How Much Do Car Wash Owners Make?

Starting a car wash can be a profitable business to get into. More than 72% of drivers in the U.S. frequently use professional car wash services, and the conveyor car wash is the most revenue-generating service.

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However, starting a car wash conveyor as it requires a more enormous investment capital. Though there are several other types of car washes that are less expensive to start, they will bring in less profit.

So, the question that many people ask is how much do car wash owners earn on average. The answer to this question is not straightforward, as your income will depend on several factors. If you have thought about opening a car wash and wondered if it&#;s worth it, you&#;ve come to the right place. In this guide, you&#;ll learn about the different aspects that can affect a car wash owner&#;s annual or monthly income. We&#;ll also discuss how much a car wash owner earns based on the type of car wash they run.

1. How Much Do Car Wash Owners Make?

The annual income from a car wash depends on the type of car wash you own, how much you charge per vehicle, and the recurring expenses associated with it. As a baseline, it&#;s estimated that the average annual profit for in-bay automatic car washes is $86,531. It&#;s worth noting, however, that this figure represents only one specific type of car wash and does not accurately reflect the actual income levels of other car wash professionals.  Regardless, the growth of the car wash services industry is apparent. According to Report Linker, the U.S. car wash services market size is expected to reach $20.74 billion by , expected to grow at a CAGR of 4.8% between and .

2. What Are The Different Types of Car Wash And Their Annual Income

In-bay automatic car wash

The typical fee for this type of car wash is about $6.34, with a profit of $4.35 per wash. On average, it can generate annual revenue of $139,000, which translates into an average profit of $86,531. The in-bay automatic car wash doesn&#;t require much space and can be easily added to an existing business, such as a gas station or mechanic shop. It also doesn&#;t require much labor, as it operates automatically as soon as the customer pays and enters the bay. Consumers are also more likely to opt for in-bay car wash services because they cost less and the process is much faster and more efficient. Additionally, in-bay services use 10 to 50 gallons of water per car, while tunnel services use 14 to 60 gallons. 

Full-service car wash

The full-service car wash is the most expensive of the car wash types, but it is also the most cost-effective. The average cost of this type of wash is $15, which is more than double the cost of an in-bay car wash. A full-service car wash business can actually make anywhere from $500,000 to $900,000 annually in profits. The full-service car wash offers exterior and interior cleaning services. It provides additional services, including vacuuming and detailing services for the interior of the car. The exterior service is sometimes performed at an indoor car wash or on a conveyor belt.

Exterior conveyor car wash

These are car washes that place cars on a motorized track and drag them through a tunnel where they are rinsed, soaped, washed, rinsed again, and eventually waxed. The exterior conveyer car wash is the second most cost-effective type of car wash after the full-service car wash. It is estimated that with this type of car wash, you can earn an average of $686,250 per year.

Self-service car wash

The self-service car wash system allows the owner to clean the car at their own pace. It does not necessarily follow the schedule and procedures found in an automatic car wash. Compared to the previously mentioned types of car washes, this type of car wash is inexpensive and can bring in $1,489 per bay each month and an average annual revenue of $41,000. This is, of course, far less than the revenue from the other types of car washes, but remember that it comes with minimal maintenance and staffing costs.

3. What Are The Factors That Can Affect Car Wash Income?

Other than the type of car wash, other factors can affect the monthly or annual income of a car wash owner. Here are a few of them:

Location

 

The location of your car wash business largely determines its success. Many customers discover the carwash they patronize when they notice it while driving by. If the location is not ideal, you will need to add signage visible from the road to attract the attention of the ideal customer.

Seasons and natural disasters

A car wash may experience a slowdown during rainy periods or natural disasters such as hurricanes and earthquakes, while it may flourish in the spring when pollen is abundant or in the winter when salt builds up. So, when starting a car wash business, you should avoid areas prone to natural disasters. Carwash owners need to forecast their profits based on weather conditions and have a financial strategy that prevents them from going into debt during periods of low profitability.

Recurring expenses

Many recurring expenses can chip away at your profits in different ways. The type of car wash you decide to own will play a role in each of these expense categories. Here are some of the most common expenses that car wash owners face regularly:

• Employee salaries, taxes, and benefits (automatic and full-service car washes only).

• Business taxes

• Supplies (cleaning products, polishes, and waxes, brushes, rags, vacuum hoses, etc.)

