Hand car washes. How do they make money.
Discussion
I asked the owner of my local wash why it was called "USA Car Wash" when nobody who worked there was American.
He told me it stood for "Used to be Soviet republic of Armenia."
I imagine a legally run one will still make money when they're taking £5 per car.
Makes you wonder how bad must a country be when working 16 hours a day in a car wash here is better than accountancy over there.
He told me it stood for "Used to be Soviet republic of Armenia."
I imagine a legally run one will still make money when they're taking £5 per car.
Makes you wonder how bad must a country be when working 16 hours a day in a car wash here is better than accountancy over there.
I always assumed they topped up the income with tips - ok not everyone will but some of the richer customers may give them extra? Who knows.
There's a really dodgy looking one near me they also sell garden furniture and sculptures - so you've got one guy cleaning your car and a sales guy giving the driver the patter. Whether or not anyone actually buys the tat is beyond me!
Another one seems fairly professional, operate out of an industrial unit, fancy signs, fancy kit, fancy name. Cleaners wear jumpers with name embroidered on. Indoor seating area, coffee machine, TV. Nothing else for sale. I don't know how they cope as its a 'bit out the way' you wouldn't get much if any passing trade..
There's a really dodgy looking one near me they also sell garden furniture and sculptures - so you've got one guy cleaning your car and a sales guy giving the driver the patter. Whether or not anyone actually buys the tat is beyond me!
Another one seems fairly professional, operate out of an industrial unit, fancy signs, fancy kit, fancy name. Cleaners wear jumpers with name embroidered on. Indoor seating area, coffee machine, TV. Nothing else for sale. I don't know how they cope as its a 'bit out the way' you wouldn't get much if any passing trade..
The one near my parents is a pain, there is always a queue out of the gate and people cause all sorts of agro trying to join the back despite it not really being practical, there is a very busy Mosque the other side creating its own traffic issues and random parking, bedlam trying to get through that bit, and whenever you go through the road is soaking wet so you get your car wet and dirty even on a dry day.
Apart from those who don't have access to a hosepipe, i.e. live in a flat or get a pass out due to age or disability, wash your own cars you lazy swines
It isn't even a time thing, been to my mums, passed an Merc ML AMG thing with a distinctive plate, gone round, had a brew and a chat, dropped the stuff off I went to take, came back and the Merc was by then being washed, I reckon 40 minutes had elapsed.
Apart from those who don't have access to a hosepipe, i.e. live in a flat or get a pass out due to age or disability, wash your own cars you lazy swines
It isn't even a time thing, been to my mums, passed an Merc ML AMG thing with a distinctive plate, gone round, had a brew and a chat, dropped the stuff off I went to take, came back and the Merc was by then being washed, I reckon 40 minutes had elapsed.
Why wouldnt they make money? Start up etc is so cheap. Get a busy and cheap site and your sorted. Local village put one in right where I was considering one.... Typical.. Everytime I drive by it must have 5-6 cars waiting. Think about it, 20 cars an hour, £6. Thats £120. Now work 9-5, yes they are later and earlier, but at 9-5 thats £960, near enough pure profit. We'll call it 5 days a week to account for quiet times. £4800 a week. Call it £4k after costs. No workers contracts, only pay them on sunny days etc. Work yourself on rainy days, where itll be empty.
Optimistic? The cars the owners seem to drive seems to point to no.
Optimistic? The cars the owners seem to drive seems to point to no.
The OP, who specifically cited hand car washes in Manchester, should read the following which gives some insight into how some are able to pay staff, bills and overheads (perhaps that should read "pay" staff...):
http://www.newstatesman.com/politics/economy/2015/...
http://www.newstatesman.com/politics/economy/2015/...
hotchy said:
Why wouldnt they make money? Start up etc is so cheap. Get a busy and cheap site and your sorted. Local village put one in right where I was considering one.... Typical.. Everytime I drive by it must have 5-6 cars waiting. Think about it, 20 cars an hour, £6. Thats £120. Now work 9-5, yes they are later and earlier, but at 9-5 thats £960, near enough pure profit. We'll call it 5 days a week to account for quiet times. £4800 a week. Call it £4k after costs. No workers contracts, only pay them on sunny days etc. Work yourself on rainy days, where itll be empty.
