Hack Car Wash Change Machine? The 25 Correct Answer

As long as vehicles are on the roads, there will always be a need for car washes. For the budding entrepreneur looking to invest in a lucrative opportunity, a car wash business can be just the ticket.

The Houston Chronicle, which reports on a survey conducted by Auto Laundry News, a leading car wash industry publication, said annual profits range from $55,000 to $100,000 for a self-service car wash and $500,000 to $900,000 for a Full service companies can lie.

If you’re looking to invest in the car wash business, here are five secrets successful operators will tell you to help them get on the right track.

1. Know what you don’t know

There are a lot of things you might not know about what it takes to run a successful car wash business, including everything from site selection to water conservation to the chemicals and equipment used in marketing, advertising, hiring, pricing and even the software needed to run your business.

There is a lot to learn… and the best place to start is to “know what you don’t know” and then set yourself a task of gaining as much knowledge and expertise as you can about all facets of the car wash business.

2. Ask for help

If you’re new to the business, get advice from the experts — and hear what they have to say. You’ll save yourself a lot of headaches by learning from the experiences of others.

According to Steve Gaudreau, a 25-year car wash veteran and author of “So You Want to Own a Carwash,” when you ask for help, you do what you would do at any business: check references, visit successful car washes to see what success looks like and ask operators their opinions on who you would like to work with. The more you learn, the greater your chances of success.

A good place to get inside information is on LinkedIn car wash industry groups like the Midwest Car Wash Network and others. Industry publications such as Auto Laundry News and Professional Carwashing & Detailing also contain a wealth of knowledge.

3. Choose the best possible site

“Location, location, location” is the motto of the real estate industry. That should also exist in our industry. For a car wash business, location is everything, so choose the best possible location.

A good website has the following characteristics:

ease of access. Make it easy for your customers to find the entrance to your car wash. Putting your laundry at a busy intersection won’t do you much good if people can’t easily figure out how to get there.

Busy road or street. Find a location on a busy road or street where the speed limit is set at 40 MPH or less. You not only benefit from heavy traffic, but also from a speed limit that gives drivers time to read your signs.

Enough space. Your location should be large enough for vehicles of all sizes to navigate through car washes and onto other areas, such as parking lots. B. the vacuum bays can access. Also, make sure you have enough space for cars to line up without blocking the streets.

What are the best locations for car washes?

Andy Pazz, author of How to Set Up an Express Exterior Car Wash, shares some sound advice on choosing a prime location:

“Primarily, a location that is in an area such as near a Wal-Mart, near a commercial area such as a mall, near a traffic light, or near a stop sign on a major thoroughfare. …You need to be close to a destination…where people are actually shopping…Anywhere in a commercial area like this you’re going to make a lot more money than you would in an area that’s mostly residential.”

4. Know your competition

Gaudreau says in his book to use a map to identify all competitors within a 5 mile radius and determine what their trading area is, what your natural trading area is and where there is overlap.

5. Choose the right manufacturers and suppliers

Selecting a manufacturer that supplies quality tunnel systems, components and parts, and who backs the sale with prompt, expert support and service is one of the most important decisions you can make.

Also, don’t overlook the importance of the chemicals you use as they are vital to your success.

According to Gaudreau, the main issues related to the use of chemicals are:

Understanding the link between equipment and chemicals;

Defining the desired quality for your laundry;

Deciding how much equipment you need in conjunction with the chemicals to achieve the desired result;

control of chemical costs;

Ensuring a high level of service by the chemical distributor.

You might be tempted to go for the cheapest products, but don’t give up. The chemicals you use are like a business card for your car wash. You don’t want a dull finish, water spots, and other blemishes to keep customers from coming back.

Conclusion

While these five secrets are vital to the success of your car wash business, they’re just the tip of the iceberg. You must also consider factors such as financing, construction, zoning codes and permits, marketing and advertising, hiring staff, and more.

It is therefore important to network with established operators and learn from them. You will find that most are happy to share their knowledge.

Motor City Wash Works helps new investors get started. Call us at 866-362-6377 or email us to discuss your interests and needs.

January 18, 2021

When you’re considering diving into a new industry, you want to be sure you’re getting a good return on your investment. You want a stable industry with an upward trend. And maybe you want to have some fun doing it.

Many investors have found that the car wash industry ticks all of these boxes. Let’s take a closer look at the car wash industry and why it could be a great choice for your next business venture.

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industry growth

The car wash industry has gone through a massive period of growth, largely driven by the popularity of unlimited wash schedules and the rise of the express outside tunnel business model. According to an industry report by Grand View Research, the industry achieved a compound annual growth rate (CAGR) of 3.6% from 2013 to 2018. The industry growth is expected to continue at a projected CAGR of 3.2% through 2025.

The express exterior tunnel model was particularly attractive and attracted the interest of private equity investors. In fact, half of the top 20 car wash chains of 2020 are owned or backed by private equity, and the industry is one of the hottest for mergers and acquisitions.

consumer trends

Of course, growth will be driven by consumer demand. Car washes provide a service that is always needed as long as cars are on the road. While motorists always have the option of washing their car by hand, they are increasingly turning to the convenience and speed of automated car washes.

According to the International Carwash Association, the number of drivers washing their cars at home has decreased significantly over the past decade. In 2019, 77% of drivers reported washing their vehicle frequently at a professional car wash, up from 48% in 1994. It is estimated that the total annual car wash revenue exceeds US$24 billion.

The ridesharing trend (Uber, Lyft, etc.) has also created a whole new customer base for car washes. These drivers wash their cars several times a week to maintain customer satisfaction. They can be among your best customers and brand ambassadors.

Optimization and Scalability

When done right, a car wash business can be automated, streamlined, and scaled to generate ever-increasing revenue. Car wash technology is constantly evolving, offering new efficiencies and opportunities to increase throughput. The Car Wash Point of Sale (POS) specifically provides data that can be used to further improve your operations for increased profits.

And then there is growth through expansion. Once a car wash owner sees the profitability of their first location, they want to add more locations. Many end up with multiple locations, building a strong regional car wash brand.

Easy investment

Typically, car wash investors spend around $2 million to $4 million in capital, with the biggest disparity being in real estate costs. Luckily, you have options for getting your seed money.

There are three ways to finance your investment: SBA 7(a) and SBA 504 loans and conventional loans. SBA 7(a) loans can be attractive to new investors in car washes because they require a lower down payment, have lower interest rates, and allow for longer repayment periods. These are also good for new investors in car washes, as the SBA can guarantee a loan based on projected income rather than a documented track record. The only downside is that they may take longer to get approved, but you end up with less debt. SBA 7(A) loans can be used for working capital, car washes, construction of a new car wash, purchase of an existing car wash, and debt refinancing.

resale potential

If you’re looking for a business that you can easily sell for a profit, or as a retirement strategy, a car wash is a great option. Investors love the predictable, recurring revenue that unlimited wash programs offer. A decade ago, the weather ruled the car wash business. These plans allowed car wash operators to gain more control and create a stable revenue stream. Because of this, a healthy unlimited washing program can increase the value of our company by 10 times or more.

If you want to “flip” your car wash, make sure you put as much effort—or more—in building a strong plan membership as you do in remodeling or upgrading equipment.

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variety of options

With a variety of business models to choose from, an investor can select the model that best suits their needs as well as those of their local customer base. There are four main types of car washes:

Self-Service – The driver pays to use the chemicals and equipment to wash their own car. This is a good choice if you want minimal daily hassle, less maintenance, and low/no labor costs.

– The driver pays for using the chemicals and equipment to wash his own car. This is a good choice if you want minimal daily hassle, less maintenance, and low/no labor costs. In-Bay Automatic (IBA) – Here a customer drives into a bay and the equipment moves around their vehicle to wash it. This type of wash may require more supervision and maintenance, but not as much as an express outside tunnel or a full service wash. You can also run an IBA without employees.

– Here a customer drives into a bay and the equipment moves around his vehicle to wash it. This type of wash may require more supervision and maintenance, but not as much as an express outside tunnel or a full service wash. You can also run an IBA without employees. Express Exterior (EE) – Vehicles are moved through a tunnel while equipment washes them. This model requires more maintenance and supervision, so you’ll either need to be more involved or hire a good site manager. However, EEs can wash more cars because more than one vehicle can be washed at a time, so the revenue potential is higher.

