According to the international car wash association, the car wash business is a big industry! More than 2 billion cars are washed in a year. You need a location, capital, a steady water supply, brush, detergent, etc., to set up a car wash company.
Car owners treat their cars as pets, giving them all the needed services. The cars have to be cleaned more often to prevent rust and corrosion.
Starting a Car Wash Business: What You Really Need?
A car wash business can be profitable for people with perseverance and smartness. With the right location and top-notch service, one can draw many customers who need their cars washed quickly. But it also requires good planning and finance to do a profitable business!
Consider your Capital
Once ready to start, check if you’ve raised sufficient capital! If you’re not, consider a partnership with other investors. And, keep in mind to form a strategic business plan for annual revenue.
Conduct Market Research
It’s important to see how other car wash businesses run their operations. Market research involves visiting as many set-up stores as possible. The essence is to know the kind of equipment they use, etc. You can also learn about their prices and tricks to attract customers.
Pay attention to other businesses in the area. If a car wash has a high number of customers, what factors contribute to it. Is the car wash located in a busy shopping mall or highway? Learn from both the success and failures of such a car wash business.
Get a location
The location you choose will determine if you’ll succeed or not. Don’t choose a location base on your view or convenience; the site should be viewed based on your customers. A good location should be close to a busy street, shopping mall, a residential area and can be easily accessible.
You can locate some popular fuel stations willing to give space for hire. Transporters patronizing these filling stations will be your first customers.
Get a permit from the Authorities.
You’ll surely need a permit for your car wash business. Find out the department in charge of this and, apply for a license, get your Taxpayer Identification Number too. Take time to understand information on water usage and sanitary sewer.
The authorities won’t make trouble if the drainage and gutters can handle the sewage. Getting all documents ready will make you ready to face the authorities.
Constant Water Supply
Make sure there’s a steady supply of water. Options could be to dig a well or a borehole. Ensure that there’s a steady power supply also. Keep the borehole or well clean since customers wouldn’t like it very dirty.
Get the Essential Equipment
Consider the type of car wash options and decide the equipment to buy. Some notable tools are;
- A tank to store water in case of scarcity
- Detergents that are favorable to car painting layer
- Generator to supply power to the equipment and lighting
- A car washing machine, if it’s within your reach
- Towels., brushes, mop, and buckets
Types of Car Wash Business
Before starting a car wash business, you must decide on the type of car wash service you intend to indulge in. Every car wash has its special benefits to suit it. So it’s wise to understand the different types available today.
Here are some:
- Full-service Car Wash
A full-service car wash will allow its workers to clean both the interior and exterior of a car by hand. It involves using a hand to wash the car to get the best cleaning; the customer wouldn’t be doing it himself. The prices are affordable though they aren’t the cheapest, and they offer better care than an automatic car wash.
- Self-service Car Wash
A self-service car wash allows car owners to use a ward and other tools to wash their cars themselves. All they do is drive-in, park, and wash; however, they’ll still be paying for the time and products. Some car wash facilities have coin-operated machines that customers can use to vacuum the interior of their cars.
- In-bay Automatic Car Wash
In-bay automatic car wash is the quickest and cheapest means of washing a car. It’s a convenient option for car owners. That’s because they can sit in their car while the automatic equipment cleans the exterior of the car.
It has increasingly become a common option for car owners as you can find it in most filling stations. Although this car washing service offers quick and cheap service, it doesn’t offer thorough cleaning and can damage car paint.
FAQS
How profitable is a car wash business?
According to a survey by auto Laundry, the car wash business makes a profit of $55,000 to $100,000 yearly. That is for a self-service car wash, while a full-service car wash makes $500,000 to $900,000 annually.
Since cars are always on the road, car washes will always be needed. Car wash businesses will be a good start for someone looking for a lucrative business.
What are the things to consider when choosing a location for a car wash?
Here are some things to consider before choosing a location for a car wash business.
- Visibility
Make sure your location’s visible to the motorist! An efficient-looking car wash on a busy road will catch and lure any passer-by. Traffic on a busy road allows the motorist to see what you’ve got to offer! Consider this!
- Accessibility
Make sure your car wash point is accessible. A tight entrance can discourage motorists from zooming in. Accessible entrance will be an easier stop-off for new customers.
- Cost
You need an affordable location to enable you to buy other equipment. Remember you must pay taxes too!
- Security
Security here is of utmost importance. Customers wouldn’t like unsafe or points prone to vandalism. Prospective customers will still seek confidence and security when they come.
- Demographics
Look for a location where you think your clients will be. Consider the age and the income of the people around that area. Locate your business within reach of larger businesses and companies.
Favorable locations to start a car wash business
Customers will be higher in locations where folks’ got lots of cars. Such places are; high-traffic areas, residential areas, and shopping centers.
Where is the best place to build a car wash?
The best location for a car wash business is where many eyes will see it. Therefore a high-traffic area is the best bet. If you locate your business in low-traffic areas likely get lesser customers.
SOME TIPS TO ATTRACT MORE CAR WASH CUSTOMERS?
- Create an internet and social media site or a Facebook page for your business. A car owner can go online to search for recommendations and the closest car wash. Using social media is one of the smartest moves to link up with your customers.
- You can give your customers offers for their loyalty. It makes them feel they’re getting compensation for using your service. You can provide them with a discounted price for services.
- Create convenience for your customers, and attend to them politely. Let your prices be fair and favorable.
- Decorate your location with an eye-catching design for motorists via that route.
How much do car wash businesses make?
How much car wash makes is determined by the type of car wash business. In-bay automatic car wash charges about $6.34 with a profit of $4.35 per wash. The full-service car wash is the most expensive among car wash types because it provides additional service.
However, the average cost for it is $15 per car wash. It makes an annual income of $139,000 which results in about $86,531 as average profit.
The low-cost car wash business earns $1,489 monthly and an average $41,000 annual income.
What’s the average number of cars that visit the car wash service?
If a car wash offers good service, an average of 30 to 35 cars will visit the car wash every day. Factors like the population density and the average age of the vehicles determine the number of cars that go through the wash.
Cars that are 3 years old will be washed more often. The price will also determine the number of cars that come to a car wash. If the price is reasonable, more cars will come into the car wash, but those high prices will get a low turn of cars.
Is a full-service car wash a good value?
The service buyer determines a good value! A good value for one might not be good for another. If you don’t have the time to wash your car, you need a mobile car wash and detailing. This service will quickly wash off the dirt from the car paint without you stressing.
Is it safe to wash my car daily?
You can wash your car daily, but it wastes time, materials, and money. You can wash the interior and exterior of your car once a week and wash with wax once a month. A water spray bottle and cloth are handy to wipe off any dust or bird poop.
How safe are car wash services?
Your car needs a detailed cleaning; you need to eliminate all the street coarseness and build-up from rain and birds. Standard washing will help to ensure your car’s completion.
Which kind of car wash is the best?
Any expert will tell you that the best type of car wash is a hand wash. A hand wash can be done differently from the traditional two-bucket method to a high-tech method. One of the advantages of this method is that it minimizes scratch and can also remove deep contamination.
Conclusion
Starting a business is never easy, but starting a car wash business is not that difficult as long as you have all the necessary things to start, like good capital, good location, and other equipment.
Be sure to maintain a good relationship with costumer that will bring them back and recommend your service to others.
