PC&D MAGAZINE
A profile of in-bay success
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From Volume 26, Issue 5 - May 2002
Feature
Florida in-bay location planned well for solid volume, good return on investment.
by: Robert Roman

According to the Professional Carwashing and Detailing magazine’s 2001 Automatic Survey, 1999 to 2001 marked the busiest period of in-bay construction in at least the past 15 years.

Investors are increasingly taking advantage of in-bay automatics because they provide a wide range of benefits. There are no accounts receivable to collect, operating expenses are relatively low and in-bay automatics can be operated 24/7 with limited management attention.

These benefits did not go unnoticed by Bob and Annie McAfee and Scott and Denise Towe, who own and operate Touch Free Express Carwash in Orange Park, FL, a facility with wand bays and three in-bays.

The new wash was developed on a 140-foot-wide-by-200-foot long parcel and shares a 20,000 square foot surface-water-retention area with an adjoining business.

The buildings occupy 3,200 square feet of floor space including 16-foot-by-22-foot wand-bays; 17-foot-by-34-foot in-bays and a 12-foot-by 34-foot equipment room.

RJR: How would you describe your operating system?

Scott Towe: We have three wand-bays and three PDQ Laserwash 4000’s, each equipped with a docking dryer. We went with the docking dryers because they eliminate the hassle of having customers trying to drive through a free standing drying arch.

Our other equipment includes two vacuums, several Fragramatic combo vacuums (two fragrance and two shampoo), one Maxivend merchandise vendor, one dual bill changer, credit card acceptors for the in-bay automatics and bill acceptors in the wand-bays.

We use hot water for the pre-soak for both wand-bays and in-bays and a water softener for pre-treatment.

We put RO-generated spot-free water on everything. The city required us to have reclaim, so we installed a system that is custom designed and manufactured by our equipment distributor, Southeastern Vehicle Wash.

We have computer tracking on the whole wash and use a modem pager system to help manage the multiple in-bays.

RJR: Why did you decide to go with three Laserbays instead of a mini-tunnel or full-size conveyor operation?

ST: Our county’s daily traffic count is over 60,000 cars. Within three miles we have 38,000 people and one full-service carwash, a five bay self-service and one petrowash.

We believed that having multiple in-bay automatics would provide the opportunity for consumers to have 24/7 access to a premium carwash without having to wait.

We created a highly functional, safe and reliable facility for our customers to bring their vehicles to.

RJR: What was your partnership’s motivation to do a multiple in-bay automatic carwash?

ST: Of course, there are the obvious advantages to owning and operating your own business. However, as a group, we believed that having multiple in-bays would actually provide us with the opportunity to improve the quality of our lives.

I’m also a regional sales representative for Southeastern Vehicle Wash, Largo, FL. As part owner of this business, I have a great opportunity to experience the carwash business first hand and use the facility as a model center for potential customers.

RJR: Would you describe your operation in terms of services and prices.

ST: Our wand-bays are $2 for the first five minutes; vacuums are 75 cents for four minutes; shampoo is $1.50 for three minutes; fragrance is $1.25 for 40 seconds; and our vending merchandise ranges from 75 cents to $1 per item.

Our entry-level performance wash is $5 and includes pre-soak detergent, laserwash and spot-free rinse. Our performance-wash-plus is $6 and includes the performance wash along with under-body, wheel blasters and clearcoat protectant.

Our most popular wash is the premium wash, at $7, that includes the performance-wash-plus along with a laserdri cycle.

Our ultimate/dually wash is $8 and includes the premium wash along with a bug prep, double pre-soak detergent and a tri-color foaming shine enhancer.

RJR: What have you done to promote your wash?

ST: We have our site attended approximately 40 hours per week. Our attendants provide instructions and assistance on the proper use of the automatics and self-serve bays, making change for large bills, keeping the wash clean and well maintained at all times and cross-market the in-bays when the wand bays become lined up.

Prior to the business launch, we ran an advertisement in the local newspaper entitled “Meet the Merchant.” This program also goes in every new residents packet distributed by the Orange Park Chamber of Commerce.

After we opened, we gave away 200 coloring books to the kids and the next month we gave away 200 PDQ key chains to the moms.

Initially we considered having a grand opening. However, due to our visibility and current notoriety, we still remain undecided about doing one.

RJR: How long did it take to develop your project? Did you run into any problems and did you meet your budget projections?

ST: The entire project took about one year to complete, including about three months that were spent doing a feasibility study and business plan.

We circumvented a lot of the planning and zoning approval process by selecting and purchasing a commercial parcel that was already zoned for a carwash.

We broke ground on July 10, 2001 and opened for business on November 1, 2001. The only problem we experienced was having a 36-foot Live Oak tree in the middle of the property.

The City of Orange Park requested that we try to save the old tree, which cost us about 60 days to redesign the carwash around. In hindsight, we are glad we did it because the live oak enhances the overall look of the facility.

Even with a few design changes, we actually came in right on budget. Our budget included 34 percent for land, 23 percent for buildings, 35 percent for equipment and eight percent for site improvements.

Survey says…

Of survey respondents to Professional Carwashing & Detailing’s 2001 Automatic Survey who currently operate in-bay automatic washes:

· 28.1 percent claimed to have built their washes from 1999 to 2001.

· As many responding in-bays were built between 1999 and 2001 as were built any time prior to 1989.

· Only 12.5 percent of operators claimed to have built their in-bays from 1996 to 1998.
 

RJR: Is your group happy with the investment?

ST: The first day we were opened, the in-bays did about 150 cars. We thought that was pretty significant given the fact that the landscaping and installation of one of the Laserwashes wasn’t completed.

Over 60 percent of our customers choose the premium services. Excluding our debt service, taxes and management fees, our operating costs are running at about 30 percent of sales revenue.

Total revenue is tracking in at about 70 percent of our initial estimates and we should achieve maturity volume in about another eight months.

Although it’s a little premature to tell, we also expect to start seeing our return on investment estimates realized in about another six months or so.

RJR: Would you describe what you believe have been your “keys” to success.

ST: We have a great traffic count, an excellent traffic pattern and we are on the driving-home side of a major six-lane highway.

We have a beautiful facility with great visibility. The wash is fairly easy to get in and out of. We strive to appeal to our female customers with nice landscaping, a great color scheme and a well groomed, well lighted, clean and maintained facility.

Although price was a factor we decided to purchase equipment based more on performance, dependability, service availability and quality.

RJR: If given the chance, what would you have done differently?

ST: We should have bought more combo vacuums and included some soda and water vendors, which would have been beneficial.

It is getting warmer and some customers have requested beverages. Of course, we are going to try and accommodate them.

Robert Roman is a former carwash and detail shop operator and is president of RJR Enterprises, a Clearwater, Fla-based company that provides professional advisory services to the carwash industry. Contact Robert via e-mail at roman427@gte.net or visit www.carwashplan.bigstep.com.
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