– Vehicles are moved through a tunnel while equipment washes them. This model requires more maintenance and supervision, so you’ll either need to be more involved or hire a good site manager. However, EEs can wash more cars because more than one vehicle can be washed at a time, so the revenue potential is higher. Full-Serve – The vehicle is usually driven into the tunnel and washed by an attendant. After washing, the vehicle is dried by hand and the interior is cleaned by hand. This is the most labor intensive and requires the most involvement on your part.

There are also hybrid models like the Flexserve, where customers drive their vehicles through the tunnel and have the option to add manual indoor and outdoor services. There’s also the Mini-Tunnel, a much shorter (up to 35ft short) express outdoor tunnel that’s well-suited for sites that don’t have a large footprint but have the potential to handle higher volume.

It’s satisfying

Don’t underestimate the personal fulfillment you can derive from operating a car wash. Many car washes thrive on the challenge of adjusting their equipment and chemicals to deliver the best wash. And there are always adjustments you can make to technology, pricing, marketing, etc. to get more profit out of your business. There’s just something about it that gets in the blood of a car wash owner. Once you start, you may not want to stop!

risks

Of course, no investment is free money. Here are some risks to be aware of:

Weather – Weather is the Achilles heel of the car wash industry. A bad month or season can have a huge impact on your annual sales. Luckily, the rise of unlimited washing plans has significantly reduced this risk by guaranteeing operators recurring revenue every month.

– The weather is the Achilles heel of the car wash industry. A bad month or season can have a huge impact on your annual sales. Luckily, the rise of unlimited washing plans has significantly reduced this risk by guaranteeing operators recurring revenue every month. Location – You will make many decisions for your car wash, but location is the one that you cannot change, so getting it right is important. You want a website with a healthy amount of traffic and not too much competition around. A car wash consultant can discuss other factors and help you with a thorough site analysis.

– You will make many decisions for your car wash, but the location is the one that you cannot change, so getting it right is important. You want a website with a healthy amount of traffic and not too much competition around. A car wash consultant can discuss other factors and help you with a thorough site analysis. The Learning Curve – There’s a lot more to car washing than meets the eye. Depending on which car wash model you choose, you might find yourself as a salesperson, marketer, technician, chemist, and more. Try spending time with car wash operators and consider working at a car wash for a while to make sure it’s right for you.

Dive in – with caution

Car washing can be a lucrative business, but not every investor is. Do your due diligence. Set up an advisor. Be sure to do a pro forma analysis. And if all signs point to a future in car washing, dive in!

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You enjoy learning to DIY car wash because you’ve always taken pride in doing things yourself. Or maybe you just want to save some money. After all, professional detailing services don’t come cheap. Whatever your reason, rest assured that DetailXPerts can help.

Like you, we love vehicles, and we want nothing more than to see shiny showroom vehicles, inside and out. So, without further ado, here are some tips for you DIY car wash warriors!

10 tips for the DIY car wash beginner

First of all, we recommend that you familiarize yourself with some basic detailing techniques. This makes the process easier and ensures you are using the right tools and materials.

1. Have a detailing checklist

That way, you won’t miss a step or lack essential car detailing materials. A checklist will save you a lot of time and effort. What should you put on your checklist? Here are a few suggestions:

Choose the right location

Examine your vehicle thoroughly. Does it have small scratches or color swirls? Is an engine compartment cleaning required?

Gather all the materials needed: 2 buckets with sand protection; water source; car wash shampoo; set of detailing brushes; microfiber towels; clay ingot; Wax; glass cleaner; and other car wash tools

clean tyres

Wash outside, top down

Clean interior – seats, carpets, dashboard, etc

wax

2. A DIY car wash in the right place

Washing your car in direct sunlight will not only turn you into a roast – it can dry out the soap faster and leave hard water stains that are difficult to remove later. And if possible, clean your car on a grassy area so the effluent is picked up off the ground.

3. Always pressure wash your tires and wheels first

Your tires and wheels are the dirtiest parts of your vehicle. They are usually covered in mud, road salt, sand and other debris. You don’t want all that dirt sprayed back into your freshly cleaned car, do you?

To quickly clean your tires and wheels, try using a pressure washer. But you don’t just use it. There is a right way to use a pressure washer. This will ensure your tires and wheels get the initial cleaning they need without damage.

4. Start cleaning from above

Once you’ve cleaned all the wheels and tires, start your DIY car wash from the roof. This saves water and detergent while preventing scratches and cross-contamination. Also, soap and rinse section by section to keep the soap from drying out. In this way you avoid hard water stains that are difficult to remove later.

5. Don’t skimp on car detailing accessories

No, we don’t recommend you to buy the most expensive products on the market because we know that price doesn’t always mean value. Please investigate. Ask family, neighbors and friends. Read online reviews so you can get an idea of ​​which products work and which don’t. And before you buy anything, read the labels carefully. There are car washes that contain toxic substances. Use environmentally friendly cleaning products as much as possible. They are good for you, your vehicle and the environment.

6. Don’t use a sponge on a DIY car wash

If there’s one thing we don’t want to use on our customers’ cars (because we don’t even use them on our own) it’s a sponge. Sure, a sponge seems to attract dust, dirt, and other contaminants. In reality, all of these impurities are just embedded in the sponge. These impurities reappear on the sponge. Once they come into contact with your paint, swirls and scratches can occur.

7. Dry everything thoroughly

As car cleaning experts say, your car isn’t clean enough if it’s not properly dried. That’s because tiny droplets of water left behind by washing can still contain contaminants – salt, dust, dirt – the perfect combination for rust. Depending on the type and size of your vehicle and the type of paintwork, choose and use one of the drying techniques.

8. Don’t use a buffer yet

A buffer is a very good tool for detailing – if you know how to use it properly. You have to have enough experience. Otherwise you run the risk of damaging your car’s paintwork. That’s because a buffer doesn’t actually remove a car scratch or paint swirl. It easily cuts through the paint to reveal the layer underneath. Because of this, you need to know how to properly hold the buffer, how much pressure to use, along with other auto-buffering techniques, tips and tricks that have come through experience and expertise.

9. Thoroughly clean the interior

Big! Your car shines from the outside. But what about the inside? Make sure you clean all corners and edges. Steam clean and condition car seats, carpets and upholstery. And while you’re at it, steam clean the air vents to kill germs and bacteria that could endanger your and your passengers’ health and well-being. Want to know more about which areas need cleaning? Here are some basic interior design tips.

10. Finish off your DIY car wash with finesse

Wax your car after cleaning. Not only does this make it shiny, but it also keeps contamination away from your paint.

If your doors squeak every time you open and close them, then it’s time to lubricate the hinges. Put a few drops of engine oil on a clean cloth and lubricate the hinges with it. This should be done when your vehicle is clean and dry.

Apply tire shine to match the sparkling look of your car’s exterior paint.

Do you dare a thorough DIY car wash? You can use this guide at any time. However, if the car wash itself is too physically demanding or too time-consuming for you, you can always make an appointment with DetailXPerts to have your valuable possessions professionally prepared.

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A necessary part of car care and maintenance is knowing how to dry a car after washing it. It is important that your vehicle leaves a polished and pristine finish. There are four ways you can dry your car after washing:

With a car drying towel

Using a car dryer sheet Using a car dryer

Use of a car dryer Use of a chamois leather

Using a Chamois Using a Water Blade

After getting an insight into all the methods, you can decide for yourself how best to dry a car after washing.

For the details of each drying approach, read on!

4 methods of drying a car after washing

Before we dive into the three ways to dry a car after a wash, here are some important pointers to keep in mind:

Find a spacious place out of direct sunlight to dry your car. Strong sunlight can leave stubborn water stains on the car.

Find a spacious place out of direct sunlight to dry your car. Strong sunlight can leave stubborn water stains on the car. Don’t forget that water hides in the car’s streams and crevices. You must carefully dry all the contours of your vehicle.

Method 1: Use a car drying towel

For this first approach, all you need is a microfiber cloth or towel. However, it is crucial that you choose the right one. It should be of high quality and designed for use in passenger cars.

There are four main types of microfibers: nylon, polyester, rayon, and acrylic. The first two are most common for cars.

Among these materials there are cloths/towels specially designed for drying. These are typically tufted and feature a terry or waffle weave to help users dry.

When choosing a cloth or hand towel, you also need to consider material weights, colors, and sizes.

For drying, you need a material that is not too heavy, so that you can easily handle the towel and minimize hand fatigue.

For drying, you need a material that is not too heavy, so that you can easily handle the towel and minimize hand fatigue. Dark colors tend to be less plush and soft. So when it comes to drying, you want a lighter colored cloth or towel.