Optimistic? The cars the owners seem to drive seems to point to no.
I don't think your sums add up. 20 cars and hour, that's one every 3 mins. This maybe true on a busy Saturday morning, but I can't see you getting that turnover on a Monday afternoon. The minimum wage for an 8 hour day is £57.60 or £288 for a 5 day week. Say you have 4,5,6,7,8 staff(how many guys would you need to wash a car in 3 minutes?), water rates, electricity bill, cleaning products and rent on the premises. That all starting to look a bit more than £800 per week. Optimistic? The cars the owners seem to drive seems to point to no.
There is a car wash near me, where the guys who work there are living in tents in a field behind the car wash.
Edited by xstian on Friday 20th January 15:07
The one I use is based on an industrial unit , a full size metal container for their bits and bobs beside are two old motor homes which look like aw being used full time.
£5 a clean for a good job , dropped a couple of bottles of cheap wine in just before Christmas, I now seem to be his best mate .
Not really arsed what he declares it's nothing to do with me.
I know two English brothers who have one not a million miles away , they take enough for one of them to afford a villa in Spain , proper grafters mind , they never stop.
£5 a clean for a good job , dropped a couple of bottles of cheap wine in just before Christmas, I now seem to be his best mate .
Not really arsed what he declares it's nothing to do with me.
I know two English brothers who have one not a million miles away , they take enough for one of them to afford a villa in Spain , proper grafters mind , they never stop.
k thought that one through?In the US -- a country significantly richer than the UK -- a legit carwash can typically make net profit of £25-750k:
http://smallbusiness.chron.com/pros-cons-starting-...
In the US, some estimate it can cost a firm roughly £3-5 to wash one car:
http://www.carwash.com/factoring-the-average-profi...
A *busy* UK hand-carwash will clear roughly 400-600 cars a week... Assuming £5 average selling price up north and £10 down south... A good carwash will generate roughly £100-250k of revenue per year... Assuming 5-15 staff to run the whole show, labour costs will be roughly £50-100k per year... Overheads, rent, water, chemicals, insurance, tax (if paid), etc. are going to be roughly £20-80k per year... Leaving a busy carwash with perhaps a £10-75k net profit per site per year.
Some artistic license is those numbers, of course, but you get the drift. A busy carwash can make a small to medium profit (without drugs or money laundering).
http://smallbusiness.chron.com/pros-cons-starting-...
In the US, some estimate it can cost a firm roughly £3-5 to wash one car:
http://www.carwash.com/factoring-the-average-profi...
A *busy* UK hand-carwash will clear roughly 400-600 cars a week... Assuming £5 average selling price up north and £10 down south... A good carwash will generate roughly £100-250k of revenue per year... Assuming 5-15 staff to run the whole show, labour costs will be roughly £50-100k per year... Overheads, rent, water, chemicals, insurance, tax (if paid), etc. are going to be roughly £20-80k per year... Leaving a busy carwash with perhaps a £10-75k net profit per site per year.
Some artistic license is those numbers, of course, but you get the drift. A busy carwash can make a small to medium profit (without drugs or money laundering).
Some rents on these sites are extremely high that the operators have to make a lot of money to cover themselves. How they pay wages and break even, let alone make money I don't know. It looks good when you are desperate for a better life so people sign up, especially when it looks easy on paper.
Then you have the franchises which have astronomical fees and prey on lots of desperate people across various sites!
So it's not always good money. I'm sure there are more that lose than win, illegal activity aside.
Then you have the franchises which have astronomical fees and prey on lots of desperate people across various sites!
So it's not always good money. I'm sure there are more that lose than win, illegal activity aside.
Yipper said:
In the US -- a country significantly richer than the UK -- a legit carwash can typically make net profit of £25-750k:
http://smallbusiness.chron.com/pros-cons-starting-...
