5 Secrets of Successful Car Wash Businesses

As long as vehicles travel the roadways, 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.

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The Houston Chronicle, reporting on a survey conducted by Auto Laundry News, a leading car wash industry publication, said that profits can range from $55,000 to $100,000 per year for a self-service car wash to $500,000 to $900,000 for a full-service business.

If you&#;re looking to invest in the car wash business, here are five secrets successful operators will tell you helped them get started on the right track.

1. Know What You Don&#;t Know

There is a lot you may 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&#; then task yourself with gaining as much knowledge and expertise as possible about every facet of the car wash operation.

2. Ask for Help

If you are new to the business, seek advice from those in the know &#; and listen to what they have to say. You&#;ll save yourself a lot of headaches by learning from the experience of others.

According Steve Gaudreau, a 25-year car wash veteran and the author of &#;So You Want to Own a Carwash,&#; when asking for help do what you would do in any business: Check references, visit successful car wash sites to see what success looks like and ask operators their opinion of who you are thinking of working with. The more you learn, the better your chance of success.

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

3. Select the Best Site Possible

&#;Location, location, location&#; is the real estate industry&#;s mantra. It should be in our industry as well. For a car wash business, location is everything, so select the best site you possibly can.

A good site will have the following characteristics:

• Ease of access. Make it easy for customers to find the entrance to your car wash. Situating your wash at a busy intersection won&#;t do you much good if people can&#;t easily figure out how to get to it.

• Highly-traveled street or road. Find a location on a highly traveled street or road where the speed limit is set at 40 MPH or less. That way, you benefit not only from a lot of traffic but also a speed limit that gives drivers time to read your signage.

• Sufficient space. Your site should be large enough for vehicles of all sizes to navigate through the car wash lands and access other areas, such the vacuum bays. Also, ensure you have enough room for cars to line up without blocking roadways.

What locations work best for car washes?

Andy Pazz, the author of &#;How to Set Up an Express Exterior Car Wash,&#; provides some sound advice about selecting a prime location:

&#;Primarily, a location that would be in an area like near a Wal-Mart, near a commercial area like a strip mall, close to a light or a stop sign on a main thoroughfare. &#; You have to be near a destination &#; where people are actually shopping &#; Anywhere around a commercial area like that, you&#;re going to generate a lot better than you are out in an area that&#;s predominantly residential.&#;

4. Know Your Competition

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

5. Choose the Right Manufacturers and Suppliers

Selecting a manufacturer who provides high quality tunnel systems, components and parts and who backs up sales 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 key issues regarding chemical usage are:

• Understanding the connection between equipment and chemicals;
• Defining the desired quality for your wash;
• Deciding how much equipment you need in conjunction with the chemicals to produce the desired result;
• Controlling the cost of the chemicals;
• Ensuring a high level of service by the chemical distributor.

You may be tempted to go with the least expensive products but don&#;t give in. 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 are only the tip of the iceberg. You must also consider factors such as financing, construction, zoning rules and permits, marketing and advertising, employee hiring and much more.

That&#;s why it&#;s important to connect with and learn from established operators. You&#;ll find that most will be happy to share their knowledge.

Motor City Wash Works is in the business of helping new investors get started. Give us a call at 866-362- or send us an to discuss your interests and needs.

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When envisioning beginning a car wash business, it may seem questionable whether a car wash business can genuinely be a profitable idea for a small business. However, even if starting a car wash business can be profitable, you will likely want to know how to determine if it is. One key factor which makes car wash businesses worthwhile relates to the growing demand for car wash services.

The annual market for car wash businesses increased from $11.9 billion in to $13.1 billion in , representing just over 10% growth. On average, industry market size increases are in the single digits. Thus, the recent rise in market size provides evidence that the car wash industry is growing. Moreover, this increase is an excellent indication that the overall profitability of car wash businesses, too, will continue to increase. Further, Statista estimates the revenue in the United States from car wash businesses will increase from 9.4 billion in to a projected 10.05 billion in .

Additionally, according to Kelley Blue Book, the average price of a new vehicle has steadily risen. In , Americans paid $1,799 more for the average new car than they did in . That number rose in to $3,301 more than the last year and nearly tripled in to consumers paying $6,620 more than in for the average new vehicle. December &#;s average final transaction price for cars was $47,077. In , the average final transaction price was just over $34,000. As a result, car wash businesses&#; utility has recently become increasingly apparent.

Since vehicle costs are continuously rising, many consumers are attempting to elongate the life of their purchases, now seen as investments. With the growth of the average price of a new vehicle (from $1,799 to $3,301 to $6,620) increasing almost tri-fold, it is no wonder car wash businesses have become such rewarding undertakings. Car wash businesses allow consumers to further protect their investments. In addition, operating a car wash business provides measurable value to consumers. This is because they can sustain the upkeep of their vehicles which typically results in maintained value over time, subsequently saving consumers additional money in the long- run. Indeed a benefit that is high on most consumers&#; lists of needs.

Alongside statistical evidence supporting the continued profitability of car wash businesses, profitability also depends on the kind of car wash business you plan on operating. Mobile car wash businesses, tunnel car washes, and in-bay rollover car washes provide distinct benefits and profit margins. In addition to your primary car wash services, offering premium services and upgrades can also increase the profitability of your car wash business.

Mobile Car Wash Business Profits

A mobile car wash business can be one of the most straightforward small business ideas to start up, with minimum initial costs. This small business idea will allow the owner to set their own hours and have a more flexible schedule overall, which in turn means greater control over how much the business profits. In addition, many automobile owners now seek to extend the life of their purchased vehicles. In response, a mobile car wash business provides cost-effective maintenance, often preferable over tunnel or in-bay rollover car wash options.