Dark colors tend to be less plush and soft. So when it comes to drying, you want a lighter colored cloth or towel. A palm sized cloth/towel will take more time to dry every area of ​​your car as its coverage is limited. Therefore larger cloths/towels are more useful for drying.

Also pay attention to the towel density and the ratios in fabric mixtures. These are factors that indicate the quality of the cloth/towel.

In addition, it is important that you avoid cloths/towels with edges. These are the main causes of scratches and scuffs on cars during care and maintenance procedures.

Consider all of these factors to choose a good microfiber towel or towel for your drying efforts. A few reliable microfiber car drying towels to consider are:

Using a microfiber cloth/towel to dry your car after washing is easy. All you have to do is wipe, wring and repeat. However, there are two tips to keep in mind:

Swipe in one direction only

Wipe in one direction only Turn the cloth/towel regularly

You should also have several washcloths ready to hand for a fresh change.

It is also recommended that you dry in a back-and-forth or up-and-down motion rather than in a circle.

Gently wipe the surfaces of your car. There is no need to use force. Remember, you’re getting rid of excess water, not scrubbing.

Method 2: With a car dryer

The second approach requires a car dryer. This is also sometimes referred to as a car fan. It is a tool that releases air to dry out excess water. You can usually find these as electric and wired. However, it is best if you can get cordless blowers or handheld blowers. They are easier to handle while drying different areas of the car.

However, there are also battery-powered models on the market. Regardless of what you choose, the most important thing is that you get a car-grade blower and not other types used for drying pets or blowing leaves.

With a car dryer you can do the drying quickly. Plus, you don’t have to get your hands dirty! A car dryer can also easily get into hard-to-reach cracks and crevices.

Good auto blower options you can get are from Greenworks, McKee, WORX to name a few.

Method 3: Using a chamois

Using chamois to dry your car is another option. Also known as a chamois, a chamois is a rubber or leather material that is super absorbent to dry off excess water on any surface. A chamois is a popular choice among motorists thanks to its incredible ability to draw and hold water.

As with the method above, all you have to do is gently wipe your car, wring it out, and the chamois will do all the work for you. For stubborn water stains, roll up the chamois leather and run it over the area to be treated. Then watch the spots disappear!

The best part is that you only need one to fully dry your car. It’s also versatile, so you can use it on other vehicles as well.

It’s also relatively easy to find, both online and offline. However, it is slightly more expensive than microfiber towels/cloths. Nevertheless, you can be sure that it is a good investment. It will get the job done flawlessly.

A few reliable chamois options on the market are those from Cleantools, Griots, and Chemical Guys.

A chamois is also less comfortable to lie down, as it becomes hard when sitting idle. You also need to be extra careful to prevent it from developing mildew or mold.

Method 4: Using a water blade

The final method of drying a car after washing is to use a water scraper. This is a tool that works like a windshield wiper and wiper. It is believed that a water blade can dry cars up to 3x faster than other traditional methods.

Simply sweep the blade across the surface of your car to soak up the water. Use up and down and back and forth movements to get the best result. Make sure that dirt and particles do not get stuck in the blade by checking it from time to time.

Most water blades on the market are made of silicone, so there is an ideal convergence of rigidity and flexibility for drying purposes. Users can easily use it on the contours of a car. There are those with unique technology that support users’ comfort and convenience. In general, however, water blades are not too expensive.

Water blades can be found in both local stores and online retailers and are relatively affordable. You don’t have to strain your wallet when drying your car.

Before we leave you, here’s a Chemical Guys video on all of the above ways to dry a car after washing it.

Conclusion

That brings you to the end of this article on how to dry a car after washing it. To recap, there are four methods you can consider:

With a car drying towel

Using a car dryer sheet Using a car dryer

Use of a car dryer Use of a chamois leather

Using a Chamois Using a Water Blade

Which of the three is your favourite? Or do you have another go-to method to share? Let us know in the comments! We are always very happy to hear from our readers. So don’t hesitate.

Also, feel free to share this article with your family, friends, and anyone else who may appreciate the content!

5/5 – (4 votes)

Your car is a big investment. Some people love to buy new cars while others prefer to buy a used one. Whether you’ve paid for it or are still paying for it, taking good care of your car is important. Servicing your car includes everything from car detailing to brakes, oil changes and tire changes.

One part you might not be doing as often as you should is giving your vehicle a solid car wash. Some do it a few times a year while others wash it once a week. The question many ask when looking after their car is how often they really should wash their vehicle and have it detailled.

Car wash recommendations

As a rule of thumb, you should wash your vehicle every two weeks. That is, if you don’t drive down dirt roads on a daily basis or in an area where salt is used on the highways. This occurs under normal wear and tear conditions. While you might think your car washing experience is limited to the summer, it’s needed more often than you might think during the winter due to the salt. For those who live near the ocean or where salt is used on the roads, consider washing it more frequently. This is because the salt can cause your vehicle to rust sooner than normal. If you park your vehicle in your garage or don’t drive it every day, you can wash your car less often.

Auto detailing

The interior of your car should also be taken care of to ensure it lasts and looks great for years to come. Auto Detailing can help you take care of the vehicle’s upholstery, floor mats, console and general general cleanliness. It is important that you do this regularly as well. If you don’t eat or drink in your car, you may not need to do so as often. However, anyone who “lives” in their car will find that car detailing is required more frequently.

To grow

If you’re trying to protect your investment, waxing is a great way to do it. It helps protect the paintwork, keeps it looking good and prevents the caustic substances you encounter every day from damaging the car. It is recommended to do this at least twice a year. This will help protect your car from the elements and keep the paint job looking good for a lifetime.

Remember that washing your car, detailing and waxing is important to more than just the vehicle’s looks. It helps protect the investment you have made in your car. Whether you take it to a car wash or do it yourself, remember to have it done regularly to protect and beautify your car.

Consumer Reports: Are Car Wash Extras Worth the Money?

When you go to the car wash, are you overwhelmed by all the options?

When you go to the car wash, are you overwhelmed by all the options? Do I really need a tire and rim cleaner? How about a special undercarriage wash?

Before you go all out, hear what Consumer Reports’ car care expert has to say about washing cars so you don’t throw money in the trash.

Let’s start with the basics: how often should you wash your car?

What do the experts at Consumer Reports say?

“It’s not about doing it on a schedule,” said Jon Linkov, Consumer Reports auto editor. “If instead you notice your car has mud, road salt or dirt on it, it’s time to wash it.”

A good car wash is important to protect the paint and finish from dirt and other deposits that can sometimes leave permanent marks such as bird droppings, tree sap and insects.

And what about the dizzying array of extras and add-ons? Are services like rim shine and spray wax worth the extra cost to protect the car?

“By all means skip the extras,” Linkov said. “They make your car look nice, but wear out quickly.”

But there is an extra car wash that you should buy every now and then, but not every time.

“The undercarriage wash — do it once a season to remove road salt after a winter and mud and dirt after a wet spring,” Linkov said.

According to Consumer Reports, automatic car washes tend to be cheaper than hand washes. They’re a good option if you haven’t accumulated a lot of dirt. But of course you don’t get the attention to detail that a hand wash offers.

Whether you choose an automatic or a hand wash, how do you know if you’ve chosen a car wash that will actually get the job done right?

“Look at the cars leaving the site. Do they look clean?” said Linkow. “Super cheap car washes may use dirty towels, old, sharp brushes, and rush your car through the process.”

And try to find a car wash that sprays the car before the wash cycle begins — according to Consumer Reports, the pre-soak puts you on the road to a clean, shiny car.

If you prefer to wash your car yourself, remember that using the wrong type of soap, such as B. Dishwashing detergent, which can damage the paintwork of a car. And using sponges to clean, as many people do, can leave swirl marks in the paint.

All Consumer Reports materials are copyright 2017 Consumer Reports, Inc. ALL RIGHTS RESERVED. Consumer Reports is a non-profit organization that does not accept advertising. There is no affiliation with any advertiser or sponsor on this website. For more information, visit www.consumerreports.org

What could be easier than running your car through an automatic car wash? Drive to the entrance, pay your money, put your car in neutral and let the machines do the rest. No fuss, no must, right?

That’s true for most older cars. But with newer cars, it’s increasingly not that easy when you’re using a car wash that pulls your vehicle forward on rollers. Take the current generation Volvo XC90 – and every other car in the Volvo range, I’m sure – equipped with automatic braking when stationary and automatic parking brake application. If these are active when entering the car wash, Volvo warns: “The braking system is locked when stationary and the vehicle cannot roll.” And you will have angry car wash customers piling up behind you.

