| The current lack of industry leaders | | | | type of car wash becomes an accepted method, |
| represents an exceptional opportunity for a | | | | everyone will start using it, very similar to |
| large and organized mobile car wash company | | | | what happened with Domino's Pizza in the |
| to achieve regional domination and eventually | | | | early 1980's. During the last recession, |
| dominate the Southern California carwash | | | | many small time operators have ceased |
| market. The best place to start a regional | | | | business while only a few continued to |
| assault on this market would be to | | | | expand. Overall overhead has come down in |
| concentrate North and West of Los Angeles; | | | | the industry in the following areas:LaborCost |
| Chatsworth and Simi Valley to Malibu and | | | | of New EquipmentSuppliesAdvertising and |
| Tarzana to Santa Barbara. Once these | | | | Printing CostsPaging and Dispatch |
| relatively competition free markets are won | | | | ServiceLinen ServiceAlthough a mobile car |
| Los Angeles, San Diego, Riverside and San | | | | wash company will experience a 20% drop in |
| Bernardino counties could be dominated by a | | | | gross profits during the next reversionary |
| steady city-by-city methodology. From there | | | | economic period, a mobile car wash company's |
| the company should include neighboring | | | | cost will drop 30%. For an average crew, |
| regions and Sun Belt States. By setting up | | | | that is only about 10-15% of their daily |
| each territory next to an existing territory, | | | | gross income, or $40-50 per day. During this |
| they will, brick by brick, build an | | | | time, the company would be advised to branch |
| impenetrable wall to ward off would-be | | | | out in their advertising and marketing |
| competitors. Utilizing their satellite | | | | efforts on a much more grassroots level to |
| offices, they can build that wall rapidly by | | | | compensate for any losses, by doing car wash |
| connecting each area. As this occurs, we | | | | fundraisers for non-profit organizations and |
| will have achieved regional and eventually | | | | schools. When the economy returns to |
| national name recognition and proceed to | | | | California following the end of the next |
| other long-term goals.Market DescriptionThe | | | | business cycle, the strategy of the mobile |
| Company attempting this would need to have | | | | car wash company should be ready for a quick |
| satellite offices in three states in the West | | | | upward climb. California is home to some of |
| including operations in Las Vegas, Phoenix, | | | | the largest truck fleets in the world, |
| Tucson and Reno. However the company must | | | | including some of the following fleets:Vons |
| concentrate most of its efforts in Santa | | | | Grocery Chain (the largest truck fleet in the |
| Barbara, Ventura and Los Angeles counties. | | | | world, responsible for transporting their own |
| California should be the mainstay, and | | | | product) - El Monte, CARyder Transportation |
| rightfully so, with over 30 million | | | | Systems (the world's largest truck rental and |
| registered vehicles. The other state | | | | leasing corporation ) - Five Regional Offices |
| operations would remain quite small but | | | | in Southern CaliforniaCalifornia Highway |
| necessary to obtain a Federal Trademark | | | | Patrol (the largest public entity law |
| status (interstate commerce is required) and | | | | enforcement fleet in the United States)USPS |
| to have a workable launching point for | | | | (more mail jeeps than anywhere else in the |
| massive rapid roll out when the time comes. | | | | country)Federal Express (more vans in CA than |
| In California it would be important to | | | | anywhere else in the world)Trucking |
| dominate the markets in the following | | | | Companies (300+ in the Los Angeles area |
| cities.GoletaSanta | | | | alone)Utility Related Companies, such as the |
| BarbaraVenturaOxnardCamarilloThousand | | | | telephone companies, gas companies, and cable |
| OaksWestlakeAgouraCalabasasMalibuSimi | | | | franchises (50,000 + vehicles alone)Although |
| ValleyChatsworthWoodland | | | | while in an economic recession, a mobile car |
| HillsTarzanaValenciaEncinoIt is also | | | | wash operation has an advantage and can |
| recommended to have many other cities with | | | | experience a phenomenal growth, more than |
| operations even if only a few units and one | | | | tripling in size. As the economy in |
| manager stationed there. Although we have | | | | California improves after the future drop, so |
| little or no competition in these cities, it | | | | will sales revenues of each outlet, therefore |
| would be too presumptuous to say that we | | | | providing the necessary cash flow to expand |
| dominate the areas:Van NuysRiversideSan | | | | with the market. The mobile car wash sector |
| DiegoPhoenixTucsonReno, NVLas Vegas, NVWhen | | | | leads the local economy by six months because |
| setting up crews in new territories, a | | | | it is dealing with the disposable income of |
| marketing scout should fly over the city and | | | | their clients and the amount of cash in their |
| look for large fleets of vehicles, big | | | | pockets at any given time. As that amount of |
| industrial centers and expensive residential | | | | money increases so does their willingness to |
| areas. By initially securing large truck | | | | spend it. Since the average basic car wash |
| fleets, it will give the new operation a | | | | is around $10.00, people are more apt to buy |
| quick customer base. They should then look | | | | such services when they have less money |
| for retail centers close to expensive housing | | | | available than a $200 microwave. As their |
| and offer their services to store owners as a | | | | pocket money (disposable play money) |
| convenience. While washing shopkeepers' | | | | increases they will more freely spend that |
| cars, they would make contacts in the parking | | | | money; this increases the operational units |
| lot of shoppers and go to their homes to wash | | | | kill ratio from 40% to 60% to 80%. (Kill |
| additional cars. The word of mouth would | | | | ratio = number of people out of ten when |
| spread from there.Market Size and | | | | asked, choose to get their car washed, 4 out |
| TrendsCalifornia is very large and could | | | | of 10 = 40%.).Any company considering rolling |
| presently support between 950-1998 units from | | | | our a mobile car wash nationwide service |
| San Diego to San Francisco. Eventually, as | | | | needs to be thinking here and looking at the |
| the idea catches on, there could be five | | | | weather and love of cars in California as a |
| times as many units. It has been our | | | | starting point. |
| experience in many cities, that once this | | | | |