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Car washes are great businesses to invest in as they can be lucrative and busy all year round.
But one of the most important parts of opening a car wash business is choosing the right location. Let's walk through why location is so important and how you can pick the right location for your wash.
How Important is the Location For Car Wash?
Location is critical for any business, and a car wash is no exception.
The location you pick for your wash will prove to be invaluable as it will dictate how successful you can be.
A poor location will leave consumers unaware of your business or not willing to make the trip.
What Factors Should You Consider When Choosing a Location?
Many factors will play into your decision of where to place your wash business. Some of these factors will be more or less important depending on your situation.
Price
As a wash owner, you must compare the benefits of different locations with their costs.
Choosing a place only based on its price may result in many problems like poor visibility or traffic. Attempting to save money could lead to purchasing the wrong site or property.
Accessibility
You want a spot that's easy to access, a main street. Look to open an express car wash located near main roads and highways, so potential customers can stop by on their way to work or on the way home.
You should also consider the parking situation. Washes can get busy. There should be enough space for cars to line up without causing issues. Like blocking entrances, affecting traffic lights or traffic speed.
Laws and Regulations
There may be some things that you need to do to run a car wash, like following zoning restrictions or health codes.
There are different rules for different locations or buildings. Find out the rules for your town or city before you agree to anything.
Competition
If there are already several washes in the area, you may have a tough time attracting customers.
Think about if there is something special that your business offers compared to other washes nearby. Offering interior cleaning, oil change or a speedy service can bring in more traffic compared to other businesses.
Too much competition can dilute your customer base. Too little could mean that your location is not close enough to the target market.
Clientele
The area where you open your wash will have different types of people living there. You will want to tailor your car wash to your clientele. For example, services, advertising, signage, prices, and more.
Visibility
Vehicles being able to see your wash as they drive in traffic will be key when it comes time to get their car cleaned. People will often choose the closest car wash available. If your wash is near where they work or go to school, they are more likely to go to use it.
What is the Best Location for a Wash?
The best wash location will depend on your own needs. Take into account the factors above and weigh out the pros and cons of each option.
What kind of customers you want to attract, how far they are willing to travel, regulations that might apply, and what the competition is like.
Competition for Car Washes
Your competition is an aspect that you will want to be sure to research and understand.
Wherever you decide to open your wash, you will bound to have some competition in the area. The services they provide are all things to pay attention to. Equipment, chemistry, appearance, branding and prices.
You can then position your wash around that, in areas you do better than your competition or what you offer that they do not.
Luckily, the car wash industry is very competitive. Even a local car wash can compete with larger known franchised washes.
What to Focus on in your Car Wash Business
Choosing a location is one thing. After that, you will need to run your car wash to the best of your ability.
Chemistry will ensure your wash will produce a great-looking and clean car. Every wash will want to be sure they are cleaning, drying, and shining cars to a standard their customers will love.
Turtle Wax Pro customers believe our products are some of the best that can be bought. The final product is what allows our operators and distributors to stand out.
Marketing is a must for any wash business and there are many methods to do so.
Signage, arches, logos, colours, scents, and more can all be part of building your brand. Ensuring your website is functional and attractive for potential customers is also key.
Technology
The car wash industry is using technology to make the process more convenient and efficient.
Applications, automated entry, reward and loyalty programs, buying washes, and subscriptions. All great things to use in your car wash.
An auto wash in particular can use many upgrades to make the wash more seamless and advanced.
When you are starting a new car wash business, one of the most important decisions you will make is choosing the right car wash building design.
The right car wash buildings can be a make-or-break option for your car wash business, so you will want to do thorough research and think carefully before making a decision.
If you're looking to start a car wash business, this blog post is for you. We'll discuss some of the main factors you should consider when choosing a facility.
The Right Car Wash Buildings for Each Wash Type
Self Service Car Wash Design
Self serve washes are a type of car wash where customers use hand held equipment to clean their own vehicles.
Customers typically park their car into an empty bay, select their wash options, and then proceed to wash their car using the equipment provided.
How to choose a building for a self service car wash?
There are numerous factors that will play into your decision in choosing a building for a self serve wash.
Self Service Car Wash Size
While self serve washes don't need a lot of room, the number of wash bays and how many customers you want to serve will still determine how much space you need. A single wash bay can only clean one vehicle at a time, which will require less room. A large self serve wash might have upwards of eight bays, so you will definitely need a larger space.
