“You must teach your children that the ground beneath their feet is the ashes of your grandfathers. So that they will respect the land, tell your children that the earth is rich with the lives of our kin. Teach your children what we have taught our children, that the earth is our mother. Whatever befalls the earth befalls the sons of the earth. If men spit upon the ground, they spit upon themselves.”

Chief Seattle

The Suquamish Car WashPeople of the clear salt water

The Car Wash Business

• 45+ Billion Dollar Industry.• 2.3 billion vehicles washed annually.• 10K to 40K Monthly Gross Revenue not uncommon

(Depending on Site).• 70% to 80% Gross Margins (Unleveraged)• Home washing trend is headed down• Professional car washes are very eco-friendly• More vehicles than ever on the road• Can be a 24 hour profit center• No accounts receivable• Real Estate Investment

Where do people wash?

38%

18%

14%

16%

14%

At Home

Full ServeTunnel

ExpressExteriorTunnel

In-BayAutomatic

Self-Serve

Initial Site Analysis

• Demographic & Traffic Analysis• Formal Site Survey• Competitive Analysis• Pro-Forma / Cash Flow Analysis• Historical Financials (Existing Car

Wash Sites Only)

Demographics & Traffic Flow

• Age, gender & ethnicity of customer base• Household income• Housing density & growth• Kind of housing• Number of vehicles

• Per household

• Local businesses• Traffic Counts

Site Survey

• Location, location, location• Proximity to retail (Cluster Development)• Site Access• Stacking Space• Speed limit • Visibility• Competition (S.W.O.T.)• Access to utilities• Neighborhood• Use www.demographicsnow.com

Competition

• How close are the nearest car washes?• How many less than 1 mile?• How many less than 3 miles?• How many less than 5 miles (or 10+ miles if area is mainly rural)?

• What kind of car washes are they?• Self-Serve• Tunnel

• Express Exterior• Full Serve• Flex Serve

• In-Bay Automatic• Touch free / Friction / Combination

• Any acquisition possibilities?

Competition

• What is the condition of the competition’s site?• Clean?• Well marketed?• User friendly?

• What is the condition of the competition’s equipment?• New or well maintained?• Consistent maintenance problems?• Down Time?

Pro-Forma Analysis

Pro-Forma Analysis

Pro-Forma Analysis

Washing Attitudes

What Are Customers Looking For?

1. Quality of wash

2. Less work

3. Faster overall

4. Convenient location

5. Ease of use

6. Cost

7. Safety of vehicle’s exterior

8. Value

Types of Car Wash Models

• Self-Service• In-Bay Automatic

• Touch Free• Friction• Hybrid Touch Free / Friction

• Combination In-Bay Automatic and Self-Serve• Tunnel / Conveyorized

• Full Service• Flex Service• Exterior Only• Express Exterior

• Addition of “detail” operation

Self-Service Car Wash

Self-Service Car Wash

Why Self-Service?

• Lower initial investment• Very low labor costs• 24 hour operation• Broadly based market• Small inventory• Minimal fixed costs• Expansion potential with addition of in-bay

automatic(s)• Steady business in all weather & climates• Usually a planned vs. impulse purchase

Self-Service Car Wash

• Typically one self-serve bay per 1,500 people• National median of revenue per bay is roughly $1,455.00.• Over $2,000.00 on West Coast• In-bay automatic’s at self-serve locations have a national median

revenue of $8,397.68.• About 50% of self-serve locations have at least one in-bay

automatic• Additional revenue available from vacuums & vending.• National median monthly vacuum revenue: $221.87• National median Monthly vending revenue: $583.17• 51% of self-serve car washes do not have an additional profit

centers such as: gas, c-store, lube, fast food or coin laundry.

Source: 2007 Self-Serve Benchmarking Survey Report

Self-Service Car Wash

• More payment options now available

• Credit cards • 39.8% of locations accepting• Can increase revenues 15 to 60%

• Bill acceptors• Loyalty cards

Self-Service Land Requirements

• 2 Bay Self Serve = Approx. 9,000 Sq. Ft.• 4 Bay Self Serve = Approx. 13,500 Sq. Ft.• 6 Bay Self Serve = Approx. 17,500 Sq. Ft.• 8 Bay Self Serve = Approx. 21,500 Sq. Ft.• 4 Bay SS + 1 Auto = Approx. 15,500 Sq. Ft. • 6 Bay SS + 1 Auto = Approx. 19,500 Sq. Ft.

Self-Service Model Comparison

• Low Total Investment• Short Learning Curve• Short Time to Positive Cash Flow (Usually 3 to 6

Months)• Little or No Employee Management• Requires a “C” location or better• Low Revenue Potential • Very low throughput on high-demand days

In-Bay Automatic Car Wash

In-Bay Automatic

Why An In-Bay Automatic?

• Requires roughly the same amount of space as a self-serve bay.

• 24 hour operation potential• 2.5 to 6.5 minutes per wash depending on wash

package purchased. (Self-Serve typically averages 10 minutes per vehicle)

• Ability to offer touch free, friction or combination of both, depending on market.

