A Project Is Expected To Create Operating Cash Flows Of Designing A Carwash Building For Southern China

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Designing A Carwash Building For Southern China

When it comes to functional design in business, it takes a lot more than a college design student or a superstar design architect – you need that too, but mostly you need someone with a hell of a lot of industry experience, someone who understands the flow of the business model, the difficulties and how to achieve process efficiency. It doesn’t matter if it’s retail, restaurants or service industries. So let me use an example here in my case study; car wash building for the southern China market.

First, space and real estate are hard to come by, and they command a rather expensive price, whether it’s buying or renting. However, if property values ​​are expected to rise, owning real estate may also be wise. If land is expensive, you have to build it, but when was the last time you saw a two-story car wash in the US? Well, forget that we have to design something new from scratch for now because China is a completely different world in that regard.

The main problems of the South China market:

1. Limited space

2. High real estate costs

3. Smaller vehicles and more of them

4. Rapid inflation of real estate values ​​- you may have to sell

5. Automotive sector – there is no real recognition of the brand among car service centers

Okay, let’s talk, shall we? If you can compete on quality and price in a car wash, detail center (1-bay) and oil change (1-bay), then you have three places. Can you go up? I mean double-deckers, I mean cars in China, “some” of them are lighter vehicles; Vehicles the size of BYD Motors, Tata Motors, right? So car detailing upstairs, washing downstairs, oil change upstairs, used oil drains easily into small tank down stairs, office downstairs. Take a look at “Markline Modular Green Buildings” with a series of two-story office buildings, as an example to help you better visualize what I’m talking about here.

So if real estate values ​​keep rising in southern China and you’re going to have to move your facility, you’ll need it modularized so you can pick it up and move it quickly. You also need to be able to start a car wash quickly to start making money quickly and get a solid return on investment (ROI) because land costs are so high. Income Property Analytics noted in Landon M. Scott’s May 21, 2011 article, “China’s Property Activity Stalls,” that property values ​​temporarily fell, then saw them rise again the following year.

Therefore, it would make sense to create a strategy to leverage real estate investment within the business model of car service and car washes. Perhaps the entire building could be prefabricated, basically the size of 6 shipping containers, three wide, two tall. Your quality can garner brand recognition, attract the best workforce and bring you rich business through word of mouth, but rapidly increasing the number of units you need to regionally dominate the market is not so easy. The place is huge; South China is a huge potential market, and there are so many cars. So, the ability to navigate in space and grow quickly are important.

Focus on building the building with one important thing in mind; efficiency. You can make the exterior of the building or the facade whatever you and your team of architects imagine. Return to efficiency; always remember that in this type of service business is “time” not “work” and if you can create a large efficient mini-assembly line, go fast, with an inspection person at the end of the line, maybe selling more expensive prices for more services upstairs, you could increase revenues, but you can’t “force the sale” and also create strong brand loyalty because it has to be a soft sell for people to feel that it’s their choice, therefore, reinforced, therefore, they feel good about spending hard earned money with you.

A semi-automatic laundry with a manual internal wash makes sense for what you’re suggesting. But I can show you that it is possible to wash, soap and dry a small vehicle in less than 3 minutes with one person, all by hand, not including the interior, and that’s just as fast than most 60 seconds to 90 – second automatic wash if you include the drying time – plus, you don’t have to buy equipment and move it when you resell your property and make quick real estate deals. Why not solve all the challenges and take advantage of all the opportunities in your building design? Please consider all this and think about it.

References:

1. YouTube video; “Genesis Delivers BP/ARCO Car Wash to Victorville, CA.”

2. Wash Trends Magazine, Spring 2008; “The Wonders of Modularity – Today’s modular car wash buildings can do wonders for your bottom line,” by Sydney Petty

3. “For New Balance, a surprise: Chinese partner turned rival Gabriel Kahn, Wall Street Journal, December 19, 2002. Focusing on Business Licensing Challenges, Especially in Southern China

4. Bloomberg, May 1, 2012; “Poor Chinese developers fuel commercial real estate deals.”

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