Lot Layout
The layout of your self serve car wash is important for customer convenience. Customer convenience is important because you want your car wash customers to have an easy and enjoyable experience at your wash.
Your layout should be designed in a way that allows people to move through the wash process smoothly and not interfere with others. This means having a logical flow from the moment they enter the lot, to when they wash their car, to when they exit the lot.
Self Service Car Wash Locations
Location is extremely important in almost any business, and a car wash is no different.
Like any car wash, it will need to be accessible for car owners and somewhere they will likely already be, it is unlikely that people will drive out of their way to use it. Close to shopping centers, gas stations, and other places where people are already going is ideal.
Self Service Car Wash Specifics: Indoor Bays vs Outdoor Bays
This is a personal preference, but some people prefer one or the other.
Indoor bays are typically more expensive to build, but offer the benefit of being usable year-round, regardless of the weather. Outdoor bays are less expensive to construct, but may only be used during certain times of the year due to bad weather conditions or tempuratures.
Aesthetics and Car Wash Building Design
The way your car wash buildings look from the street will play a big role in getting customers in the door. The exterior should be eye-catching and inviting, with a bright color scheme that makes it stand out. It should also be well-lit, as this will make it more inviting and welcoming for customers.
These are just a few of the factors you should consider when choosing a building for your self serve car wash.
Competition
Competition is fierce in the wash industry and self serve washes are forced to compete with the large and expensive automatic car wash options as well as any other self serve options around.
You will want to do research in your area before you choose where you would like to build or buy a car wash building. Being around too many other options can reduce your potential consumer base, and being too far away from local car washes can mean your consumers do not frequent those areas.
Estimating Budget
Self service car wash buildings are almost always cheaper to build than an automated/full-service car wash.
You will still need to have a healthy budget in order to build a location as you will need to purchase equipment and other materials. The size of your building and real estate will also play a role in how much it costs.
Automatic Car Wash Design
In an automatic wash or express wash, customers drive their vehicle into a wash bay and remain in their vehicle during the entire washing process.
Fully automated washes may have a conveyor belt that moves the vehicle through the various washing stages, in a tunnel style.
How to choose a building for an automatic car wash?
Wash Size
An automatic car wash will require more space than a self service car wash because you'll have car wash equipment inside as well as the conveyor belt (if that's the option you choose).
You will also want to make sure you have enough space for parking or queueing, as people will need to wait for their turn in the wash bay.
Automatic washes can still differ in how many wash bays they use, but typically only one or two are used as they work quickly.
Tunnel washes need the most amount of space as they are huge buildings where cars can drive through while they are cleaned. The longest express wash tunnels have a tunnel length of over 200ft!
Choosing The Right Location
Location is of course still an important factor for automatic washes.
Customers need to be able to easily access the building where their daily life takes place.
These washes occur quickly so people who do not have a lot of time use them, meaning it should be close to their work, school, or lifestyle locations, to easily fit in their busy schedules.
A prime location for an automatic car wash can charge more for the convenience factor. Successful car washes in high traffic areas can be extremely profitable and have attracted a lot of private equity money in recent years.
Competition
Like a self service car wash, automatic washes have to compete with any other options in the area.
It is highly recommended that you are aware of your competitors and choose your building's size or marketing/signage efforts accordingly, in order to separate yourselves from the market. We have a blog detailing marketing advice for car washes.
Budget
Automatic washes are more expensive to build and maintain as they require car wash equipment which can be costly, as well as extra chemicals.
You will need a larger budget to get an automatic wash off the ground, but with that comes the potential for a higher revenue and return on investment.
Full Service Car Wash Design
A full service car wash offers more than just a wash, as the name suggests.
These businesses offer a complete package that can include vacuuming, shampooing carpets/mats, cleaning the interior of windows, and often times even waxing or polishing the paint job.
Customers drive their vehicles into a bay where they then exit their car and hand it over to an employee who will clean the inside and outside of the vehicle while they wait. They may also direct people through a car wash tunnel first to clean the cars exterior.
Full service car washes often have a waiting area with seating, reading material, and television for the customers to enjoy while they wait.
How to choose a building for a full service car wash?
