Perhaps you have heard that the most important factor in setting up your car wash business is your car wash location. Indeed, your car wash location can spell out your success in the car wash business. Deciding on this very important detail in your business plan will have a big effect on the profitability of your business. A busy intersection is one location you could consider. A small town’s commercial strip with a daily traffic count of more than 25,000 can also be profitable. However, among the US states, which states would allow your business to expand and gain advantage over your competitors in 2015? Read on and find out.
Pick a Car Wash Location Where There Are Cars, Cars, and More Cars!
Since you are planning to put up a car wash business or a car wash franchise, you definitely have to market it in an area where there are lots of cars to wash. The National Automobile Dealers Association listed the states that make up the $730.1 billion total sales in the US based on New Car and Truck Dealers for the year 2013. This data tells you to highly consider the following states: California with the highest percentage at $87.0B total sales; Texas at $70.8B total sales, Florida at $51.5B total sales, and New York at $41.9B total sales.
Consider the Traffic Count of Your Prospective Car Wash Location
The general traffic count could be another important consideration in gauging the car wash profitability of a certain state. The US Department of Transportation ranked the states in the North Central and West areas to be the highest traveled at 59.6% and 58.3 % respectively. North Central states include Minnesota, Indiana, Kansas, and North Dakota, while the West area has states like California and Arizona.
Is the Tax System Efficient in Your Prospective Car Wash Location?
Your car wash business location would also have to deal with the tax advantages and disadvantages of a certain location. Although income taxes vary from state to state, you can still review their tax rates in general. As such, states with the best implemented tax systems could be a better option. States with the best state tax systems for small and large business according to Small Business Entrepreneurship Council include Nevada, South Dakota, Texas, Wyoming and Washington. This report index was prepared in 2014.
Check Out the Car Wash Location Demographics
Furthermore, when deciding on the best car wash location, you need to look at demographics. Car wash profitability is most likely assured when your car wash site is near shopping areas and densely populated residential areas. States with the highest urban population are very advantageous to your car wash sales. According to the US Census Bureau 2012 Report, you can consider California (LA, Long Beach, Anaheim) which is densely populated at 7,000 people per square mile. Also consider New York (Newark) and New Jersey areas with 5,319 people per square mile.
Never Forget to Look at Operational Costs in Your Prospective Car Wash Location
Your car wash profitability will be derived from your gross sales deducted by your operational costs. Thus, choosing a location within a state with the lowest utility costs, rental costs and labor costs etc. can be beneficial for your sales. Forbes.com lists Arizona, North and South Carolina as the best states when considering rental costs. Channel Company also notes that in terms of labor costs, the best place to go would be North Dakota, Missouri, Nebraska, Louisiana and Oklahoma among others. On the other hand, National Geographic lists Colorado with the lowest electric and energy charges while Hawaii has the highest rates for the same utilities. Forbes.com also tagged Texas (Dallas and Houston) with the highest utility bill rates while Alabama and Mississippi remain as having the lowest utility rate charges.
Consider the Weather Factors in Your Prospective Car Wash Location
According to the US Census Bureau in Jan 2014, winter season is set as the strongest season of the year for car wash businesses based on percent sales tagged at 32% while the rest of the seasons are tagged at 18-25%. With this as a vital indicator of car wash profitability, we should consider Alaska, New York, North Dakota, Minnesota and Arizona, where snowfall rates are the highest, as the best location choice. Syracuse and Rochester in NY has 26% percent days with snow from 2000-2010 according to a US news reporting website, the dailybeast.com, while Buffalo comes second which is also in the same state. Imagine how the high snowfall rate could boost your business in these mentioned states.
Other Factors to be Considered in Your Prospective Car Wash Location
As in all business ventures, you always have to take into account trends. Your car wash location can also benefit from forecasted business trends from business magazines and legitimate car wash and automobile associations. You can also analyze the population’s attitude towards their cars. Is the population more inclined to use public transport rather than their own cars? Do people’s homes have vast garage spaces where they can wash and clean their cars? Do homeowners prefer bringing their cars to commercial car washes? These are some more questions you should look into when making your state location choice.
The car wash business offers a lot of opportunities this 2015; you just need to make sure you are doing your fair share of location planning. True, picking out a state location for your car wash business alone can be nerve wracking. And to think, you have not even gotten down to the city, street and other choices yet. If you think you are destined to become a car wash entrepreneur but would rather not depend on location for profit, consider an eco-friendly car wash franchise with DetailXPerts in a location where your car wash profitability is assured.
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