeks.

What about reducing starting time to 4 minutes?

How much time does an additional quarter add after startup?

 

[JustinK]

Check out the platform at www.washindex.com

They have some good data that might help.

 

[Corvettec5dave]

Are you doing any marketing or advertising? We have done quite a bit online with minimal to zero cost and we have seen a little over a 35% increase in a couple of weeks.

What about reducing starting time to 4 minutes?

How much time does an additional quarter add after startup?

I would appreciate knowing what the marketing looked like to increase the visits to help me out.

 

[traveler17]

Woulda, shoulda, coulda... it's clear that I'm an idiot who got in over his head and didn't do enough preparation upfront before taking the plunge. I've learned that people suck, that's for sure. And that I just need to stay stuck in a 7am-6pm job with a steady paycheck and no responsibilities outside those hours or those walls.

The consensus is to sell and walk away. The numbers don't work and I don't have the time to put into it. Lesson learned.

Don’t beat yourself up buddy. Anyone who has ventured into a business has failed at some point, some more than others. Use it as a lesson a school can’t teach you. If it’s in your gut to get out of the 9 to 5 life then dust off and try again. You just learned a valuable lesson about not rushing anything and doing your due diligence. Good luck!!

 

[Car_Wash_Guy]

I'd give the place another 12 months and do a HEAVY personal marketing campaign. Maybe empty tokens if that is your only way but get out there and chat with people and give them a free wash to come a try it out. I think at the very minimum a well run and kept place can spin off a decent amount of money. Whether the ROI is great is another thing