Size
You will need a fair amount of space for a full service car wash as you will have both the cleaning taking place inside and outside of the vehicle, meaning you need room for both employees and customers.
A waiting area is also necessary, so customers have somewhere to go while they wait for their car to be finished.
Location
Location is key for full service washes as well, as you want customers to be able to easily access your business.
Customers understand that this type of wash process will take some time, so it is more convenient for them if it is located near other stores or areas where they can go in the meantime. This way, they don't have to wait in the waiting room.
Competition
Like the other types of car washes, full service businesses have to be aware of their competition in order to succeed. Differentiate yourselves by offering services that your competitors do not, or by providing a more luxury experience.
Budget
A full service car wash will have a higher spend as you need to purchase all of the materials and equipment necessary for both the inside and outside cleaning of the car. This comes in addition to the fact that a full service car wash will require the largest construction footprint.
You will also need to pay your employees, so budgeting for that is important as well. A self service car wash or express wash may need a few employees for customer service, maintenance, stocking and related work. All of that is required with full-service washes, along with personnel who will clean the vehicles themselves.
Budget your costs for the building accordingly, knowing that you will need to budget for a high amount of variable and operating costs on top of the initial building cost.
Car Wash Building Design: Things to Keep Track of
The design of the building can play a big part in your success for multiple reasons. Having a professional, attractive, and efficient design will ensure convenience and a greater customer experience.
Ease of Customer Use
This could mean being spacious enough where customers don't need to squeeze in and out of the car wash to use it.
It could also be having a clear and concise path that they can follow so they know exactly what to do. This will lead to more customers and great business.
Ease of Staff Use
This is important because if your staff can't move around easily or use the equipment properly, it will end up costing you time and money.
Your staff should be able to move around easily to clean the inside and outside of the vehicle without any issues in a full service wash.
Curb Appeal
Your building's curb appeal is important because it will be one of the first things that potential customers see. It needs to look inviting and professional.
Good design is tough to achieve but make sure you take your time and do lots of research before you create your project.
If your car wash is themed in a way, you can theme your building and/or signage to match.
Walk In Option for Inquiries or Customer Service
This is important because you want customers to feel like they can come in and talk to someone if they have any questions or concerns.
It also gives your company a chance to create the human element that might result in a large number of consumers in the long run.
New Car Wash: Building vs Buying
You have the option of either building or buying a car wash. If you're going to build, make sure you find the perfect location first and then worry about designing the build. If you buy an existing car wash, you will save time but may not have as many options for design or layout changes.
Do some research on car wash buildings in your area to get an idea of what is available and what would work best for you. Talk to other car wash owners to see what they recommend. And, as always, consult with a professional before making any final decisions.
Opening a Car Wash Business? Contact Turtle Wax Pro
Turtle Wax Pro is the industry leader in car wash products and services, and have decades of experience supporting car wash business of all types in their needs of chemistry, equipment, marketing strategies, operational support and more!
Buying or creating a new building for your car wash is not an easy feat, and you will want to be sure you are making the right decision. Speaking with some industry experts can help ease your mind and ensure your money is going into the right areas.
Reach out today to learn more about what kind of building you should be looking for in your car wash journey.
24
Oct
Car Wash Owners
•
0 min read
Creating the Ultimate Car Wash Business Plan
business owner
business plan
car wash
A business plan seems like a small step in starting car wash businesses, but it is actually a very important one, and it shouldn't be overlooked.
A business plan is essentially a roadmap for your business that will help you stay on track and achieve your goals. Without a strong business structure, it will be very difficult to make your car wash business successful.
But building a car wash business plan can be daunting, and that is why we're here to get you started on the right foot! This article does not offer an exhaustive list of everything you may need to include on your car wash business plan, but will discuss many very important aspects to include so your car wash business can launch well.
The Car Wash Industry is Competitive but Highly Rewarding
The car wash industry is a rapidly growing industry that can prove to be very rewarding to be part of. It is also a competitive one that can be devastating and stressful if you are not well prepared. That is exactly why you will want to create a thorough car wash business plan prior to diving in head first. This document will serve as your guide to success and help keep you on track when challenges inevitably arise in your car wash service.
What is a car wash business plan?
A car wash business plan is a document that outlines the goals, strategies, and operational plans of your car wash business.
