| |
| |
|
Small Business Information |
|
|
|
Mobile Car Wash Market Opportunities in California
The current lack of industry leaders represents an exceptional opportunity for a large and organized mobile car wash company to achieve regional domination and eventually dominate the Southern California carwash market. The best place to start a regional assault on this market would be to concentrate North and West of Los Angeles; Chatsworth and Simi Valley to Malibu and Tarzana to Santa Barbara. Once these relatively competition free markets are won Los Angeles, San Diego, Riverside and San Bernardino counties could be dominated by a steady city-by-city methodology. From there the company should include neighboring regions and Sun Belt States. By setting up each territory next to an existing territory, they will, brick by brick, build an impenetrable wall to ward off would-be competitors. Utilizing their satellite offices, they can build that wall rapidly by connecting each area. As this occurs, we will have achieved regional and eventually national name recognition and proceed to other long-term goals. Market Description The Company attempting this would need to have satellite offices in three states in the West including operations in Las Vegas, Phoenix, Tucson and Reno. However the company must concentrate most of its efforts in Santa Barbara, Ventura and Los Angeles counties. California should be the mainstay, and rightfully so, with over 30 million registered vehicles. The other state operations would remain quite small but necessary to obtain a Federal Trademark status (interstate commerce is required) and to have a workable launching point for massive rapid roll out when the time comes. In California it would be important to dominate the markets in the following cities. Goleta Santa Barbara Ventura Oxnard Camarillo Thousand Oaks Westlake Agoura Calabasas Malibu Simi Valley Chatsworth Woodland Hills Tarzana Valencia Encino It is also recommended to have many other cities with operations even if only a few units and one manager stationed there. Although we have little or no competition in these cities, it would be too presumptuous to say that we dominate the areas: Van Nuys Riverside San Diego Phoenix Tucson Reno, NV Las Vegas, NV When setting up crews in new territories, a marketing scout should fly over the city and look for large fleets of vehicles, big industrial centers and expensive residential areas. By initially securing large truck fleets, it will give the new operation a quick customer base. They should then look for retail centers close to expensive housing and offer their services to store owners as a convenience. While washing shopkeepers' cars, they would make contacts in the parking lot of shoppers and go to their homes to wash additional cars. The word of mouth would spread from there. Market Size and Trends California is very large and could presently support between 950-1998 units from San Diego to San Francisco. Eventually, as the idea catches on, there could be five times as many units. It has been our experience in many cities, that once this type of car wash becomes an accepted method, everyone will start using it, very similar to what happened with Domino's Pizza in the early 1980's. During the last recession, many small time operators have ceased business while only a few continued to expand. Overall overhead has come down in the industry in the following areas: Labor Cost of New Equipment Supplies Advertising and Printing Costs Paging and Dispatch Service Linen Service Although a mobile car wash company will experience a 20% drop in gross profits during the next reversionary economic period, a mobile car wash company's cost will drop 30%. For an average crew, that is only about 10-15% of their daily gross income, or $40-50 per day. During this time, the company would be advised to branch out in their advertising and marketing efforts on a much more grassroots level to compensate for any losses, by doing car wash fundraisers for non-profit organizations and schools. When the economy returns to California following the end of the next business cycle, the strategy of the mobile car wash company should be ready for a quick upward climb. California is home to some of the largest truck fleets in the world, including some of the following fleets: Vons Grocery Chain (the largest truck fleet in the world, responsible for transporting their own product) - El Monte, CA Ryder Transportation Systems (the world's largest truck rental and leasing corporation ) - Five Regional Offices in Southern California California Highway Patrol (the largest public entity law enforcement fleet in the United States) USPS (more mail jeeps than anywhere else in the country) Federal Express (more vans in CA than anywhere else in the world) Trucking Companies (300+ in the Los Angeles area alone) Utility Related Companies, such as the telephone companies, gas companies, and cable franchises (50,000 + vehicles alone) Although while in an economic recession, a mobile car wash operation has an advantage and can experience a phenomenal growth, more than tripling in size. As the economy in California improves after the future drop, so will sales revenues of each outlet, therefore providing the necessary cash flow to expand with the market. The mobile car wash sector leads the local economy by six months because it is dealing with the disposable income of their clients and the amount of cash in their pockets at any given time. As that amount of money increases so does their willingness to spend it. Since the average basic car wash is around $10.00, people are more apt to buy such services when they have less money available than a $200 microwave. As their pocket money (disposable play money) increases they will more freely spend that money; this increases the operational units kill ratio from 40% to 60% to 80%. (Kill ratio = number of people out of ten when asked, choose to get their car washed, 4 out of 10 = 40%.). Any company considering rolling our a mobile car wash nationwide service needs to be thinking here and looking at the weather and love of cars in California as a starting point. "Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