• Minimal labor costs. 48% reporting 0 employees and 29% reporting 1.

Why An In-Bay Automatic?

• In-Bays make up 43% of total car wash units.• Purchases are impulse driven.• Operators washed an average of 19,947 vehicles.• Average daily street traffic count: 23,573• Median gross revenue per car $6.34.• IBA sites reported yearly profits:

• 21% $50K to 100K• 14% $100K-150K• 9% $150K-200K• 12% $200K+

Source: 2007 In-Bay Benchmarking Survey Report

In-Bay Land Requirements

• 1 Automatic = 7,000 Sq. Ft.• 2 Automatics = 14,000 Sq. Ft.• 2 Automatics + 2 SS = 18,000 Sq. Ft.• 2 Automatics + 4 SS = 22,500 Sq. Ft

In-Bay Model Comparison

• Low to Moderate Total Investment • (800K-1.4MIL with land)

• Short Learning Curve• Short Time to Positive Cash Flow

• (Usually 3 to 6 Months)

• Little or No Employee Management• Requires a “B” Location or Better• Low to Moderate Revenue Potential• Low to Moderate Throughput on High Demand Days

In-Bay and Self Service Combination

• Increased customer flow due to more product offerings.

• Ability to generate more site revenue.• In-bay automatic’s produce higher

revenue’s when coupled with other bays of car wash equipment.

• Increased opportunities for marketing promotions.

• 24 hour operation potential

Tunnel Car Wash

Why a Conveyor / Tunnel Car Wash?

• Ability to process high volumes of vehicles.

• Should be able to wash one car for every foot of conveyor length per hour.

• Fastest growing business model• High profit potential

Full Service Tunnel Car Wash

Full-Service Tunnel

Full-Service Tunnel

• Full Serve is a destination model. Similar to a steak house.

• Requires less land than other tunnel models.

• Usually a shorter tunnel since most of work is done with employees.

• Requires more labor (Entry Level Labor).• Average full service tunnel has 14

employee’s.

Full-Service Tunnel

• Longer sales process to customers.• Extra services such as detailing, windshield repair,

dent removal, lube service, and carpet cleaning are often available.

• Customer does not stay in vehicle during the wash.

• Usually has a waiting area or lobby with retail for customers. (i.e.: gift shop, coffee bar, news stand, etc…)

• 42% of customers have a household income of $75,000 or more

Full-Service Model Comparison

• High Total Investment• Long Learning Curve• Long Time to Positive Cash Flow (Usually 9 to 24

Months)• Difficult to Extreme Employee Management• Requires an “A” Location With Specific Characteristics• High to Extreme Revenue Potential• Moderate to Moderately High Throughput During High

Demand Periods (Depends on Staff Efficiency).• Tougher Model With Northwest Weather Patterns

Exterior-Only Tunnel Car Wash

Exterior-Only Car Wash

• Standard model in many markets.• Usually one employee prepping the

vehicle and one collecting payment.• Lower price points.• Limited Wash Selection.• Site signage carries most of the

responsibility for pricing.

Exterior-Only Model Comparison

• Moderate to High Total Investment• Moderate Learning Curve• Moderate Time to Positive Cash Flow• Moderate Employee Management• Requires a “B” Location or Better• Moderate to High Revenue Potential• Moderate to High Throughput on High

Demand Days

Express Exterior Tunnel Car Wash

Express Exterior Tunnel Car Wash

• Hottest trend in car wash market currently.• Set-up for high volume (150+ cars per

hour).• Promises short wait time. Never more than

5 minutes.• Limited Wash Selection.• Site signage carries most of the

responsibility for pricing.

Express Exterior Tunnel Car Wash

• Price & speed bring in a broader variety of customers.

• Customers will often wash more often.• Employs advanced equipment technology in

tunnel to avoid manual prep.• Less land required than flex serve but usually

more than full serve due to designated vacuum area.

• Common to have a base price of $3.00 to $5.00• Average sale price $7.00 with 7% of exterior

express washes receiving $12.00+ per wash.

Express Exterior Tunnel Car Wash

• Requires less labor than a full serve tunnel• Average exterior express tunnel has 4 or fewer

employee’s• Minimal or no shrinkage do to fewer

employees and pay stations. No lobby sales area as well.

• Most often has free vacuum’s for use on the site.

• Often has multiple gated pay stations.• Customer stays in vehicle during the wash.

Express Exterior Model Comparison

• Moderate to High Total Investment• Equipment Selection and Maintenance is Crucial• Moderate Learning Curve• Moderate Time to Positive Cash Flow (Usually 3 to

12 Months)• Some Employee Management• Requires a B+ Location or Better• Moderate to High Revenue Potential• Exceptional Throughput on High-Demand Days

Flex-Service Tunnel Car Wash

Flex-Serve Tunnel

Flex-Service Tunnel

• Able to cater to those customers wanting a full service wash as well as those wanting an express exterior wash.

• More employee’s required then express exterior wash.

• Typically 6 to 10 employees.• Makes it more difficult for competition to come in.• More land required for the multiple stations

required for both full & express service.• Separate “express” line for those choosing that

option & also to maintain conveyor line speed.

