Are you looking for a business opportunity that is both profitable and exciting? If so, then you should consider opening a car wash business.
This industry is booming, and there are many different ways to get started. In this blog post, we will discuss steps that will help you get your car wash business up and running!
Let's state the obvious: What is a car wash?
A car wash is a business where people can go to have their cars cleaned.
This can be done either by hand or by machine, and there are many different types of car washes to choose from.
Is owning a Car Wash Business a good idea?
If you're thinking about starting a professional car wash business, know that it can be very lucrative.
The car wash industry is growing rapidly, with the injection of venture capital in professional car washes and new technology.
This means that now is a great time to get involved in car washing. Not only is the industry growing, but there are also many different ways to build a car wash business.
It can be a challenge at times, but opening a car wash can prove to have many avenues for success, making it a great investment opportunity.
Are car wash businesses profitable?
Car wash businesses can be very profitable. How profitable your car wash will be depends on many factors: the location, type of car wash, and how well you run the business.
However, with a little bit of planning from the help of some car wash experts, your car wash will net you $85,000 on average (US Census Bureau) over the course of a year.
Let's discuss the different types of car washes, as they each have unique advantages and disadvantages.
What are the different types of car washes?
There are several different types of car washes, and you'll want to learn about all the different options when choosing which one you would like to own.
Self Service Car Wash
This type of wash is exactly what it sounds like - customers serve themselves. Typically, a machine with various chemical choices and a pressure washer is used. They may have extras like vacuums and towels to help the drying process.
Self serve washes are great as they require very little staff. They are also quick, which is great for customers who are in a hurry. A self service car wash has the strongest advantage of being the cheapest to open.
Unfortunately, they can be quite messy and unorganized, customers often don't clean up properly. Plus, self serve washes have much cheaper wash packages meaning less room for profit on each car.
In Bay Automatic Car Wash
In this type of wash, the customer drives their vehicle into an empty bay. The vehicle is then cleaned by machines that move around the car.
In bay car washes have a few advantages over self serve ones. They're much more organized and customers can't make much of a mess. In bay car washes also have wash packages that cost more. This is due to the ability to offer packages that are more complex. There is now more potential to make a profit on each car.
This type of car wash is typically found at a gas station or other location where there is room to park the cars, but not enough room to fit a tunnel car wash.
In bay washes have the advantage of still being fully automated, providing customers with high convenience and low effort. It can only serve one customer at a time however, sometimes creating lines and limiting potential revenue.
Tunnel Car Wash
In a tunnel car wash, the customer drives their car onto a conveyor belt that moves the vehicle through a long tunnel.
This type of wash is much larger than an in-bay wash and can accommodate more cars.
Tunnel washes can be extremely lucrative but also are extremely expensive to open in the first place. Most tunnels will require a multi-million dollar initial investment.
Tunnel washes typically offer the best wash packages and have the ability to upsell customers on waxes, polishes, and other services. They also have high customer satisfaction as they provide a complete cleaning of the vehicle.
It is also important to ensure that there is a market in that area for such a large wash, as a tunnel's greatest advantage is being able to serve multiple vehicles at once. There longest tunnels can service 1200-1500 cars per day leading to daily revenue of over $20,000.
Washing Equipment
To start a car wash, you'll need to decide which type of car wash you want to open and what car wash equipment is right for you.
Brushes
Some car washes will use a brush style system. This uses long bristled brushes that spin and help to loosen the dirt and grime on the car.
These do a great job at cleaning vehicles, sometimes a little too well.
There have been cases of the brushes scratching paint off of cars, so be sure to research this type of system before you choose it for your business.
Soft Cloth
This type of system uses long, soft cloths that wrap around the vehicle and clean it as it moves through the wash.
This is a safer option and is used by most car washes today.
Touchless Car Wash
Touchless car washes use high-pressure water jets and no brushes or cloths to clean the vehicle.
This is a newer option that is becoming more popular as it has no chance to damage the customer's vehicle.
Full Service Car Wash
Full service washes offer a complete service that washes, dries, and vacuums the inside and outside of your vehicle. This is the best chance to offer exceptional customer service.
Full service car washes are great because they offer customers convenience and a thorough cleaning.
They do require more staff than other types of washes, which can make them more expensive to run.
What type of car wash is the most profitable?
The answer to this question is not straightforward as it depends on various conditions.
The income your car wash business can generate will depend on a variety of factors, including location and business plan.
A full service car wash business could be more profitable than other types of car washes because they provide more services and can charge more for them.
An automated car wash business could also be the most profitable as it needs less dedicated staff and can run 24 hours, meaning more potential customers.
Start your car wash business plan
Here are some steps and aspects you'll want to consider when creating your business plan for a car wash.
1) Business Name:
As with any business, you will need to pick a name for it to be run as, and this will be the first thing you put into your business plan.
For your own car wash business, we recommend you to pick an easy to remember, snappy name as customers will be more likely to return if they can remember it.
