Car Washing in the USA

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.)

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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.

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.

Are you looking for a business opportunity that is both profitable and exciting? If so, then you should consider opening a car wash business.

This industry is booming, and there are many different ways to get started. In this blog post, we will discuss steps that will help you get your car wash business up and running!

Let's state the obvious: What is a car wash?

A car wash is a business where people can go to have their cars cleaned.

This can be done either by hand or by machine, and there are many different types of car washes to choose from.

Is owning a Car Wash Business a good idea?

If you're thinking about starting a professional car wash business, know that it can be very lucrative.

The car wash industry is growing rapidly, with the injection of venture capital in professional car washes and new technology.

This means that now is a great time to get involved in car washing. Not only is the industry growing, but there are also many different ways to build a car wash business.

It can be a challenge at times, but opening a car wash can prove to have many avenues for success, making it a great investment opportunity.

Are car wash businesses profitable?

Car wash businesses can be very profitable. How profitable your car wash will be depends on many factors: the location, type of car wash, and how well you run the business.

However, with a little bit of planning from the help of some car wash experts, your car wash will net you $85,000 on average (US Census Bureau) over the course of a year.

Let's discuss the different types of car washes, as they each have unique advantages and disadvantages.

What are the different types of car washes?

There are several different types of car washes, and you'll want to learn about all the different options when choosing which one you would like to own.

Self Service Car Wash

This type of wash is exactly what it sounds like - customers serve themselves. Typically, a machine with various chemical choices and a pressure washer is used. They may have extras like vacuums and towels to help the drying process.

Self serve washes are great as they require very little staff. They are also quick, which is great for customers who are in a hurry. A self service car wash has the strongest advantage of being the cheapest to open.

Unfortunately, they can be quite messy and unorganized, customers often don't clean up properly. Plus, self serve washes have much cheaper wash packages meaning less room for profit on each car.

In Bay Automatic Car Wash

In this type of wash, the customer drives their vehicle into an empty bay. The vehicle is then cleaned by machines that move around the car.

In bay car washes have a few advantages over self serve ones. They're much more organized and customers can't make much of a mess. In bay car washes also have wash packages that cost more. This is due to the ability to offer packages that are more complex. There is now more potential to make a profit on each car.

This type of car wash is typically found at a gas station or other location where there is room to park the cars, but not enough room to fit a tunnel car wash.

In bay washes have the advantage of still being fully automated, providing customers with high convenience and low effort. It can only serve one customer at a time however, sometimes creating lines and limiting potential revenue.

Tunnel Car Wash

In a tunnel car wash, the customer drives their car onto a conveyor belt that moves the vehicle through a long tunnel.

This type of wash is much larger than an in-bay wash and can accommodate more cars.

Tunnel washes can be extremely lucrative but also are extremely expensive to open in the first place. Most tunnels will require a multi-million dollar initial investment.

Tunnel washes typically offer the best wash packages and have the ability to upsell customers on waxes, polishes, and other services. They also have high customer satisfaction as they provide a complete cleaning of the vehicle.

It is also important to ensure that there is a market in that area for such a large wash, as a tunnel's greatest advantage is being able to serve multiple vehicles at once. There longest tunnels can service 1200-1500 cars per day leading to daily revenue of over $20,000.

Washing Equipment

To start a car wash, you'll need to decide which type of car wash you want to open and what car wash equipment is right for you.

Brushes

Some car washes will use a brush style system. This uses long bristled brushes that spin and help to loosen the dirt and grime on the car.

These do a great job at cleaning vehicles, sometimes a little too well.

There have been cases of the brushes scratching paint off of cars, so be sure to research this type of system before you choose it for your business.

Soft Cloth

This type of system uses long, soft cloths that wrap around the vehicle and clean it as it moves through the wash.

This is a safer option and is used by most car washes today.

Touchless Car Wash

Touchless car washes use high-pressure water jets and no brushes or cloths to clean the vehicle.

This is a newer option that is becoming more popular as it has no chance to damage the customer's vehicle.

Full Service Car Wash

Full service washes offer a complete service that washes, dries, and vacuums the inside and outside of your vehicle. This is the best chance to offer exceptional customer service.