A mobile car wash business gleans most of its profitability from simple convenience. More individuals are willing to pay someone else, even when it is a task they could efficiently perform themselves. The convenience of a mobile car wash business means that individuals do not even need to stop their day to have their vehicle cleaned and detailed. Bringing the services to the customer definitely increases benefits.

Additionally, because of the need to extend an automobile&#;s life, many individuals are unwilling to patronize automated car washes. This is due to micro-scratches from some automated car wash brushes that lead to premature rusting and &#;paint swirl&#; marks on vehicles. These cosmetic issues can be nearly entirely avoided by having the car hand-washed by a mobile car wash business.

An individual just beginning is likely to see an income of around $1,000 per week. To calculate this estimate, there are several factors to consider. First and most apparent, a mobile car wash business will not require a monthly lease. A mobile car wash business will also not have a payroll since the owner will be the only &#;employee.&#; For a mobile car wash business, profits vary significantly depending on how services are priced.

Take, for example, a customer who would like an exterior wash, vacuum, carpet shampooing, and waxing. Typically a mobile car wash business will have set packages priced competitively. Still, for example&#;s sake, we&#;ll use the industry averages. Let&#;s say, for the above-referenced customer, the base service of hand-wash and vacuuming the vehicle costs the customer $30. Here, you can charge for the services à la carte and the base rate, significantly increasing profitability.

If the carpet shampooing is priced at $40 and the exterior waxing at $60, you will profit $130 from just one vehicle. Servicing only two cars per day with these same services would net you $260 a day and $1,300 in a five-day workweek. Cleaning for the entire month nets a total of $5,200, with $62,400 earned annually. The numbers for a single owner just beginning a two-car per day mobile car wash business make it understandable why the industry is so profitable.

Tunnel Car Washing Business Profits

A tunnel car wash is where the customer&#;s vehicle is on a conveyor belt and is taken through a tunnel. Various car wash processes are performed in succession to one another. In terms of automatic car washing, tunnel car washing is preferred to in-bay rollover car washing, primarily due to tunnel car washing&#;s increased speed. This upgraded version of the in-bay rollover car wash increases thoroughfare significantly, a perk necessary to most when deciding to use an automatic car wash. In addition, typically customers will not want to wait extended periods. This further strengthens the profitability of tunnel car washes by providing quality service quickly.

A tunnel car washing business can be profitable because it can provide a form of passive income. The owner will not necessarily need to be on-site at all times. Still, considerable costs are associated with the setup and maintenance of a tunnel car washing business. The U.S. Census Bureau puts the average annual revenue for tunnel car washes at approximately $139,000. While this may seem lucrative, it comes at a cost. Looking at the WashWorks Mini Car Wash Tunnel package, the price is just over $345,000. Although this includes construction and installation, it may be difficult for most individuals to secure the necessary funding to build a tunnel car wash. So, while a tunnel car wash can provide an excellent source of passive income, it will require a more than robust investment to even begin providing the service.

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In-Bay Rollover Car Wash Business Profits

Similar to tunnel car washes, in-bay rollover car wash businesses can also turn a significant profit. However, an in-bay rollover car wash differs from a tunnel car wash because the customer drives their vehicle into the bay and parks. Then the equipment in the wash bay &#;rolls over&#; the car to perform the different cleaning processes. This type of cleaning typically requires much longer time than tunnel car washes, resulting in decreased profitability.

The decreased profitability is evidenced by the average annual profit, which sits slightly above $86,000. This indicates more than $50,000 less on average than a tunnel car wash and has yet to consider any costs associated with building the in-bay rollover car wash. Typically, a rollover car wash costs no less than $20,000, not always including installation. As a result, the initial year of revenue will be slashed by $20,000 plus the cost of continuing maintenance and parts for the machine. Passive income is lovely, but keep in mind that owning high-powered machinery creates new responsibilities. These include water usage necessary for running the car wash, particularly if you plan to have a car wash with 24-hour access.

Overall, there are several factors to determine whether a car wash business can be profitable. The critical determinant lies in which kind of car wash business you plan to begin. Starting a mobile car wash business is an excellent option, mainly if you have limited startup funding available at your disposal. A mobile car wash business allows you to bring the service to the customer and net just over $60,000 annually, washing only two cars per day, 5 days per week.

Alternatively, there are automated car wash options that are also available. Tunnel car washes are the most upgraded option and allow customers&#; vehicles to be conveyed through a tunnel through the multiple processes of the cleaning process. Conversely, an in-bay rollover carwash reverses that set up by having the customer stationary and the equipment&#; rolling over&#; the customer&#;s vehicle.

Though this is a slower method, it still leaves room for revenue over $80,000. The only caveat to that is that the systems themselves are considerably pricey for tunnel and in-bay rollover car wash systems. Some individuals may have difficulty obtaining financing sufficient to support such a large purchase price. With that in mind, car wash businesses can be profitable. Still, a mobile car wash business would provide the most significant profits for individuals seeking to invest the bare minimum. In addition, a mobile car wash business is profitable for someone without access to large amounts of liquid assets, with a continuously growing market. They also do not have to concern themselves with building permits, water recycling, etc. All in all, a mobile car wash business can be highly profitable.

Contact us to discuss your requirements of Car Washer Wholesale. Our experienced sales team can help you identify the options that best suit your needs.