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10 Benefits of a Professional Car Wash

If you’re like many people, washing your car probably involves pulling the hose around to the driveway, grabbing a sponge and filling up a bucket with soap and water. Many more don’t even bother to wash their cars at all. But just like getting your oil changed and replacing various parts through the years, keeping your car clean is an essential part of maintenance. And there’s more to it than just making sure it looks good. As a matter of fact, there are plenty of reasons to consider having a professional car wash instead.
Prevent Dirt Damage
You may not realize, because it happens slowly, but dirt that isn’t cleaned off can actually do damage to your vehicle. As you drive, it gently scratches the surface, wearing away your paint. In time, the damaged areas will begin to chip, and if they’re not taken care of right away, they’ll rust.

Prevent Fading
Dirt on your car can also cause your paint to fade, especially if you live in warmer climates. The combination of the sun and dirt can wear off your protective coating. Eventually, the paint color underneath will fade to a lighter color.

Clean Hard-to-Reach Spaces
When you wash your car at home, you probably just go over the body, windows and maybe the tires. You may even vacuum out the inside, but it’s highly likely you aren’t covering every inch that needs to be cleaned. When a professional does it, he or she covers all the bases, and they may even help you detect a small issue that can become a big problem in the future, like a crack in the windshield or a tiny paint chip.

Increase Safety
This one is more about the tires and windows than it is the body of the car, but they need washing too. Dirt on these areas can actually lead to car accidents. First of all, dirty windows are harder to see out of when you drive, and they may stay dirty for so long that you don’t realize just how smudged they are. Next up, dirt can wear down your tires over time which can lead to a blowout while you’re on the road.

Improve Resale Value
Some people drive their cars until they won’t run anymore, while many others opt to trade them in every so many years. If you want to get the most money for your old car when you go to buy a new one, you better keep it clean. If the person or dealership buying the car can tell that it’s been kept in excellent condition, you’ll get more cash for it.

Did you know there’s a good chance you have more germs in your car than you do in your home? That’s because when you leave work, school or a store, you’re carrying other people’s germs that you picked up from the surfaces you touched and taking them right to your car door handle, steering wheel and gear shift. A good interior and exterior cleaning can help keep you a little healthier and germ-free.

Believe it or not, keeping your car clean can increase its fuel efficiency up to 10 percent. Research suggests that cars that are dirty can create some drag when you drive that causes you to burn more gas.

Better for the Environment
If you’re worried about the environment, you’ll be happy to know that a professional car wash is more Earth-friendly. Not only does a car wash use less water than you do at home, but it disposes of that used water properly. Car washes also use high-tech equipment — no backyard water hoses here — and engineers are working constantly to make those safer for the environment.

Everyone is so busy these days, so you probably do what you can to add extra time to your schedule. That’s another reason to consider a professional car wash. When you do it at home, it can take hours of your time to get everything just right, but when you have a team of people working on it, it only takes a few minutes. If it’s going to take longer, you can plug in your laptop in the lobby and get some work done or even walk to a nearby shopping center or restaurant and do some multitasking.

It Saves Money
Last but not least, you may assume you’re saving money when you wash your own car, but in the long run, it may actually cost you. When professionals wash your car, it stays cleaner longer. They have the right equipment so there’s no accidental damage, they use less water and they clean the vehicle thoroughly enough to ensure there is no residual dirt causing damage or costing you fuel.

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Car Wash Business
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How to Open a Car Wash Business
Last Updated: November 27, 2022 References Approved
This article was co-authored by Angel Ricardo . Angel Ricardo is the owner of Ricardo's Mobile Auto Detail headquartered in Venice, California. With over 10 years of experience in mobile detailing, Angel continues to attend auto detailing trainings to improve his customer service and auto detailing skills. There are 17 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 53 testimonials and 94% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 960,826 times.
Opening a 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.
Planning Your Car Wash

- For example, people use car washes more when the economy is doing well and when motor vehicle sales are up. When people have more money to spend, they are more willing to pay for a car wash. Knowing the car sales statistics in your area could help you predict success for your business.
- Talk to car wash owners, car wash suppliers, and car wash equipment manufacturers. You want to understand the car wash business from all sides so you know what you are getting into. [2] X Research source
- The International Carwash Association is a good resource to learn about the industry and the current trends. [3] X Research source
- In addition to doing some in person visits, it might help, at this point, to read some internet trend reports and business periodicals. Find out what the demographics are in your area and read up on how car wash businesses are doing in areas with similar demographics.
- Read some business publications, too, to find out what the newest materials and equipment are. The car wash industry is developing more energy efficient and environmentally friendly materials, so it's important to stay abreast of new developments.

