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Mobile Car Wash Market Opportunities in California

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




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