MORE RESOURCES:
Small-Business - Google News |
|
|
|
RELATED ARTICLES
Cabinet Refacing Business Opportunities With all the cabinet refacing business opportunities out there, you could have a home based business that grows in this expanding industry. You've wanted your own kitchen updated, or talked to friends and family who have put out thousands of dollars remodeling theirs. Small Business Savvy: Reaching Key Big Business Decision Makers As a solo entrepreneur or small business owner, one of our key challenges can be reaching key decision makers in larger companies. Getting to the right person who can seal the deal can be a frustrating experience, especially if you don't have a game plan. What is your Motto? Company mottos can easily be printed on a business card.Sometimes you wonder if a company motto is remembered by anyone in the company. Carwash Manual Sample Outline Car wash businesses are unique to other businesses. In fact they are about as unique as the many different type of vehicles one is asked to wash. Entrepreneur to Employer You make the decision to go into business and for some time work from home or in leased premises and your business starts to grow.Like all businesses you experience growing pains. Book Yourself Solid Key #5: Go Forward With Gusto & Articulate What You Do Want your small business to flip instead of flop?! Statistically half of the entrepreneurs reading this will be out of business in three short years. Establishing a long standing, profitable and successful business absolutely depends on your ability to convey a clear message. Franchising Industry Burdened in Over Regulation There were only an estimated 1800 active franchisors in this country at the end of 2002, that number down from 6000 in a single decade. It is not hard from this effort to increase regulations to see why. Getting Behind in Your Work? You Need a Virtual Assistant! If you don't know what a Virtual Assistant (or VA) is, don't worry. I only came across the term myself about a year ago. Are You Ready to Own and Operate a Business? How often has someone thought of starting a business based solely on the fact they think it will be easier than working for someone else. Fact is, owning and operating a business can be one of the most grueling experiences you will have. If You Want To Be Remembered... Send handwritten notes. That applies whether you're a guy or a gal. What Happened to the Money and Freedom? Ask anyone trapped in a cubical about their entrepreneurial dream and they will tell you, "I want to own my own business. I'll make more and have more time. Is It Recess Yet?! Confessions of a Self Employed Workaholic I have a confession to make. My name is Caroline and I'm a workaholic. Are You a Small Business Casualty? When a person knows and knows not that he knows. Teach him. Mobile Pressure Washing and City Contracts Many mobile pressure-washing companies turn to government contacts to make money. It is very easy to acquire such municipal contracts for cleaning, as the government needs some cleaning up. Government Does Not Pay Its Bills on Time Many small companies work very hard to get new accounts. Occasionally they try to get government contracts to supply products or services. The Greatest Challenges the Internet Consultant Faces! While there are few career paths that some would call perfect, being a consultant comes pretty close to having it all. Yet while it is one of the best ways to earn a living, there are challenges and pitfalls that are sometimes overwhelming and unexpected. Modern Clear Coats, Auto Detailers and visit to Lexus of North America We visited Lexus USA, home of the Lexus North America Head Quarters to help us better understand the latest innovations in automotive clear coast. As professional auto detailers we must know our customers cars and finishes. Where to Find a Cash Windfall of $10,000 to $1,000,000 -- You Never Knew You Had There is a rather famous true story called "Acres of Diamonds".It is about a successful farmer who risks everything searching the African continent for diamonds. Increase Productivity and Business Success - Take Responsibility Are you responsible for your results?What comes to mind when I say that?When you hear that you're totally responsible for the results you produce in your business and in your life---you might jump to a conclusion. You may think that I'm suggesting that you should take the blame for your results. Small Business Marketing - How Important Are Your First Words? "What do you do?" It just might be one of the most asked questions there is, at least here in America.Are you prepared to answer this question and make a positive impression for your business at various networking (and social) events you attend?How about this one.
|
| home | site map |
| © 2006 |