It should provide a detailed overview of your business, including information on your target market, pricing strategy, marketing plans, and operational procedures. The goal of your business plan is to help you achieve your desired results by clearly understanding your starting point, and outlining the steps you need to take to get to your business objectives.
Creating a car wash business plan can seem like a overwhelming task, but it will prove to be worth the effort once you get your business running.
Why write a business plan for a car wash?
We understand that some may be eager to get their business up and running as quickly as possible, but we cannot stress enough how important it is to have a plan in place.
Establishing a strong business plan will help you avoid common pitfalls, make better decisions, and set your business up for long-term success.
A well-crafted business plan will also give you a much better chance of securing funding from investors or lenders, as they will be able to see that you have put thought into your venture, and understand the car wash industry.
What does a business plan look like for a car wash?
A car wash business plan can be designed many different ways, but as a general baseline, you can think of it covering two major areas: the financial side and non-financial side.
The financial side will include many things such as your financial goals (short-term and long-term), sales forecast, balance sheet, and budget and cash flow plan.
The non-financial side will encompass everything else that makes up your business plan including your company overview, target market analysis, marketing strategy, and operational procedures.
While there is no one right way to format your business plan, we recommend using a structure that is easy to follow and understand.
Market Research... a very good place to start.
An important part of opening a car wash business is to know the existing businesses around you, specifically other car washes. You need to know what they're offering, at what prices, who they're serving, etc.
The only way you will be able narrow down these factors is by investigating how other car washes operate. So be sure to do thorough research on your competitors and use that information wisely.
Great things to look for is whether there is a gap in the market that you could fill, and differentiate yourself with (but ensure there are also customers seeking that gap). Customers may be seeking a car washes with a pet wash or vacuums available, but likely not live music, for instance.
You may find that there are many self service car washes in one area, which may say that the people who live around there might want to spend less money on a car wash, or have more time to dedicate to washing their vehicle. It may also mean that there may be an opportunity for a different type of car wash business, such as a tunnel or in-bay automatic.
Or perhaps there is one huge full service car wash that dominates the market as they are able to provide the whole package of interior and exterior cleaning and their consumers enjoy that luxury. Full service car washes are much more expensive to launch and operate considering the building size, employees, and equipment needed to run it, but they will charge much more than other options for their work.
Likely some clients are seeking a more affordable alternative car wash in that area, that still provides an exceptional clean. How could you as a potentially smaller car wash operation offer that, and communicate it to your consumers?
By discovering what working (or not) in your area, you can judiciously build your car wash business for success, finding your own foothold in the market.
Business Plan Overview: What to Include
When writing up your car wash business plan, you will want to format it in an easy to read way that outside people can understand. Below are some sections you may want to include.
Company Overview
This is a simple description of your business that could include:
The type of car wash business you would like to start
Its proposed location
What you will offer your customers
Target Audience
The mission and values of your business
How it fits in context of your market and competitors
Executive Summary
The executive summary is a brief overview of your business plan, and is similar to a business overview above.
It could include short summaries of:
The main points of your market research
Marketing strategy
Operational procedures
Financial forecast
Main business Objectives
It can be helpful to write this section last, as it will be briefly addressing the content in the following sections.
Business Description
In this section, you will want to describe your business in more detail.
This can include:
The history of your business (are you a franchisee, opening a new location, or starting this venture from the beginning?)
Who is involved
What products or services you offer, and related operations
Short-term and long-term goals
Sales Strategy
This section should include a detailed description of how you plan to generate sales to have a profitable business and numerous customers.
This could include:
Your pricing strategy
Target market
Client pain points
How your services address them
Competitive edges of your services, vs the competition
Promotional activities such as providing any car wash discounts.
Loyalty programs, or methods to retain repeat customers
Supporting solutions, like Mosaic (a cloud-based platform, which you can market directly to customers' phones, where they can buy washes, start the car wash, and earn/redeem free washes for the future)
Marketing Strategy
Greatly related to generating sales, above, your marketing plan will be a guide on how you plan to generate awareness and attract car owners to get their car washed at your business.
You'll need to decide and describe:
Where your target market spends time, and their demographic
What methods you'll use to reach your target customers
What messaging you'll use to attract customers
How you will encourage customer loyalty
Brand your business
Promote your USPs (unique selling propositions) for your car wash business
You'll also need to create a budget for your marketing efforts
Harness the market research you used before in a competitor analysis to provide further clarity of the competition surrounding your car wash.
You can summarize your market research, or you may wish to conduct a SWOT Analysis looking at main competitors':
Strengths
Weaknesses
Opportunities
Threats
This process can help solve for your own unique selling features and how you can stand apart and gain and retain customers, while also being aware of successful practices that other car washes are using.
Financial Plan
This is your expected financial performance, and will not be exact but will help in the framework of your business structure. Financials can get complicated but we'll keep it simple in this explanation, and if starting a new business, these numbers may be projected.
These are components you should consider for a successful financial plan:
Financial Goals (could be short- and long-term)
Projected Profit and Loss Statement
Sales Revenues Forecast
Balance Sheet
Cash Flow Statement
Anticipated Startup Costs (below)
Initial Financials
This part details your current financial status of your business; it'll show a bank or investor what you currently have to open a new car wash, and what you will need as bank financing. Include anticipated initial spending for equipment, marketing, staffing, etc. to get the doors open at your car wash business. Think of this like your start-up cost, which is what you have to get your car wash up and running.
Operational Plan
In this section of your business plan, you will want to describe how your business will operate on a day-to-day basis. This is the backbone of your car wash, and although these aspects can naturally evolve and change, it will be important to have a thorough plan in place for a successful launch for your car wash business.
This can include a description and activities of your:
Facility
Equipment and Chemistry (more on this below)
Staff
Scheduling
Suppliers
Equipment Plan
Of course, you will need the right equipment to open a car wash. Whether taking over an existing car wash, or building from the ground up, you'll want to be sure that you have high-quality equipment that gives exceptional performance.
Equipment will also differ for the situation and type of wash. For example, self service equipment will be different than equipment for an in-bay automatic car wash.
Researching and knowing your equipment needs in advance, including installs, any repairs, maintenance or upgrades you will have to make, can save a new car wash business a lot of headaches down the road, as you avoid unnecessary service interruptions, and can get more cars washed for your target customers.
With this industry, whether a self service car wash, or automatic car washes, there's a lot of equipment that needs to be continually operational. From vacuum cleaners, a pressure washer, your conveyor system, or even office equipment, you'll want to make sure that your equipment is properly maintained and serviced on a regular basis, and certainly ready to go at your business' launch!
Chemical Plan
A pivotal factor in running a car wash service is having the right chemicals. There are many different types of chemicals on the market and car wash owners will want to be sure to pick the right chemicals and chemical representative to support your business. We obviously consider Turtle Wax Pro to be the best chemistry available, helping car washes provide exceptionally high quality service and results with each customer's vehicle.
While picking the exact chemicals at this stage could be a little early, its a good idea to get acquainted with some market research on the different brands available in car washing.
It also is a great idea to seek out a reputable chemistry rep or distributor to aid you in finding the perfect chemistry for your needs: a solid representative can truly help your car wash be set up for success, and shine! They will conduct tests like cost-per-car analysis, chemical comparisons, and ensure your site is optimized for premium results.
Staffing Plan
You'll need to decide how many employees you will need to properly run your car wash business.
What roles will you need filled, and what qualifications and wage will pair with those roles. You'll also want to consider the type of training you will need to provide for your staff to operate your car wash facilities and provide exceptional customer service. (As an added benefit, Turtle Wax Pro customers get access to an exclusive free training tool called TWPLearn which can help them train new and old staff alike in many industry skills!)
Conclusion
Becoming car wash owners may be a big leap, but a car wash business plan can get businesses started on the right foot, and also help in getting bank loans and other support for local businesses, as a financial institution can see you've done your homework discovering business basics like: a solid business location, discovering potential customers, planning an effective sales strategy, conducting necessary market research and developing excellent marketing campaigns, recognizing anticipated start up costs, anticipating staffing and equipment needs, and generally educating yourself in the car washing industry! It's a good deal of work, but has numerous rewards for the business owner of a budding car wash!
Turtle Wax Pro is a leader in chemical manufacturing, and with over 75 years in the car care industry, we believe we have the best car wash chemistry on the market.
But more than that, we have decades of experience supporting car wash operators and businesses in all aspects of their business! We've been through the wash, so to speak!