These automatic braking systems are designed to prevent cars from accidentally rolling away. It’s not a silly problem, especially on vehicles like the XC90 that have an automatic engine stop/start feature. If you’ve ever driven a car like this, you know that it’s not that hard after stopping to believe you’ve turned it off, when in reality it’s still in “standby mode” and ready to accelerate again, as soon as you take your foot off the brake. The automatic braking function starts after a few seconds of standstill. At the car wash, this could prevent your car from being rolled forward.

A professional car wash can be carried out fully automatically or by hand. This is how you decide which option is right for your car, your time and your budget.

If you just can’t do it yourself, there are many ways to wash your car. Whether it’s a spa treatment or a quick dip, learn the pros and cons of different car cleaning services.

It is also important to note that the thoroughness of a car wash varies depending on the car model and method. So use your best judgment when deciding which car wash is best for your car.

Self-service car washes

Roll up your sleeves (without using any of your tools) at a self-service car wash, which typically costs less than $10. Use their water hose, soaps and sponges, just bring your attention to detail and elbow grease. Check beforehand whether you need towels for drying. Washing, rinsing and drying one section at a time will help prevent water stains.

Make sure you use this option under the right conditions. If you’ve been driving around for a while, chances are your car is too hot to wash; the soap dries and stains before you can rinse it off. The same goes for washing in the bright sun.

Automated car washes

Automated in-bay car washes pull your car down a conveyor while machines dispense soap and water. Automated car washes can be a quick and economical choice, costing anywhere from $5 to $10. Cleaning the undercarriage, wheels and tires or using additional soaps and waxes will cost extra, typically $1 to $2 per additional service.

Soft touch car washes

There are gentle-touch automated car washes that use cars to scrub with cloth, and no-touch automated car washes that only use high-pressure water and soap (no suds).

Soft-touch washes offer a deeper clean. When brushes are used in the car wash, they usually reach all parts of the car and are good for getting rid of dust and pollen. But the force of the brushes can damage exterior mirrors or antennas. If thick strips of cloth are used in the car wash, the car must also be rinsed thoroughly before the cloth touches it, otherwise the cloth may cause the dirt to scratch the paintwork.

Car wash without touch

No-touch car washes are cloth and brush-free, so there is less risk of scratches. You’ll also use less water if you’re hoping to be a friend of the environment. But without brushes or cloth strips, a touchless wash can be less effective. No-touch washes that rely on more detergent to make up for lack of cloths or brushes can also damage your paintwork.

Machine dryer car wash

Some automated car washes end up using machine dryers, but some have employees hand dry your car with towels. If they offer this service, the car wash costs a few euros more.

Hand car wash

Professionals who hand wash your car use premium materials and go through every inch with a thorough eye to ensure they remove any dirt or water stains that automatic car washes may miss. But washing your hands also carries risks. Using the same sponge to clean the vehicle’s painted surfaces as well as the tires and wheel wells is a common mistake that introduces abrasives into the cleaning process. Make sure your professional uses best practices, including thorough rinsing and cleaning of sponges and microfiber towels.

You can indulge in waxing, detailing, and interior cleaning—and in some cases, even get your annual condition inspection done. The only downside is the extra time and money. Handmade car washes can cost anywhere from $15 to $35. But if your car needs some TLC, it might be worth it.

Waterless car wash

Short of cash? There is always DIY. A waterless car wash is a high lubricity spray mixture that deeply saturates a vehicle’s trim and then wipes away dirt or road grime with a clean cloth to a dry shine. This waterless car wash kit is ideal for a clean experience, especially if you live in an area where your water usage is restricted. The 2EZ Wax Waterless Car Detailing Kit is a great option at around $50. These car interior cleaning kit products will keep your cabin looking and smelling fresh.

Flushless car wash

A rinseless car wash is another kit method that eliminates the final hosing down, saving time, water and chemical usage. Optimum No Rinse Wash and Shine is highly rated. To use, place one ounce to two gallons of water in a bucket. Dip a soft microfiber cloth in the solution and wash one section at a time until clean. Dry with a clean, soft microfiber cloth. That’s it!

People love their cars. Not only do their cars bring them around, but they can also be a source of pride.

Part of maintaining your car is keeping it clean and free of dirt, bugs, bird droppings, salt and grime.

A car wash is the easiest and most convenient way to keep it clean. If you own a car wash, you can directly benefit from the 286 million cars in the US.

It gets better.

Owning an automated car wash allows you to earn passive income by letting your automated car washes clean the large number of cars that roam the streets every day.

The car wash business can be lucrative. This is supported by the fact that there are approximately 80,000 car washes in the US, according to the Internal Carwash Association. Source: New Horizons Car Wash

So how can you get into this profitable and passive business?

This guide will tell you what you need to get started. It consists of four sections. If you would like to jump to a specific section, just click on the link associated with that section below. For the discussion on how to make your automatic car wash as passive as possible, go to Section II and read the section on choosing the right equipment.

Section I: Introductory information about automatic car washes (what is it, how profitable is it, how much does it cost to start one, etc.)

Section II: Keys to Owning a Successful Car Wash

Find a great location (this is crucial!)

Keep an eye on the competition

Use the right gear

Manage seasonality and weather

Maintain equipment to avoid costly outages

Section III: How to Buy a Car Wash (If You Want a Ready-Made Deal)

Section IV: Pros and Cons of Owning a Car Wash (so you get a full picture of what’s involved)

This post may contain affiliate links. If you click on a link and complete a transaction, I may earn a small commission at no additional cost to you.

The information contained in this post is for informational purposes only. It is not a purchase or investment recommendation and also not financial, investment, legal or tax advice. You should seek the advice of a qualified professional before making any investment or other decision related to any of the matters discussed in this article.

What is an automatic car wash?

An automatic car wash is a car wash where you park your car in the wash bay and put it in neutral. At this point, the automated system begins the car wash process by moving your car through the car wash where it is sprayed with water and detergent, scrubbed, rinsed and dried. In some cases, wax is also applied.

In Bay Automatic Car Wash

There is a variant of the automatic car wash, the so-called in-bay car wash, where the car does not go through a tunnel, but is washed “in bay”. These types of car washes can provide passive income as they operate without staff.

Touchless car wash

Another variant of the automatic car wash is the touchless car wash, in which no brushes or strips touch your car during the cleaning process.

Instead, during the washing process, your car is sprayed with water and a series of special cleaning agents are applied. These cleaning agents are given time to break the bond that dirt and contaminants have with your car’s surface. Then your car is thoroughly sprayed with water that washes everything away.

The main benefit of this process is that it will not scratch your car’s clear coat as it is ‘non-contact’.

What is the profit margin for car wash?

The average profit margin for an automated car wash on the Bay is $4.35 per car. This equates to 68.6% of the average ticket price per car, which is $6.34.

Source: Brandongaille

That’s an extremely high profit margin per car. Of course, it’s important to realize that these are averages and your results may vary.

How profitable is a car wash?

The average annual profit for an automated car wash on the Bay is $86,531.

Average annual sales is $139,000 based on approximately 20,000 cars washed annually.

Source: Brandongaille

So we see that on average, automated car washes in the bay have the potential to generate healthy profits per year. That is the good news. What about the bad news…

How much money does it cost to start a car wash?

On average, the total equipment and construction cost for an automated car wash on the Bay is $260,000. Below is a breakdown of these costs:

Typical equipment for an automated car wash on the bay costs $135,000.

Additional equipment costs add another $25,000

The cost of construction is about $100,000.

Source: Inside Self Storage

Of course, the actual cost of building your car wash and purchasing all of the equipment needed to get started will vary significantly depending on your location, the type of equipment, building specifications, as well as a host of other factors.

Ultimately, this means that starting an automatic car wash will not come cheap. Even if you’re financing the business, you’ll need a healthy down payment. It’s definitely something to keep in mind when evaluating if this store is for you.

If you are looking for financing options, you should consider Fundera. They are affiliated with Nerdwallet and offer small business financing options from a variety of potential lenders. You fill out an application and are presented with a list of lenders that are appropriate for your situation.

Related Reading: Interested in a Passive Income Business That’s Cheaper to Start? You might want to read my articles on these other passive income businesses that have much lower entry costs:

Or if you don’t want to spend any money to start making passive income, here are 15 truly passive income ideas that don’t require any money.

What are the keys to a successful car wash?

