Mitigating the Risks of Investing in a New Car Wash
A car wash can provide a high return on your investment if you do it right. However, that does not mean you should run in blindly and end up losing your investment. Here are four essential tips to help you reduce the risks of investing in a competitive industry.
#1 Learn What You Can About the Industry
You would not invest in Bitcoin without first learning how cryptocurrency works. While the car wash industry is far less volatile, you still want to do your research ahead of time. For example, what type of car wash is most likely to produce a high ROI (spoiler alert – it is an express exterior wash)? You also want to know about land costs, zoning, traffic that will pass the prospective wash location, and the like. All of this adds up to having a better idea of the costs and returns that exist.
#2 Spend More Time in the Planning Stages
Before you buy land, you may want to try a feasibility study. You need to think about the type of car wash that will be fitting for the vehicles in the area you plan to build. You want to consider environmental factors, both for legal reasons as well as for the conscience of your clients. Will someone go to a different wash across town because they have a better water reclamation system or safer cleaning agents? It is crucial not only to know the industry in general but also your prospective customers in the local area
#3 Discovering Your Car Wash’s Competitive Edge
What is going to make your car wash different from any that already exist in this particular area? Can you wash cars faster and handle a higher volume of traffic on busy days? Is it contact-free and therefore safer during the pandemic and moving forward? Do you have a cheap option for someone who doesn’t want to pay for a fancy wash? Are there some free perks, perhaps the vacuums? Free mat cleaners? Free dash wipes and towels? Your location will be crucial, but there has to be more if you are going to stay competitive. What if another car wash moves in right across the road? Will you be able to maintain your edge?
#4 Don’t Be Afraid to Spend for Success
As with any investment, it takes money to make money. Do not skimp on modern equipment, the right property, or your car wash marketing. You do not want to be right on the cusp of success but never quite get there because you wanted to pinch some pennies at the beginning.
Car Wash Pro Designers can help. From our turn-key car wash designs to our decades of experience, we can help you to make a success of your car wash venture.