Self-Serve Construction Is All in the Planning
Know what to expect before the first brick is laid

By Sara Cooper

Who knew that combining Kevin Costner and an Iowa corn field could yield one of the most repeated movie phrases of our time: "If you build it, they will come."

While the seemingly sound advice of the mysterious wind whisperer did manage to bring forth some of the world's greatest baseball legends, it might have had a bit more difficulty with the average self-serve carwash customer.

Building a carwash is not enough. It needs to be built well. That means, first and foremost, making the right decisions in the planning process. How many ambitious entrepreneurs have launched into self-serve carwash construction believing the project would be a simple fix to their monetary woes? And how many were quick to find that without an understanding of site selection, building materials, financial commitment and city regulations, they were destined to be left with little more than a field of soured dreams.

Craig Eilers, western regional sales manager for the Jim Coleman Company in Yakima, Wash., spent the past 12 years operating five self-serve carwashes. In his more than 25 years in the carwash industry, he has seen a lot of carwash operations come and go. He hates to see operators who, failing to gain proper guidance, end up spending a year's time and $15,000 to $20,000 only to end up starting all over again because they didn't get the right advice.

Talking numbers

Concrete, when installed properly, will last 20 to 25 years.

The two top questions asked by a new self-serve carwash operator are, "What will it cost me, and what will I make?" Of course every carwash will vary in this area, depending on location, number of bays, price of land and numerous other variables. But knowing the highs and lows of the game will at least keep an operator from being pummeled by excess zeroes.

Bill Sartor, operator of Quality Car Wash, Inc. in San Antonio, Tex., says that while $50,000 per bay is the number that has been bantered around the industry for years, it hasn't quite cut it for the quality of facility he works toward. He says operators in today's market should consider spending $80,000 to $90,000 for a first-class facility that will be competitive with other washes.

Bob Ivory, owner and manager of five self-serve carwashes in Arizona and Utah, says a basic self-serve, consisting of six bays and an in-bay automatic, will cost around $600,000 plus the cost of land. This is averaging about $300,000 for the equipment and $300,000 for the building. Obviously including an in-bay automatic will alter the basic costs considerably.

Eilers points out that an operator can easily spend $15,000 to $20,000 just in the initial planning, before bids are confirmed and permits in place. For a four to five bay self-serve, he says operators are looking at a minimum of $500,000. For a quality eight-bay self-serve with two automatics, he says the costs can total between $1 million and $1.5 million.

Customers need an incentive to choose your wash over the competition, he says. Building an upscale facility is the way to provide that.

"I try to educate people in the initial stages to get into that frame of mind, and make sure they have the resources to approach it that way," he says.

Eilers recognizes that every operator will approach the business a little differently, depending on the ultimate goal and purpose of the wash. There are some operators who simply want a carwash that will pay off the property costs in a given time frame, allowing them to demolish the facility and lease out the land or resell it. For the most part, however, he comes across operators looking to build a high-end sight on a nice piece of property.

Those planning to operate in colder climates should add an additional 10 percent to the construction budget, Eilers says, for floor heat, doors on automatics, water-heating systems and other winterizing necessities.

There are a number of business-expense studies that prospective operators can obtain from consulting firms, equipment companies or trade associations when creating a construction budget. These groups can also help an operator determine how much profit to expect from each carwash venue such as vacuums, vending machines and self-serve bays.

Eilers says in the past year, he has seen several very successful carwash sites paid off in five to six years. On an average carwash site, he says operators can expect between eight and 10 years.

Sartor is hoping to have his most recent site paid off within seven years, but says it could be closer to eight or nine depending on the economy and interest rates.

Site selection

Building material options include brick, block, glazed CMU block and vinyl or fiberglass pre-fabricated wall sections.

Finding a carwash site in the right demographic area that is affordable and zoned properly can be a challenge. An operator needs to decide what area of town would be most accommodating to his customer base. Eilers suggests choosing a location that is near upper- to middle-income residential neighborhoods, preferably with condominiums or apartments close by. Typically it is these blue-collar workers who choose to use a self-serve carwash.