- Take notes as you investigate the car washes. You can go back and review them as you make plans for your car wash.
- Also pay attention to the other businesses around the car washes. If a car wash has a high volume of customers, what are some of the factors that are contributing to this? Is it located in a busy shopping center or right off the highway?

- The introduction should include your Executive Summary, table of contents, and a cover page.
- Your market analysis demonstrates your knowledge of the car wash industry and the results of any market research and analysis that you have done. Who are your customers and what are their purchasing habits? What are the risks, strengths, and weaknesses involved with opening a car wash? What is your projected revenue based on the current market and future market trends?
- Your company description should include information about your car wash business and why you think it will be successful.
- The organization and management section should detail the structure of your company, the board of directors, and the qualifications of your management team.
- The marketing and sales portion should clearly outline your marketing strategy. How will you get customers? What avenues will you use to reach them? What is your overall sales strategy?
- The product or service section outlines exactly what you will be selling. How does your car wash business fill a void in the market? Why would people want to use your car wash as opposed to other car washes?
- The equity and funding section details exactly how much money you will need to start your business and what financial resources you already have to invest in the business.
- The financial information is the most important part of your business plan and should be reviewed by an accountant or financial planner. Include your personal financial information, any existing businesses you have, a list of debts, projected income for 5 years, and certification that your information was reviewed by a 3rd party financial adviser.

- A bank loan requires a loan-to-value ratio of 75%. You will need to come up with 25% of the fair market value and the bank will fund the other 75%. It will be harder for you to secure bank financing if you have never owned a business before.
- An SBA loan will either be a 7a or a 504. If you get a 7a loan, the SBA will partner with a local investor. Your actual loan will be financed by the local lender. A 504 loan is actually financed by the SBA and has job creation criteria. [6] X Research source
- The start-up costs for a car wash range from $100,000 - $400,000.

- Your sign is visible to drivers for at least 40 seconds. Ideally, traffic should travel past at no more than 40 miles per hour (64 km/hr) so drivers have time to see your signage and make that split-second decision to have their cars washed.
- Choose a venue large enough to accommodate the bays, pump rooms, vacuum and drying areas, and the office.
- Check your city's zoning regulations to be sure you are allowed to open a car wash at your chosen location. If you need a special permit, obtain it before you buy or lease your venue.
- It is helpful to work with a real estate agent, city planner, lawyer, and/or an accountant to get the best deal on a location. [7] X Research source
Opening Your Car Wash

- Ask your state business office about the insurance requirements for your car wash business.
- Once you get all of the necessary permits and licenses, keep track of your renewal dates and make a copy for your business records. You will also need to display your license in your car wash so that customers can see it.

- The International Carwash Association has a supplier guide to help you find reputable manufacturers. [11] X Research source
- Look in trade magazines like Auto Laundry News and Modern Car Care to buy your chemicals. It is best to buy from big manufacturers. [12] X Research source
- Make sure the distributor of your equipment is available to service your equipment when needed. Find out how they handle equipment servicing before you buy from them.

- Social media is an important aspect of marketing these days. Set up a website and establish a presence on Twitter and Facebook. Make sure any of the paper items that you have include links to your website and social media accounts.
- Use your website to share information about taking care of your car and other relevant tips.
- Schedule a visit to your local radio station to discuss your new business.
- Consider starting a loyalty program. This will encourage repeat customers instead of people who use the coupon one time and never return.

- Invite friends, neighboring businesses, your supplies, and the media
- Give away free car washes and promotional items.
Running A Profitable Business

- Do I have enough space or will I need additional space?
- How much will it cost?
- What will be the return on my investment?
- Will people buy this service?

- It is important that you complete the detailing portion of your services is completed quickly. The speed and low cost of the service make it attractive to your customers.
- Make sure that you advertise your detailing services to your customers.
- Check the prices of similar services at a free-standing detail shop to help you determine your prices. Also, check the prices of other car washes in your area that offer these services so that you can be competitive.

