Car Wash Business Knowledge

Business Knowledge is an ambiguous concept that is hard to define. Let's shift to the term "due diligence" instead. "Due diligence" is defined as research considerations or simply, doing your homework. It is overused in conversation and under-executed in practice. Acquiring car wash knowledge so that you can make an informed decision is hard work. It requires commitment on your part to explore the industry and the local marketplace in which you are hoping to own a car wash business. Here are some ways to actually execute your due dilligence in a comprehensive manner.

Join the International Carwash Association and your local regional association. As a member of the International Carwash Association you'll become part of a tight-knit community that gathers each year at the industry's largest trade show, Car Care World Expo, providing access to more than 450 exhibitors, networking opportunities with 10,000+ attendees, and savings available ONLY to members on registration packages. Attend Car Care World Expo and participate in the New Investor Seminar and educational programs. Attend regional association meetings and shows. Subscribe to the leading industry trade journals.
Complete a competitive analysis of the geographic market area in which you hope to locate a site. Use the SWOT format (strengths, weaknesses, opportunities and threats) to document each potential competitor. Pay attention to which sites are busy and which ones are not, price points for services, physical appearance, and the room to grow or change. Compare and contrast operating models and the complexity of each. Look at traffic patterns and how they affect volume at various times during the day. Studying your future competitiors will not only deepen your understanding of the car wash business but will also prepare you to shape an offering that allows you to compete effectively. It is also helpful to take and archive digital photographs of your competitors' stores not only to assist your memory, but also to capture best practice ideas and poor practice "not to-do's." By including these images in your business plan you can also demonstrate a comprehensive understanding of your competitors.

Example SWOT of Competitor Site

General	2.85 miles driving distance from prospective location. 50' soft cloth exterior tunnel only. Uses labor to deliver average quality and good customer service. Estimate 60K cars per year. Prices are $X for base wash and $X for the works wash
Strength	Conveiently placed on Main Street in downtown. Mature facility well known by the local community. Established volume and performance. Very good customer service from the direct labor of owners and the necessity of heavy hand washing to offset minimum cleaning power of equipment. Quality is good. Towel dries out of necessity but increases customer satisfaction.
Weakness	Short building with minimum equipment. Must maintain high price to cover labor content to offset shortage of equipment. Direct involvement of owner limits growth opportunities. No vacuums because no room. Very small exit apron directly on to Main Street which backs up and ices over in the winter. Severly restricted lot eliminates the addition of an additional primary service like free vacuums. Short tunnel limits volume due to required processing time even with labor addition.
Opportunity	Re-fit tunnel with new gear and new cleaning technology which would reduce the need for so much labor and increase profit. Has the spaace to add auto cahier which would further reduce labor.
Threat	Possible new entrant on West Main Street at the edge of town which would impact volume from customers 1 - 3 miles northwest of the location.

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Further advice...

Network with existing operators and ask them to share their experiences. The car wash industry is one of the friendliest industries around. A hallmark of our community is the willingness to share information with associates and newcomers. One of the easiest places to get started is Car Care World Expo and the local shows. Do no hesitate to talk with owners in your general market area at their stores. Simply network with operators that are not going to be in your targeted trade area - the far side of town, another city or state.
Site ride with your car wash advisor and members of your supplier team to discuss the various models and the pros and cons of each. Visiting a site with a professional shines a new light on the challenges and rewards that each car wash model has to offer.
Arrange to work at a site for a few days. This can be done locally or out of state with operators in your network. Moreover, your car wash advisor can often set you up to work at their store or at the store of another operator with whom they have worked in the past. This inside view often is the tipping point that energizes you onward toward ownership or opens your eyes to a mismatch and has you safely retreat back to other opportunities better matched to your strengths.

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