Invest in Automatic Car Washing
The car wash industry has gone through a massive period of growth, from 2013 to 2018, the industry achieved a 3.6% compound annual growth rate (CAGR) in revenue, according to an industry report by Grand View Research. The industry’s growth is expected to continue, with a predicted CAGR of 3.2% through 2025.
Why Automatic Car Wash?
India is the sixth-largest car manufacturing country in the world. Vehicles are available in a large number of makes and models. Vehicle servicing is a burgeoning business. Greater demand for an organized car wash, the car service business is rated on customer satisfaction. The appearance & cleanliness of vehicles plays a pivotal role in achieving this satisfaction. Time and Manpower are no longer prolific, it’s not an easy task to wash a car thoroughly. Washing a car manually consumes a lot of time and manpower. Urban car owners prefer a faster washing procedure.
Smart wash is more than just a product. It is a superior car wash solution and a potential business opportunity. The perspective towards car wash is changing, owners are willing to spend for an organized and professional car wash. With a consistent wash load, the return on investment is faster when there is an automatic car washer at your shop.
Of course, growth is driven by consumer demand. Car washes provide a service that will always be needed as long as there are cars on the road. While drivers always have the option of manually washing their cars, they are increasingly turning to the convenience and speed of automatic car washes.
According to the International Carwash Association, the number of drivers who wash their cars at home has dropped significantly over the past decade. In 2019, 77% of drivers reported that they frequently washed their vehicle at a professional car wash up from 48% in 1994. It is estimated that the total annual car wash sales revenue exceeds $24 billion.
The ridesharing and rental (Uber, OLA, Zoom car and etc) trend has also created a whole new customer base for car washes. These drivers wash their cars multiple times a week to maintain customer satisfaction. They can be some of your best customers and brand advocates.
Optimization and Scalability
Car wash technology is constantly evolving, offering new efficiencies and ways to boost throughput. And then there is growth through expansion. Once a car wash owner sees the profitability of their first location, they are eager to add more sites. Many end up with several sites, building a strong regional car wash brand.
Typically, car wash investors spend about 2-3 million in capital. There are many ways to finance investment Bank Loans and we at ATS ELGI offer new PAYU scheme which really benefits the customers.
If you’re looking for a business you can easily sell for a profit or as a retirement strategy, a car wash is a good option. Investors love the predictable, recurring revenue that unlimited wash programs provide. A decade ago, weather controlled the car wash business. These plans allowed car wash operators to seize more control and create a stable revenue stream. For that reason, a healthy unlimited wash program can increase the value of our business by 10 times or more.
Don’t underestimate the personal fulfillment you can get from running a car wash. Many car washers thrive on the challenge of dialing in their equipment and chemicals to deliver the best wash. And there are always adjustments you can make to technology, pricing, marketing, etc., to help you squeeze more profits from your business. There’s just something about it that gets in a car wash owner’s blood. Once you start, you may not want to stop!
Location – You’re going to make a lot of decisions for your car wash, but the location is the one you can’t change, so it’s important to get it right. You want a site that has a healthy traffic count and doesn’t have too much nearby competition. A car wash consultant can discuss other factors and help you do a thorough site analysis.
The Learning Curve – There’s a lot more to car washing than meets the eye. Depending on the car wash model you choose, you may find yourself being a salesperson, marketing expert, technician, chemist and more. Try spending time with car wash operators and consider working at a wash for a period of time to make sure it’s right for you.
Take the Plunge – With Caution
Car washing can be a lucrative business, but it’s not for every investor. Do your due diligence. Line up a consultant. Make sure you do a pro forma analysis.