- Choose a keyword (e.g. water, wash, clean) and advertise by saying, "Text water to 12345 to get special discounts, specials, or coupons." You could also say "Text 12345 to get $3 off your next car wash."
- It only costs one or two pennies to send a text message.
- Text your customers once a month with a special.

- Consider pricing your passes to cost 2 or 3 times the price of a single wash. If you find that customers are not interested, you may need to adjust your price.
- You can offer different price points based on the type of car washes you offer. For example, a monthly pass for basic car washes would be less expensive than a monthly pass for premium car washes.
Community Q&A

- Plan regular specials during off-peak hours to keep customers coming back. ⧼thumbs_response⧽ Helpful 1 Not Helpful 0
- Many of your customers will be local, so be sure to focus your marketing campaigns on your immediate area. ⧼thumbs_response⧽ Helpful 1 Not Helpful 0
- Be kind to others. ⧼thumbs_response⧽ Helpful 1 Not Helpful 0

You Might Also Like

- ↑ http://www.yellowpages.ca/tips/8-steps-to-starting-a-successful-car-wash-business/
- ↑ http://www.autowash.com.au/car-wash-building-construction/#Business
- ↑ http://www.carwash.org/about-ica
- ↑ http://www.carwash.com/how-to-start-a-carwash-the-secrets-to-successful-carwash-ownership/
- ↑ http://www.carwash.org/for-operators/invest/financing
- ↑ https://www.sba.gov/content/what-state-licenses-and-permits-does-your-business-need
- ↑ https://www.sba.gov/blogs/how-find-right-license-and-permit-your-new-business
- ↑ Angel Ricardo. Auto Technician. Expert Interview. 1 October 2019.
- ↑ http://www.carwash.org/supplier-guide
- ↑ http://www.startingabiz.com/starting-a-car-wash-business/
- ↑ http://www.carwash.com/hiring-quality-conveyor-carwash-workers/
- ↑ http://www.forbes.com/sites/alanhall/2012/06/19/the-7-cs-how-to-find-and-hire-great-employees/2/#26aa359a10cd
- ↑ http://www.entrepreneur.com/article/56200
- ↑ http://www.bluetoad.com/publication/?i=249754#{ "issue_id":249754,"page":20}
- ↑ http://www.bluetoad.com/publication/?i=286923#{ "issue_id":286923,"page":32}
- ↑ http://www.bluetoad.com/publication/?i=276457#{ "issue_id":276457,"page":14}
- ↑ http://www.bluetoad.com/publication/?i=246415#{ "issue_id":246415,"page":18}
About This Article

To open a car wash business, start by applying for a loan from the Small Business Administration or a bank so you have the $100,000-$400,000 usually required to set up a new car wash. Next, apply for all the permits and licenses you need in your state to start a business. Then, choose a location for your car wash, bearing in mind that it should be easily visible from the road, and in an area with a high level of traffic. Additionally, you'll need to purchase car wash equipment and chemicals, including pressure washers, vacuums, waxes and soaps. For tips on how to write a business plan and how to run a profitable business, read on! Did this summary help you? Yes No
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Don't bother with copy and paste.
Get this complete sample business plan as a free text document.
Car Wash Business Plan
Start your own car wash business plan
Soapy Rides Business Plan
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.
East Meadow long island and its surrounding area is quite affluent, 40% of the residents earn over $70,000 a year. Consequently, they have nice cars and want them to look nice. There are five different car dealerships within a three-mile radius which will require car washing services for the various fleets. Lastly, there are many different local businesses that have company cars and that require clean appearances. All of these potential customers need a car wash that fits their needs and their budget. We will happily fill that need.
Soapy Rides will be providing customers with three services: exterior car washing, interior cleaning, and detailing. Soapy Rides has no true competitors that are trying to offer a high quality service for a reasonable rate
This area has a number of benefits in terms of the market that it will provide for the business. Over 40% of households in the immediate neighborhood earn over $70,000 annually. Many people in the neighborhood own and/or lease new cars and place great value on their cars and how they look. There are a large number of car dealerships in the area–five within three miles of the proposed location for Soapy Rides.
Competition
There is one other hand car wash shop in East Meadow. It is quite new and is trying to compete with automatic car washes by offering low prices. However, it is not targeting the customers who seek quality cleaning.
Soapy Rides will be providing customers with three services: exterior car washing, , interior cleaning, and detailing. Soapy Rides has no true competitors that are trying to offer a high quality service for a reasonable rate.
Expectations
The business will be initially financed by a personal investment by Mark Deshpande and will finance growth through cash flow. This will mean that the company will grow more slowly than it could, but it will ensure that Mark retains control over the direction of the company. In year three, it is hoped that the company will be able to open a second location. It is envisioned that an outside loan or equity funding will be sought at that time.
Financial Highlights by Year
Financing needed.
Mark Deshpande will invest $40,000 dollars to change the the location into a car wash.
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How to Start a Profitable Car Wash Business

