Copyright
© 2010  MY CAR WASH GUY

Services

ANALYZING AN EXISTING CAR WASH

 

Many existing car washes are in trouble or having serious problems. Many have negative cash

flows and cannot turn the operation around. Many have run out of cash and credit and have failed.

 

When we are retained by an owner or operator to analyze their existing car wash or car care center,

we use the following criteria in analyzing the business and to provide our analysis, recommendations

and opinions on how to correct the problems, reverse negative cash flows, increase income, volume

and how to make the operation successful:          

 

Analyze existing facility, review demographics    

 

Observe and review entire operation and management in all departments

 

Hold discussions with the owner, manager and key personnel 

 

Review Operational Income and Expense Statements for prior 2 years           

 

Review labor cost and percentages to determine if labor cost is appropriate

 

•          Analyze marketing, advertising, bonus and commission schedules, menus, employee handbook,

            Business and Operational Plan and any other operational materials

•          Analyze extra services/sales in Car Wash, Detailing, Oil Lube and Customer Lounge

•          Determine if car wash is offering proper service, i.e. full service, exterior only or flex-service

•          Determine if new profit centers, additional services and sales may be added to property

•          Review cross-marketing of services to determine how improvements may be made

•          Review computer software and make recommendations to upgrade (if applicable)

•          Review existing competition within a 3 mile radius

•          Recommendations on how to: be more professional, market and operate more effectively, out

            perform the competition and encourage repeat and new business

BUYING AN EXISTING CAR WASH

 

When purchasing an Existing car wash, there are many things and items that must be reviewed and investigated.

Most individuals who purchase car washes are not experienced in this type of business and are at a

disadvantage dealing with the seller who is experienced and the business broker, who represents

the seller, is primarily interested in receiving a large commission.

 

Parties that have purchased car washes have made mistakes and have found after purchasing the

business and operating it for a while, it was not what they expected and resulted, in many cases,

with negative cash flows.

 

When we are retained by parties who are interested in buying a car wash and/or car care center,

we use the following criteria in analyzing the existing facility that is for sale in order for us to provide

our recommendations and opinions as to whether or not the business should be purchased.

 

 

Analyze existing facility, review demographics

     

Observe and review entire operation in all departments

     

Hold discussions with owner/seller and their accountant

     

Review management, equipment, improvements and property

     

Analyze existing competition within a 3 mile radius

 

•    Analyze existing marketing and advertising programs, bonus and commission schedules,

      any employee agreements, medical and pension plans, vendor agreements and Sub-Leases (if applicable)

•    Analyze how extra services and sales may be added or upgraded

•    Review existing computer software for suitability

•    Provide handbooks, materials and forms to be used in the operation

•    Provide new bonus and commission schedules, marketing and advertising programs,

      in the event business is purchased

•    Review offers, purchase agreements, assist with negotiations,

to protect the buyer’s interest.

•    Provide unlimited telephone consultations with all parties involved

 

Looking for good car wash advice?

You need an advisor who is knowledgeable, communicates well and works hard for you.
A good car wash advisor will help you make more money on your own.

This section will help you understand how to choose the right car wash advisor for you.
Are you a knowledgeable car wash investor? 
Have you already developed, owned, or operated a car wash?

If so, you may want to find a car wash consultant, who will simply broker a purchase for you,
this may allow you to  work directly with the manufacturer. 

Are you looking for assistance in developing a location as a start-up business or purchasing
an existing car wash as an entry point into the car wash industry?

If so, then a car wash consultant or qualified car wash distributor may be the best choice for you.
When you start your search for a car wash advisor, remember that you want to have confidence
in and be comfortable with both the individual representative and the company for whom
the representative works.

Selecting Your Car Wash Advisor

Investing in a start-up car wash business or jumping into an ongoing entity involves a great deal
of trust in the manufacturers of your primary and specialty equipment, your supplier team,
your installer and local service provider and the people who help shape your choices.
However, trust should never take the place of careful research and healthy skepticism
 
Where Do I Look?

Word of mouth can always be helpful in identifying capable car wash professionals.
Ask for recommendations from car wash equipment manufacturer, or from existing operators
who already operate a successful car wash business.
Check on the web which provides you with the names of many or all of the car wash suppliers
in your area.  Ensure that you check on their reputation by bouncing their names off your
local network of operators.

What Questions Should I Ask?

Once you have identified a list of companies that you might want to work with, you can obtain
more information to help you make your choice. A good first step is to contact the owner or general
manager of the company.
Does the company specialize in a particular type of car wash segment or a particular customer group?
For example, does it focus on retail petroleum car washes or independent express exterior car washes?
Does it cater to independent investors or large companies?  In what segments do they have
experience and how much in each? 
Ask them for references.
Does the company have any special expertise in helping a new investor like you?
What car wash business model(s) and car wash products does the company sell or advise on?
How long has the company been in business? How many employees does it have?
How many customers has it advised on getting into the industry?
What services does it provide to customers like you?

For example, does the company advise on equipment choice and execute equipment sales only,
or does it provide advice, research and site location assistance, training and aftermarket service? 
If you engaged them to help you, what are the next steps? 
What are the normal steps through the new investor process or cycle?  What can they do for you?  
How much time does it take?  What is the complete list of products and services that they offer? 
How do they go about customizing a package of products and services to meet your needs?
Visit their office and their warehouse.  Ask them if they stock replacement parts, chemicals and supplies. 
Ask to tour the warehouse and verify their answers.
Ask them about their aftermarket service programs. 
Find out how many trucks they have on the road and how long it will take them to get to your site
if you experience down time. 
Ask them to show you one of their trucks.  Inspect it for organization and replacement parts.
Does the company offer any educational seminars and hands-on training for its customers?
How does the company charge for its services?
What commission rates or fees would a customer expect to pay should you decided to work with them?
Has the company been subject to any lawsuits or legal claims in the past few years?
Is the company properly licensed and insured?
If you are like most customers, you will find that you deal with, and rely heavily on, a single individual
with the company.
For that reason, it is very important that you know as much as you can about the person's:
Skills, experience, and educational qualifications. 
Focus on experience.  Ask for the size of their customer base and how many projects they have
successfully started up.
Knowledge and expertise in projects like yours. 
Ask for references.
Ability and desire to provide the type of services you expect.
Find out if they offer only a specific product line or if they have the ability to offer you choices.
Many of the manufacturers and various members of the supplier community offer advice
on helping new investors get into the business.
If you are like most customers, you will find that you deal with, and rely heavily on, a single individual
with the company.
For that reason, it is very important that you know as much as you can about the person's: