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Car Wash Industry Statistics: Why Is the Detailing Business a Lucrative Opportunity

Car Wash Industry Statistics: Why Is the Detailing Business a Lucrative Opportunity

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No matter how poorly the economy has been for the past 10 years, the majority of us rely on our vehicles to run our lives – personal, professional and business-wise. In 2009, the US Bureau of Transit Statistics put the numbers at 246 million. From a car wash angle, that is a lot of cars that need to be washed on a monthly basis, and even more if on a bi-weekly basis.

The Car Wash Industry Today

According to November 2012 car wash industry statistics released by market research group IBISWorld, the car wash and auto detailing industry is valued at about $6.1 billion; is represented by close to 13,000 businesses, and, its 50 largest players carry just 15 per cent of the market. This translates into nuggets of opportunities for prospective small business owners.

The car wash industry did not sail through our recent economic crises unscathed but it is definitely coming back stronger for many reasons. For the next 5 years, consumers’ disposable income is slated to rise and as a result, their discretionary spending on items like car washing and detailing are very likely to increase.

As far as new car purchases are concerned, while there is a drop in the sales of large vehicles, their small to medium sized cousins are posting upbeat positive numbers.

For car wash and auto detailing business with an environmental friendly edge, the future looks even brighter. With the public’s greater awareness of: the importance of conserving water, the need for proper wastewater management and the unseen yet harmful effects of chemical detergents, they will opt less for residential car washing as it uses up to two thirds or even more water than the professional service providers.

What Makes It Lucrative

The outlook looks conducive for this type of business but more important is what makes it lucrative at the bottom line.

Let’s suppose you charge $180 for each detailing job that comes your way and you do a conservative 5 cars each week. In total, that will be $900 or $46,800. Now factor in some value added services such as minor repairs; swirl, mold or stain removal; tire dressing, carpet shampoo etc for say, 1 of those 5 vehicles, for an all-in price of $400. The numbers will now ring in at $58,240 in gross revenue. Not bad at all for working on just 5 vehicles each week.

The stars are currently well-aligned for this industry’s progressive climb and the more established your business and quality of services are, the larger the volume of business you will attract and the easier it becomes to grow and capitalize on this hard-to-miss lucrative opportunity.

For the latest updates, follow me on twitter @detailxperts

Car Wash Environmental Issues: Make Your Business Green

Car Wash Environmental Issues: Make Your Business Green

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Opportunities are everywhere if one looks in the right places. Businesses that thrive are often those that set out to provide optimal solutions to issues. Currently, environmental issues are often widely reported and discussed in the evening news. It touches on a whole spectrum of industries and the car wash business is no exception. The natural resource it relies on – water – has many associated challenges, ranging from not enough of it, to its quality, and how it impacts the ecosystem it courses.

As it stands, the professional car washes are doing their part for the environment by using programmable systems to control the volume of water used in its processes. They also have waste-water treatment and recycling practices to remove pollutants and to lessen water usage. Now if you and your competition are doing similar practices, the chances of your customers going to them for the same services will be pretty high, correct? Should that be the case, how do you ensure they refer you to their family and friends over your competition?

What you need are Wow! factors that makes your business exceptional and stand taller than the rest of the pack. By doing so, you are likely to be assured of both returns and referral business, and new growth to follow.

Water-less Techniques

Where car wash environmental issues are concerned, your operations can push the water conservation envelope by adopting newer cleaning methods that use waterless or steam cleaning techniques. These techniques reduce the industry average of 42 gallons to just over a pint per car without compromising on the vehicle’s cleanliness. Think about the water costs you will save too!

Mobile and Nimble

Technological advances have oiled the wheels of engineering for centuries and facilitated the invention of equipment that morph to work more efficiently and produce ever better results. We see it in our electrical products and other gadgets. The same is true with the environmental car wash business.
Nowadays, mobile detailing units are green, light and nimble, thus making them easy and fuel-efficient to transport. But yet, they are packed with cleaning and sanitizing capabilities that gets the job done just as clean, if not cleaner than the more standard equipment.

Little to No Waste

Talking about fast, your customers have busy schedules and will appreciate the service experience you accord them by catering to their time slots and location convenience. With the latest green car wash equipment and processes, you can be almost anywhere, anytime for them. By using biodegradable detergents, you have less to deal with in terms of waste-water.
The green business is not a passing trend; it is a very real solution to the needs of info savvy customers who are keen to engage with businesses that not only understand their concerns but also, act upon it through their services. You want to leave your customers with a total good feeling experience each time after they have used your services.

A business that is unique, smart, responsible, and moves with the times, is guaranteed to leave a lasting impression. But, if you are at the point where you cannot figure out how to bring out the green in your existing investment, we encourage you to check out how we do it here. And if you like what you see, do contact us to find out how to join our franchise.

Detailing Business: Where to Find Car Enthusiasts Paying Top Detailing Price

Detailing Business: Where to Find Car Enthusiasts Paying Top Detailing Price?

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You will be surprised how much some people are willing to pay to get their classic cars detailed. They not only pay crazy money for detailing, they do it way more often and for way more services than the regular customer. Yet, if you have the privilege of checking seeing some of these classy beauties up close, you will understand why their owners would only entrust these limited edition “works of art” to detailing business they know will do the job and pay top detailing prices too.

Although vintage cars are a dwindling breed, their enthusiasts are strong in numbers. In the North-West region alone, it is estimated that there close to a quarter of a million car collectors, belonging to over 1,400 car clubs. The region hosts as many as 165 car shows a month during peak seasons.