September 13, 2022
Adam Hoeksema
According to Detail Pro POS there are over 60,000 car wash businesses in the US alone. Car wash businesses can range from a passive model with no employees to a full service premium car wash model. My goal in this article is to help you compare the different types of car wash businesses, the startup costs, revenue and profit potential of each model so that you can determine what type of car wash business you should start.
The answer will depend on your goals. Are you looking for the most profitable car wash model, the highest return on investment, the safest bet, the most passive model or something else entirely?
Each model will have its own pros and cons. Throughout this article I will be using our Car Wash Financial Projection Template as a tool to help analyze and compare the different car wash models.
Throughout the article I hope to answer the following questions:
What are the different car wash business models?
How much does it cost to start a car wash business.
- How to buy a car wash business?
How much revenue can a car wash generate?
How will seasonality impact your car wash business.
- What are the typical cost of goods sold for a car wash business?
What are the operating expenses for a cash wash?
- How much profit can a car wash owner make?

What type of car wash model is most profitable?
With that, let’s dive in!
There are 3 primary car wash business models:
- Self-serve Bay Car Wash
- In-Bay Automatic Car Wash
- Tunnel Car Wash
Now it is possible to mix and match these 3 business models as well as add additional services like interior cleaning, detailing, etc, but for the sake of simplicity we are going to focus on these 3 models.
What is a Self-serve Bay Car Wash?
A self-serve bay car wash is simply an open bay that allows you to pull in your vehicle, pay for the type of wash or amount of time you need in the bay, and then provides equipment like a sprayer, brush and vacuum to allow you to wash your car on your own. Typically, this is the cheapest car wash option for a customer. This model will also have the lowest startup costs and operating costs when compared to Automatic or Tunnel based car washes.
A self-serve car wash can be a truly passive business as you shouldn’t need any employees and the equipment is designed to operate on its own.
Although a Self-serve bay car wash is probably the lowest start cost and the most passive business model, it is likely the least popular car wash model with consumers. Your upside will be lower, but you will also have less downside risk with this model.
What is an In-Bay Automatic Car Wash?
An In-Bay Automatic (IBA) car wash allows you to pull in a vehicle, park, and the equipment will move around the vehicle to wash the car. The upside is that the customer can stay in the car and won’t have to wash the vehicle manually. The automatic car wash will also be faster for the customer. Often you can see an in-bay automatic car wash as part of a gas station or oil change operation, but it could also be operated as a stand alone car wash business.
This type of model can also be a passive business with little to no employees.
The startup cost will be greater per bay than a self-serve model, but the revenue opportunity will also likely be higher because you can charge a higher rate per wash for an automatic wash compared to a manual wash.
What is a Tunnel Car Wash?
A tunnel car wash allows a driver to pull onto a track that will then move the vehicle through a tunnel with equipment washing and drying the car along the way. A tunnel car wash will have the highest startup costs of the three car wash models, but it will also likely have the highest capacity and revenue potential.
Let’s look at the differences in startup costs between the different models.
The cost to start a car wash can range from $50,000 to $7 million. The massive range is related to the type of car wash model you start along with the variability in the cost of land for the car wash. Let’s look at each model individually.
Self-serve Car Wash Startup Costs
For a self-service car wash you can expect $15,000 to $25,000 in equipment per bay, $25,000 for the simplest of building structures, plus the cost of land according to ISS .
In-bay Automatic Car Wash Startup Costs
For an in-bay automatic car wash you are looking at a minimum of $250,000 per bay according to ISS . They estimate roughly $150,000 in equipment plus a $100,000 building as a minimum startup cost.
Tunnel Car Wash Startup Costs
The startup costs for a tunnel car wash can range from $2.5 million to $7 million according to Car Wash Advisory . Those startup costs can be broken down into the following categories that we have built into our car wash pro forma template:
- Water Treatment System
- Tunnel Equipment
- Vacuum System
- HVAC and Plumbing
These startup expenses can be entered into the fixed asset section of our pro forma as seen below:

Now that we have a rough idea of the startup costs associated with the varying car wash models, you might be thinking about buying a car wash instead of starting from scratch.
How to Buy a Car Wash
Now that we have taken a look at what it would take to start a new car wash business, you might want to consider buying a car wash instead. There are a few key questions related to buying a car wash that I want to hit on:
- Where can I find car wash businesses for sale?
- How much does it cost to buy a car wash?
- How to get funding to buy a car wash?
Let’s take a closer look.
Where to Buy a Car Wash Business?
Fortunately there are many car wash businesses available for sale and easily accessible. BizBuySell lists hundreds of car wash businesses available for sale . As you can see from the screenshot below they have different types of wash businesses available including self wash, automatic tunnel washes, semi truck wash businesses and everything in between.

How Much Will it Cost to Buy a Car Wash?
Car wash businesses can cost between $40,000 and $11 million to purchase.
I found this huge range of pricing simply by sorting the car wash businesses available for sale on BizBuySell by price. The lowest priced single car wash was a 3 bay self service car wash priced at $40,000 up to a single unit tunnel car wash built 3 years ago that was listed at $11 million.
Since the range in pricing can vary so dramatically, what we really want to know is how are car wash prices typically determined?
How are Car Washes Valued?
Car washes are typically valued at 4.6 to 6x EBITDA according to Carwash.com
How to Fund a Car Wash Acquisition?
Once you find a car wash that you are interested in, you will need to find a way to finance the acquisition. My favorite financing option is an SBA loan. The SBA 7a loan program will allow you to borrow up to $5 million to acquire a carwash business. You should expect to invest 10% of the purchase price into the deal from your own savings or from outside investors that you are bringing into the deal.
We have been highlighting our car wash specific financial model so far, but if you are acquiring an existing car wash, our acquisition financial projection spreadsheet will serve you well. You can enter historical revenue and expenses and use that as a base to forecast your financials from. This model will give you everything you need in order to apply for an SBA loan.
Once you land on starting new or buying an existing car wash, the next thing you will want to know is how much can my car wash generate in sales.
Revenue between the 3 different models of car washes can vary dramatically. We like to find industry experts that provide revenue forecasts, but we also like to build out revenue assumptions from the ground up as well in order to provide a reality check. First, let’s look at some industry expert revenue forecasts for each of the three car wash models:
How much revenue can a self serve car wash generate?
According to Dultmeier it takes a population of 1,000 to 1,500 to support a single bay self serve car wash. They estimate that a self-serve car wash can generate roughly $1,000 to $1,500 per month in revenue per bay. According to Grandview Research , the US car wash industry generates $14.21 billion in revenue annually. With a US population of 332 million, this means the average American spends roughly $43 per year on car washes. Based on that per capita spending, the Dultmeier estimate of roughly a dollar per month per capita for a self service car wash seems to be reasonable.
How much revenue can an in-bay automatic car wash generate?
According to JBS Industries the average in-bay automatic car wash generates roughly $139,000 per year.
An in-bay automatic car wash can generate more revenue than a self service car wash because it can charge a higher rate per wash and will take less time per wash which means the revenue capacity is much higher.
How much revenue can a tunnel car wash generate?
JBS Industries estimates that a tunnel car wash generates $685,000 annually.
The average price per car wash for a tunnel car wash is roughly $15 which allows a tunnel car wash to generate a much higher annual revenue.
Many modern tunnel car washes offer an unlimited wash membership plan. Our car wash financial model allows you to enter in a conversion rate of active customers that you can convert into unlimited wash members as well as distribute between different membership levels if you have more than one membership level offering.

Depending on the location of your car wash seasonality can be a big factor on both revenue and cash flow for your car wash. The average American washes their car 13 times per year; however, this can fluctuate throughout the year. People tend to wash their cars more often during the winter months. In fact, you can see a clear trend using Google Search Trends and looking for “Car wash near me” search volume in a city like Chicago. There are spikes in search volume during the winter months and specifically around snow and ice events when cars are caked with salt and chemicals from the road treatment.

Based on this search data you can see that search volumes are nearly double or triple the average volume during the busiest months during the winter. Our car wash financial model allows you to enter in seasonality adjustments so that you can see the impact on your cash flow projections. As you can see below, you can enter in the average number of car washes per month per active customer during each month of the year.

