W05 Business Plan 1-3 Final Revision
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Brigham Young University, Idaho *
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475
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Industrial Engineering
Date
Dec 6, 2023
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docx
Pages
6
Uploaded by SargentWaterBuffaloPerson1152
Company Name: Elite Finish Car Wash
Gage Jones, Tanner Oberhansley, Brigham Montez, and Jared Hale
IV. Section 1: Industry
A.
Industry Definition -
The car wash and auto detailing industry has the duty of cleaning,
Waxing, and washing vehicles (trucks, cars, trailers, vans). This industry relies on
Discretionary spending and can depend on the income of households.
1.
Size
According to jbs industries, the Car Wash and Auto Detailing industry is valued at $34.19 billion
in 2019. According to ibis world, the average number of employees a car wash employs is about
4 people. According to carwash.org, in the United States, there are about 29,000 in-bay
(automatic) car washes, over 17,000 conveyor washes, over 16,000 self-service washes for a
total of almost 63,000 car washes in each segment across the United States.
2.
Growth
The pandemic had a large impact on all businesses and the car wash industry was one of them.
According to Grand View Research, Womlpy performed a test showing that the average weekly
revenue of washes had dropped 48%. These drops in revenue have recovered since the
restrictions and scares of the pandemic have gone away for many states. According to jbs
industries, the global car wash industry is predicted to have an annual growth rate of 3.2% from
now until 2025 reaching about $41 billion by 2025. This 3.2% growth rate is just above the
annual growth rate of the economy in the United States which is at 3.13%. This steady growth
shows this industry is established and can stand the ups and downs the market faces. The car
wash industry is also growing at a larger rate than the economy which is promising. The
International Car Wash Association (ICA) has shown that the number of consumers that are
washing their cars at home has shrunk to 24.8% and the number of customers who prefer to go
to a car wash grew to 71.6%. People are moving from washing their cars at home to washing
their car at a facility more and more every day. Elite Finish Car Wash is looking to set up in the
Boise, Idaho area.
3.
Major Players
The top 5 major players in the car wash industry include Driven Brands valued at $4.73 billion
with an annual revenue at $1.88 billion for this last year. Tommy’s Express Car Wash does $11.9
million in annual revenue and has franchise deals for people to invest capital into opening new
locations around the country. Splash Car Wash does around $5 million in annual revenue per
year. Splash car wash does around $4.8 million in annual revenue. Quick Quack Car Wash does
about $170 million in annual revenue. The top 3 major conveyor belt car washes in our industry
by number of locations is Mister Car Wash with 430 locations doing $0.85 billion in annual
revenue. Driven Brands Car Wash with 387 locations and an annual revenue of $1.88 billion.
Zips Car Wash with 279 locations and $4.8 million in annual revenue. According to IBIS World, in
2021 the top four companies in the industry produced less than 10% of the industries revenue.
This means much of the market share in this industry is open. There are no major players who
own much of the market share in this space which is a good sign. Much of the revenue in this
industry is from small-scale operators. These larger franchises listed above are growing quickly,
they will begin to control more of the market in the next 10-20 years. Starting in this industry
now, when there are no major players controlling the market share is the time to start.
4.
Trends
The major trends in the car wash industry are automation and new technology creating more
efficient and thorough washes are prominent in the industry. Technology making the experience
quicker and more thorough saves the customer time and provides them with a better wash.
Many car washes have adopted membership programs that keeps customers coming to the
same car wash and has them pay a monthly premium keeping them as a guaranteed customer.
According to jbs industries, sonar technology is emerging in the car wash industry where
technology senses the car and adjusts the equipment to wash that car on the conveyor belt
based on size and shape of the vehicle. These are the different keys to success in the car wash
industry according to jbs industries. According to IBIS World, the number of cars on the road will
increase by 1.6% over the next five years which will increase the number of customers needing
a wash. Grand View Research has researched that 70% of car owners have switched to
automated facilities over the last ten years. JBS Industries claims this is due to lack of time,
water waste, or not having the tools. With better technology, our equipment will do more with
less. This will allow us to use less water, and less product on the vehicles while still producing a
pristine wash for the customer.
B. Segments (Automated Conveyor Belt Segment)
Elite Finish Car Wash will be operating in the automated conveyor belt segment of the car wash
industry. This car wash will be in the Boise/Meridian area of Idaho.
Size - The size of the car washing market in Boise Idaho is bigger than normal because of the
lack of public transportation. According to John Stevens, a broker at TOK Commercial Real Estate
(local business). “We’re a car-heavy economy here,” Stevens said. “We don’t have public
transportation options that have any sort of volume, and there’s a lot of cars per capita here,
and we’re in our cars quite a bit.” Another factor contributing to the size of the market is the
weather in the Treasure Valley area. Since it is in a valley of mountains, they get a ton of snow
and mud that causes dirtier road conditions. And according to multiple sources the most active
time for the car wash industry is the wintertime. According to the DMV of Idaho, there are just
over 10,000 registered vehicles in Boise Idaho. Given that 77% of people have moved to
automated car washes over the years, this leaves almost 8,000 potential customers that will
need their car washed.
