The typical conveyor-type automatic car wash operates on a lot ranging from 35,000 to 38,000 square

Car washes are either full service (i.e., fully automatic) or coin operated/self serve.  They may or may not sell gas and impulse merchandise.  Some include a convenience store and offer "oil/lube" services.  Some automatic car washes without full service conveyors also have self-service bays.
The primary factors in a car wash's success are location and the number of days open per year, both of which determine traffic count. hotels with honeymoon suite in virginia beach Obviously, unfavorable weather adversely impacts sales volume by effectively hotels with honeymoon suite in virginia beach forcing closure.
In 1989 there were approximately 22,000 car washes in the U.S., about 55% of which were full service.  Annual car wash volume is estimated hotels with honeymoon suite in virginia beach at $2.5 billion (including gasoline, which is sold by 70% of car washes).  The average car wash served 81,000 customers in 1989.  The industry employs 300,000 people hotels with honeymoon suite in virginia beach and spends an estimated $80 million hotels with honeymoon suite in virginia beach on equipment each year.  About 90% of car washes are owner-operated.  The investment in a car wash operation averages:
Dun Bradstreet's Industry Norms Key Business Ratios ( 1992-1993) surveyed 163 car washes, and the average car wash in 1992 had net sales of $470,538, gross profit of $278,558, and net profit after tax of $32,467.  Profitability figures show an average of 6.3% return on assets, 5.2% return on sales, and 10.2% return on net worth.
In 1996, 136 car washes were surveyed, and Dun Bradstreet's report showed the average car wash had $1,274,696 in net sales, gross profit of $712,555, and net profit after tax of $59,911.  Profitability figures show an average of 3.9% return on sales, return on assets of 9.4%, and 14.9% return on net worth.
The typical hotels with honeymoon suite in virginia beach conveyor-type automatic car wash operates hotels with honeymoon suite in virginia beach on a lot ranging from 35,000 to 38,000 square feet.  A 1989 survey of over 1,300 self serve car washes hotels with honeymoon suite in virginia beach reported that only 15% are on leased property.  Existing lease terms are an important consideration.
As noted above, this is an equipment-intense industry:  fixed assets hotels with honeymoon suite in virginia beach represent more than 60% of total assets.  Typical equipment includes conveyors (where applicable), tire brushes and chemical applicators, prep guns, forced hotels with honeymoon suite in virginia beach air dryer, various other brushes, arches (presoak, wash, and rinse), and an undercarriage washer.
The concept hotels with honeymoon suite in virginia beach of value appropriate hotels with honeymoon suite in virginia beach for a fully automatic car wash is going-concern value (the value existing in a proven property hotels with honeymoon suite in virginia beach operation).  According to Jeremy Hall in his article entitled, "Valuation of a Fully Automatic hotels with honeymoon suite in virginia beach Car Wash," in the October 1990 issue of The Appraisal Journal , such value represents the total of (1) the market value of the real estate, (2) the contributory value of the special-purpose improvements and other fixed assets, and (3) the business value.  These amounts can be estimated using the income capitalization approach.  For the component elements it may be appropriate to use capitalization rates which differ from the overall capitalization rate.  See also Section I, Chapter 5, "How to Value a Service Business."
Any valuation analysis hotels with honeymoon suite in virginia beach should be preceded by a comprehensive study of the neighborhood, an identification of the market, and a survey of similar car washes to measure the subject's performance.  The average monthly traffic count outside the facility is critical information.  In reviewing comparable sales, it should be noted that coupon usage (higher volume with lower average receipts per car) may skew the results.
Rules of Thumb may or may not be industry averages.  They are usually applied to sales in some form.  They result in an example of value for a business having that level of sales.  Please see Section II, Chapter 5, for a discussion of Rules of Thumb and their limitations.
The values of fixed assets are generally included in Rules of Thumb; however, they are sometimes added in separately.  Working Capital (e.g., cash, inventory, less payables), debt and real estate are many times not included.  These three are generally valued hotels with honeymoon suite in virginia beach separately and added to the formula value.  Intangible Assets hotels with honeymoon suite in virginia beach including goodwill and leasehold may be included, but normally only in Rules of Thumb based on earnings/cash flow.