Wednesday, July 28News That Matters

How to Start a Car Wash Business

Car wash is one of the easiest businesses to start because not only that the needed equipment and tools are readily available and easy to acquire, the skill required to do the job is not that complicated. Additionally, a car wash is a very profitable business and can be managed easily.

Even in a third-world country like the Philippines, the number of vehicles is multiplying every year so many service and care centers like car wash are also needed. Although the vendo-type car wash is booming, having your vehicle washed professionally by skilled people is still a big difference-maker. In vendo-type, it’s a self-service so you have to spend a lot of time cleaning your own vehicle which is not really economical if you consider your time precious.

In this article, we are going to give you some tips on how to start a car wash business, the tools and equipment, and the costs.

Equipment

  • Pressure washer/power sprayer (standard) = P4,800
  • Vacuum cleaner with blower, 750 watts = P3,800
  • Pressure tank 340 liters = P7,300
  • 2-step ladder = P500
  • 3 plastic drums (for storing water) at P700 per piece = P2,100
  • 2 Hose at P435 per piece = P680
  • 2 power spray gun – P450 each = P900
  • 3 Pails/buckets at P80 per piece = P240

Sub Total = P20,320

Materials and consumables (1 month supply)

  • 4 pcs chamois cloth at P125 per piece = P500
  • 3 kgs of ll-purpose rags at P50/kg = P150
  • 4 pcs car sponge (big) at P50 per piece – P200
  • 50 liters car shampoo – P7,300
  • 10 liters car wax liquid wax hi-gloss finish – P5,200
  • 8 liters tire black – P3,900
  • 450 ml car polisher/shine (for detailing) scratch remover ultra hi-gloss finish – P1,500

Sub Total = P18,750

Labor and Utility

  • Labor cost (350.00/day x 30 days) x 2 = 21,000
  • Electricity = P2,500
  • Water = P900
  • Shop rental (if you are renting) = 8,000

Sub Total = P32,400

Service rates

  • Van/SUV = P150.00
  • Sedan = P100.00
  • Auto detailing – P1,500.00

Monthly estimate

  • 19 cars @P100.00 x 30 days – P57,000
  • 2 vans @P150.00 x 30 days = P9,000
  • 10 cars @P1,500 (for detailing) = P10,500

Total (materials, consumables, labor, utility, rent) = P51,150

Revenue = P76,500

Gross profit = 25,350

Less P1,000 for equipment (21 months to pay)

Net monthly profit = P24,350

If you are not renting then add P8,000 to your profit.

The building costs depend on what type of building you want and how big it is.

Two people can finish the job in 25 minutes as opposed to one person which may take 45 minutes to one hour. It is always better to have one person working on the inside and one on the outside to make sure nothing is missed. If only one person works, sometimes, things like matting can be forgotten, or tire black. You should assign one person for vacuum and tire black while another person for washing. Two people can wash 19 to 20 vehicles in 8 hours of full-time work.

Also, make sure that your nearest competitor is more than 2 kilometers away if your business is outside Metro Manila.

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