• Lease or mortgage (for the site/building)

• Commercial loan repayment

• Utilities (water, electricity, gas)

• Equipment repairs/maintenance

• Commercial insurance

• Signage

• Food/beverage for customers (full-service only)

• You may also be required to pay an annual license renewal or permit fee, depending on the location of your car wash. Each of these recurring expenses will come from your revenue, which means less profit and less income.

If you decide to open a car wash from scratch, there are some significant additional costs that you&#;ll incur:

• Land acquisition

• Construction

• Car wash equipment

These three aspects can be expensive depending on your location and the type of car wash service you wish to offer.

Marketing

Another element that can affect a car wash&#;s income is marketing. Marketing doesn&#;t just help increase the number of customers and profits. It plays an essential role in keeping repeat customers coming back to your car wash facility and attracting new customers. Social media channels (TikTok and Instagram, in particular), website bookings, posting notices, sending out flyers, putting up attractive signs, and yellow page ads are all marketing strategies you can implement to promote your business.

Washing services prices according to the type of engine

 

When it comes to washing cars, the price of washing can vary depending on the size of the engine. While small engines are less expensive, modified engines and large engines bring in a lot of money, and you can make a lot of money. You&#;re not going to charge the same price for washing a GMC Yukon Denali XL as you would for a Smartcar.

4. Don&#;t Confuse Profits And Revenue

The concept of profit and revenue is often misunderstood. If your business made a certain amount of money in a month or year, it doesn&#;t mean that&#;s all profit. It is advisable to break down your monthly bills. Then, whatever is left after expenses (including any taxes you may owe) can be considered your monthly income (or net profit). The higher your daily costs, the lower your monthly income will be.

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Budget for expenses that are not so regular, such as a broken vacuum cleaner, possible equipment replacement, termite fumigation, or even vandalism. Subtract the sum of expenses incurred from the revenue. The rest is your profit.

KORONA POS has been a huge game changer for my overall profitability. Implementation was seamless and painless! The support staff is great and always ready to help. Had I known it would be this easy, I would have made the switch sooner!

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5. Managing Your Payment With the Best Car Wash POS System

 

An important aspect that is often overlooked when opening or managing a car wash is the daily management of payments with point of sale software. There is a plethora of POS software on the market. The wrong choice of POS software can be highly detrimental to your business. 

KORONA POS software offers several secure and powerful options for business owners.  The software also allows you to track your business performance and is cloud-based, which means you can track your business and other important data without being onsite to refine your marketing strategy better and make other important decisions. To learn more about KORONA POS, click on the link below.

FAQs: How Much Do Car Wash Owners Make?

1. How profitable is a car wash business?

The profitability of a car wash business depends on the type of car wash service you want to offer, the location of your business, the types of cars you wash most often, and the daily expenses. On average, it can start from $41,000 per year for a small self-service car wash to $686,250 for a large luxury car wash.

2. What are the cons of owning a car wash?

Owning a car wash comes with many challenges. According to the opinions of many carwash owners, the challenges they face are usually related to the smooth running of the operation, managing the team, and customer satisfaction.

3. How much capital do I need to start a car wash business?

Start-up costs vary depending on the type of car wash you open. You can start a hand wash business for as little as $2,500 or a self-service, automated car washes for $150,000 or more. The main expenses at the high end are facilities and machines.

4. What U.S. state has the most car washes?

California has the largest number of car wash businesses available to citizens when it comes to car washes in the United States. However, based on population size, the District of Columbia actually had higher average sales than California.

The demand for car washing services has grown steadily over the past few years, hitting $15 billion in . Buying a car wash or opening a new one could be a promising venture. But how profitable is a car wash? And is a car wash a good investment?

While the car wash industry has huge earning potential, it&#;s competitive and takes a significant up-front investment. But with the right approach and a little luck, you can take this business model to new heights.

How Much Do Car Washes Make?

Many would-be car wash owners start by asking key questions like how much money you can make owning a car wash and how much a car wash makes in a year. The answers depend on many factors, but some preliminary research can help you get a sense of what your return on your investment might look like.

A car wash&#;s annual profit depends a lot on the kind of car wash you&#;re running in the first place. For example, a small, self-service car wash can earn around $40,000 annually. In-bay automatics generate on average $85,000 per year. A bigger car wash conveyor business (exterior of car only) comes in just shy of $700,000 a year. Full service car wash businesses earn on average between $500,000 and $900,000 as of .