Find a great location for your car wash

As with real estate, the key to a successful car wash is location, location, location. The location of your car wash will likely be the biggest factor affecting your profitability.

Of course there are other factors such as Such as keeping a close eye on your competition, owning the right equipment, managing seasonality, and maintaining the car wash efficiently and cost-effectively.

We’ll cover these other factors as well, but for now let’s focus on how to find a great location for your car wash.

How do I find a good location for my car wash?

The key to finding a good location for your car wash is to identify a location that (i) is on a busy street with a lot of traffic, (ii) offers a good view of your location from that street, and (iii) Cars easy access allows your site. You can improve your chances of finding a viable location for your car wash if you find a location that is close to an anchor location, e.g. B. a large retailer (e.g. Walmart, Target, Costco, Ikea) or a mall.

In addition to the factors above, make sure you have enough space to accommodate snakes and larger cars that may need a wash.

As I mentioned before, being close to an anchor target is ideal. When people drive to their local Costco or Target, they might want to take care of washing their car along the way if your car wash is nearby.

My friend owns a large and very successful car wash near a large university that has mostly commuter students. It’s perfect because thousands of students drive to class every day and they all need to wash their cars from time to time.

A final note on location: you must ensure that the location you choose allows a car wash from a legal perspective.

You must confirm that state and local requirements allow the property to be used for a car wash and complete all of the paperwork required to obtain the proper licenses for your business.

Contact a qualified attorney to guide you through this process.

Keep an eye on your competition

To run a successful car wash, you want to be sure you know what your competition is up to. This includes knowing the prices, the equipment, the cleaning products, and generally making sure your car wash is up to date.

As with any business, if you can’t at least keep up with your competition, you will find your business steadily declining.

Use the right equipment for your car wash

Seems obvious right? But what is the right equipment for your car wash?

For automatic car washes, you want to buy equipment that is reliable, cost effective and meets the needs of your business and customers. You have two viable options: tunnel car wash and automatic bay car wash.

Tunneling equipment typically allows for more volume and can be more profitable, but requires more real estate (5000 square feet on average) and staff.

Source: Inside Self Storage

As I mentioned earlier, a tunnel car wash is not ideal for residual income as it is typically staffed (this is not mandatory, but often is). But if you don’t mind the added expense and hassle, tunnel washing can be a more lucrative business.

The automatic equipment in the bay takes up less space and can be used 24 hours a day because no staff is required to operate it. In fact, many 24-hour convenience stores and gas stations use automatic car washes on the bay for their no-fuss functions.

Another advantage of in-bay machines is that they can also offer touchless washing.

If you want to check out some major vendors for these two types of devices, here are some resources for you:

MacNeil Wash (for tunnel equipment)

Ryko Systems (for automatic equipment in the bay)

If you are interested in learning more about specific models that might be suitable for your particular business plan, you should consider joining a car wash association in your area.

Ask questions on this and other topics. You can gain really valuable insights from experienced connoisseurs.

Manage seasonality and weather

Everyone in the car wash industry knows the risk of seasonality. Or more specifically, the role weather plays in determining the profitability of your car wash.

The link between the weather and winning a car wash should be obvious. People are more likely to have their car washed after it snows because snow debris, salt and dirt will cover their car after a snowfall. So for car wash owners who experience snowy winters, it can be a nice time of year to turn a profit.

On the other hand, winter on the West Coast is often the rainy season and as you can imagine people wash their cars less often when it rains a lot.

As a car wash owner, you need to understand the role of weather in your business and take steps to ensure you don’t go under in an unfavorable weather condition.

It is best to have a sufficient liquidity reserve ready at all times in order to be able to survive phases of weakness caused by the weather. In other words, follow the old adage and save money for a rainy day.

Maintain equipment to avoid costly downtime

Your car wash will have very expensive equipment that needs regular maintenance. If you don’t regularly maintain your equipment, it can fail at the worst possible moment, leaving your customers stranded.

If this happens frequently, your reputation will suffer, as will your bottom line.

Therefore, make sure you understand all the maintenance tasks that you need to perform and make sure they get done. Don’t get lazy or skimp to save on costs. You don’t want to pay for a major repair that could have been avoided with proper preventive maintenance.

This article from carwash.com contains some maintenance tips and checklists that you may find helpful.

How to buy a car wash?

If you want a turnkey business that is already profitable and has an established customer base, you can purchase an existing car wash.

This approach has some great benefits, including avoiding major risk to a site’s profitability.

When it comes to a new car wash, you won’t know the answer to this all-important question until you open the doors to the shop. But an existing one has already proven itself in this critical element.

However, buying a car wash also comes with disadvantages and risks. First is the cost. You pay a premium for a proven and profitable car wash. Large and successful car washes can cost millions of dollars.

An existing car wash can also pose risks that a new car wash does not. In particular, the devices may be outdated or in poor condition. This can be a huge expense and you need to carefully consider the age and condition of the equipment.

You also need to be aware of any developments in this area. Find out why the owner is selling. You may not get a clear answer, but you should investigate as much as possible.

Is there a new competitor building a car wash nearby? Is there another local development that may cause the car wash to lose revenue (e.g. closure or relocation of an anchor location)?

You should investigate these types of problems before purchasing.

In short, you should conduct thorough due diligence on all key dimensions (business, financial, legal, tax, environmental (soil pollution), etc.) before purchasing a car wash.

If you are interested in finding car wash equipment for sale, visit the following websites:

What are the pros and cons of a car wash?

Now that we’ve covered how to start or buy an automatic car wash, we’re going to look at the pros and cons of owning a car wash so you can get a more complete picture of what’s really involved in this business.

Here are the pros and cons of a car wash:

Advantages of automatic car wash Disadvantages of automatic car wash Car washes can be profitable Car washes are expensive Car washes can be passive Seasons and weather affect profit Strong demand for services Car wash repair costs can be high Independence Competition is high Scalability

Benefits of a car wash

Car washes can be profitable

We’ve already discussed the profit potential of an automated car wash, so I won’t go into that again.

The bottom line is that you can make significant profits every year with a well run and maintained car wash in a great location.

Car washes can be passive

Owning an automatic car wash on the bay can be a pretty passive way to make money. Like any business, it won’t be completely passive (you’ll have to maintain the equipment and make sure things are running smoothly in your business).

But you don’t (for the most part) have to actually actively interact with employees or customers.

People just pay their ticket, head into the bay and the machines do the rest.

This type of automation is a big difference between this and other types of businesses.

Strong demand for services

As I mentioned earlier in this article, people love their cars and there are a lot of cars on the streets.

All of them will need to have their cars washed at some point and most will be happy to pay for someone else to do the dirty work.

independence

If you have your own business, you are not accountable to anyone. That’s difficult to quantify.

scalability

Scaling or expanding an automatic car wash on the bay is fairly easy. You can start with a few and add more as your business grows (assuming you have enough space on your property).

If you run out of space, you can expand to another location and repeat your success there.

Disadvantages of a car wash

Car washes are expensive

Whether you want to start a car wash from scratch or buy an existing one, the cost will be high. As we previously discussed, the average start-up cost for an automated car wash on the bay is $260,000.

Buying an existing car wash will not come cheap either. When I searched bizbuysell for car washes across the country, the cheapest that seemed reasonably decent were over $300,000. But most were much more expensive, some reaching nearly $10 million!

Regardless of whether you decide to start one or buy one, it’s going to be a big investment either way, so you’ll need some serious financial resources to get into this business.

Seasons and weather affect winnings

I’ve already discussed this topic at length, so I won’t go through it again. In short, you should save and be prepared for seasonality and the occasional bout of inclement weather.

Cash wash repair costs can be high

Your car wash is expensive and constantly in use. There are powerful cleaning agents involved. So, repairs are inevitable as the machines break down or break down from time to time. While some repairs can be easy and cheap, others are quite expensive.

You should be prepared to cover these expenses as they arise by setting money aside for this purpose.

The competition is high

In any business where significant profits can be made, you will find serious competition. Car washes are no exception.

The competition can take the form of a nearby car wash upgrading their equipment to poach your customers, mobile car wash services popping up to serve customers in your area, or a new mega car wash opening in your neighborhood.

Whatever the form, the risk of competition cannot be ignored. It’s part of the business and you need to manage it effectively.

How are you? Stay alert, assess what your competitors are doing and try to stay one step ahead (or at least keep up). Don’t be complacent – it’s difficult to replace or win back lost customers.

With up-to-date and working devices, fair prices, and a great experience, keep your customers happy and they’ll keep coming back.