Full service car washes are great because they offer customers convenience and a thorough cleaning.

They do require more staff than other types of washes, which can make them more expensive to run.

What type of car wash is the most profitable?

The answer to this question is not straightforward as it depends on various conditions.

The income your car wash business can generate will depend on a variety of factors, including location and business plan.

A full service car wash business could be more profitable than other types of car washes because they provide more services and can charge more for them.

An automated car wash business could also be the most profitable as it needs less dedicated staff and can run 24 hours, meaning more potential customers.

Start your car wash business plan

Here are some steps and aspects you'll want to consider when creating your business plan for a car wash.

1) Business Name:

As with any business, you will need to pick a name for it to be run as, and this will be the first thing you put into your business plan.

For your own car wash business, we recommend you to pick an easy to remember, snappy name as customers will be more likely to return if they can remember it.

2) Target Market:

When you’re planning to start a car wash, it’s important to think about who your target market is.

Are you aiming for the high-end market with luxury cars? Or are you more interested in catering to the budget-minded customer with economy cars?

Your target market will help determine the type of car wash you open, as well as the location and services you offer.

3) Location:

Your location is critical for the success of your car wash. You'll want to make sure that it is easily accessible and in a high traffic area.

The location can also be what area of the world, as some cities or regions are higher car traffic areas, and what weather they experience will differ as well.

4) Wash Type:

The type of wash you decide to open will play a large role in your start up costs, as well as the potential income you can generate.

The various forms of automatic car washes carry unique benefits that make them advantageous to some, but a self service car wash has its market, so decide carefully!

5) Competition:

You will also want to do some market research into the competition before finalizing your decision to open a car wash there.

A little competition is healthy, but too many local businesses, other car washes and big name corporations could make it difficult for your business to thrive.

6) Employees:

You'll need to decide how many employees you'll need and what their roles will be.

This will depend on how large of an operation you plan to open.

7) Applications/Loyalty Program:

You may want to offer some type of applications or loyalty programs to customers.

This could include a rewards program for return customers to eventually redeem a free car wash.

You can also offer coupons or discounts for a free wash to help attract new vehicle owners.

Digital Mosaic is a fantastic provider of technology solutions for the car wash industry. They provide clients with a way to effortlessly institute turn-key subscription and loyalty programs, brand their operations with a custom branded app, and improve their marketing efforts by paying close attention to customer data and analytics.

8) Ins and Outs:

Experience and knowledge is an invaluable aspect to any business venture, and the car wash industry is no different.

It would be smart to speak to successful car wash owners or suppliers as part of your market research. Knowing their views, strengths, and weaknesses can make you a more profitable business.

9) Car Wash Suppliers:

You'll need to find suppliers for all of the equipment and chemicals you'll need to run your car wash business.

We recommend finding multiple suppliers and distributors, like Turtle Wax Pro, and discussing your needs with each of them to learn more about the costs involved.

Suppliers can offer more than just chemicals as they can help with improving your wash, market positioning, brand recognition, etc.

We have a blog detailing everything you'll need to know regarding picking the right supplier to help you open a car wash.

How To Open A Car Wash, The Business Framework

We will also run through some of the legal needs and paperwork aspects to opening and running a car wash business. You will need to contact appropriate local authorities in your area, this will just give you an idea of where to start.

Registering your Car Wash Business

The first step is to register your business with the local authorities and the IRS.

You will need to obtain business licenses and a federal tax identification number, as you will need to pay business taxes.

Permits and Zoning

Be sure to check with your local government about any permits or zoning regulations that may apply to your car wash business.

These are documents and policies that you would need to open and run your car wash, legally.

Car Wash Business Insurance

It's important to get business insurance for your car wash to protect you from any potential liabilities.

You'll want to have a discussion with your local insurance agent so they can help choosing a policy that fits you best.

Workers compensation insurance is also required in some areas, so be sure to check with your state's laws.

Business Banking

You'll need to open a business bank account and get a line of credit or loan for your car wash venture.

