Typical Install Costs on new WW Razor
- Thread starter washregal
- Start date
robert roman
Bob Roman
The last quote I reviewed for in-bay install was $20,000. This did not include any expense for electrical or plumbing work, permits, or removal of old equipment.
wash4me
Member
Whoever you get be sure to get either a turnkey price or if they want you to get electrical and plumbing separate and do the rest they need to include all hose parts etc. Any opening to charge more and you can count on it.
washregal
Member
You guys are great.. I need to beat down on the costs of my supplier.. How much would oyu imagine the equipment cost might be? Has anyone installed a REVV? just curious how much dollar difference between the standard Razor and the REVV.. and if the additional features / options would be worth it...
This is always an interesting conversation. Many suppliers, which I am one of, get creative when quoting machines. Sometimes they will keep the machine cost low to seemingly make it more competitive, while adding money to the other things. The distributor needs to make a decent profit in order to service the machine. You need to save as much as you can to keep your profits there. Finding that sweet spot in the middle sometimes takes a little haggling and head scratching. I do think it's good to post the prices here in the open.
I agree with Mac. Make sure any quote includes everything that needs to be done to be operational. I have seen distributors leave out softeners, RO units and even on one occasion a dryer in an attempt to be low bidder. Get several estimates and compare them carefully.
washregal
Member
Mac - I could not agree more.. I am up for my distributor to make a profit.. just not pull my pants down in the process. Can anyone post prices on Washworld Razor and Revv ? Pr perhaps PDQ machine touchless? If you can also post options pricing it would be great.. I am in an area that has limited distributors SE PA -and this means minimal competition.. Distributors and suppliers know this and try and get the best bang for the buck.. I am not interested in paying margin to a distributor up front for the service of a new machine.. If they want to charge for a service contract.. thats a different issue.
wash4me
Member
Get on the phone and call the distributors in the next state over. If that doesn't work write a letter to Washworld. They probably won't reply directly with action but they can't afford to have distributors ripping folks off. Any possibility they have put all their mark up on the new machine on the install price to help you with sales taxes?
robert roman
Bob Roman
“20K for an install is outrageous. I charge 7 to 12K…”
I don’t believe you are charging enough.
For example, $20,000 was 11 percent of the total equipment ($180,000). Today, maybe you can pay your help and make 10 percent margin on this.
In other words, if total equipment was $75,000, less expensive machine, I would still want $20,000 because it’s the same amount of work as installing $180,000 machine.
Install for conveyors is 16 to 18 percent of total equipment. There is not much margin in this either.
Selling direct has taken profit out of install work.
Distributor margins use to be 25 percent of equipment spending. I would imagine 20 percent is more like it now.
Consider Generation Growth Capital’s acquisition of Harrell’s Car Wash Systems. Harrell’s is big distributorship, multiple brands (including Istobal) and services four states. Why did owner sell out to private equity firm and now GM is running the show?
Generation isn’t going to keep so what does that say about industry?
I don’t believe you are charging enough.
For example, $20,000 was 11 percent of the total equipment ($180,000). Today, maybe you can pay your help and make 10 percent margin on this.
In other words, if total equipment was $75,000, less expensive machine, I would still want $20,000 because it’s the same amount of work as installing $180,000 machine.
Install for conveyors is 16 to 18 percent of total equipment. There is not much margin in this either.
Selling direct has taken profit out of install work.
Distributor margins use to be 25 percent of equipment spending. I would imagine 20 percent is more like it now.
Consider Generation Growth Capital’s acquisition of Harrell’s Car Wash Systems. Harrell’s is big distributorship, multiple brands (including Istobal) and services four states. Why did owner sell out to private equity firm and now GM is running the show?
Generation isn’t going to keep so what does that say about industry?
robert roman
Bob Roman
“I am not interested in paying margin to a distributor up front for the service of a new machine.”
Profit from equipment sale was used to cover my selling expense, overhead, taxes and other operating expenses. Left over was owner’s benefit.
This equation left no room for “up front for the service of a new machine.”
Customer paid for equipment, install (erection fee), mechanical, electrical and plumbing work, sales tax and freight.
Train customer and then its factory warranty (parts and labor).
Would you give a carwash customer a re-wash voucher good for several weeks?
Profit from equipment sale was used to cover my selling expense, overhead, taxes and other operating expenses. Left over was owner’s benefit.
This equation left no room for “up front for the service of a new machine.”
Customer paid for equipment, install (erection fee), mechanical, electrical and plumbing work, sales tax and freight.
Train customer and then its factory warranty (parts and labor).
Would you give a carwash customer a re-wash voucher good for several weeks?
Bob I didn't realize you were talking about a conveyor system. The price I mentioned was for an inbay automatic. It generally takes us about a week to install, program the washes, calibrate the chemicals, check all components on the gantry (you would be surprised at how many things can loosen up by trucking a machine 1,000 miles), and then fine tuning the wash programs. If it's out of town with motels and restaurants, it's on the higher side. I still like the idea of the Hooters helpers.
washregal
Member
soonermajic
Well-known member
$20k is not outrageous, unless as Robert stated it didn't include electrical & plumbing. Then it is prison rape!
washregal, that would be tight. Besides the machine, you have to pay freight to get it to you ans state sales tax. There are good used paystations ( I have a used Hamilton for 3K) Someone needs to include the electric. If your installer doesn't include it, or doesn't know a sparky to do it, be very leary of him. There are good used touchless machines out there that would allow you to do the whol thing for around 70 to 80K. Going all new will blow past the 100K.
robert roman
Bob Roman
Really the question is turnkey possible for $100K?
Assume base price is $60K, signs and install kit $7K, dryer system $12K, pay station $12K, tri-foam $5K, door control $5K, cold climate $0, remote mgmt $0, subtotal $101K, install $10K, sales tax $8K, FOB $5K, elec/plumb $10K, total $134K.
So, $100K is possible if corners are cut (compromised).
Ryko recently had a promotion for $100K turnkey but even this price did not include installation, sales tax, FOB, etc.
Like Mac suggested “used” may be the way to go if budget is tight.
Assume base price is $60K, signs and install kit $7K, dryer system $12K, pay station $12K, tri-foam $5K, door control $5K, cold climate $0, remote mgmt $0, subtotal $101K, install $10K, sales tax $8K, FOB $5K, elec/plumb $10K, total $134K.
So, $100K is possible if corners are cut (compromised).
Ryko recently had a promotion for $100K turnkey but even this price did not include installation, sales tax, FOB, etc.
Like Mac suggested “used” may be the way to go if budget is tight.
soonermajic
Well-known member
DiamondWash
Well-known member
