It doesn’t matter if you’re looking to buy an existing business or build a new one, you simply need to know your competition. Before going too far in the search and selection process, it is necessary to carry out a systematic investigation of other nearby places. The first step is to pick up a local phone book and see what is listed in the yellow pages. However, please note that not all car washes will be included! Second, get a good local map and define an area where you will be doing your research. Start with a radius of about ten miles to do your research.
You will want to physically visit all the places you find in that area. Visit the big ones, the little ones, the old and the new ones and everything in between. Take with you a notebook, a camera and your map. You are going to take notes on the following items for each car wash you visit…
(Photos can be helpful, however, be careful and use common sense. Should I walk around someone’s business taking photos of everything? Probably not a good idea. It will probably annoy the owner and maybe cause a problem. Some photos taken subtly and legally are helpful, but be smart about it).
a) Take note of the number of bays per location and what style they are (hand wash, automatic, tunnel system, exterior rollover, etc.).
b) What is the general appearance of the place? Is it clean? Dirty? In bad shape? Brand new? Does it read wrong? Attractive?
c) Does a place offer other services beyond the washing itself?
d) Are vacuum cleaners provided? What type? They are in good condition?
e) Are there vending machines for cleaning products and/or snacks and soft drinks?
f) Consider the price of all services, including car wash options, vacuuming, detailing, hand washing, additional items and more.
g) If the business is located next to or with a gas station, note if there is a discount on the price of the car wash to buy a certain number of gallons of gasoline.
h) Note if there is an attendant, if the owner is on site, or if the car wash is totally unattended. If employees are available, what is their attitude? Are they nice?
i) Consider whether there are any services offered to customers free of charge, such as drying towels or an attendant spraying the wheels and running boards before washing, or a small plastic cover for the rear wiper, etc.
j) Consider the physical location of each car wash and the advantages and disadvantages of each from a customers point of view, such as ease of entry and exit, navigating the property, etc.
k) Note the number of cars in the stack and the time of day you observed the location.
l) Be sure to wash your car at some of these places as well, especially any full service places. Get in there and check them out!
Take good, consistent notes on all of these places and really look at the information you collect. Make a list of competitive prices, a list of services offered, and a list of what really stood out, for better or worse, about each place you visited. All of this information will be critical to you when preparing a business plan or purchase offer.