Conclusion

Owning a car wash, especially an automatic car wash on the bay, can be an excellent way to earn passive income and break the hamster wheel.

But as you can see now, buying a car wash and waiting for the money to roll in isn’t that easy.

If you want to be successful in this business, you need to have a great location, buy the right equipment, keep up with your local competition, and generally make sure your car wash is running like a well-oiled money machine.

If you want more great passive income ideas, check out my Ultimate Beginner’s Guide to Passive Income [25+ Strategies That Work] where I cover tons of effective passive income generating strategies.

One of my favorite passive income articles is my article on self-run businesses. In this article, I cover some great companies that can generate attractive returns without a lot of day-to-day commitment from the owner (of course, automatic car washes are included in the list, but there are many more). Check it out here

Calculating cash flow for your car wash business

Here at Pit Crew, we don’t just clean your car wash sludge pits. Sure we have the pit cleaning equipment (including an industrial vacuum truck) to come in and get your pits clean and then get your hair out.

But our business goes beyond that to include car wash tips and resources. We know that our job of making pit cleaning as hassle-free as possible takes care of just one of the many worries that are keeping you up at night as a current or future car wash owner.

That’s why this article covers how to calculate profit margin and cash flow for your car wash business to keep a firm grip on your sales forecasts and financial ins and outs.

Why Calculate the Profit Margin of a Car Wash?

Calculating cash flow is important for both the established car wash and the foundation of a new car wash. Typically, calculating cash flow to determine profitability is part of the process of securing a business loan to start a new car wash. However, if you are purchasing an already established car wash, it may still make sense for you to calculate these numbers to determine the true value of your investment. Routine cash flow calculations can also shed light on why a particular car wash may not be as profitable. It can also help in deciding which location to expand your car wash empire to next.

Building blocks for calculating cash flow

Before you can start the calculations, you need to know some building block numbers. In this article we will discuss how to get these numbers. We also suggest average profit margins and car wash sales numbers that you can use to vouch for the unknown.

Annual traffic census

First, you need to know how many cars drive past your car wash each day. Some car wash owners had to research this number before even breaking ground. Banks typically want to know this data in order to assess the risk of lending your car wash the necessary funds to get it up and running. You can usually find this data by searching online for Department of Transportation traffic data (Virginia traffic data can be found here). If you don’t know this number yet, you can use an average annual traffic figure of 30,000 as a basis.

operating days of the year

Next, you need to write down how many days of the year your car wash is open. Account for closures due to holidays, inclement weather, routine maintenance, or occasional equipment failure. If you’re unsure about these variables and the number of days you’re actually open in the year, consider using the worst-case, median, and best-case scenario numbers. For our calculations we use an average of 320 operating days per year.

capture rate

This number gives you an idea of ​​how many of the thousands of cars that drive past your car wash every day actually come to have their cars cleaned. The rate of separation from your car wash can depend on a number of factors. Cars may be more difficult to detect on a road with a higher speed limit or median than on a road with a slower speed limit. If your car wash is difficult to see due to trees, other businesses, or a lack of signage, this will decrease your detection rate.

Estimating capture rate can be difficult if you don’t have the data to support an accurate figure. If you have previous years’ data on the number of cars your car wash serviced, you can divide this by the estimated annual traffic on your street to determine a capture rate for calculating profitability for future years and future locations. If you are starting a new car wash, you can either ask other car wash owners in the area or use a moderate value of 0.75%.

Average ticket price

Your average ticket price is a number based on the average amount your customers spend each time they use your car wash. You can calculate this by dividing the total revenue from your car wash by the total number of cars serviced. If you don’t know those numbers, the industry average in 2017 was $15 per ticket.

Profit margin per vehicle

The profit margin your car wash makes per vehicle is the last and most important number when calculating your car wash cash flow and profitability. Brandongaille reported that the average profit per car for in-bay autos was $4.35 (or 29% of an average ticket price of $15).

Your car wash may be slightly over or under this amount. It’s important to determine your total earnings for a sufficient period of time (more than a year of data if you have one), subtract your total expenses for that period, and divide the resulting number by the number of cars you’ve serviced during that time . This could be another number to call a friend for.

pull everything together

Now that we’ve identified all of the cash flow commodities, you can calculate your projected profitability for any given location. If you’ve been following this article, you may have had to make some educated guesses for certain numbers, or rely on industry averages for others. If some of the numbers seem more certain than others (e.g. knowing current research facts versus estimates based on national averages), try using those numbers first and either filling in the uncertainty gaps with educated guesses or a little high Back school algebra.

For example, if you don’t know how many cars you currently wash per year or will wash at a future location, you should take the average traffic count for your location and multiply by the number of days you are open in a year, then multiply that result with the acquisition rate. If you don’t know your gross annual sales, but you know how many cars you washed and what the average ticket price was, take those two numbers and multiply them together.

Breakdown of Income Statement Excel spreadsheet

According to the above photo of a sham income statement based on average car wash sales forecasts, we have:

Daily traffic count of 30,000 in cell B2

Open 320 days per year in cell B3

A capture rate of 0.75% in cell B4

An industry standard ticket price of $15 in cell B5

Profit margin of 29% in cell B6

Calculation of the cars washed per year

Multiplying the daily traffic count in cell B2 by the open days per year in cell B3 multiplied by the capture rate in cell B4 we get the annual traffic count. If you calculate this with Microsoft Excel, the formula is “=B2*B3*B4”. For this mock car wash profit statement, we get 72,000 cars washed per year.

Calculation of annual gross sales

Gross sales is the amount of money your car wash business takes in before you adjust for cost of goods sold and overhead. It’s the equivalent of counting the money in your cash register at the end of the day. It won’t be the final win you go home with, but it’s still an important number to keep an eye on.

In the Excel spreadsheet above, take the average ticket price in cell B5 and multiply it by the cars washed per year in B7. In Excel you would write “=B5*B7”. For this example, we get annual gross sales of $1,080,000.

Calculation of the annual cash flow

The last step for your car wash business profit margin is to calculate the annual cash flow. From the Excel spreadsheet above, we can take the annual gross sales calculated in the previous step (cell B8) and multiply it by the profit margin per wash in cell B6 using the formula “=B6*B8”. Using our round numbers and industry average statistics, the annual cash flow is $313,200. That’s how much an average car wash earns in a year. However, caution is advised as we made a lot of educated guesses everywhere for the example.

This final figure is known as your cash flow or EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). It’s an important number in determining how much juice your car wash is producing, and it can be used to determine if a site is a viable investment or if you should take some action to improve profitability.

How Pit Crew can help you with your cash flow

While we can’t help you with all the factors that affect your car wash profitability, one factor that may be plaguing your business is the routine maintenance of pumping your mud pits. Closing your locations for extended periods of time to clean your car washes can impact the number of cars you wash per year and, in turn, your overall cash flow. The pit crew gets in, cleans your boxes and gets out again so your car wash can keep running without interruption.

Additional cash flow resources

Is it worth? – The rules of ROI calculation that no one from Auto Laundry News told you

HOW TO START A CAR WASH: CREATE A STRONG CASH FLOW with professional car washing and detailing

WASH WISDOM: CALCULATION OF THE POTENTIAL CASH FLOW through professional car washing and detailing

10 Mistakes People Make When Starting a Car Wash Business by Anthony Analetto of Sonny’s The CarWash Factory

A car wash can be a very profitable business. However, it is important to know how to get customers to come to your car wash instead of your competitors. There are a few tricks you can try to increase car wash sales.

Promotions

Regular promotions can attract regular customers. A very effective promotion is a frequent laundromat promotion. There are a few ways to do this.

You can give your customers a card with your car wash information on the front, including:

• The company name

• Address

• Telephone number

• Opening hours

When the customer comes through the car wash, you can stamp the card when paying. After so many washes, the customer can earn a free wash. This will result in customers returning to your store in hopes of earning their free wash.

Another method of running a frequent wash club is to have customers prepay for a set number of washes at a discounted rate.

Your customers will like the discount while you get paid up front. This guarantees that your customers will come back. This, too, will give the car wash an increase in sales. When a person buys the prepaid washes, it’s a good idea to give them a card similar to a credit card. Make sure it’s fancy, possibly in gold, and have VIP printed on the card. People like to feel important.

cross promotion

Cross-promotion is a great way to get more visitors to your car wash. There are a few ways to do this.

If your car wash is located at a gas station, you can offer a car wash discount if your customers fill up at the pump first. This will attract more gas and car wash customers.