It is not necessarily in an operator's best interest to be positioned on the busiest street in the community. Medians and numerous traffic lanes can make it difficult for a customer to enter the wash. It is important, however, to have good exposure. Eilers says only about 25 to 30 percent of the motoring public uses self-serve carwashes. Building a carwash in an area where it will be noticed can help to attract some of the customers who never considered using a self-serve before.

Ivory looks for sites near convenience stores and gas stations. He feels visitors to these businesses are many of the same customers who will use a self-serve. Such businesses are usually placed on corners, which tend to be the most expensive locations, and generate a lot of traffic.

Eilers feels that if you are building a first-rate carwash, neighboring competition really shouldn't be a concern.

"I have never seen a problem with competition," he says. "The guys who often complain about it and are losing money usually have sites that aren't really kept up well."

One of the biggest mistakes a self-serve carwash operator can make is to skimp on land, Ivory says. Cities will often require a certain amount of stack room on the property. And the last thing an operator wants is traffic jams that frustrate customers who cannot adequately maneuver around the site.

Eilers suggests 5,000 square feet per bay as a rule of thumb. Operators looking to build from four to eight bays and one or two automatics are usually looking at a piece of land from 20,000 to 25,000 square feet on the low end, or 40,000 to 50,000 on the high end. They may have to purchase a larger piece of property, Eilers says, to keep the cost per square foot at a reasonable rate. They can then develop additional plans for the property, either adding a profit center to the carwash or leasing out part of the site to another business. A piece of property that is the right size and location for a carwash can be very expensive in today's market, Eilers adds.

Ivory typically looks for sites that are three-fourths of an acre, or about 30,000 square feet. His bays are 16-feet wide and 26-feet long.

Many operators feel including an in-bay automatic at a self-serve carwash is necessary considering the amount of money it now takes to build and operate a carwash. Eilers says a lot of people are now looking at adding two or three automatics to their three to four bays of self-serve. Locations with only one automatic limit themselves to an average of 60 to 70 automatic customers a day because of the slow speed of most machines. Many customers will not have the patience to wait in long lines for an automatic wash. An operator interested in adding extra in-bay automatics but not ready for the initial financial commitment can include the second and third units in the plans, and then add them as business builds. Eilers says operators who have chosen to include more than one automatic from the start have had startling results. Each automatic bay will bring in what three to four self-serve bays can, quickly justifying the higher initial investment, he says.

Building materials

Operators should provide customers with ample room to maneuver around the site.

When it comes to building materials, the primary concern is that they are both sturdy and aesthetically appealing. Operators have a variety of options, all with their pros and cons.

Working from the ground up, one of the first decisions that will need to be made is whether to pave the lot with concrete or asphalt. Eilers says both can make a site attractive, and costs vary by region. Concrete will usually last longer--20 to 25 years--if mixed and laid correctly. Asphalt typically needs to be overlaid every eight to 10 years. In northern climates, asphalt is most common, because it tends to be less expensive in these areas. Eilers says a site can still maintain an upscale appearance with asphalt, as long as it is sealed properly and kept clean.

Both brick and block are durable materials for the carwash building. Eilers says he has had good luck in the past with glazed CMU blocks, which are easy to keep clean. Because they can be expensive, a lot of operators will construct the wash bay walls out of this material, using more traditional materials for the wash's exterior.

Some companies are now working with vinyl or fiberglass pre-fabricated wall sections that are snapped together and filled with concrete. Eilers says this type of carwash is quick to erect, and provides for a durable, weather-resistant finish that requires cleaning about every six months. While the materials for this type of construction can be expensive, overall costs will be about the same as other options because of savings in labor.

Ivory prefers brick to block because he feels it provides a better image. The carwashes he most recently constructed in Phoenix were built using a combination of split-face block and smooth block. He hopes to use the glazed block in his next endeavor.

Eilers recommends that an operator travel to other carwash sites in his area to get an idea of what materials hold up best in the given climate.

Too many operators get into the self-serve business hoping to rush through planning and make a quick buck. Eilers can't emphasize enough the importance of researching the industry and talking to as many operators and equipment manufacturers as possible before making important construction decisions.

Sartor adds that operators should get competitive bids on everything, from equipment to architects. Well-planned construction is crucial to making a self-serve dream a reality.

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