Car Wash Business 101: Equipment and Investment Requirements for 2018 (Updated)

A car wash is a nice business to get into if you're into cars. We've already given you some tips on how to start a car wash business. What's more, we've already given you the equipment and investment requirements needed to start a car wash business last 2017. So now, let's take this further by updating the nitty-gritty and discussing the numbers for 2018.

Edwin Pasahol, Senior Trade and Industry Development Specialist for the Bureau of Small and Medium Enterprise Development (BSMED), gave us a general and estimated rundown of the equipment, costs, price options, and profit you'll get when you venture into this business.

Boy washing a vehicle at a carwash @http://1.bp.blogspot.com

INVESTMENT REQUIREMENTS (All prices are in PHP, and based on 2018 market prices)

A. Equipment

  • 1 Pressure washer compact electric 1600 watts, 5.5 liters/minute – PHP7,035.00
  • 1 Vacuum cleaner with blower, 750 watts 6 meter – PHP3,675.00
  • 1 Power sprayer 1/2 horsepower, 26 inch – PHP5,040.00
  • 1 Pressure tank 340 liters – PHP7,455.00
  • 1 2-step ladder – PHP473.00
  • 3 Drums (for storing water) at PHP410 per piece – PHP1,230.00
  • 2 Hose at P352.00 per piece – PHP704.00
  • 3 Pails/buckets at P95.00 per piece – PHP285.00

TOTAL – (P25,897.00) or rounded off: P26,000.00

B. Direct Cost (Materials and Supplies per Month)

  • 3 pcs Chamois at P116.00 per piece – PHP348.00
  • 24 pcs All-purpose rags at P6.00 for 4 pieces – PHP36.00
  • 4 pcs Car sponge (big) at PHP47.00 per piece – PHP188.00

Sub-Total – (PHP572.00) or rounded off: PHP600.00

C. Supplies

  • 60 liters Car shampoo – PHP9,125.00
  • 15 liters Car wax liquid wax hi-gloss finish – PHP7,875.00
  • 15 liters Tire black – PHP7,361.00
  • 450 ml Car polisher/shine (for detailing) scratch remover ultra hi-gloss finish – PHP1,491.00

Sub-Total – (PHP25,852.00) or rounded off: PHP26,000.00

TOTAL – (P26,424) or rounded off: P26,000

D. Indirect Cost

  • Labor cost (PHP368.00/day x 30 days) – PHP11,040.00
  • Electricity – PHP2,321.00
  • Water – PHP935.00
  • Contingency (10% of direct costs) – PHP1,680.00

TOTAL – (P15,976) or rounded off: P 16,000 

Price List

  • Van   -  PHP126.00
  • Taxi  -   PHP63.00
  • SUV - PHP126.00
  • Sedan-  PHP84.00 - PHP105.00
  • Exterior auto detailing - PHP1,575.00
  • Interior auto detailing - PHP1,050.00- PHP1,575.00

Estimated Sales for a One-Month Operation

  • 17 cars @PHP84.00 x 30 days – PHP42,840.00
  • 3 vans @PHP126.00 x 30 days – PHP11,340.00
  • 10 cars @PHP47.00 x 30 days (only for tire black and vacuuming) – PHP14,100.00
  • 8 cars @PHP578.00 (for detailing) – PHP4,624.00

Sub-total – (PHP72,904.00) or rounded off: PHP73,000.00

LESS:

  • Direct cost – PHP26,424.00 or rounded off: PHP26,000.00
  • Indirect cost – PHP15,976.00 or rounded  off: PHP16,000.00

Sub-total – PHP42,400.00 or rounded off: PHP42,000

---

NET INCOME MONTHLY – PHP30,504.00 or rounded off: PHP31,000.00

NET INCOME DAILY (30 days) – PHP1,016.80 or rounded off: PHP1,017.00

Men cleaning a van at a carwash @http://1.bp.blogspot.com

Remember: This is just an estimated guide that will give you an idea of the equipment, costs, price options, and profit you'll get when you start out a car wash business. Make sure to use the most current market prices when comparing different pricing options for your services.

The computation does not include monthly rent space and insurance costs (if any). Please do a more extensive research if you seriously plan to get into this venture.

Updated on August 14, 2020 by Gail Alcabaza

Also Read:

Car Wash Business 101: Equipment and investment requirements for 2020

Tips and Tricks for First Time Car Owners

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