List Categories | List All Articles | List Articles By Title
Mobile Car Wash Market Opportunities in California
The current lack of industry leaders represents an exceptional opportunity for a large and organized mobile car wash company to achieve regional domination and eventually dominate the Southern California carwash market. The best place to start a regional assault on this market would be to concentrate North and West of Los Angeles; Chatsworth and Simi Valley to Malibu and Tarzana to Santa Barbara. Once these relatively competition free markets are won Los Angeles, San Diego, Riverside and San Bernardino counties could be dominated by a steady city-by-city methodology. From there the company should include neighboring regions and Sun Belt States. By setting up each territory next to an existing territory, they will, brick by brick, build an impenetrable wall to ward off would-be competitors. Utilizing their satellite offices, they can build that wall rapidly by connecting each area. As this occurs, we will have achieved regional and eventually national name recognition and proceed to other long-term goals.
The Company attempting this would need to have satellite offices in three states in the West including operations in Las Vegas, Phoenix, Tucson and Reno. However the company must concentrate most of its efforts in Santa Barbara, Ventura and Los Angeles counties. California should be the mainstay, and rightfully so, with over 30 million registered vehicles. The other state operations would remain quite small but necessary to obtain a Federal Trademark status (interstate commerce is required) and to have a workable launching point for massive rapid roll out when the time comes. In California it would be important to dominate the markets in the following cities.
It is also recommended to have many other cities with operations even if only a few units and one manager stationed there. Although we have little or no competition in these cities, it would be too presumptuous to say that we dominate the areas:
Las Vegas, NV
When setting up crews in new territories, a marketing scout should fly over the city and look for large fleets of vehicles, big industrial centers and expensive residential areas. By initially securing large truck fleets, it will give the new operation a quick customer base. They should then look for retail centers close to expensive housing and offer their services to store owners as a convenience. While washing shopkeepers' cars, they would make contacts in the parking lot of shoppers and go to their homes to wash additional cars. The word of mouth would spread from there.
Market Size and Trends
California is very large and could presently support between 950-1998 units from San Diego to San Francisco. Eventually, as the idea catches on, there could be five times as many units. It has been our experience in many cities, that once this type of car wash becomes an accepted method, everyone will start using it, very similar to what happened with Domino's Pizza in the early 1980's. During the last recession, many small time operators have ceased business while only a few continued to expand. Overall overhead has come down in the industry in the following areas:
Cost of New Equipment
Advertising and Printing Costs
Paging and Dispatch Service
Although a mobile car wash company will experience a 20% drop in gross profits during the next reversionary economic period, a mobile car wash company's cost will drop 30%. For an average crew, that is only about 10-15% of their daily gross income, or $40-50 per day. During this time, the company would be advised to branch out in their advertising and marketing efforts on a much more grassroots level to compensate for any losses, by doing car wash fundraisers for non-profit organizations and schools. When the economy returns to California following the end of the next business cycle, the strategy of the mobile car wash company should be ready for a quick upward climb. California is home to some of the largest truck fleets in the world, including some of the following fleets:
Vons Grocery Chain (the largest truck fleet in the world, responsible for transporting their own product) - El Monte, CA
Ryder Transportation Systems (the world's largest truck rental and leasing corporation ) - Five Regional Offices in Southern California
California Highway Patrol (the largest public entity law enforcement fleet in the United States)
USPS (more mail jeeps than anywhere else in the country)
Federal Express (more vans in CA than anywhere else in the world)
Trucking Companies (300+ in the Los Angeles area alone)
Utility Related Companies, such as the telephone companies, gas companies, and cable franchises (50,000 + vehicles alone)
Although while in an economic recession, a mobile car wash operation has an advantage and can experience a phenomenal growth, more than tripling in size. As the economy in California improves after the future drop, so will sales revenues of each outlet, therefore providing the necessary cash flow to expand with the market. The mobile car wash sector leads the local economy by six months because it is dealing with the disposable income of their clients and the amount of cash in their pockets at any given time. As that amount of money increases so does their willingness to spend it. Since the average basic car wash is around $10.00, people are more apt to buy such services when they have less money available than a $200 microwave. As their pocket money (disposable play money) increases they will more freely spend that money; this increases the operational units kill ratio from 40% to 60% to 80%. (Kill ratio = number of people out of ten when asked, choose to get their car washed, 4 out of 10 = 40%.).