We know that strong business relationships are vital within the car wash industry and strive to build them with all of our clients and partners. If you have any questions or concerns regarding your car wash business or business plans, and if Turtle Wax Pro chemistry and marketing solutions are right for you, you can reach out to us at any time.
23
Nov
Car Wash Investments
•
0 min read
7 Reasons Why You Should Start Your Own Car Wash Business
advertising
business owner
car wash
car wash supplier
Car washes are an enticing business idea for any entrepreneur. They cater to one of the biggest industries in the world: the automotive industry.
Wondering if owning a car wash is the right idea for you? Today, we'll discuss 7 reasons why owning a car wash business is a great idea! (We will also discuss some potential cons as well.)
1/ Cars Need Washing
To begin, vehicles are a valuable asset. As cars gather dirt and grime and their owners will want them cleaned. With almost 290 million vehicles in the US alone, that's a high number of potential customers your business can serve! (Onedesk)
We're also seeing many more car owners who will pay to get their cars washed at formal car wash businesses, as opposed to washing their own car themselves (particularly during snowy, salty, cold winter months, when washing a car by hand on a driveway is much less enticing).
74% of consumers said they would be willing to pay to get their vehicles washed, which is a 47% increase from 1994! (CarWashCountry)
As the world gets busier, and customers seek quality results and convenience, it is estimated that this trend in car washing will only continue.
2/ Great Return on Investment with High-Profit Potential
Car washes can be a lucrative business as there are many cost-saving measures one can take such as water reclaim technology and finding chemicals that offer great cost-per-car cleaning. Premium car washes can also charge a good amount of money per wash and serve many customers within a day. This can all add up to your business generating high amounts of revenue and profit.
How profitable exactly will depend on many factors, such as your target market and the type of wash you're offering.
Depending on demographics in the area you are considering, an automatic car wash, self-serve car wash, or tunnel car wash may be more profitable as visitors will be willing to pay different amounts to get their car cleaned (more on car wash types later). Typically, a tunnel car wash in a big city will likely make more money than a self-serve car wash in that same city, as it comes with higher ticket prices and isn't as much effort of using hand wash equipment in self-service bays. That said, know your chosen location, nearby competition, financial strategy and the costs your customers are willing to pay. Check out this article on a car wash business plan to discover many factors that should be considered to start a car wash.
3/ Flexibility and Ability to be Unique
Car washes can come in all different shapes, sizes, and types. They can have a certain theme, be made to serve one car at a time or many, and the manner they wash cars can differ (practical self-serve washes supply customers with all they need, while tunnels often offer an exciting show and convenient, family-fun experience). This flexibility allows you to tailor your business to meet your expectations and be catered appropriately to your market.
A Reminder: What are the Different Basic Types of Car Washes?
Self-Service Car Washes
The first type is the self-service car wash.
As the name implies, with a self-service car wash, customers clean their cars with the equipment you provide. This type of car wash uses self-serve bays where customers will park their cars and clean their vehicles with the soaps and pressure wash 0equipment provided on a timed-use basis. This often makes self-serve more time consuming than other wash options. It's also generally a cheaper car wash for customers (and owners).
Touchless Car Wash or In-Bay Automatic Car Washes
The second type is the touchless car wash, or in-bay automatic car wash, which automatically washes vehicles either with water and cleaning chemicals (if it is a touch-free car wash) or with additional brushes gently removing dirt. In this wash bay scenario, the vehicle has driven into the wash bay and doesn't move until leaving and being dried. In-bay automatic car wash equipment moves around the vehicle, and the single system applies the various chemicals and rinsing applications. One vehicle may be cleaned at a time.
Tunnel Car Washes
A tunnel wash is similar to a in-bay automatic car wash, as the equipment washes the car automatically (vs. a manual wash, or self-serve wash). That said, the vehicle will likely be on a conveyor system that will draw it through different machinery to apply various chemicals and rinsing applications, and dryers at the end. This wash type is generally the most thrilling for the customer, and tunnel equipment and chemicals can effectively manage a clean car, plus a show! It generally costs more for the experience (and is more expensive to start a car wash of this type). Unlike the in-bay automatic, there is enough room for tunnel washes to wash many vehicles at a time.
