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7 Reasons Why You Should Start Your Own Car Wash Business

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.)

Shiny car


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.

Camelot Car Wash
Turtle Wax Pro operator, Camelot Car & Dog Wash in Golden, CO

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.

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