In this monthly sales forecast chart you can easily visualize the impact of seasonality on your sales depending on your location.

Next, let’s dive into gross profit for a car wash business.
What is the typical gross profit for a car wash business?
According to Bizfluent the average gross profit for a self service car wash is roughly 70%.
The gross profit can vary depending on the model of car wash you are operating. For both a self serve and in-bay automatic car wash you can expect similar gross profit margins because your only cost of goods sold is the water, utilities, and soap associated with each wash, there is no labor cost component.
Typical Gross Profit for a Tunnel Car Wash
With a tunnel car wash you will need to consider the cost of labor per car wash in order to estimate your actual gross profit.

One way to approach this is to estimate the number of washes per hour you expect in a day and then the average labor cost you expect to pay your labor per day. Then divide your total labor cost by the number of washes you expect to have to come up with a cost of labor per wash.
Beyond your cost of goods sold you will also have some operating costs associated with your car wash. This will vary depending on your model, but each model will likely have the following operating costs:
- Advertising
- Bookkeeping
- Payment processing fees
- Miscellaneous expenses
If you operate a tunnel car wash, you will have additional labor costs with salaried positions like a general manager.
It is clear that a tunnel car wash model is going to be the most profitable car wash business model from an absolute dollar amount level, but our car wash financial model will help you actually calculate your profit margin as a percentage of sales and your return on investment once you enter in all of your specific assumptions.
Below you can see an example output of key ratios that will be calculated for you once you input your specific car wash assumptions into the financial model .

According to a report by Auto Laundry News a full service tunnel car wash can generate between $500,000 and $900,000 in annual profits on the high end. On the low end we estimate that a single self service car wash bay can generate $18,000 in annual revenue with a 70% profit margin which means that a small self service car wash should be able to generate $12,600 in annual profit.
As you look to secure a loan or investment for your startup car wash you are probably going to need to produce a set of financial projections. We hope you will give our template a try and contact us if you have any questions along the way. Best of luck!
About the Author
Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.
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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.
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.
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 866-362-6377 or send us an email to discuss your interests and needs.
Discover 10 ways to increase your net profits.

Carwash Insights
- 8 Factors Customers Use to Determine Patronage
- 4 Ways Dry N’ Shine Is a Car Wash Game Changer
- The Best Way for a Tunnel Car Wash to Save Water? (Hint: It’s Not the Obvious One)
- 5 Keys to Car Wash Business Success
- 10 Critical Components for Selecting the Best Car Wash Site