In the US, some estimate it can cost a firm roughly £3-5 to wash one car:
http://www.carwash.com/factoring-the-average-profi...
A *busy* UK hand-carwash will clear roughly 400-600 cars a week... Assuming £5 average selling price up north and £10 down south... A good carwash will generate roughly £100-250k of revenue per year... Assuming 5-15 staff to run the whole show, labour costs will be roughly £50-100k per year... Overheads, rent, water, chemicals, insurance, tax (if paid), etc. are going to be roughly £20-80k per year... Leaving a busy carwash with perhaps a £10-75k net profit per site per year.
Some artistic license is those numbers, of course, but you get the drift. A busy carwash can make a small to medium profit (without drugs or money laundering).
Sorry but how does a business employ 5 full time staff at a cost of £50k a year.http://smallbusiness.chron.com/pros-cons-starting-...
In the US, some estimate it can cost a firm roughly £3-5 to wash one car:
http://www.carwash.com/factoring-the-average-profi...
A *busy* UK hand-carwash will clear roughly 400-600 cars a week... Assuming £5 average selling price up north and £10 down south... A good carwash will generate roughly £100-250k of revenue per year... Assuming 5-15 staff to run the whole show, labour costs will be roughly £50-100k per year... Overheads, rent, water, chemicals, insurance, tax (if paid), etc. are going to be roughly £20-80k per year... Leaving a busy carwash with perhaps a £10-75k net profit per site per year.
Some artistic license is those numbers, of course, but you get the drift. A busy carwash can make a small to medium profit (without drugs or money laundering).
Minimum £300 a week rent
Minimum £80 a week electric
Minimum £80 a week chemicals
Let alone any further costs and it brings your business model to a loss.
Then start taking vat payments from assumed turnover and Hmrc are getting funny with these operations
No profit - not a business.
To get any kind of through put and get cars in out...
Can't do the job without a decent wash and wax 25l from auto smart minimum £40 (some are £70 for 25l)
Need a wax rinse product otherwise drying takes too long
Need a decent tfr to clean wheels and grime minimum £15 for 25 litres and will use more than this a week
Do you realise that tyre dressing in 25l costs £100 and will last two weeks in a busy car wash.
Industrial hoovers don't last more than around 8 months with prolonged use and cost £200.
Jet washes just don't last with prolonged use
The costs of high quantity car washing are high.
Edited by nct001 on Friday 20th January 20:56
A lot of these car washes operate from derelict sites where there are often token agreements with landowners who would rather have a couple of hundred a week in cash and offloading non-domestic rates onto the operator.
With regards to money laundering remember that you can ship money to your home country where it will often be easier to clean.
Ownership is an issue too. My parents rent out a shop which is currently a kebab shop. Every year the owner changes. The new owner will pass all checks and pays for my parents legal costs. Rent is always paid on time no matter who owns it. Must be a HMRC dodge.
With regards to money laundering remember that you can ship money to your home country where it will often be easier to clean.
Ownership is an issue too. My parents rent out a shop which is currently a kebab shop. Every year the owner changes. The new owner will pass all checks and pays for my parents legal costs. Rent is always paid on time no matter who owns it. Must be a HMRC dodge.
Jasandjules said:
Where are the ones that charge £10?
It's 15 for the basic wash here and 20 for a good wash - but my word the car is gleaming when done.
5 quid for my 'normal' cars, 7 quid for the camper van.It's 15 for the basic wash here and 20 for a good wash - but my word the car is gleaming when done.
I usually get them to do inside and out once a month for a tenner.
They do an awesome job - however, I do know they do an extra special job for me, as they rent forecourt space from one of my customers.
soad said:
Enterprising immigrants getting rich at other (poor) immigrant expense, what's new there?
No-one's forcing you to use them, only popular because it's a relatively cheap service.
No one's forcing me to buy drugs, so drug dealers are acceptable?No-one's forcing you to use them, only popular because it's a relatively cheap service.
Which laws can Enterprising immigrants ignore?
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