Floating a Car Related Business Idea

[willtel]

One I used to belong to outside of Atlanta.

- Car Storage Club In Alpharetta GA - Race Cars, Street Cars and Show Cars

[onewhippedpuppy]

Originally Posted by Rot 911

Matt, I know it is a bit different, but have you checked out the guy that is part of the Carriage Houses on the KCWS board?

No Kurt, I'm not familiar with that. Any more info?

Thanks for all the input so far guys. I think the biggest question in my mind is price sensitivity, which is very localized. I need to talk with some local guys that I know have the means to see what their input is.

Just to be clear, what I'm thinking isn't a huge operation. No stacking cars vertically, no huge fancy finished suites, just a clean, secure, climate controlled place to keep your car, do moderate wrenching, and socialize with other car guys. Something like what willtell posted but with half walls. Wichita is a pretty laid back place, hell I don't think we even have a restaurant with valet parking, so some of the more high dollar operations probably wouldn't work here. I know guys parking six figure cars inside of shared garage spaces and paying a few hundred per month to their buddy who owns the space. The spaces are so shared that they have to leave their key, as their car might be blocking in someone else. THAT is the situation that I could improve on. Real estate is cheap here, guys that want a fancy full on man cave will just buy some property.

I am fully aware that insurance and environmental considerations would need to be investigated first and foremost. I need to talk with a friend that does commercial real estate development, from my construction experience I don't think a metal building in Wichita is anywhere near $120/sq ft, and I would likely do much of the interior work finish myself. I envision the walls as being 5' or so like a backyard fence, free-standing walls are easy to build and would allow me to use common lighting and HVAC for the entire place. It would be tall enough to be generally secure, but also foster a neighborhood social feel. CO issues had crossed my mind, but putting the small round exhaust valves on the exterior (connect to tailpipe) in each spot might be a solution. This is just an idea right now, and if I ever pulled the trigger it would be on a small scale, say 20 spots tops. I'm thinking cool side gig, not full-time million dollar investment.

[JavaBrewer]

Originally Posted by onewhippedpuppy

I am fully aware that insurance and environmental considerations would need to be investigated first and foremost. I need to talk with a friend that does commercial real estate development, from my construction experience I don't think a metal building in Wichita is anywhere near $120/sq ft, and I would likely do much of the interior work finish myself. I envision the walls as being 5' or so like a backyard fence, free-standing walls are easy to build and would allow me to use common lighting and HVAC for the entire place. It would be tall enough to be generally secure, but also foster a neighborhood social feel. CO issues had crossed my mind, but putting the small round exhaust valves on the exterior (connect to tailpipe) in each spot might be a solution. This is just an idea right now, and if I ever pulled the trigger it would be on a small scale, say 20 spots tops. I'm thinking cool side gig, not full-time million dollar investment.

Yeah I think your first order of business would be to investigate the $$ amount to buy the land, pull the permits (guessing lots of them), and hire the grading/concrete/building/elec contractors to build it.

Just poking around FS industrial space this looks like it would be a great start at $80 sq/ft ready to go. EDIT - $500/month sounds pretty pricey to me. I would want alot more than a clean place to store my car and access a lift. YMMV.

6650 N. Broadway, Park City, KS 67219 - Industrial For Sale on Cityfeet.com

This is sorta related to my thread a couple years back about building my own home. Turns out it was far far cheaper to start with an existing home and renovate. Cool thread Matt!

[onewhippedpuppy]

I had the same thought regarding build vs buy. My only concern is that a purchased commercial building might have far more content than I would need. This would really just be a glorified garage or barn.

[Bill Douglas]

Great idea. You could also include "secure" space for motorbikes and a persons own junk by buying some shipping containers and having them as a lockup inside your building.

[clearwaterms]

I live in Chicago, if you look outside of major metro areas there are alot of places that offer storage for around $50 a month. Limited access (or no unsupervised access) basically you put the car in the facility, you put a cover on it, pull the battery off, it is climate controlled and kept clean. It isn't private, the cars are kept under covers, and they might have wireless cameras, etc. You don't need a 12x20 spot for a sports car, etc.
SUMMER CAR STORAGE/$ 40 MONTHLY/INDOOR/DRY/CLEAN
RATES

As an owner, If, I want to put my car away for an extended period of time. If I had to pay $300 to store it, I could finance the building of a second garage on my own property for less (providing I was allowed from a code standpoint. Additionally, if I had the garage space, I could put a lift in for significantly less.

If you had a warehouse might I suggest looking at fork lifted store space where you can stack the cars vertically. This would dramatically increase the usable space and make your costs go way down. An owner would need to pay extra for in/out service. But you could "pallet" the cars so the owner could lock the car, etc. and then he could watch the fork lift driver place the car on it's storage spot, and the owner takes the keys with him. People do this for boat storage all the time.



So if it were me, I would look to see if there was a way we could build a steel pallet that you could park and strap a car to, then use a fork-lift to "park" and retrieve the cars for the customers.

The ideas of lifts and club house's and such like that are all great ideas, and I know it is done today at country club race tracks. Places like Autobahn country club provides its members with the opportunity to build a building on the property that they can configure however they want providing they don't live there full time. I would imagine that it would be possible for several members to split the cost on one of these pieces of property and build a building that could be used for storage, repair, etc.

[rusnak]

Your first step is not investigating the costs, the insurance, the location, etc.

Your first step should be to talk to your customers. Since you don't actually have the product, you will have to spend more time talking to them and finding out what they would pay and amenities that they will pay money for.

