Do you want to open the car wash business but don’t know is it profitable? We get some data to analyses the market, cost, profit for your reference.
Market:
- Due to the automotive industry growth leads to growth in the car wash market. The market Automotive Industry is projected to be grow 205 Million Units by 2028., registering a CAGR of 4.5% during the forecast period (2021 – 2028).
- Except that according to the International Carwash Association (ICA), the number of consumers who wash their cars at home has reduced. The percentage of consumers who choose a professional car wash facility increased from 47.6% to 71.6% from 1996 to 2014 In 2019, that number climbed even higher, to almost 77.0%.
- The global car wash services market size was estimated at USD 27.8 billion in 2020 and is expected to reach USD 29.4 billion in 2021. Car Wash Market segment growth at a rate of 3.16% in the forecast period of 2020 to 2027
The car market is growing, people will be lazier, car wash market size is big from above point we think is the good business.
How to open the car washing business?
Car washing business is like others no need the government approval private person can open and have it. If plan to open the car wash machine need to rent the plant, buy machine, hire employee.
Cost and profit:
Cost of land: $20,000/year
Cost of machine: $70,000/year
Salary: $70,000/year
Daily Wash: 200
Charge Per car: $3
Revenue: $210,000 year
Profit: $50,000 first year, 2nd year will be like $120,000 year.
For doing business the location is very important. Location Location Location. If can open in the gas station will be perfect, if not main street will be ok.
From the analyze the roll-over or in-bay facilities segment dominated the market for car wash service and accounted for the largest revenue share 50.3% in 2020. These facilities have lower running expenses than tunnel washes since they use just 10-50 gallons of water each car against 14-60 gallons in a tunnel.