It is also important for a business bank account to be in place, so that your business and personal finances can stay separate.

As small business owners, you'll need to make sure your business's financial operations are in order.

Start Up Expenses

The costs involved to get your business off the ground will depend on a number of previously mentioned factors, like the kind of car wash you want and how many employees you plan to have.

Opening a car wash can differ greatly in initial expenses, a small self service car wash will be much cheaper than a tunnel wash for example.

Be sure to review your financial options to decide what is your best course of action.

Ongoing Expenses

Now that we've gone over some of the one time start up costs, it's important to understand those initial costs are not the only ones that go into opening a car wash.  

You'll need to factor in the cost of running your car wash on a day to day basis.

This includes costs such as water and electricity, chemicals, supplies, employee wages and other business expenses.

Marketing

Marketing can be a make it or break it factor for your new car wash business. You need to get the word out to car owners!

Small businesses and small business owners sometimes find marketing a difficult task but if you want to find success within the car wash industry, you will want some type of marketing strategy.

Your marketing strategy can include advertisements, signage, events and so much more.

Small Businesses Marketing Help

Fortunately, we have a blog created outlining how you can market your car wash to make the concept easier and more approachable.

You can also rely on your car wash supplier for marketing help, at Turtle Wax Pro, this an aspect we aim to help all of our operators with, as we understand the challenge of finding and keeping customers coming back.

If you're in the market to open a new car wash, get in touch with Turtle Wax Pro

We would love to hear your idea and see how we can help you get started in the industry.

Turtle Wax Pro provides everything from industry leading car wash chemistry, to business and marketing support.

We have been in the car care business for over 75 years and know a thing or two about how to start a car wash and washing cars.

Reach out today for more information on how we can help you with your new car wash business venture!

Running a car wash business can be lucrative, but it's important to find the right car wash supplier in order to make your business successful.

There are many different suppliers out there, so it can be difficult to determine which one is right for you.

Turtle Wax Pro is a great option to help supply your car wash. We offer the highest quality chemistry on the market, have decades of experience of helping wash businesses succeed, and have strong healthy relationships with our customers.

These are all key factors to look for when searching for a supplier and we believe that Turtle Wax Pro and Transchem Group can be the best supplier for you.

If you're in the car wash business, then you know that finding the right supplier is essential. Let's go over some key considerations to look for when choosing a supplier.

To Succeed in the Car Wash Business, You Have to be Unique

The car wash industry is a competitive one, so it's important to find a car wash supplier that can give you an edge over your competition. One way to do this is by choosing a supplier that offers unique products or services.

Car washes with no unique selling proposition are very common. You must find things that separate you from other washes if you want to succeed. The right supplier can offer you competitive prices, quality supplies, equipment, support, advice, site signage, marketing help and more that can give you a leg up in business.

Here's What To Avoid In A Car Wash Supplier

1. Avoid suppliers that just need to make a sale and offer no support after your launch.
2. Be wary of a supplier who can't answer questions. This generally means they won't be helpful if any issues arise in the future.
3. Look out for suppliers without local or regional service teams. Depending on your customer volume you may get stuck in a long line waiting for service or repairs.
4. You should also be careful of suppliers who don't have a good reputation. If other car wash owners haven't heard of them or have had bad experiences, it's best to avoid doing business with them.

Looking for a Reputable Supplier

It's also important to choose a supplier that is reputable, has a long track record of industry wins and wants to be a true partner. Businesses succeed when they have long-term relationships with their suppliers. A reputable supplier will be able to more effectively provide you with the resources and support you need to grow your business.

Watch Testimonials

You can learn a lot about a supplier by reading online reviews, case studies and testimonials from other car wash business owners. Make sure to read both positive and negative reviews in order to get a well-rounded view of the supplier.

You should also take the time to speak with other wash owners who have used the supplier. They will be able to provide you with first-hand information about their customer experience.

