![]() ![]() It may be the case that you have an error in your math, or you need to revisit and further sensitize your underlying projection assumptions. If your downside / conservative pro-forma does not realistically have a considerable margin of error in comparison to your ongoing simple total maintenance and “keep-the-lights-on” costs – please don’t take this lightly. So when considering building a car wash, go to your downside case that you have built pro-forma projections for, extract the effective ticket price (make sure to keep anticipated unlimited membership pricing and expected volume attribution and not just use a simple and dangerous weighted average single wash ticket, along with your anticipated downside annual car count volumes, and figure out what level of safety and margin and error from this scenario you have in comparison to that of the ongoing maintenance costs and debt service costs given the total build cost you are expecting now after using this guide. ![]() As with anything, or at least we’re believers in this, it’s always safest to hope for the best, but plan for the worst. We highly recommend being heavily focused on a single measure and metric of potential operating and financial performance when considering the potential payout and financial prudence (not to mention the site, path to build, etc.) when building a wash – your breakeven annual car count. an alternative route of acquiring or not). However, hopefully the above analysis does provide a meaningful starting point and bounds for estimating how much you should anticipate spending to construct and build the car wash you considering making a reality.Īlthough we’ll certainly have some pieces and materials coming out more specifically on this topic, the CWA team would like to leave you with one final thought and suggestion for those considering building a new car wash (regardless of whether or not deciding between building vs.
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