Car Wash Business Startup

INVESTMENT REQUIREMENTS (All price are in Php based on 2007 market price)

A. Equipment:

• 1 Pressure washer compact electric 1600 watts, 5.5 liters/minute – 6,300.00
• 1 Vacuum cleaner with blower, 750 watts 6 meter – 3,144.75
• 1 Power sprayer 1/2 horsepower, 26 inch – 4,567,50
• 1 Pressure tank 340 liters – 6,688.45
• 1 2-step ladder – 420.00
• 3 Drums (for storing water) @367.50/pc – 1,102.50
• 2 Hose @315.00/pc – 630.00
• 3 Pails/buckets @82.45/pc – 247.35

Total – P 23,100.55

B. Direct Cost (Materials and Supplies per Month):

• 3 pcs Chamois @100.00/pc – 300.00
• 24 pcs All-purpose rags @5.25/4 pcs – 63.00
• 4 pcs Car sponge (big) @40.00/pc – 160.00

Sub-Total – P 523.00

C. Supplies:

• 60 liters Car shampoo – 8,250.00
• 15 liters Car wax liquid wax hi-gloss finish – 7,125.00
• 15 liters Tire black – 6,750.00
• 450 ml Car polisher/shine (for detailing) scratch remover ultra hi-gloss finish – 1,350.00

Sub-Total – P 14,642.25

Total – P 15,165.25

D. Indirect Cost:

• Labor cost (330.00/day x 30 days) – 9,990.00
• Electricity – 2,100.00
• Water – 840.00
• Contingency (10% of direct costs) – 1,516.50

Total – P 14,356.50

SERVICE PROCEDURE

Wash Process

Upon drive-in, attendant wets the car and loosens the dirt before the application of detergents. Deep-cleaning foam is created when car shampoo, water, and air is mixed and goes through the power sprayer. The car body is scrubbed using soft cloths or a sponge, making sure there is no particles caught up in them that could scratch the car.

Tire black is applied to remove brake dust and brighten the black rubber of tire. For pre-rinsing, pressure washer is used. It is a system of rotating water jets that spray concentrated streams of water on the car. The strength of the stream and the circular motion combine to provide a powerful scrubbing action. The car goes through a final rinse by using hose and water to remove whatever residue is left.

Dry Process

Wiping the whole body using the chamois to absorb water or moisture. After wiping, apply car wax to polish and protect from dust.

As an added service, attendant may clean the interior, removing trash and vacuuming carpets and seats.

PRICING AND COSTING

Direct cost for 1 vehicle (total direct cost / 20 cars / 30 days) – 25.27
Add: Indirect cost for 1 vehicle (total indirect cost / 20 cars / 30 days) – 23.92
Add: 25% mark-up – 49.19

Service rate – P 61.48
Market rate – P 70 to 80.00

The higher the number of vehicles/day, the lower the cost, thus increasing the mark-up to 50%.

ESTIMATED SALES FOR ONE MONTH OPERATION

• 17 cars @70.00 x 30 days – 35,700.00
• 3 vans @80.00 x 30 days – 7,200.00
• 10 cars @40 x 30 days (for tire black and vacuuming) – 12,000.00
• 8 cars @500 (for detailing) – 4,000

Sub-total – 58,900.00
Less:

• Direct cost – 15,165.25
• Indirect cost – 14,356.50

Sub-total – 29,521.75

Net Income Monthly – P 29,378.25
(or net income daily) – P 979.30

• Registration Requirements
• SME Loans and Financing Facility
• Training and Seminars Institutions

For more information, contact:

Bureau of Small and Medium Enterprise Development (BSMED)
3/F Oppen Bldg.
349 Sen. Gil Puyat Ave., Makati City
Tel: 890-4968; 897-7596; 897-1693
Fax: 896-7916
Email: bsmed@dti.gov.ph
Website: www.dti.gov.ph