Full Service Car Washes
Another type of car washing we'll mention is the full service car wash. Full service car washes not only clean the vehicle exteriors (generally using one of the aforementioned methods), but they also clean the inside of them. A full service car wash details floor mats, seats, and all the difficult to reach areas which makes this service attractive to customers. This is definitely more labor intensive, and more expensive. Some car washes, while not full service, offer similar features like vacuums and towels for customers to do this on their own at the car wash location.
4/ Expand Your Car Wash Business
A great benefit of car washes is that they are scalable both externally and internally. If things are going really well with your car wash business you can always expand it in the future by adding more locations to your existing car wash brand.
You could also grow your existing location to draw more customers (and revenue opportunities) through added features like vacuums or pet washes, or other services like detailing.
The possibilities are endless with what you can do and if things go as planned, then you can continue to scale up your business to even bigger heights!
5/ Remote or Hands-off Ownership
This benefit may not apply to every car wash owner, as some are very hands-on. But if you choose to do so, once your business is established (plus finding the right employees and managers, who are reliable for daily operations) you can watch your business run with minimal day-to-day tasks from yourself. On the other hand, many enjoy being thoroughly involved in this exciting business as an owner and operator.
6/ Support and Resources to Start a Car Wash
Setting up a car wash can be daunting, but help is out there for entering and thriving in this industry! If you have the right support, you can navigate the areas of business you may not be familiar or confident in: from fixing water quality to building marketing plans, or optimizing equipment and chemistry. There are many factors that go into starting a car wash which can be difficult to manage, but with the guidance of industry experts (such as Transchem and Turtle Wax Pro, for example), you can get your business off the ground with services and support in place.
7/ The Thriving Car Wash Industry
Great news; it's important to note that the car wash industry is booming! This industry is growing every year (CarWash News) and it is an excellent opportunity to jump in as an investor or owner-operator!
In fact, the global car wash market is worth more than 29 billion dollars today! (Grand View Research) There is also room for small players and local businesses to join the industry as the largest 50 car wash companies only make up 20% of the market share. (OneDesk)
Other Considerations of Owning a Car Wash
Though there is much good to gain from owning a car wash, it's not always rainbows and sunshine. It would only be fair to discuss some of the cons when it comes to car wash ownership. Here are a few to be aware of:
1/ Seasonal Traffic
Car washing in seasonal climates does have busier and quieter times of year: for those that experience cold winters with snow and salty roads, these conditions create a generally busier time of the year for car washes. Car owners see their cars with snow and salt marks and make a dash for their favorite car wash. And while business might be great for you in the winter season, it might face some slow periods once it becomes warmer or in the rainy season (Sunny, warm weather is an incentive to wash cars at home on the driveway during those nicer months).
Business might slow down in the spring and summer and as a car wash owner that may hurt your profits. However, if you can drive a large portion of customers towards a subscription model, you will have more consistent and reliable income for your business, and customers will be encouraged to continue using your business year-round.
2/ More Than Just Washing Cars
A car wash business faces many other aspects than just washing vehicles well. You'll also be working with suppliers, hiring employees, training and managing, engaging in customer service, repairing/maintaining equipment, and managing a financial strategy. These are a few examples of other factors that are important to running a successful car wash.
3/ Building and Maintaining your Customer Base
Opening a car wash is one thing but now you will need to get (and keep) customers. You will also have to get your name out there through various marketing strategies and having a brand and plan in place. If you want to learn more about car wash marketing you can read our article on it here!
Once you get a customer, keeping them a customer is another battle (such as navigating customer complaints and negative reviews).
A profitable car wash has great customer service and a good quality wash but they may also use keep their customers coming back with great marketing, subscription programs or rewards.
Questions about Owning a Car Wash?
Reach out to Transchem and Turtle Wax Pro
There's a lot of opportunity and potential profits that comes with owning car wash businesses today.
So whether you are considering opening your car wash, looking for marketing support, or looking for a car wash supplier, feel free to reach out to us!
Why Us?
The Turtle Wax company is an industry leader in the car care industry, and has been for over 75 years. We, Turtle Wax Pro (the professional car wash side of the brand), and our parent company Transchem, offer some of the best car wash chemistry in the market to car wash owners and their businesses all over the world.
Also, we have been supporting car washes in the various challenges they face for decades. Let our experience be an aid in your success.
8
Sep
Car Wash Investments
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0 min read
Starting a Car Wash? Everything you Need to Know
business owner
advertising
car wash products
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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 advertisements, 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!