What are our thoughts on the Pennsylvania Mobile Washing Market?

From: Lance (Economic Regional Report Service Sector)
Remote Name: 66.82.48.1
Date: 10 Jan 2004
Time: 21:55:36

Comments

We have been recently asked while traveling through this part of the country as we huddle to stay warm during this weather: What are our thoughts on the Pennsylvania Mobile Washing Market? Obviously we see Philly and Pittsburgh as great markets and we see the harsh weather that comes with the North West Quadrant of the state. So what about North East and Central PA excluding the larger markets for a Mobile Washing Business what are our thoughts? I would like to first mention Northeast PA; we have been through and surveyed the Greater Scranton area and the Pocono's. We can see a business working there is significant economic expansion for a good up cycle in the future. http://www.parthe.net/_cwg0703/00000013.htm and http://www.parthe.net/_cwg0703/00000012.htm . We also some growth in Allentown - Bethlehem area finally. Lots of new stuff there. There are suburb area popping up with good middle class areas, shopping centers and new homes. These areas are good for Yuppie - personal car wash services. Regarding the Central area East towards Philly. We see lots of potential and possibly a single owner franchise encompasses four dozen townships and five or six large cities for instance: York, Lancaster, Harrisburg, Reading, Gettysburg. We would need to of course set up one area with first rights to purchase additional areas as needed at reduced fees as expansion takes place. One way to do this is to grant the rights for Truck Washing throughout the intended area, since the fleet washing customers are large enough to afford the travel through the various townships and cities and vast distances on two-lane roads with significant traffic. While concentrating the car washing on the larger towns listed above. All those areas are quite good and with an established reputation or with the synergies of the other cleaning business already there, we have a great opportunity to get in the door and offer the same customers more services. http://www.ewashguy.com . As most know it is much easier to sell the same customer more things than to find new ones. What is good; is our business model does both. Through the synergies of current customers, retention of that customer base and referrals into the other services from the washing of an item everyone already owns, "A CAR." We have had significant insight into the Pennsylvania area in the past: http://www.carwashguys.com/groff.shtml and http://www.carwashguys.com/prussia.shtml . We are watching the Philadelphia area suburbs filling up the areas in between Lancaster and Philly. There are many small fleets in that area as well in the smaller towns, each one seems to be known for something with an industry or groups of businesses which have supported it. Each one of the smaller townships is of value to the power washing of plants and equipment side of things along with the fleets in those towns. The key is the travel times and scheduling and sales. We presume we would need a person familiar with all the areas mentioned, I personally have come to really like Pennsylvania for it's diversity of industries and small town Americana atmosphere. It seems like almost the last real American state full of small business. We feel for the many companies in niche and large manufacturing which have gone out of business there in this region and entire Northeast and Central Area. Although I see some much brighter pastures in 2004 and the slow paying Corporations will soon be posting real profits and not the money they are holding that they owe small companies for services already rendered. It is a giant shell game when things get tough and everyone is trying to stay afloat, especially credit tapped old industry and questionably viable industries in PA which are running redline against foreign competition. As the economy rebounds this business model is a good business in that the customers, both corporate and personal really desire the services. We see much business in environmental friendly washing due to the stringent PA NPDES permits and EPA issues with water runoff from the cattle farms and dairies in the region. We see good business also in clean outs of trucks hauling produce, etc. there as well. The garbage business also tends to be a good customer, although the work similar to cleaning Cement Trucks is not all that fun. http://www.truckwashguy.com/pricing.shtml So many things to wash in the area there. It would be important to develop a good plan of attack to see it through. It is doable, with a careful adherence to details so we stay will need to stay efficient. And certainly we can put a lot of people to work. Which to me seems like a good idea, because as we heard from a few people there, the natives are getting restless, there is a drug problem and a few Neo-Nazi groups forming, which is certainly not very good for the State at all. It would be best for all concerned to put PA back to work ASAP. I see a continuation of manufacturing jobs leaving the area unfortunately and more retail and service economy developing. The holdouts, I have to applaud them, there are some diehards in PA, real tough group of folks. They really believe in something and that is rare in America. The large family owned businesses go back many generations and it shows in the finished products. Car Wash Guys and the Wash Guys Team would like to assist PA in finding these jobs for people who still believe in productivity. And for those jobs we give to the state, we will also be producing much desired, wanted and relevant services to the customer. Done correctly, It is all good. PA has always been thought of as the home to modern management and Yes, I am related to Fredrick Winslow Taylor, his mom Anne Winslow is in my family tree. With that said efficiency due to spread out markets is crucial. We do not think, we will want to start the business there in Mid April, unless we attain additional immediate customers wanting and desiring services. Then if so then we will probably talk about that type of cleaning need for those customers first and build the initial stage of the roll out plan around that guaranteed piece of cash flow that we at that point will anticipate servicing. We need to custom tailor our business model to fit the needs of those original customers, which are prompting us to make an earlier investment into that regional market. After all it has to work and temporarily providing jobs for a future disaster is not a very safe or smart way to go nor would it serve the job growth or economic development of the central PA area. We have also configured a strategy in our Car Wash Guys Business Model: We can do a split Territory. For instance the franchisees in the area could be divided and those franchises would be based in PA, but in the Winter the washing units would go down to FL. Or the franchisees might have two trucks and take one down and leave one for fleet work in winter with a local manager. Or these franchisees may have many trucks and leave one or two up in the Winter. Or a truck unit and a trailer unit, take one half year. Something of this nature appears to be a good plan of attack also and regionalizes and maximizes equipment. After all our customer are definitely mobile, our cleaning trucks are mobile and even our HQ is mobile: http://www.carwashguys.com/blitz.html So why not have the whole franchised business be portable? We have been developing this modular model franchise by studying other businesses and military operations around the world. So we can do this and may as well service the people where they are? What part of Florida are we talking about? Well how about The Fort Myers/Naples side, Tampa Bay Area Suburbs or the Boca/Miami Suburb side (even realizing the problems in Miami area now)? How about the Keys? How large of a territory in PA have we contemplated? Well as many of you know we are thinking about all of it. We see Central PA and have sent he problems there and the type of manufacturing they are involved with and know they have had a tough go of it lately; energy costs, lay offs, over seas competition and un-level playing field abroad, etc. I feel for the state after touring through this summer and seeing the issues there. In studying manufacturing and efficiencies we have become quite fascinated by the modern methods of manufacturing, in that the efficiencies and theories can easily be applied to the service industry when the workload is set into known routes and grids on a map. Thus a finite capacity scheduling model can be of great importance when applied indirectly to completing the operations associated with washing. http://www.carwashguys.com/finite.pdf In any case we see Central PA as a go and we feel we must move ahead and we can certainly continue to keep all options open as we line up the ducks to rock and roll. And study the business model and regions to see if this might be apropos to service customer desire to build such a business. Our business model is not right for every one. We must pick a special team to go into Central PA. We see that Central PA Economic Development Associations plan on making 2004 their best year in the last 5. We are with you, and we will soon be assisting you in cleaning anything the fine folks in Pennsylvania need. Any questions on winning markets anywhere in the country, email me; Lance@carwashguys.com

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