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The Car Wash Business has been around for as long as there have been cars.
A car is usually a reflection of the individual and most people want to
keep their cars clean just like they would like to wear clean clothes.
As a business, there are several car wash business models and one should
explore different options to suit one's lifestyle and financial
capacity. For example, some might find the Self Serve car washes a more
attractive operation because of it's relatively low level of maintenance
and it's continuous cash flow. Whereas full service car washes require
substantially more investment, labor and customer service but resulting
in much higher income. Others prefer the Mobile Car Wash operation,
which is best suited for small business operators and require mainly
labor and a relatively low investment in equipment.
Before starting a Car Was Business the
following should always be considered.
Return On Investment - ROI
As a rule of thumb, a Car Wash Business that requires lot space and
substantial investments in equipment should aim for a 15-20% annual
return on investment or the equivalent of 5 to 7 years to recoup the
total initial investment. A small mobile car wash business could see
it's total investment returned in 1 year due to the absence of the
substantial initial investment.
Car Wash as a Part Time Business or Absentee Operation
You can run a Self Serve Car Wash with as little as 3 hours per week,
mainly to check the condition of the self serve bays and to collect
money from the coin changers. This options is very attractive for people
who have other business to run or simply see this business as an extra
source of income. On a smaller scale, some people choose to have a
mobile car wash and operate it on a part time business. Which is ideal
for a small operation that does not require a location or hired labor.
The amount of equipment in a Car Wash Business is substantial and
therefore one is able to use depreciation of equipment against income,
which implies favorable tax benefits.
Car Washes in Times of Recession
Car Washes are not fully recession proof but people still enjoy having
their cars cleaned. Recessions usually force car owners, especially in
lower income brackets to cut back on expenses such as a Car Wash.
However, car washes are seen as a necessity to many because of the self
image attached to one's car, therefore there will be always an abundant
supply of customers.
Car Wash Business that are Self Serve are all car business, which in
itself is very attractive to many.
Labor Skill Requirements
Labor for Car Washes usually requires minimum skills, therefore labor
costs are on the low end and there is usually an abundant supply of
laborers. One can opt for part time workers or full time and equipment
repair can be done at reasonable prices.
Car Washes technically do not need much inventory as the machines are
the primary reason customers come to a car wash. Inventory would include
car was soap, towel to dry cars, and other items to enhance cosmetics of
Easy to Sell
Car Washes are highly in demand because many people understand the
basics of operating a car wash. Therefore, an advantage of having a car
wash lies in the fact that one can sell it at an attractive price in a
relatively short amount of time.
The information on this site was
was compiled after consulting with several car wash industry veterans.
If you are an industry expert and would like to share information,
please email us at vclemail at gmail dot com.