25 Questions You Should Ask Your Equipment Supplier

Wouldn’t buying or building a carwash be so much simpler if the industry were standardized with a code of ethics for all manufacturers and suppliers? The accounting, legal and architectural trades have standards; why shouldn’t the carwash industry?

In any business endeavor, you need a starting point, a way to interview and evaluate potential providers. In the sales arena, we call this the “address period,” a time to get to know the business partner, explain your needs, and understand what each of you brings to the table. This is necessary to receive logical and complete answers to your inquiries. You want to make decisions based on fact!

Enter your address period prepared, with an interview plan and an assessment of the carwash project, including your goals, financial commitment, a description of the facility you envision, and the level of involvement you expect from your vendor. Preplanning is critical to a successful meeting. Use the SWOT (strengths, weaknesses, opportunities and threats) approach to evaluate your competitors as well as yourself.

The following 25 sets of questions should assist you in the process:

Initial Interview

1. Tell me about your business. How many years have you been in the industry? Who are your company’s principals? What is their experience in carwashing? Do they own and operate washes? If so, how many and what kind? Why did they make the decision to be (or not be) in the business? How do I benefit from their decision?

2. What other suppliers do you represent and why? How can they offer me a competitive advantage? Who are their key accounts? How long have they been in business? What support do you receive from them that will benefit my business?

3. If I choose you as my provider, what tools or assistance will I receive in terms of design, consultation with engineers/ architects, representation to government boards, and meeting with lawyers and other team members? What success have you had in these areas? Would you demonstrate and validate your statements? Is there a cost involved with this service? If so, what is it?

4. How do I do business with you? What are the terms and conditions of sale? Are there deposits, refunds, payments or guarantees? Will you provide financial references? Will you provide vendor and/or primary bank relationships?

5. Who are your customers? How do you serve them? What references can you provide?

6. What is the normal timeline for equipment manufacture? What about delivery and installation?

7. What are my responsibilities in terms of equipment and installation? What are yours? Do you have a list that clearly delineates both? Will you acknowledge and include this as part of our agreement?

8. What will you do in terms of site review, financial projections and recommendations for which type and method of wash to build? Do you offer various systems? What are the advantages and disadvantages of each, mechanically and financially?

9. What do you feel is the best approach to my market and why? Are there sites similar to mine and, if so, have they met stated projections? Do their owners feel they have met expectations? Why or why not?

Create Your Wash

Assuming you get through the address and interview stage and are comfortable with the answers you receive, the next step is to begin creating your carwash: segment type(s), where it will be located, how big, how costly, what kind of return you desire and a timeline.

10. How would you lay out my property and why? What would you project the total cost to be?

11. I have been told that “highest and best use” is the mantra for all real estate investments. Does the facility I am proposing meet that requirement? Will the projected income support the investment?

12. You have suggested a certain approach to my market. How competitive will I be? What threats could affect my business? What opportunities might there be?