Any company considering rolling our a mobile car wash nationwide service needs to be thinking here and looking at the weather and love of cars in California as a starting point.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
Procrastinate Your Way To A Successful Small Business
What will your business look like a year from today?If you're like most small business owners, you have many things to do and not enough time to do them. Can't you just ignore them and procrastinate your way to success?Not likely.
Incorporating a Small Business: S corporations versus C corporations
If you've been considering incorporating your small business, you've probably been confused about the difference between S and C corporations.The similarities between S and C corporations are as follows:1.
Can Your Business Run Without You?
What would happen if you decided to take an extended vacation? Would you still have the same business results when you returned?I met a business owner recently who told me an interesting story. His business was 15 years old and he had approximately 50 employees.
Mattress Cleaning Business: How To Manual
A Mattress Cleaning Business might be just for you if you have tried everything to contain your allergies, but feel like it is not enough. Instead of just purchasing the equipment to rid your fabric furniture and mattresses of allergens, you can also help others in your community to feel the relief and make a good income at the same time.
Over Disclosure Hurts Businesses
Many investors and business ethics professionals are calling for more transparency and regulators are calling for more disclosure. Yet in the franchising industry this can spell disaster indeed.
SBAs 8(a) Program Can Help Some Companies Compete
Q: A friend told me that as a woman of Native American descent I might be eligible for a special SBA program that will help me start a small business. He said I could compete for government contracts through this program.
How To Build Business Credit
Having their own business is something many millions of people dream of doing. Many do, of course, but so many others never quite get around to it.
Looking for a Business to Run in the New Revitalized Downtown Area?
Looking for a place to add a Quick Lube away from your Super Wal-Mart Competitor? Down Town Revitalization, Why You Should Be Part of Such a Committee.A study showed that within the next five years 20% of LOF- Lube, Oil and Filter Independent Owners said they had plans on adding one or more facilities.
Beginning an Internship Program
CONSIDERATIONS FOR YOUR INTERN: Specify the number of hours the intern will be needed each week. Will specific hours be adhered to, or will the schedule be more flexible? Applicants want to know up front what they will be paid, if anything.
Buying a Franchise
Buying a franchise is not for everyone. This guide will help you evaluate whether buying a franchise is right for you.
Pressure Washing Graders and Tractor Motors
When pressure washing heavy equipment each piece of equipment has a slightly different procedure to ensure efficiency. When a pressure washing company is bidding such jobs by the piece of equipment instead of the hour, they must be cognizant of this so they can maximize profits.
Look Out for that Great Accountant
There are many factors to be considered when you are trying to select the accountant who is right for you. In other words how to find that good one.
Debit and ATM Card Advice for Small Businesses
Your business account comes with an ATM, Debit card. Pick a really secret pin number.
Real World Accounting for Small Business Owners
If you're like me, you love accounting. It's so fascinating and such an ingenious system.
But Weve Always Done It This Way
Sacred cows take a long time to die. We get comfortable in the way we do things and lose sight of how they could be improved.
To Buy Or Not To Buy: Lawn Mowing Business
TRUTH IN THE LAWN MOWING INDUSTRYWe do not wish to slander any company or person but instead share information that is of value to each and every one! Most people who enter this industry will be effected by one of the following and we see fit to share with you what we know and have seen.Buying Into A FranchiseOk buy into a franchise, spend 25 thousand.
What Happened to the Money and Freedom?
Ask anyone trapped in a cubical about their entrepreneurial dream and they will tell you, "I want to own my own business. I'll make more and have more time.
Building Marketing Momentum For Your Small Business
The success of your business depends on your ability to build marketing momentum. Without the ability to generate new sources of leads your capacity to sell will slump and the growth of your business will stagnate or shrink.
Analyzing Customers in Your Business Plan
The Customer Analysis section of the business plan assesses the customer segments that the company serves. In it, the company must 1) identify its target customers, 2) convey the needs of these customers, and 3) show how its products and services satisfy these needs.
Start a Technical Writing Service
Technical writing services are employed to explain the details of a topic in a way that is easily understood by the readers. In todays information age, technical writing jobs are increasingly common.
home | site map
All articles are copyright to their owners.
Note: this website lists articles, We do not Write Articles !