INVESTING IN A CAR WASH

Starting a Car Wash Business

Making Money in the Business

It's true! The car wash business can be very profitable. Of course, profitability depends on a few contributing factors.

Location, competition, equipment, services, appearance and management are just some of the factors that lead to a profitable location.

Many ask how the car wash business can be so profitable.

Here's how:

· Low labor cost... typically only one part- time employee

· Low direct operating cost

· Cash only... coin/token/credit card operated machines means no account receivables and no personal checks

· Customer provides labor

· Inventory is small

· Open 24 hours a day

· You control prices for special promotions

· Not just a seasonal business... car washes are used year round

· Broad target market... anyone who owns a vehicle, regardless of age, income or gender

· Fixed costs such as bookkeeping and insurance are minimal

Why do so many people invest in the self-serve car wash business?

· High rate of return on initial investment

· Easy management

· Minimal labor issues

· No cash flow or inventory control problems

· Cash business -no accounts receivable

· Tax incentives

· Expansion Opportunities

The Price is Right

The cost of owning a car wash system can vary, depending on land, number of bays, building structure and a few other factors. You may already own land, if not, purchasing or leasing property will be added to your cost of investment. Building structure, of course, will vary because of local building codes which may require you to use certain materials. You should consult with your equipment supplier regarding construction cost and what material you should use.

Equipment costs for your self-service - automatic touchless car wash will vary depending on the number of self service and in-bay automatic bays installed. In addition to the car wash bays themselves, you should always install the maximum number of income producing equipment the property will allow. With the best locations bringing a premium price you will want to get income from as many sources as possible. Another factor is method of payment. Customers should be able to pay for all services available at your site with whatever type of money they have with them at the time they visit your wash. This could be coins, bills, or credit cards.

Owning a car wash can be expanded into related areas such as full service, exterior automatic and detail centers. The self service car wash is an industry which offers car cleaning services to the motoring consumers who can wash their own vehicle. By vehicle, we mean that you can wash cars, trucks, boats, campers or anything that is portable. With this in mind, imagine how many "dirty" vehicles are in your area alone!

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