Hand car washes. How do they make money.
Discussion
r11co said:
JulianHJ said:
A car wash local to me is owned by a guy with a taste for supercars. Over the years there have been persistent rumours that he made his money in the "import/export" business, with an emphasis on the former.
Cash only businesses that on paper turn little or no profit are ideal ways to launder money. See also tanning salons...
Hitch said:
This. Bonded labour. At best the guys washing your car will get a few quid allowance a week with the rest going to repay the 'costs' of getting them here and the charge for their accommodation and transport to work. These costs are so high that they effectively never get repaid. If you use them you're most likely to be supporting the more acceptable side of human trafficking (i.e. not children or hookers) despite the warm smile and 'hello boss' that makes you feel that they're chipper chaps just trying to earn a crust.
The other comments about it being a cash business and a good way to run revenue through the books are also true. See also taxis, tanning salons, laundrettes etc. Basically anything where you would never have a corresponding invoice of goods bought vs. goods sold. There's some opportunity in take away restaurants and small shops but not as much as the others.
Plus, they f
king ruin your car so why would you bother?!
If that was the case then surely they'd just leg it? Its not exactly like they're locked in all day. Obviously its a strange country etc but I think i'd fancy my chances on my own rather being a slave for someone elseThe other comments about it being a cash business and a good way to run revenue through the books are also true. See also taxis, tanning salons, laundrettes etc. Basically anything where you would never have a corresponding invoice of goods bought vs. goods sold. There's some opportunity in take away restaurants and small shops but not as much as the others.
Plus, they f
king ruin your car so why would you bother?! 93DW said:
If that was the case then surely they'd just leg it? Its not exactly like they're locked in all day. Obviously its a strange country etc but I think i'd fancy my chances on my own rather being a slave for someone else
To be honest, how much cash does someone working minimum wage for 40 hours a week have left over after paying rent, bills, food, and tax? If they get £30 a week pocket money, I suggest they're actually doing 'OK.' (NB this is not to suggest that the bonded labour model is ethical; rather that we've not moved as far away from it as we think).Phil Dicky said:
See also takeaways
See also non chain coffee shops and transport cafe's There is a coffe shop near me that only seems to serve pie people and people in expensive
New performance cars
Edited by loose cannon on Friday 20th January 10:38
Edited by loose cannon on Friday 20th January 10:39
At peak times, i'm sure they make plenty. However, at times like this they must go for some time without cleaning a single car.
The one i go to in a Homebase carpark has a queue of at least 15 cars. It is a proper little production line with i'd say about 15 individuals with a particular job to do. It costs £10 for a basic wash (£15 in and out), and they do the wash, apply spray wax and clean all the glass and door shuts in under 5 minutes.
Given i see the same queue from between 8am to 5pm on a weekend, they must be doing literally hundreds of cars. If you're paying the folk less than minimum wage and paying no tax, i reckon you could do be doing pretty well if you had a few locations.
The owner, very stereotypically, is of Eastern European origin and drives - you guessed it - a black G63 AMG! If it's any consolitation, he told me it's the worst car he's ever bought.
The one i go to in a Homebase carpark has a queue of at least 15 cars. It is a proper little production line with i'd say about 15 individuals with a particular job to do. It costs £10 for a basic wash (£15 in and out), and they do the wash, apply spray wax and clean all the glass and door shuts in under 5 minutes.
Given i see the same queue from between 8am to 5pm on a weekend, they must be doing literally hundreds of cars. If you're paying the folk less than minimum wage and paying no tax, i reckon you could do be doing pretty well if you had a few locations.
The owner, very stereotypically, is of Eastern European origin and drives - you guessed it - a black G63 AMG! If it's any consolitation, he told me it's the worst car he's ever bought.
I'll be honest, I've never given it much thought in terms of making money. It's always seemed fairly clear that they probably pay minimum wage or less IF employees aren't legally here.
Lets face it the chemicals are very cheap and in bulk, they can wash the outside of a car in five minutes and charge £5-6 from what I've seen of most places. They'll have the interior done for you for what £15 and that's only 10 minutes for a few guys to get done. Most of the time those places are rammed full of cars so they must be taking in a fair few cars per hour.