Flex-Service Tunnel

• Correct full service pricing is essential so the operator is not overwhelmed with those wanting full serve services.

• Typically no more than 30% of customers selecting the full serve option.

• Full service portion should take no more than 15 minutes.• Hours of full service operation should be limited to control

labor costs.• All vehicles go through with the customer in the vehicle. • Customers leave the vehicle after the wash for the rest of the

services if they so choose.• Free vacuum area should be isolated from full serve vacuum

area.

Tunnel Land Requirements

• 28,000 Sq. Ft. Minimum• Most Tunnels are built on 1 to 2

acres of land depending on business model.

• Flex Serve can require more land because of the detailing areas.

Flex-Service Model Comparison

• High Total Investment• Moderate to Long Learning Curve• Moderate to Long Time to Positive Cash Flow

(Usually 6 to 18 Months)• Difficult Employee Management• Requires an “A” Location• Moderate to High Revenue Potential• Moderate to High Throughput on High Demand

Days

Touch-Free Vs. Friction

• Friction washes in the 1960’s and 1970’s used unsuitable materials for safe vehicle cleaning (i.e. “weed-whacker” nylon bristles and low grade soaps).

• In response, the 1980’s saw the rise in popularity of “Touch Free” washing and a parallel increase in the quality of car wash “soap” chemistry.

• However, touch-free washes were more expensive to operate (more soap, more water) and required constant adjustment to provide proper cleaning.

• Further, wash quality never equaled friction car washes and friction car washes remained the popular choice. However, touch-free car washes could clean smaller cracks and crevices better than friction units.

• The introduction of cloth friction in the mid-1980’s allowed for safer friction cleaning than the nylon bristles, giving consumers a safer option. The main issue with cloth was that it was very heavy when wet and could cause vehicle damage.

• The largest shift has come in the last five years with the development of closed cell foam which is very gentle on the vehicle and polishes as it cleans.

• Recently, In-Bay Automatics and Tunnels now offer combination Touch-Free and Friction equipment to maximize the cleaning power of both techniques.

• Friction still remains the popular choice today with most consumers.

Choosing A Strategy

• Goals:• Consistently Produce a Clean, Dry, Shiny Car to Build Repeat

Washers• Maximize throughput on High Demand Days (Sunny Weekends,

Etc.)• Maximize R.O.I.

• How much volume are you expecting at the site?• Current traffic counts• Future population growth• Current & future surrounding retail

Choosing A Strategy

• Is it an “A” Site, “B” site or “C” Site?• What is the size of the property?• What is the desired business model?

• Self-Service• In-bay automatic• Self-Service / In-Bay Combination• Tunnel

• Full Serve• Exterior• Express Exterior• Flex Serve

• What is the market?• Touch Free• Friction• Combination Touch Free / Friction

Building The Car Wash

• Selecting The Team:• Surveyor• Architect• Engineer

• Civil• Structural

• Equipment / Supplies / Support• General Contractor• Attorney• Accountant• Bank

The Process

• Have a FULL survey of the land performed• Everything is designed off the survey

• Get a “topography” of streets, utilities, etc…• Schedule and complete pre-application meeting

with appropriate jurisdiction.• Bring conceptual drawings to meetings.• Most requirements come out of this meeting.• Especially water and sewer requirements

The Process

• Design Review• If necessary can take up to one month

• CUP (Conditional Use Permit)• If necessary can take up to 6 months to obtain

• SEPA (Environmental Study)• If necessary can take a month or two

• Traffic study may be required• Impact fees may be imposed

Site Layout

Equipment Layout

Equipment Layout

Site Development Worksheet

• Type of car wash.• Property requirements

• Site dimensions?• Zoning?• Utilities?• Lot coverage requirements?• Set backs?• Storm water retention?• Signage restrictions?• Curb cuts?• City engineer & phone number.

Site Development Worksheet

• Site Considerations• Sewer tap fees?• Water reclaim?• Electrical requirements?• Cost to bring gas to site?• Fill for property required?• Curbs & sidewalks?• Landscaping requirements?• Signage requirements?• Other city requirements?

Under Construction

Winning Strategy

+ Welcoming facilities

+ High throughput equipment

+ Excellent wash quality

+ Value

= Satisfied Customers

= Repeat Customers

AutoWash Systems, LLC

• AutoWash Systems Mission:• We are a Trusted Advocate for our Clients in the development

and operation of their successful car wash business!

• Team of the regions top independent car wash professionals

• Broad and deep competency in successful car wash development and operation

• Heavy focus on the professional car wash investor

AutoWash Systems, LLC

• Exclusive focus in car washing• On the 2009 Puget Sound Business

Journal’s 100 fastest growing companies list

• Consistently sought after to represent the leading manufacturers

• 24/7 Tech Support• Since 1982

Thank you!

Any Questions?Chuck (206) 660-1986

Chuck@autowashsys.com

Eco Friendly Soft Touch / Touch-Free

Eco Friendly Touch-Free

Express Wash