Larger car wash businesses, including those with an in-bay automatic or tunnel car wash, tend to make more over time but require a much higher startup cost. While less profitable, other car washes &#; like self-service washes &#; are far less expensive to get off the ground. There are also plenty of variable costs to consider in the wash industry, like labor expenses, water bills, franchise fees, and the cost of daily operation. 

Revenue Streams in a Car Wash Business

More than 72% of drivers in the U.S. say they frequently use professional car wash services. Car wash owners capitalize on this demand using one of three revenue streams.

Car Wash Service Charges and Additional Services

Most car wash revenue comes from the service charges. For an automatic car wash, you can expect to see income of between $3-$10 per wash. Full-service car washes can earn the most &#; around $15 to $25 per vehicle &#; because they offer internal and external cleaning services. 

Additional services can also add to your revenue. Think of add-ons like vacuuming, waxing, interior deep-cleaning, and other detailing services. 

The amount of revenue will also depend on your target market &#; a generic, self-serve car wash in a rural area might not make as much as a full-service car wash serving luxury car owners.  

Membership and Subscription Plans

Some car washes operate using a subscription model. For drivers who expect to get more than one car wash a month, signing up for a subscription plan can be more cost-effective. Plans usually start around $20 for unlimited washes, but more expensive packages can include other services, like interior cleaning and detailing. 

A subscription program can help your car wash business bring in a more consistent monthly income, even in the slower rainy seasons. It&#;s also a great way to reward loyalty for repeat customers.

Vending Machines and Retail Products

While customers will spend most of their money on car wash services, drivers can also use on-site vending machines to purchase snacks, drinks, air fresheners, and other car maintenance products. For self-service car washes, customers can purchase materials to help with their wash, like glass cleaning kits or towels. 

Key Elements That Impact Profitability

Not every car wash business owner will bring in the same revenue. Also, while the size and type of car wash play a role, plenty of other factors can affect your profitability. 

Location, Target Market, and Area Competition

For a car wash business, location is everything. Most customers don&#;t think to use a car wash until seeing signs when driving by. That means if your business and its signage aren&#;t easily visible from the side of the road, you won&#;t attract enough people to keep your business going. 

It&#;s also essential to research the neighboring community. Are the people in the area likely to use car washes? Is there heavy commuter traffic? Is it densely populated? Does it rain often, reducing the need for a car wash? And most importantly, what kind of competition will you be up against? 

Pricing Strategy

Car washes typically have low overhead costs and can service a high volume of drivers every month, which is what makes them so profitable. If prices are too high for the services you provide, you could lose that high volume, and your revenue could dip. But if prices are too low, even a high volume of customers might not be enough to keep up with operational costs. 

One pricing strategy is to analyze the prices of similar businesses in your area to ensure you remain competitive. But if the target market in your area can afford it &#; and you have the value to back it up &#; don&#;t be afraid to increase the price. Some customers will be willing to pay extra for premium products and services. 

Operational Efficiency and Productivity

When hundreds of drivers go through your car wash every week, efficiency is everything. The more productive and cost-effective your day-to-day operations are, the less money you&#;ll lose to costs like labor, maintenance, equipment, utilities and more. 

To keep up with customer expectations for a fast and effective wash, operators should always maximize the performance of their equipment. This can mean investing in quality equipment and effective cleaning chemicals. 

Customer Satisfaction and Retention

Having a successful car wash business is about more than just attracting new customers. It&#;s also about delivering an exceptional customer experience that keeps them coming back for more. Subscription models, loyalty programs, discounts and complimentary add-ons can also improve customer retention. But it all comes down to the quality of your wash. Did the vehicle come out clean, dry and shiny the way it should?

Marketing and Promotional Efforts

Marketing strategies can increase brand awareness to attract new customers. The best ones provide enticing offers that keep customers coming back for more. Hands-on marketing can include sending out flyers and putting up eye-catching signs. But you can also use social media, website bookings, and online ads to promote your business locally. 

Partner With the Industry&#;s Leading Carwash Company To Maximize Business Success

Starting a car wash business can be lucrative if you&#;re willing to make a significant investment. But to achieve the full profit potential of carwash requires the right solutions, know-how and guidance. Working with NCS for all your car wash is a great way to get the best results.

National Carwash Solutions is the largest provider of car wash equipment and supplies. We have the quality carc wash equipment, parts, service and chemistry you need to make your wash a winner in the competitive car wash industry. Contact us today to get started.

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