Car Wash Business 101: Equipment and Investment Requirements

*There is an updated version of this article here: Car Wash Business 101: Equipment and Investment Requirements 2018

 

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. Now, we're taking it further by getting to the nitty-gritty and discussing the numbers, so to speak.


Mr. 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[/caption>

INVESTMENT REQUIREMENTS (All prices are in PHP, and based on 2017 market prices)


A. Equipment



  • 1 Pressure washer compact electric 1600 watts, 5.5 liters/minute – P6,700

  • 1 Vacuum cleaner with blower, 750 watts 6 meter – P3,500

  • 1 Power sprayer 1/2 horsepower, 26 inch – P4,800

  • 1 Pressure tank 340 liters – P7,100

  • 1 2-step ladder – P450

  • 3 Drums (for storing water) at P390 per piece – P1,170

  • 2 Hose at P335 per piece – P680

  • 3 Pails/buckets at P90 per piece – P270


TOTAL – (P24,670) or rounded off: P25,000



B. Direct Cost (Materials and Supplies per Month)



  • 3 pcs Chamois at P110.00 per piece – P330

  • 24 pcs All-purpose rags at P5.50 for 4 pieces – P33

  • 4 pcs Car sponge (big) at P45 per piece – P180


Sub-Total – (P543) or rounded off: P540



C. Supplies



  • 60 liters Car shampoo – P8,690

  • 15 liters Car wax liquid wax hi-gloss finish – P7,500

  • 15 liters Tire black – P7,010

  • 450 ml Car polisher/shine (for detailing) scratch remover ultra hi-gloss finish – P1,420


Sub-Total – (P24,620) or rounded off: P24,600


TOTAL – (P25,140) or rounded off: P25,000



D. Indirect Cost



  • Labor cost (350.00/day x 30 days) – P10,500

  • Electricity – P2,210

  • Water – P890.00

  • Contingency (10% of direct costs) – P1,600


TOTAL – (P15,200) or rounded off: P 15,000 



 Price List



  • Van   -  P120.00

  • Taxi  -   P60.00

  • Suv's - P120.00

  • Sedan-  P80 - P100

  • Exterior auto detailing - P1,500.00

  • Interior auto detailing - P1,000 - P1,500.00


 Estimated Sales for a One-Month Operation



  • 17 cars @80.00 x 30 days – P40,800

  • 3 vans @120.00 x 30 days – P10,800

  • 10 cars @45 x 30 days (only for tire black and vacuuming) – 13,500.00

  • 8 cars @550 (for detailing) – 4,400


Sub-total – P69,500


LESS:




  • Direct cost – P25,000

  • Indirect cost – P15,000


Sub-total – P40,000


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NET INCOME MONTHLY – P 29,500


NET INCOME DAILY – P 983




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

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.


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.