"When I built our first car wash in 1991 I was looking for a chemical company that could provide knowledge, dependability, service, value and high quality safe products. The Turtle Wax Pro team and Transchem delivered and for over 30 years has been our chemical suppler of choice, they've never let us down. When it comes to a soap provider you can count on day in and day out I couldn't think of a better company than Turtle Wax Pro and Transchem." - Mike Black, Founder/Owner at Valet Car Washes 

Consider the Chemistry

The chemicals dictate the final wash product you can offer your customers. The goal of achieving the perfect wash can only be met with high quality chemistry that all works together.

When choosing a car wash supplier, you should consider the quality of the products that they offer. The last thing you want is your customers' cars to be damaged by poor car wash chemicals.

Which Type of Products Does Your Wash Want to Offer?

Every car wash has staple products like presoaks and detergents but car washes can really differentiate themselves by offering unique items like fragrances, ceramics, and tire dressings.

Think about which products in particular you want to offer your customer, that decision may direct you to a particular company that carries specific supplies.

There are so many products to choose from, we recommend getting in contact with a couple of car wash chemical manufacturers before deciding on any products.

Less Is More!

Some companies can have hundreds of SKUs but you'll need to narrow your decision down to between 5 and 15 core chemicals for your wash.

The Turtle Wax Pro lineup offers more than 40 highly diverse chemicals alongside other individual chemical solutions.

This allows us to stay competitive with other industry prices, stock more product, ship faster, provide more in-depth service and streamline our operation to help you clean more cars.

Consider the Car Wash Equipment

The car wash industry is always changing and car wash equipment is becoming more advanced. You'll want to make sure that the supplier you choose offers the latest and greatest in car wash equipment.

This could include pressure washers, car wash pumps or central vacuum systems for detailing services. This will ensure that your customers are getting the best possible car wash experience.

Having to buy new equipment is expensive and time consuming so it's important to get it right the first time.

Maintenance Matters

Maintenance solutions are also important to consider when choosing a supplier. Make sure your supplier has a good relationship with one or more local distributors in your area to service and repair your equipment on a regular basis.

Consider the Extras

It's also important to find a supplier who offers training on how to use the car wash equipment. This will ensure that your team is able to properly operate the car wash equipment and provide a great experience for your customers.

Turtle Wax Pro offers in-depth training on chemistry, installation, service, business operations and more to our partners (the distributors and operators we work with). This should create reliability for you and your employees when it comes to any problems that could arise.

What about...

Perhaps you want to own a truck wash as well? A truck wash will need different equipment than a standard car wash. How easy is it to receive repair parts? How detailed are the product manuals? How quick is installation?

These are all factors you will want to consider when evaluating the right supplier. It can be challenging to know what is the right equipment and we recommend contacting a supplier (like Turtle Wax Pro) before you decide on anything.

Consider your Customer

Last but not least, you should consider your ideal customer experience when choosing a supplier. What type of experience do you want to offer your customers?

Do you want to offer a luxury wash experience or a more basic wash experience? This will help you determine which car wash supplies, equipment and add-ons you'll need to purchase.

What Does a Premium Industry Supplier Offer Their Car Washes?

1. A wide range of chemistry, services, systems and car wash equipment.
2. Advice on how to best position your wash for success. This involves marketing, best use of the products, and a full dedicated hands-on training session with ongoing learning material.
3. Help you find ways on how to reduce costs and optimize your car wash to save time and produce more sales for your site.
4. Lastly, the relationship they maintain with their partners. A top supplier will offer car washes technical support, answer any questions they have, and keep an open dialogue to continuously improve the products and services they offer.

All of these aspects are what separates the industry leaders from the rest.

Choosing Turtle Wax Pro as Your Supplier

Turtle Wax Pro is one of the most trusted car care brands in the world with expertise to drive more sales and gain market share around the world.

We strive to be the best supplier possible to all of our partners, operators and distributors. We do this by offering the best chemistry on the market, high quality car wash equipment, and knowledge from our dedicated sales and service teams.

We Know It's Hard

Picking the right supplier can be a tough process but will prove to be very rewarding if done correctly. We hope that we cleared up some questions you had and have given you a bit of direction on how to choose a high quality partner.

If you have any questions about your car wash regarding anything from products to strategy, don't hesitate to contact us. We would be happy to discuss how you can find even more success within the car wash industry.