Car Wash Business

How to Open a Car Wash Business

Car wash business can be a fun, interesting, and profitable business for somebody with business smarts and perseverance. With the right location, good marketing, and top-notch service, you can draw in numerous customers who need their cars washed quickly, efficiently, and at a good price. However, opening a car wash business also requires a significant investment, good planning, and attention to detail in order to make your business profitable, so read the following steps to learn how to open a car wash business.

1.Research the car wash business.

2.Investigate the competition in your area.

3.Draw up a detailed business plan.

4.Find the investment capital to open a car wash.

5.Choose the right location for your car wash business.

6.Buy the necessary equipment for your car wash business.

7.Hire employees who are punctual, efficient, skilled, and polite.

8.Advertise your car wash with road signage, flyers, posters, and in local print publications.

9.Open your car wash.





INVESTMENT REQUIREMENTS  (All price are in Php based on 2007 market price)
A. Equipment:
1 Pressure washer compact electric 1600 watts, 5.5 liters/minute – 6,300.00 1 Vacuum cleaner with blower, 750 watts 6 meter – 3,144.75 1 Power sprayer 1/2 horsepower, 26 inch – 4,567,50 1 Pressure tank 340 liters – 6,688.45 1 2-step ladder – 420.00 3 Drums (for storing water) @367.50/pc – 1,102.50 2 Hose @315.00/pc – 630.00 3 Pails/buckets @82.45/pc – 247.35
Total – P 23,100.55
B. Direct Cost (Materials and Supplies per Month):
3 pcs Chamois @100.00/pc – 300.00 24 pcs All-purpose rags @5.25/4 pcs – 63.00 4 pcs Car sponge (big) @40.00/pc – 160.00
Sub-Total – P 523.00
C. Supplies:
60 liters Car shampoo – 8,250.00 15 liters Car wax liquid wax hi-gloss finish – 7,125.00 15 liters Tire black – 6,750.00 450 ml Car polisher/shine (for detailing) scratch remover ultra hi-gloss finish – 1,350.00
Sub-Total – P 14,642.25
Total – P 15,165.25
D. Indirect Cost:
Labor cost (330.00/day x 30 days) – 9,990.00 Electricity – 2,100.00 Water – 840.00 Contingency (10% of direct costs) – 1,516.50
Total – P 14,356.50


SERVICE PROCEDURE
Wash Process
Upon drive-in, attendant wets the car and loosens the dirt before the application of detergents. Deep-cleaning foam is created when car shampoo, water, and air is mixed and goes through the power sprayer. The car body is scrubbed using soft cloths or a sponge, making sure there is no particles caught up in them that could scratch the car.
Tire black is applied to remove brake dust and brighten the black rubber of tire. For pre-rinsing, pressure washer is used. It is a system of rotating water jets that spray concentrated streams of water on the car. The strength of the stream and the circular motion combine to provide a powerful scrubbing action. The car goes through a final rinse by using hose and water to remove whatever residue is left.
Dry Process
Wiping the whole body using the chamois to absorb water or moisture. After wiping, apply car wax to polish and protect from dust.
As an added service, attendant may clean the interior, removing trash and vacuuming carpets and seats.
PRICING AND COSTING
Direct cost for 1 vehicle (total direct cost / 20 cars / 30 days) – 25.27 Add: Indirect cost for 1 vehicle (total indirect cost / 20 cars / 30 days) – 23.92 Add: 25% mark-up – 49.19
Service rate – P 61.48 Market rate – P 70 to 80.00
The higher the number of vehicles/day, the lower the cost, thus increasing the mark-up to 50%.


ESTIMATED SALES FOR ONE MONTH OPERATION
17 cars @70.00 x 30 days – 35,700.00 3 vans @80.00 x 30 days – 7,200.00 10 cars @40 x 30 days (for tire black and vacuuming) – 12,000.00 8 cars @500 (for detailing) – 4,000
Sub-total – 58,900.00 Less:
Direct cost – 15,165.25 Indirect cost – 14,356.50
Sub-total – 29,521.75
Net Income Monthly – P 29,378.25 (or net income daily) – P 979.30


For more information, contact: Bureau of Small and Medium Enterprise Development (BSMED) 3/F Oppen Bldg. 349 Sen. Gil Puyat Ave., Makati City Tel: 890-4968; 897-7596; 897-1693 Fax: 896-7916 Email: bsmed@dti.gov.ph Website: www.dti.gov.ph

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