Car Wash Business

STEPS TO FOLLOW

The following is a list of the typical steps you will follow when building a self-serve car wash. (Proper zoning is assumed).

1. Estimate the cost of construction at Php 150,000.00 to Php 200,000.00 per self-serve bay and Php 400,000.00 per automatic bay (includes equipment).
2. Obtain a water, sewer, electric and gas availability letter from local utility authorities.
3. Select an equipment supplier.
4. Work with local architect/engineer and equipment supplier to discuss local building codes and necessary utility requirements.
5. Architect/engineer draws complete set of building plans.
6. Submit plans to city for permitting and to potential contractors for construction bidding.
7. Finalize equipment order and select building contractor.
8. Obtain building permit and start construction.
9. Make application for utilities: gas, electric, water and sewer.
10. Complete construction and install car wash equipment.
11. Utilities turned on and car wash equipment started up.
12. Obtain occupancy permit and open your car wash for business!

COST INFORMATION

Land Costs

There are no hard and fast rules; however, the income of the car wash must be sufficient to justify the cost of the ground. The cost of the land will be based upon several factors such as location, lot size, and real estate values in the area. Land cost is perhaps the largest expense of the project and should be accorded the careful consideration it deserves.

Building Costs

The cost of the car wash building varies with car wash size, type of construction, size of driveway/parking lot, development costs, city mandates, etc. We recommend that buildings be constructed of brick or covered block and that the parking lot be paved with concrete, at minimum for the entrance side apron. It is important to consider future maintenance as well as the initial cost when making informed decisions about the type of structure to build.

Equipment Costs

All car wash equipment is not the same! There are significant differences in the design, quality of components and workmanship. Many manufacturers will offer low cost systems that return frequent/difficult maintenance, low durability, and below desired levels of performance. Quality and reliability are a must in order to insure the continued profitability of the car wash operation.

Water and Sewer Tap Fees

An additional expense, which varies from site to site, is the cost of water and sewer taps. Tap fees can be substantial. It is important to know these costs before making a final decision on a potential car wash site.

Architectural and Engineering Costs

Municipalities usually require soil sample reports and a complete set of building plans before construction is approved. Additional requirements, such as site drainage surveys, zoning changes, curbs and gutters, and landscaping can also add significant costs to the project.

OTHER FACTORS TO CONSIDER

Zoning

Your selected site should be properly zoned. Legalitites in zoning ordinances should be reviewed.

Speed Limits>

A high speed traffic area may not be the place for a car wash because it may be difficult to enter and exit the wash. The ideal speed limit is 25 - 40 mph.

Traffic

Though a high traffic area may be ideal, a very heavy traffic in urban areas may not, especially near intersections.

Property Costs

You may buy or lease your property. Usually, a property purchase is a good investment. However, leasing commercial property is an alternative choice if you have limited capital resources. Commercial property prices vary from city to city and street to street. Because the property itself may appreciate rapidly, it may be ideal to purchase a more expensive lot in order to get that "perfect location". Of course, you must justify the property cost with your gross income.

LotSizing

To calculate the number of bays your car wash will have, you must consider the size of your lot and the demographics. Lot sizes must factor in setbacks and easements.