What Are The Average Profits When Owning A Car Wash?

car washes Nov 27, 2022

The car wash business can bring in some big bucks. But this is only true if you form a proper business plan and provide competitive car wash services. If you are starting your own car wash, you may wonder how much profit you can expect from this business. In this brief, we will answer this question by discussing the average profits brought in by a car wash and give you tips on how to improve your bottom line.

What is the Average Car Wash Business Profit?

On average, a car wash with two attendants costs about $20,000 to operate. This includes bills, rent, insurance, taxes, and marketing fees. However, if the building of your car wash is owned by you, then the operation cost can go down by up to 25%. 

The revenue of a car wash depends entirely upon factors such as customer frequency, number of attendants, number of bays, types of bays, and the location of the car wash. A medium-sized car wash that services around 20,000 cars a year can bring in a revenue of around $130,000 in a year. This can net an annual income of up to $85,000. Car wash businesses generally provide a very good cap rate, so you can expect a great return on your investment in just a year or two. 

However, all of these numbers are estimates, so the exact income, costs, and profits can vary vastly from car wash to car wash. Even the weather has an impact on profits as car wash businesses often bring in less revenue in winter seasons. Generally, you can expect a profit margin of 10% to 20% from your car wash. 

How to Improve the Profits of Your Car Wash?

Here are some ways to improve the profits of your car wash business:

Offer Express Detailing Services

Express detailing services can be a goldmine for a car wash. You can offer premium services to your customers, such as carpet shampooing that can be done quickly and at a low cost. When your customers select these express services, your revenue increases alongside the customer satisfaction rate. 

Prevent Unscheduled Repairs

Unscheduled repairs are a major source of revenue loss in the car wash business. Not only do they cost a hefty sum, but they also cause downtime. This can seriously inhibit the amount of profit you can potentially make. Thankfully, this can be prevented easily by having all the machinery in your car wash regularly maintained. You can also replace older machinery with newer models that are more efficient and break down less often.

Bring Down the Operating Costs

You can also look into bringing down the operating costs of your car wash business to improve revenue. Ask your detergent and chemical provider to demonstrate newer and cheaper products that can be sued to bring down operation costs. If your car wash is overstaffed, you can also cut down on the labor force.

Final Thoughts

Starting a car wash business can be a pretty big business venture as it requires a fairly large investment. But, the high-profit rate is well worth the investment. Additionally, as long as you are providing a good service, you don't have to worry about running out of customers either, as everyone needs a car wash every few days. There are tremendous profit capabilities, and I explain more of this in the video below.

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