If your business is just a car wash, you can partner with local businesses to offer deals. For example, you could work with a local car dealership. You could offer 26 free car washes to those who buy a car from the dealer. In return, the dealership can promote this offer and in return promote your business.

Keep prices competitive

It’s important to keep your prices close to the other car washes in your area. This is especially important in winter. In the winter months, car washes bring in the most money. First, because people don’t want to wash their own vehicles in the cold. Second, the snow and salt from the roads can make a vehicle look dirty. The winter months are also an excellent time to sell laundry detergent.

fundraisers

Fundraisers are an excellent way to bring traffic to your car wash. Nonprofits are always trying to make money. If you work with an organization, you can give them a portion of the proceeds from every car wash they send you. Not only do you gain customers at your car wash, it’s also excellent PR for your business.

If you and your staff are professional and care about the customers, you should be able to get good car wash traffic. The ideas listed above can significantly increase that traffic.

Calculating cash flow for your car wash business

Here at Pit Crew, we don’t just clean your car wash sludge pits. Sure we have the pit cleaning equipment (including an industrial vacuum truck) to come in and get your pits clean and then get your hair out.

But our business goes beyond that to include car wash tips and resources. We know that our job of making pit cleaning as hassle-free as possible takes care of just one of the many worries that are keeping you up at night as a current or future car wash owner.

That’s why this article covers how to calculate profit margin and cash flow for your car wash business to keep a firm grip on your sales forecasts and financial ins and outs.

Why Calculate the Profit Margin of a Car Wash?

Calculating cash flow is important for both the established car wash and the foundation of a new car wash. Typically, calculating cash flow to determine profitability is part of the process of securing a business loan to start a new car wash. However, if you are purchasing an already established car wash, it may still make sense for you to calculate these numbers to determine the true value of your investment. Routine cash flow calculations can also shed light on why a particular car wash may not be as profitable. It can also help in deciding which location to expand your car wash empire to next.

Building blocks for calculating cash flow

Before you can start the calculations, you need to know some building block numbers. In this article we will discuss how to get these numbers. We also suggest average profit margins and car wash sales numbers that you can use to vouch for the unknown.

Annual traffic census

First, you need to know how many cars drive past your car wash each day. Some car wash owners had to research this number before even breaking ground. Banks typically want to know this data in order to assess the risk of lending your car wash the necessary funds to get it up and running. You can usually find this data by searching online for Department of Transportation traffic data (Virginia traffic data can be found here). If you don’t know this number yet, you can use an average annual traffic figure of 30,000 as a basis.

operating days of the year

Next, you need to write down how many days of the year your car wash is open. Account for closures due to holidays, inclement weather, routine maintenance, or occasional equipment failure. If you’re unsure about these variables and the number of days you’re actually open in the year, consider using the worst-case, median, and best-case scenario numbers. For our calculations we use an average of 320 operating days per year.

capture rate

This number gives you an idea of ​​how many of the thousands of cars that drive past your car wash every day actually come to have their cars cleaned. The rate of separation from your car wash can depend on a number of factors. Cars may be more difficult to detect on a road with a higher speed limit or median than on a road with a slower speed limit. If your car wash is difficult to see due to trees, other businesses, or a lack of signage, this will decrease your detection rate.

Estimating capture rate can be difficult if you don’t have the data to support an accurate figure. If you have previous years’ data on the number of cars your car wash serviced, you can divide this by the estimated annual traffic on your street to determine a capture rate for calculating profitability for future years and future locations. If you are starting a new car wash, you can either ask other car wash owners in the area or use a moderate value of 0.75%.

Average ticket price

Your average ticket price is a number based on the average amount your customers spend each time they use your car wash. You can calculate this by dividing the total revenue from your car wash by the total number of cars serviced. If you don’t know those numbers, the industry average in 2017 was $15 per ticket.

Profit margin per vehicle

The profit margin your car wash makes per vehicle is the last and most important number when calculating your car wash cash flow and profitability. Brandongaille reported that the average profit per car for in-bay autos was $4.35 (or 29% of an average ticket price of $15).

Your car wash may be slightly over or under this amount. It’s important to determine your total earnings for a sufficient period of time (more than a year of data if you have one), subtract your total expenses for that period, and divide the resulting number by the number of cars you’ve serviced during that time . This could be another number to call a friend for.

pull everything together

Now that we’ve identified all of the cash flow commodities, you can calculate your projected profitability for any given location. If you’ve been following this article, you may have had to make some educated guesses for certain numbers, or rely on industry averages for others. If some of the numbers seem more certain than others (e.g. knowing current research facts versus estimates based on national averages), try using those numbers first and either filling in the uncertainty gaps with educated guesses or a little high Back school algebra.

For example, if you don’t know how many cars you currently wash per year or will wash at a future location, you should take the average traffic count for your location and multiply by the number of days you are open in a year, then multiply that result with the acquisition rate. If you don’t know your gross annual sales, but you know how many cars you washed and what the average ticket price was, take those two numbers and multiply them together.

Breakdown of Income Statement Excel spreadsheet

According to the above photo of a sham income statement based on average car wash sales forecasts, we have:

Daily traffic count of 30,000 in cell B2

Open 320 days per year in cell B3

A capture rate of 0.75% in cell B4

An industry standard ticket price of $15 in cell B5

Profit margin of 29% in cell B6

Calculation of the cars washed per year

Multiplying the daily traffic count in cell B2 by the open days per year in cell B3 multiplied by the capture rate in cell B4 we get the annual traffic count. If you calculate this with Microsoft Excel, the formula is “=B2*B3*B4”. For this mock car wash profit statement, we get 72,000 cars washed per year.

Calculation of annual gross sales

Gross sales is the amount of money your car wash business takes in before you adjust for cost of goods sold and overhead. It’s the equivalent of counting the money in your cash register at the end of the day. It won’t be the final win you go home with, but it’s still an important number to keep an eye on.

In the Excel spreadsheet above, take the average ticket price in cell B5 and multiply it by the cars washed per year in B7. In Excel you would write “=B5*B7”. For this example, we get annual gross sales of $1,080,000.

Calculation of the annual cash flow

The last step for your car wash business profit margin is to calculate the annual cash flow. From the Excel spreadsheet above, we can take the annual gross sales calculated in the previous step (cell B8) and multiply it by the profit margin per wash in cell B6 using the formula “=B6*B8”. Using our round numbers and industry average statistics, the annual cash flow is $313,200. That’s how much an average car wash earns in a year. However, caution is advised as we made a lot of educated guesses everywhere for the example.

This final figure is known as your cash flow or EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). It’s an important number in determining how much juice your car wash is producing, and it can be used to determine if a site is a viable investment or if you should take some action to improve profitability.

How Pit Crew can help you with your cash flow

While we can’t help you with all the factors that affect your car wash profitability, one factor that may be plaguing your business is the routine maintenance of pumping your mud pits. Closing your locations for extended periods of time to clean your car washes can impact the number of cars you wash per year and, in turn, your overall cash flow. The pit crew gets in, cleans your boxes and gets out again so your car wash can keep running without interruption.

Additional cash flow resources

Is it worth? – The rules of ROI calculation that no one from Auto Laundry News told you

HOW TO START A CAR WASH: CREATE A STRONG CASH FLOW with professional car washing and detailing

WASH WISDOM: CALCULATION OF THE POTENTIAL CASH FLOW through professional car washing and detailing

10 Mistakes People Make When Starting a Car Wash Business by Anthony Analetto of Sonny’s The CarWash Factory

In the article “How to Write a Business Plan: A Step-by-Step Template” on Inc.’s website, Zoë Henry, Staff Reporter, provides an informative overview and insightful tips for creating an effective business plan.

Click here to read more

When it comes to building a successful business, Henry explains in the article, creating a business plan is the first and most important step.

She continues by sharing U.S. business plan guidelines. Small Business Administration (SBA) shares, which include:

A summary

A company description

A market analysis

A breakdown of organization and management

A description of the service or product line

An overview of your marketing strategy, a funding application (if applicable)

Some financial projections to back up your request

An attachment (optional) containing relevant resumes, permits, or leases.

In addition, Henry offers five steps in the article to help you create the optimal business plan:

How to Buy a Car Wash If your entrepreneurial ambition is to run a car wash business – also known as “cleaning up the town, one car at a time” – then here is our guide to the key stages of buying a car wash.

The car wash industry is a highly fragmented industry. For a single owner, however, that’s not necessarily a bad thing. A smart, well-planned operation still has every chance of being successful.