Major Players - One major player in Boise Idaho is BlueBird Express. BlueBird does nearly $5
million in annual revenue. Between Boise and Meridian, BlueBird car wash has 4 locations. The
other major player in Boise is Mister Car Wash. Mister Car Wash has about 400 locations
nationwide with only 3 of them being in Boise Idaho. With these two being the only “Major
Players” in the area, there is opportunity in this segment in Boise Idaho.
Trends - According to Boise Dev, Boise is a heavy car economy. The people are in their cars often
due to no public forms of transportation. In the winter, drivers are dealing with snow and mud.
In the summer, drivers are dealing with dust and bugs. This leaves customers needing washes
throughout the whole year. This is where car wash memberships become promising. Customers
can wash their cars anytime with the membership. Memberships provide guaranteed revenue
every month.
Growth- According to IBIS World, the car wash industry in the state of Idaho is growing by over
2.5% with revenue growth at 11.3%. BlueBird has announced three more locations that will be
built in the future in and around Boise. BlueBird sees an opportunity in the automated car wash
segment in this area. According to Boise Dev, the car wash industry is growing rapidly in
Treasure Valley. This boom of car washes in the area is due to the weather being snowy/muddy
in the winter and dusty in the summers. Creates steady revenue streams from customers when
there is a need for a regular car wash. Combine this with the concentration of cars in an area
makes for promising opportunities for growth.
V. Section 2: Opportunity
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A.
Opportunity - see Business Plans That Work pg. 70
1.
Customers
Our customers are anyone owning a motor vehicle, this makes our customer base almost never
ending! A hurdle we face with our consumers is the vast number of options they have available
to them. Here we have put together plans to drive in traffic and give them the customer service
experience that makes them stay. There are new housing developments being built off Ten Mile
Rd. This adds more Consumer traffic to our business in addition to the Walmart and Costco on
that road. According to Research shows 55% of Americans prefer in-bay automatic car washes.
Also, we know 2/3s of Americans wash their cars 13 times a year. With this in mind we find it a
good practice to offer a subscription program that will make it set amount a month for
unlimited washes. We know consumers prefer convenience which is why we think the location
in Meridian is ideal.
2.
Competitors
With the benefit of our consumer base being practically never ending, so is the competition in
the market. It’s like every other street corner you see a carwash. Therefore, we found it
extremely important to pick our location precisely to be a high traffic easily accessible location.
Another competitor to our business is simply the people who don’t wash their cars or have
supplies to wash it themselves at home. We decided to locate our car wash in Meridian, Idaho.
There is a location on the street 10-mile road in which there is a Walmart and Costco with a car
wash nearby. The only competitors are a block away in a different shopping center that over the
last couple of years looks to be phasing out with the new Costco opening further down the
road.
VI. Section 3: Company & Product Description
A.
Company & Product Description - see Business Plans That Work pg. 80
1.
Company description
At Elite Finish Car Wash, in the Meridian, Idaho location, you will have the opportunity to pay
for different car wash services that will make your car look the way you want it to. You will get
an automated service that will take care of your car and give you the service that you paid for.
This will work by having employees give your car a quick clean and rinse before you go through
the automated section of the wash. After getting out of the car wash you will have the
opportunity to vacuum out your car and pump up your tires.
2.
Product Description
We will have state of the art equipment and technology to make the experience of getting a car
wash fun and worthwhile. You will have the opportunity to pay for your car wash with auto-pay
machines before entering the car wash. Whilst in the car wash, you will have the newest and
best equipment to make sure your car gets the cleaning that it deserves. You will pull your car
on a belt that will move you through the car wash experience. It is going to be enclosed to make
sure that you can have a car wash year-round. Once finishing your car wash you get a chance to
use heavy duty vacuums that will clean the inside of your car. After all that, there is an air pump
that you can take care of your tires before exiting the car wash.
3.
Competitive Advantage
Our competitive advantage in this industry is that we will be a new car wash with the
newest equipment and technology to make our car wash more functional. Also being new to
the industry we will offer special deals to try our hardest to attract more customers. Our prices
will be around the industry average so we make sure that we are making enough money to
breakeven but aren’t overpricing those who use our car wash. We will also make our brand
something that will stick out compared to all the other car washes that are in the area.
4.
Entry Strategy
Our entry strategy is going to be offering special deals to attract more customers right off the
batso that we make sure we are staying afloat at first. We will also be putting more money into
marketing at first to get our business recognized around the community. Realizing that we are in
a competitive industry we know we are going to have to do a lot to make sure we stand out
quickly from the start.
5.
Growth Strategy
After having our first car wash in operation and seeing the success we want, there will be
opportunities for growth. Firstly, we would look at regions that are large enough to make
revenue and have a need for a car wash. We will also find areas, mainly in the Meridian/Boise
area, that don’t have as much competition in the area so our car wash is the one that is being
used.
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