Car Wash Business 101: Equipment and investment requirements for 2020

car wash business

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 2018. So now, let's take this further by updating the nitty-gritty and discussing the numbers for 2020.

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 2020 market prices)

A. Equipment

  • 1 Pressure washer compact electric 1600 watts, 5.5 liters/minute – PHP7,756
  • 1 Vacuum cleaner with blower, 750 watts 6 meter – PHP4,052.00
  • 1 Power sprayer 1/2 horsepower, 26 inch – PHP5,5567.00
  • 1 Pressure tank 340 liters – PHP8,219.00
  • 1 2-step ladder – PHP522.00
  • 3 Drums (for storing water) at PHP452.00 per piece – PHP1,356.00
  • 2 Hose at PHP388.00 per piece – PHP776.00
  • 3 Pails/buckets at P105.00 per piece – PHP315.00

TOTAL – (P28,563.00) or rounded off: PHP29,000.00

B. Direct Cost (Materials and Supplies per Month)

  • 3 pcs Chamois at P128.00 per piece – PHP384.00
  • 24 pcs All-purpose rags at P7.00 for 4 pieces – PHP42.00
  • 4 pcs Car sponge (big) at PHP57.00 per piece – PHP228.00

Sub-Total – (PHP654.00) or rounded off: PHP700.00

C. Supplies

  • 60 liters Car shampoo – PHP10,060.00
  • 15 liters Car wax liquid wax hi-gloss finish – PHP8682.00
  • 15 liters Tire black – PHP8130.00
  • 450 ml Car polisher/shine (for detailing) scratch remover ultra hi-gloss finish – PHP1644.00

Sub-Total – (PHP28,516.00) or rounded off: PHP29,000.00

TOTAL – (PHP29,170.00) or rounded off: PHP29,000.00

D. Indirect Cost

  • Labor cost (PHP406.00/day x 30 days) – PHP12,180.00
  • Electricity – PHP2,559.00
  • Water – PHP1,031.00
  • Contingency (10% of direct costs) – PHP1,840.00

TOTAL – (PHP17,610.00) or rounded off: P18,000.00

Price List

  • Van - PHP139.00
  • Taxi - PHP69.00
  • SUV - PHP139.00
  • Sedan- PHP93.00 - PHP116.00
  • Exterior auto detailing - PHP1,737.00
  • Interior auto detailing - PHP1158 - PHP1,737.00

Estimated Sales for a One-Month Operation

  • 17 cars @PHP93.00 x 30 days – PHP47,430.00
  • 3 vans @PHP139.00 x 30 days – PHP12,510.00
  • 10 cars @PHP52.00 x 30 days (only for tire black and vacuuming) – PHP15,600.00
  • 8 cars @PHP637.00 (for detailing) – PHP5,096

Sub-total – (PHP80,636.00) or rounded off: PHP81,000.00

LESS:

  • Direct cost – PHP29,170.00 or rounded off: PHP29,000.00
  • Indirect cost – PHP17,610.00 or rounded off: P18,000.00

Sub-total – PHP46,780.00 or rounded off: PHP47,000.00

---

NET INCOME MONTHLY –PHP33,856.00 or rounded off: PHP34,000.00

NET INCOME DAILY (30 days) – PHP1,129.00 or rounded off: PHP1,000.00

  • 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.

Also Read:

Car Wash Business 101: Equipment and Investment Requirements

Car Wash Business 101: Equipment and Investment Requirements for 2018

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