Not long ago, I was talking with an acquaintance who wanted to go into the auto-detailing and car wash business, but he wanted to do it in a parking structure downtown.
It turns out the individual who was now washing all the cars never showed up on time, and did lousy work, often taking people's money without completing the services.
This in turn caused complaints to the property management company that quite frankly has better things to do than deal with that baloney or nuisance.
Now then, the parking structure has some 700 parking stalls in it, and when the economy is in full-bloom, it's packed full.
So, the question to me the resident expert on this topic was; "Should I go for it, the auto detailer now is using a waterless car wash cleaner to do the work?" Well, I'd like to point out that I am no fan of dry wash waterless car wash, but many others in the auto-detailing industry are.
My acquaintance wanted more data on potential revenues.
Below are my thoughts on the topic and if you are considering a similar detailing business in a large downtown parking structure, then you might be interested in reading this assessment.
Okay let's sharpen our pencil shall we? Sure, but let's first do a quick reality check.
1.
) We are still in the midst of a recessionary recovery 2.
) You will need one additional helper to wash 70 to 105 cars per day.
3.
) High-rise occupancy is down, although in that particular building maybe full.
4.
) Only about 10-15% of those 700 cars will be "regular weekly" customers if you have excellent quality.
5.
) It will take time to build the business back-up after the last guy ruined the customer experience in that garage.
Okay so, understand that the price point will determine the volume levels.
$7-10 for outside wash is low, but should bring maximum volume.
You should; (A.
) Go to the parking structure at 9 AM tomorrow and count the number of cars.
(B.
) Come back at 2:30 PM and count the cars again.
(C.
) Talk to several car owners about their needs and previous service levels.
And then we average that number between your 9 AM Census and your 2:30 PM Count and figure 10-15% of that number, and completely disregard the 700 number, it really is irrelevant.
Out of every 100 cars cleaned figure, 50% will be exterior only, 24% will be in-and-out, 20% will be executive washes and/or hand wax, 1% will be re-do's (customers not happy) and 2% will be full details, 3% miscellaneous (carpet shampoo, door ding rub-out, coffee stains, etc.
).
You may have to start out with "dry-wash" but you should save your money, and go to pressure washer cleaning with 2.
2 gpm @ 1200 psi.
and go for 5-min.
exterior washes.
Much more efficient.
So, your job is to get more information so we can calculate your estimated gross revenue, then subtract out expenses such as; -$150 per week cleaning supplies -Washing towels $10/day.
-Cell phone -Printing-flyers-business cards- -Labor-$10/hour, full day Wednesday-Friday, half day Monday-Tuesday.
-Shrinkage - used up towels, stolen auto cleaning supplies Other costs - Capital expenses: -Shop Vac, -Towels, chamois, terry cloth, micro-fiber, -Collared shirts (logo).
-Lockable box, etc.
NOTE: Once you get going - within 6 weeks, which is the minimum it will take to get those customers coming back and regular levels, I recommend that you will buy a Pressure Washer $650-750 (Honda Motor Cat or General Pump) and a reclaim tank on a roller system let's say $350-400.
Those are my thoughts, let me know if this helps you set up a proforma to help you decide if the Parking Structure deal makes sense to you? Please consider all this.