Industry Overview

The car wash industry undertakes the cleaning, washing and waxing of motor vehicles. And in addition to removing road debris from cars, trucks, vans and trailers, the industry also includes self-service car washes.

According to IBISWorld, Canada’s car wash sector employs 8,593 people across 3,218 companies nationwide and has current sales of $465 million.

Experience shows that car wash trends are closely linked to new car sales. With automotive investment strong enough to support vehicle registration growth at an annual rate of 2.1% (2011-2016), the business outlook looks promising.

In terms of the prevalence and variety of services available, approximately 25-30% of car washes in Canada are self-service car washes and approximately 50% operate as traditional gantry car washes with automatic bayside facilities.

research

Although some industry newcomers may want to pursue a franchise deal or start a brand new business

Businesses in a new location, the majority of aspiring business owners will try to buy an already established business.

The advantage here is that the business metrics are based on real performance figures and not on forecasts. This means that instead of betting on a start-up, you have a clearer idea of ​​what income you will get as a return on your investment.

While taking the reins of a burgeoning business can be reassuring, hiring an industry experienced professional team to perform the due diligence on your behalf is essential.

This not only verifies the seller’s trading figures and financial statements, which you can rely on for your own plans, but also helps you form an opinion as to whether the company’s valuation and list price are realistic.

Choosing your location/premises

A highly visible website that also makes a good first impression is a key asset when it comes to attracting business. This also requires a well-equipped facility that is in good condition and has been carefully designed to allow customers easy access to the premises and easy access to the car washes.

Even the most modern car wash is of little use if it’s in a neighborhood with enough population and traffic to generate steady demand for your services. And also remember that even heavy through traffic may not be good for business if it’s always traveling at high speed.

As with any business venture, it is important to know where your competitors are, what they are offering and at what price. This is of course mostly a matter of homework, but the practice may also open your eyes to some possibilities that you may not have considered.

licences and permissions

Your car wash business requires a number of licenses and permits. For example, you will likely need a permit for the large volumes of water you will need, and you will certainly need to comply with waste liquid and chemical disposal regulations.

You must also register your company with the relevant authority and comply with tax legislation. If you are planning to hire employees, further employment law regulations apply to your work and the insurance obligations to be fulfilled.

Some legal provisions, such as B. Signage and parking rights, as well as permits for changes to the site you are proposing, may be subject to local and/or zonal restrictions.

Financing your purchase

Financing your business can come in the form of a bank loan, a cash advance from the dealer, or in certain circumstances the seller may even offer financing as part of the deal. Whichever financing avenue you choose, you will need professional advice, a thoroughly researched business plan to support your projections, and a substantial cash contribution of your own.

Is it right for you?

The Philippines car wash business feasibility study and the things you need to successfully build your own empire.

Car Wash Business In The Philippines: First Thoughts

Owning and successfully running a business is the dream of many people with the goal of expanding income and pursuing their passions.

If you are prompted to start your own business in the Philippines, you may consider the car wash business. With the increase in the number of private vehicles in recent years, the market for car services such as car washing has also expanded.

Although there are countless car wash centers across the country, the car wash services have not yet met the demand and met the standard criteria, especially in the urban areas.

The real question that arises now is what you should do to start a car wash business with ease and pleasure.

In the following article, Philtoyota.com will immediately show you the basic guidelines for the feasibility study of car wash business in the Philippines.

The process and requirements of opening a car wash business in the Philippines

First and foremost, you should focus on preparing the necessary paperwork to legalize the operation of your business. This task is quite time-consuming and tedious, especially if you, as a foreigner, are unfamiliar with the types of documents required.

Below is a list of some necessary documents for your car wash service in the Philippines: References:

Department of Commerce and Industry (DTI) or Securities and Exchange Commission (SEC)

A legal name is required to confirm the company’s individual ownership and ensure confidence in the company’s legitimacy among its customers.

If the business is owned by an individual, their name must be registered with DTI. If there is more than one owner, the name must be registered with the SEC.

Registration of car companies in the Philippines.

It should be noted that the uniqueness of the company name must be guaranteed. Therefore, make sure that no one has used the chosen name of your company before.

Barangay release

You need to go to the Barangay Hall where the car wash shop is located to get a Barangay Permit.

Remember to bring a certificate of business registration with the DTI or SEC, an electrical and fire certificate, a valid ID, and a rental agreement (if renting an apartment).

Mayor’s license or business license

For this type of license, required documents include DTI or SEC registration, a community tax certificate, a barangay clearance, valid IDs, and a map of your company’s location.

Tax identification number (TIN)

In order to issue receipts and pay taxes, your company needs a TIN tax registration number. Documents required to obtain an official TIN include DTI or SEC registration, barangay clearance, mayoral or business license, valid ID, and a map of business location.

Other

You must also address employee-related documents such as DOLE, PhilHealth, SSS, and HDMF to successfully register for a car wash business in the Philippines.

>>> See also: 8 ways to make extra money from your car in the Philippines

Needed car washes for the company

Besides the generous space and an overflowing water source, you also need some basic car wash equipment and tools to keep the car wash business running efficiently and smoothly.

At the time of incorporation, you need to spend at least PHP 30,000 on the equipment alone.

Here is a list of the most basic equipment and tools a car wash should have:

high pressure cleaner

This is a specialized cleaning machine that discharges water at very high pressure to easily remove dirt, mold or even rubber stuck to the vehicle.

There are different types of washer nozzles for different purposes, which can be used interchangeably. Therefore, you should purchase several types for use in different situations.

A pressure washer is one of the most needed devices in a car wash.

Pressure washers can be classified based on gas, electric, and battery power sources. In our opinion, an electric or cordless high-pressure cleaner would be more suitable for start-ups due to its simple operation.

If you’re interested, you can easily pick up a versatile wheeled pressure washer unit, but it can take up more space in your garage.

pressure tank

Running water is an important piece of equipment for the car wash business in the Philippines. However, with a limited water supply that can easily lead to water shortages, you must use a pressure tank with a capacity of at least 340 liters.

With the help of pressure, the accumulator helps to force water into the pipes. In addition, the tank itself can store a large amount of water.

water drums

Although the accumulator can store water, it is difficult to ensure stable water supply. Therefore, you should add at least three large water barrels to keep the water supply more stable.

Vacuum cleaner with blower

In addition to washing the outside, cleaning the interior is also a popular service offered by car washes.

Therefore, a 750 watt vacuum cleaner with a 6 meter cord and the blower are perfect companions that suck up the dirt deep in the car. A good vacuum cleaner costs around PHP 4,000.

A good multi-purpose blower vacuum can easily help you clean your car both inside and out.

Other

Aside from the gear listed above, you may need additional items such as water tanks, ladders, hoses, rags, and car sponges that don’t cost too much.

>>> Read more: 10 tips to wash your car properly yourself

The estimated monthly expenses for a car wash business in the Philippines

In any business, one of the most important things to keep in mind is to balance the monthly income and the detailed expenses to end up with a positive relative profit.

Are there any expenses for a car wash business in the Philippines and how much to expect?

The list below gives you a rough idea of ​​the estimated scope and cost of your car wash center that will be needed in a month:

Rental Fee: If you do not own any premises that served as a location for your business, you must consider renting a suitable location.

: If you do not own a site that has served as a site for your business, you must consider renting a suitable site. Consumables (liquids needed for professional car wash such as polish, car shampoo, tire black, wax): approx. PHP 25,000

(Liquids needed for professional car washing such as polish, car shampoo, tire black, wax): approx. PHP 25,000 City Services (including water and electricity costs): PHP 4,000

(including water and electricity costs): PHP 4,000 Salary: Dependent on profit but must ensure minimum wage level set by DOLE.

It is somewhat difficult to accurately predict the total monthly expenses as many factors affect the total expenses of the business such as: B. the size of the company, the number of employees or the suppliers.

However, the points above are some of the most basic operating expenses for a car wash business in the Philippines that you should know first.

Consider the other costs and expenses when running the car wash business.

>>> Further references:

The Income of Car Wash Business in Philippines

It is quite difficult for any mid-cap startup with a decent company size and reputation to achieve great success from the very first steps.

Given the nationwide popularity of personal vehicle ownership, a car wash business operating in a good location with specialized services can gradually gain a solid business footing anywhere in the Philippines.

Thank you for joining us for today’s car wash business feasibility study in the Philippines.

Good luck to you in all future business plans and see you next time with more Toyota Stories for lots of car news and notifications you don’t want to miss!