I used to take my old Saab to a local place, it was just a spare bit of space under a car park so pretty grimy. I only took that car there as it was a workhorse but if it was just the exterior being done, it was £6 and I'd be out in less than ten minutes. The sheer volume of cars they can wash on a busy day probably makes them viable.
I openly admit that I'm a detailing snob when it comes to things like this but I did used to cringe seeing a McLaren receiving a cheapo scrub down!
Lets face it the chemicals are very cheap and in bulk, they can wash the outside of a car in five minutes and charge £5-6 from what I've seen of most places. They'll have the interior done for you for what £15 and that's only 10 minutes for a few guys to get done. Most of the time those places are rammed full of cars so they must be taking in a fair few cars per hour.
I used to take my old Saab to a local place, it was just a spare bit of space under a car park so pretty grimy. I only took that car there as it was a workhorse but if it was just the exterior being done, it was £6 and I'd be out in less than ten minutes. The sheer volume of cars they can wash on a busy day probably makes them viable.
I openly admit that I'm a detailing snob when it comes to things like this but I did used to cringe seeing a McLaren receiving a cheapo scrub down!
Alex_225 said:
I'll be honest, I've never given it much thought in terms of making money. It's always seemed fairly clear that they probably pay minimum wage or less IF employees aren't legally here.
The ones I've seen seem to be owned by eastern Europeans and as most of eastern Europe is now in the EU I'd say they are here legally but living 10-15 to a house so most of the money they make can be sent home OK job in July, not so much fun squirting a jetwash about in February
hondansx said:
At peak times, i'm sure they make plenty. However, at times like this they must go for some time without cleaning a single car.
The guy who ran one talking about it in the Finance forum explained that it is WAY busier over winter owing to the crap thrown up off the roads.In summer your car stays cleaner longer.
There are a loads in Milton Keynes, Roni's is large and is constantly busy, the two nearest me charge £5 and £6 for exterior only including door shuts and dry + tyre shine.
The £6 even blows out mirror housings and crevices so collected water doesn't spray out down the side of the car when you drive away.
Both places use separate buckets and mitts for bodywork and wheels. The managers are pleasant and will chat whilst you're waiting, plus they always have a seriously thick wad of cash to give change from.
The £6 even blows out mirror housings and crevices so collected water doesn't spray out down the side of the car when you drive away.
Both places use separate buckets and mitts for bodywork and wheels. The managers are pleasant and will chat whilst you're waiting, plus they always have a seriously thick wad of cash to give change from.
nct001 said:
liner33 said:
£10 for 5 mins is £120 ph , the guys earn around £10 per hour cash , the operators make more money than your average independent garage
Except it's more like 15 minutes for three people to clean inside and out so more like £10 for 45 minutes work.These places don't even break even and the profit comes from laundering for prostitution, drugs, crime or whatever.
All it takes is one rainy day and staff still need some money just to live! And it will lose money not even cover wages.
(I had a car forecourt that used to be a car wash so know the numbers).
An unscrupulous industry judging by the once near me.
My old neighbour owned one of these car washes.
He came from Bulgaria with his wife in 2002 - he has a degree and his wife is a qualified accountant. As no one would employ them using their skills and qualifications, he setup a car wash with his friend.
They do pay some tax and at the time were entitled to zero benefits from the state.
In the evening he would do the pizza runs for minimum wage plus tips.
His entire raison d'etre was to create a better life for his child.
Seems fair to me
He came from Bulgaria with his wife in 2002 - he has a degree and his wife is a qualified accountant. As no one would employ them using their skills and qualifications, he setup a car wash with his friend.
They do pay some tax and at the time were entitled to zero benefits from the state.
In the evening he would do the pizza runs for minimum wage plus tips.
His entire raison d'etre was to create a better life for his child.
Seems fair to me
Used to own 2.
Very busy in winter with salt / grime etc cars are dirty every couple of days again vs summer when it takes longer to get dirty.
Sunny days you are always busy.
Rain does kill it.
Out of however many thousand there are in the UK very, very few will be vat registered regardless of turnover.
Very busy in winter with salt / grime etc cars are dirty every couple of days again vs summer when it takes longer to get dirty.
Sunny days you are always busy.
Rain does kill it.
Out of however many thousand there are in the UK very, very few will be vat registered regardless of turnover.
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