You are trying to find out if there is a consensus. That would form a market.

I would not lend money for someone's hobby either. I would lend money as an investment for a sound business. If you don't know your customers, it'll be obvious. What amenities do they want, and how much will they pay? That is where the difference between an idea and an opportunity exists.

[onewhippedpuppy]

Totally agree. While not local, you guys are representative of my target market. If you said that I was a moron then it would have given me serious pause. I have plenty of local folks that I can speak with, guys who have the interest and the means. It's not a near term thing either, I wouldn't be in the position to act on it for a while. Just an idea that's been bouncing around my head for a while.

[rusnak]

Just from the seat of my pants, I think you should look for median HH incomes of over $80K, and at least 60% White, and the most important thing is education. You want over half in your 1 mile radius to have at least some college education. Education determines income and HOW YOU SPEND YOUR MONEY more than race or income level. How much to charge? I think honestly $500 membership fee is total Taj Mahal, Cable TV, clubhouse, sofas, and a way to do something power related, like a drag strip or dyno, or something. But then, you'd be needing a few hundred members too. Maybe you can charge a sign up fee, like a grand or something. And make it a yearly contract..

[sc_rufctr]

Originally Posted by Z-man

As stated, insurance should bne investigated before anything.

Environmental contingencies also need to be looked into -- what happens if there is an oil spill and it seeps into the groud around the area? With a four-post lift, folks are going to be draining fluids, and you will need to have a plan in place to capture the oil/transmission lube/antifreeze...etc. Regarding that 4-post lift - you may want to require training and certification to be able to operate it - too many accidents have occurred with the improper positioning of a car on a lift.

For security, and fire containment, I would replace the half-walls with floor to ceiling corregated metal walls. If I am storing a high-end exotic vehicle in your facility, I prefer not to have others able to view my car.

Will you have provisions for storge of other items? I would think workshop tools are ok - but storing vast amounts of paper or volitile fluids such as paints can be a recipie for trouble.

Venting - proper ventilation should be a high priority -- don't want your customers to be overcome with CO fumes...

Interesting concept that I have discussed with my fellow PCA members as well...

-Z-man.

There's some good advice here.

I like your idea but I'm more concerned about safety than anything else. If a careless halfwit did something stupid and the whole deal could go up in flames.

[Baz]

FYI: I kept Tangerine in her own storage unit for a couple years. No climate control but secure, out of the weather, plus an outlet nearby to plug in my battery tender. I think the cost was just under $100/mo.



I also rented at the same location a 12' x 30' unit with bay doors on each end, electrical outlet, and lighting for $200/mo. and kept my 914 on one side of it and my irrigation trailer on the other. Plus other stuff piled up around the sides.

No climate control nor 4 post lift nor grill but suited my needs at the time being.

I've since brought everything to my home. And Tangerine was sold a couple years back, unfortunately.

Good luck with your venture - I know there's a market for what you have envisioned!

[Baz]

The 914 in her end of the 12' x 30' storage unit....

[daepp]

One thought would be add lots of very visible cameras to your plans.

Another, re: socializing, add a byob/big screen common area that could also be reserved at a price to watch big sporting events.

Also, I know a lot of guys who have golf course membership fees of $1,000 to $1,200 per month, and that includes no golf and no meals. I can't afford that kinda monthly spend, but it sure makes $300/mo. seem reasonable.

[aigel]

No way would I have a common area / social aspect unless you are up for a horse boarding type drama.

I would have 24h access, secure storage, fully enclosed in an upscale building. Meaning nice floors, good lighting. No work allowed. Offer a jump start and air pressure cart. This will keep cost and overall liability low. You should look at $300 / mo and do the math.

Generally I'd run this as a storage facility. Use the same techniques for move in specials, rent contracts etc. I would also want to see a family member run the place - not a manager you hire.

G

[motion]

Jeez, I had no idea there was that kind of money in Kansas. $500 is pretty rich. I rent a single car, indoor heated space in Montana and store 6 motorcycles there for $50 a month. Rich car guys are going to be kinda cheap, right? I mean, isn't that the persona? I think you need to keep it at $200 a month max. I doubt I would spring that kind of coin, and I have a bunch of rental spaces for various stuff. My outdoor storage space for an F150 is $50 a month. Used to be $35.

[aigel]

I am with Motion. Maybe even $300 is too much. I haven't rented something in a while but even in CA a few years ago a garage in a storage center was $120/mo. Granted, no outlet for a battery tender and not air conditioned.

In a place with plenty of space like KS, wouldn't guys just add a garage stall or two? $500/mo will easily build a $50k addition.

G

[motion]

Originally Posted by aigel

In a place with plenty of space like KS, wouldn't guys just add a garage stall or two? $500/mo will easily build a $50k addition.

G

That's the key. Kansas isn't NYC or San Francisco.

[McLovin]

Yeah, I'm surprised you could get that kind of money, esp. in the midwest.

I'd never pay even $150/month to store a car. That's $1,800 a year. And $200-$250, yikes! $3,000/yr just to store a car? Seems rich to me.

But $500 month / $6,000 year just to store a car, that seems really, really high.

[motion]

Hell, you can rent a 3/2 house with a 2 car garage in SW Albuquerque for not much more than $500 a month. Now that's a party!

[Shaun @ Tru6]

Originally Posted by motion

Jeez, I had no idea there was that kind of money in Kansas.

That's why I'm planning this out in NYC...Brooklyn, with a car service to get you from the City, and back again after you've had your day of fun.