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Door-to-door car wash Business Plan (Operations (Location (3rd mile area,…
- Apply for car wash license and permit ( Registration of Business Act 1956 )
- When Bahasa Malaysia is used with other languages, Bahasa Malaysia should be given prominence in size, color, and location.
- To apply for advertisement, submit Form A and a sketch showing full details of advertisement and show location of advertisement.
- Applies to businesses with discharge of effluents onto soil or Malaysian waters.
- Notify director general before conducting any work that may result in effluent discharge.
- Discharge of pollutants from a point source into waters unless a permit is granted.
- Employees must be monitored and provided instruction and training for chemicals used to prevent danger risk at work
- Employ part-time workers with an agreed work hour
- Employees are protected by law regardless of salary
- Receive wages not more than seven days after expiration of wage period
- Conventional car wash centers
- Automated car wash service
- In-bay car wash system
- All vehicle owners who want convenient car wash
- 1.78 million cars in Sabah & Sarawak
- High quality wash & waxing appeals to luxury car owners
- High gross margin
- Low start-up capital
- Low start-up risk
- Lack of experience
- Requires good time management
- High transportation fee
- Privacy concerns
- High chance of repeated sales
- Ability to expand
- Competition
- Fall in economy
- Competition of car wash centers
- Very little bargaining power, pricing of equipment is standard.
- Customers prefer high service quality, willing to pay more for professional service
- High threat due to low barrier for entry. Loyal customers are important.
- Main threat is home car wash by consumers themselves, as a way to save car wash costs
- Car wash and car care
- Car Exterior Wash
- Car Polishing
- Interior vacuum
- Car wash: RM15-25
- Interior vacuum: RM5
- Detailing: RM150-300
- Owner's house (near Sunny Hill area)
- Use rented property in the future to store equipment
- Go directly to customers' premises for car wash services
- Discount vouchers
- Collaboration with shopping malls to advertise
- Advertising stickers, banners, posters
- Active posting
- Customer service & interaction
- Similar services with competitors
- Slight differentiation
- Company has higher market power due to convenience
- First mobile car wash industry in Kuching
- 66% prefer washing cars in car wash shop
- 34% prefer home wash
- As first mobile car wash in Kuching, Breach & Clean can appeal to 30% of the car wash center customers due to convenience.
- Convenience of mobile car wash
- Trained employees for professional services
- Affordable prices & packages
- Loan from bank
- Partnership contribution
- Self contribution
- Employees are trained properly before sending out for servicing.
- One professional employee and one trainee is sent together to conduct service for supervision and integrity to maintain good efficiency and ensure good quality service.
- Customers encouraged to give feedback on service satisfaction through website for improvements to be implemented in the future.
- House of Quality
- Car wash services have concern of mixed chemicals and effluents that might harm the environment when discharged to waters.
- Use of vehicles in mobile car wash contributes more to greenhouse gas emissions by the business.
- Production Process & Flow Chart
- Low volume, high variety
- Choose between standard and high quality car wash with different shampoo quality
- Choose to opt for interior cleaning or waxing and polishing services
- Premium services like polishing and waxing is very time consuming
- High pressure washer 120 bar
- Vacuum cleaner 1600W
- Extension wire box 10m
- Normal car wash + interior cleaning - 8 cars per day
- Added polishing & waxing - 4 cars per day
- Starting of business, employ 5 staff. Each for social media, accounting, skilled service coach and 2 service trainees
- Car wash shampoo (standard & high quality)
- Liquid car wax
- Car surface clay kit
- Micro fiber cloth
- Online stores
- Hardware Stores
- Supermarkets
- 2nd hand car dealer
- The amount of the water pumps, vacuum cleaners, wire extension boxes, micro fibre clothes, sponges, water buckets and the vehicle will double up for each increment of an average of 80 customers per week
- The maximum amount of vehicles that will be purchased for this business at the moment will be limited to 5 only, this will cease the purchase of water pumps, vacuum cleaners, wire extension boxes, micro fiber clothes, sponges and water buckets as well
- Additional inventories are bought and stored for back up in case any of the items are found to be faulty.
- All equipment and items have lead time of one day
- Estimated of maximum 8 washes per day
- One day use 400ml of shampoo
- Reorder shampoo when remaining stock is 400ml
- Store items and equipment in higher ground to prevent damage of expensive items in the case of flooding.
- Shelves will be built for tidiness in material sorting. The shelves will be marked with labels on the name of the item for clear differentiation.
- The warehouse will be kept under cool and dry conditions to ensure all electrical items and consumables do not deteriorate quickly.
- Process-oriented layout
- 3rd mile area
- Aiming service in residential areas
- In city area for easy access to residential customers
- Close to hardware shops and supermarkets for easy stock purchase
- Located in owner's house, so no additional rent expenses is required.
- Pricing of the services displayed should be standard and fair. The pricing for different car size categories should be clearly-established before starting the business to avoid confusion and unfair pricing. The summarized display should be displayed in advertisements, and social media pages, and customers should be encouraged to share their car models to employees so that a clear pricing can be quoted.
- One of the anti-competitive behaviors that are discouraged is cartels. The company cannot agree with other car wash companies to fix prices, inflating prices and reducing choices which can lead to damaged economy. Besides that, it is illegal to convince customers or suppliers to refrain from buying from or selling to a competitor unless the action benefits the public.
- Staff must wear appropriate gear such as safety boots to prevent workplace accidents like slips and falls.
- Make sure extensions wires and electrical equipment such as vacuum cleaners and pressure washers are high quality and durable for long continuous use.
- Packaging & Labeling
- New business Registration under name "Breach & Clean" , where application includes name of business, nature of business and business commencement date.
- Full diagram can be found in: https://coggle.it/diagram/W6xR81uwSznGKObV/t/door-to-door-car-wash-business-plan/b79062cb5ad30aa9f8f934dddae5effceb093492c4c257c08a99ccf4e0e7074a

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The gross profit can vary depending on the model of car wash you are operating. For both a self serve and in-bay automatic car wash you can
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
Use of vehicles in mobile car wash contributes more to greenhouse gas emissions by the business. The maximum amount of vehicles that will be purchased for this