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