Investor Overview

Thank you for your interest in Action CarWash, Inc. We are very proud that you have contacted us regarding the equipment which we manufacture, or the other fine products and services we represent.

Our company has been in the carwash industry as suppliers and operators for over thirty years. We have helped hundreds of people over the years fulfill their goals as profitable carwash operators or investors. We look forward to assisting you with the many different aspects of your project; from the site analysis, design, and construction, through installation, marketing, and service.

We hope our experience and the enclosed information will be of great use to you in getting started with the development of your carwash. One of our representatives will be contacting you in a few days to answer any additional questions you may have and to make an appointment to visit with you regarding your site selection and it's viability as a profitable investment for you.

Please feel free to contact us at (770) 246-9075 any time you might have a question regarding your project or car washing needs.

 

The most important ingredient in the success of self-service carwash is the equipment. Equipment that is out of order, or does not perform to the customer's satisfaction, means loss of revenues. In other words, "the wash equipment pays the bills." Buying the best equipment available will help insure your investment and the profitability of your wash. In today's world, you are busy enough as it is without having to constantly worry about your wash equipment.

We, at Action, have been self-service carwash operators and suppliers for over sixty-five years. Over these many years, we have seen and help develop many changes in our industry. As operators ourselves, we demand the highest quality and reliability out of wash equipment before we offer it to you, the investor/operator. We are constantly field-testing components to insure their reliability, and systems for their service and ease of maintenance.

Action CarWash, Inc. is proud to offer the PERFORMA CARWASH SERIES.

The PERFORMA CARWASH SERIES was built with two main objectives:

        a. To be absolutely the best built carwash system possible.
            We use only the best materials and components available.
        b. To be the easiest system to service and maintain.
            Even the pump motors have quick disconnects for faster and safer replacement.

The PERFORMA CARWASH SERIES offers the latest proven technologies to the new investor, or to the veteran operator who wishes to upgrade his existing wash system. We use stainless steel for the construction of all tanks, frames, and manifolds. The PERFORMA CARWASH SERIES comes with a U.L. listed motor control center to satisfy the strictest compliance of the National Electric Code, and your local inspectors.

The PERFORMA CARWASH SERIES covers the full range of self-service car washing. With our modular design, we offer standard systems for one to eight bays, which can be expanded to fit any wash requirements.

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There are many different variables to consider in your building design, such as the number of bays and whether or not you incorporate an automatic wash into the facility. The most important factors to consider are traffic flow and maneuverability, in that your customers should be able to easily access all the services you offer without any obstruction or hindrance to other customers.

We recommend the use of brick construction rather than block or steel for ease of maintenance. The majority of new washes use an aluminum beam roof structure with pained aluminum decking for reduced maintenance.

The average construction cost per self-service bay is around twenty thousand dollars, and can go to around thirty-five thousand, depending on the desired architectural design. Automatic bays start at around fifty thousand dollars building cost.

The normal cost for building a six bay self-service is around one hundred fifty thousand dollars, excluding grading, land, and equipment cost.

The more successful washes usually have a more esthetically inviting design and promote a modern image of cleanliness and functionality.

Lighting of the facility is very important. Bright lights convey a sense of security to the public and say that you are always open for business.

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Operators and sales people will agree that location is very important in the success of a carwash, or many other businesses as well. An investor should take considerable time to study the market area in which they are looking to build, and compare the various benefits and expenses associated with each prospective site.

There are several factors to consider in the site selection process, and we will discuss a few more critical items here. We have included a sixteen-point self-service site analysis form for you to use in grading each of the prospective sites you may be considering.

The first step in site selection should be to determine the most favorable market area in which to build. Most cities and towns have several trading areas or markets within or surrounding them. These markets are usually serving their local neighborhoods and are economically influenced. There are many market areas where only the people who live in the area do the trading. There are other markets where people living in all surrounding areas will trade or conduct business. Developing a carwash in the areas where everyone trades has the possibility of establishing a larger customer base and higher revenues.

Most communities in the United States founded in the 1700 to 1800's were developed with the majority of their industry and service type businesses located to the south and east. This allowed for the wealthy members of the community to build and live west and north, or upwind of the industries and stockyards they had built. Over the decades, areas west and north of the community are the areas that have typically seen the most residential and new retail development. These communities generally continue to grow and develop, as well as maintain or increase their property values. These may be assets for you in the future as well.

The cost of land is of course a determining factor in site selection. Land prices seem to be climbing faster than the annual rate of inflation. However, what appears to be expensive today may be a bargain compared to what prices may be tomorrow. Land costs for most carwash sites will vary from a low of $15,000 per bay to a high of approximately $30,000 per self-serve bay. When the market and site accommodate the addition of an automatic wash bay, an additional $150,000 in land cost may be justified.

Other items to check before making an offer to purchase property are zoning, water, and sewer service to the property, and building setback requirements that may consume too much area and not allow the facility to be as large as originally planned.

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The revenues generated for a carwash vary as greatly as the operators who own them and the geographical region in which they are located. National surveys have reflected average gross revenue of approximately $305.00/bay per week. Vacuums are a great source of additional income averaging approximately $45.00 per week. Vending has been another revenue generator for many carwashes, generating an average of $108.00 per week.

In-bay automatic washes at many locations can generate considerable revenue. National average income for in-bay automatics are approximately $1,288.00 per week, and can make a location that is large enough for maybe a six bay self-service wash generate the revenue comparable to a nine or ten bay wash on the smaller property.

The greatest factor in generating revenue, however, is satisfying the customer. Keep in mind that the main reason the customer visits a carwash is to get a clean car. Wet cars are not always clean cars!!! Customers will drive miles out of their way, passing many competing washes, to get to the operator who satisfies their needs. The customer is looking for a facility that they are confident will provide the consistent cleaning results they require and the extra services and conveniences they desire.

The old saying "You must first give in order to receive" truly applies to the carwash business. The carwash operators who use these business philosophies usually exceed the national average for revenue.

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Most self-service carwash operating expenses generally run about 40% of the gross revenue generated by the wash. This leaves approximately 60% for return on investment, or payment of debt service. Of course, this amount varies with region, location, and operator. One area of variation in expense due to region will involve the utilities, such as water, sewer, electricity, and fuel (natural or propane gas for water heating).

Labor expense will vary the greatest from site to site, depending on the business volume and whether or not personnel will be hired on a full- or part-time basis. Carwashes that include self-serve and automatic bays and are generating over $150,000 gross revenue should consider hiring a full time employee if the owner is an absentee operator.

Many operators will try to cut operating expenses to improve profits, such as using cheaper soap that foams more, but cleans less. Of course you must manage your business and track costs; however, you should never cut expenses that also cut performance. Cuts of this nature may see short-term gains in profit, with even larger long-term losses in the near future.

The following gives an example of expenses that may be incurred.

 

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Service

We at Action CarWash, Inc. believe that service to our customers sets us and our distributors apart from the competition. Our sales agents are available via telephone to answer your chemical supply questions.  Whether next day air delivery of parts,  chemicals, or an on site chemical evaluation, we are always there for you.

We have trained sales representatives on call seven days a week to assist you in whatever need you may have regarding your wash.

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