2) Target Market:
When you’re planning to start a car wash, it’s important to think about who your target market is.
Are you aiming for the high-end market with luxury cars? Or are you more interested in catering to the budget-minded customer with economy cars?
Your target market will help determine the type of car wash you open, as well as the location and services you offer.
3) Location:
Your location is critical for the success of your car wash. You'll want to make sure that it is easily accessible and in a high traffic area.
The location can also be what area of the world, as some cities or regions are higher car traffic areas, and what weather they experience will differ as well.
4) Wash Type:
The type of wash you decide to open will play a large role in your start up costs, as well as the potential income you can generate.
The various forms of automatic car washes carry unique benefits that make them advantageous to some, but a self service car wash has its market, so decide carefully!
5) Competition:
You will also want to do some market research into the competition before finalizing your decision to open a car wash there.
A little competition is healthy, but too many local businesses, other car washes and big name corporations could make it difficult for your business to thrive.
6) Employees:
You'll need to decide how many employees you'll need and what their roles will be.
This will depend on how large of an operation you plan to open.
7) Applications/Loyalty Program:
You may want to offer some type of applications or loyalty programs to customers.
This could include a rewards program for return customers to eventually redeem a free car wash.
You can also offer coupons or discounts for a free wash to help attract new vehicle owners.
Digital Mosaic is a fantastic provider of technology solutions for the car wash industry. They provide clients with a way to effortlessly institute turn-key subscription and loyalty programs, brand their operations with a custom branded app, and improve their marketing efforts by paying close attention to customer data and analytics.
8) Ins and Outs:
Experience and knowledge is an invaluable aspect to any business venture, and the car wash industry is no different.
It would be smart to speak to successful car wash owners or suppliers as part of your market research. Knowing their views, strengths, and weaknesses can make you a more profitable business.
9) Car Wash Suppliers:
You'll need to find suppliers for all of the equipment and chemicals you'll need to run your car wash business.
We recommend finding multiple suppliers and distributors, like Turtle Wax Pro, and discussing your needs with each of them to learn more about the costs involved.
Suppliers can offer more than just chemicals as they can help with improving your wash, market positioning, brand recognition, etc.
We have a blog detailing everything you'll need to know regarding picking the right supplier to help you open a car wash.
How To Open A Car Wash, The Business Framework
We will also run through some of the legal needs and paperwork aspects to opening and running a car wash business. You will need to contact appropriate local authorities in your area, this will just give you an idea of where to start.
Registering your Car Wash Business
The first step is to register your business with the local authorities and the IRS.
You will need to obtain business licenses and a federal tax identification number, as you will need to pay business taxes.
Permits and Zoning
Be sure to check with your local government about any permits or zoning regulations that may apply to your car wash business.
These are documents and policies that you would need to open and run your car wash, legally.
Car Wash Business Insurance
It's important to get business insurance for your car wash to protect you from any potential liabilities.
You'll want to have a discussion with your local insurance agent so they can help choosing a policy that fits you best.
Workers compensation insurance is also required in some areas, so be sure to check with your state's laws.
Business Banking
You'll need to open a business bank account and get a line of credit or loan for your car wash venture.
It is also important for a business bank account to be in place, so that your business and personal finances can stay separate.
As small business owners, you'll need to make sure your business's financial operations are in order.
Start Up Expenses
The costs involved to get your business off the ground will depend on a number of previously mentioned factors, like the kind of car wash you want and how many employees you plan to have.
Opening a car wash can differ greatly in initial expenses, a small self service car wash will be much cheaper than a tunnel wash for example.
Be sure to review your financial options to decide what is your best course of action.
Ongoing Expenses
Now that we've gone over some of the one time start up costs, it's important to understand those initial costs are not the only ones that go into opening a car wash.
You'll need to factor in the cost of running your car wash on a day to day basis.
This includes costs such as water and electricity, chemicals, supplies, employee wages and other business expenses.
Marketing
Marketing can be a make it or break it factor for your new car wash business. You need to get the word out to car owners!
Small businesses and small business owners sometimes find marketing a difficult task but if you want to find success within the car wash industry, you will want some type of marketing strategy.
Your marketing strategy can include advertisem*nts, signage, events and so much more.
Small Businesses Marketing Help
Fortunately, we have a blog created outlining how you can market your car wash to make the concept easier and more approachable.
You can also rely on your car wash supplier for marketing help, at Turtle Wax Pro, this an aspect we aim to help all of our operators with, as we understand the challenge of finding and keeping customers coming back.
If you're in the market to open a new car wash, get in touch with Turtle Wax Pro
We would love to hear your idea and see how we can help you get started in the industry.
Turtle Wax Pro provides everything from industry leading car wash chemistry, to business and marketing support.
We have been in the car care business for over 75 years and know a thing or two about how to start a car wash and washing cars.
Reach out today for more information on how we can help you with your new car wash business venture!