So, an obvious starting point will be to search for vintage car clubs in the area that you are most interested in. These watering holes are a great way for their owners to host activities, exhibitions and events, and for members to mingle and exchange notes a wide range of topics from how to maintain their cars in mint condition to major restoration work and everything else in between.

The next stop to find these auto collectors would be car shows and exhibitions. No matter which state you are in, these kinds of shows are hosted in all states throughout the year. Their main purpose may be to: raise money for charities, for auctions and/or swaps, or simply to showcase these classics. It is common to have competitions for the best in show, most elegant, for best paint and finish, best design etc at these shows. Owners who are participating take great pride in showing off their vintage wares and are thus willing to pay top dollars to get them prepped for the job.

Classic car clubs and car shows aside, there are also businesses which specialize in renting out these vintages for special occasions or purposes such as weddings, motion picture and TV production companies, magazines and music videos. Such companies will probably have a fleet of cars which they will need to maintain in immaculate condition, ever ready for renting out to their clients.

Another place, these car enthusiasts like to hang out are in auto enthusiast websites, wherein like-minded individuals gather virtually to ask questions, exchange knowledge, get to know other hobbyists and the latest happenings and trends in that circle via forums. Some of these forums are more active than others. So, take the time to filter down to the ones that are buzzing with discussion threads, join them wherever you can and make helpful contributions and let your services be known at each opportune time.

If you own a detailing business, apart from your main income streams, there are other ways to grow your income sources. So, why not reach out to select auto niches such as vintage car owners, who understand about paying top dollars for the upkeep of their prized possessions.

For the latest updates, follow me on twitter @detailxperts

Detailing Business Tips: How to Use Add-On Services to Increase Profits

Detailing Business Tips: How to Use Add-On Services to Increase Profits

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Whether you are in the detailing business or any other business, when it comes to the bottom line, there are in fact many variables that you can optimize to increase your profits. Profits will increase if you can find ways to lower your costs and/or to increase your income streams.

Costs are broadly categorized as fixed overheads (e.g. building, equipment and administration costs; insurance, etc), and, variable costs – which are related to revenue generating activities like gas, cleaning supplies, and labor. Then there’s income, which you can increase either by selling more products, services or added value services; and/or selling at higher margins.

Down to Basics

There is no difference in the detailing business or any other business for that matter. Every businessperson knows the two main ways to increase profits is by lowering costs and/or increasing income. Costs are broadly categorized as fixed overheads (e.g. building, equipment and administration costs; insurance, etc), and, variable costs – which are related to revenue generating activities like gas, cleaning supplies, and labor. Then there’s income, which you can increase either by selling more products, services or added value services; and/or selling at higher margins.

Offer Specialty Services

As a detailing business, you are in the service industry and the best part about that is that your customer’s needs and wants will vary according to personal preferences, circumstances, seasonal changes and more.

While your regular detailing services will make profits for your operations, there are a host of other related add-on services which you can simultaneously offer to your customers. Take for instance, services such as air sanitation, odor removal, mold removal, or pet hair removal for your allergy-prone clients; golf club and shoe cleaning for your golfing enthusiast customers; air sanitation to kill germs over the winter season for car owners with kids.

One-stop shop detailing business

The last thing you want is for your clients to see your services as mere commodities. Because as commodities, they can pretty much get them anywhere. Instead, you want to make a connection with them and for them to go to your operations, is a complete one-stop shop detailing experience.

This you can easily do by taking the time to consult and engage with your customers, use every opportunity to educate them on your specialty services and capabilities while learning more about the subtleties of their requirements. All of the above helps to create strong bonds towards mutually trusting and long term business relationships. Because they know the quality of service they will be getting for their unique preferences, they are less likely to take their business elsewhere.

Like going to your favorite restaurant, you keep going back because you have received exceptional service and great food. As such, you will not think twice about adding the extras like wine, appetizers and desserts along with your entrees.

No need to reinvent the wheel, just optimize with added value

You have already invested in setting up your business, and establishing your brand in the market, there is every good reason to go the extra mile for your customers by introducing add-on services. Not only will clients appreciate it, they are likely to repeat their business with you as well as introduce referrals. All in all, these added value services will create more lucrative income streams for your business.

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How to Choose a Location for Your Car Wash Business

How to Choose a Location for Your Car Wash Business

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If you are seriously considering owning and running a car wash business, you have picked well. The car wash industry took off back in 1940s and to date, the combined revenue of car washing and detailing services brings in close to $24 billion in annual revenue! The industry is fragmented with 50 largest companies holding just 20 per cent of the market and small business owners having a strong presence.

A recent industry research study shows that the outlook for this sector looks promising with consumer income and car sales slated to rise for the next 5 years. People are tending to buy more expensive cars, keeping them longer and as such, will want to maintain them in good condition.

Nowadays, people have less time to wash their own cars and many would rather pay someone else, with the right equipment and supplies, to get the job done professionally. So, convenience for customers is vital. If you are going to open a car wash business, you need to know how to choose a location that meshes well with your potential customers’ lifestyles to ensure a steady flow of business and decent returns.

The following four important tips to weigh in:

Know Your Customers

In terms of demographics, you have to know who your target audience is and where they are most likely to live, shop or play in terms of their lifestyles. You want to be as close as you can to them because if they have to go out of their way from their normal routes to use your service, chances are they will look for another car wash location that is closer to them.

Constant Demand Volume

Even if you are where these people congregate e.g. in shopping, commercial or recreational areas, eateries, residential areas and apartment blocks, are they in sufficient numbers? As with any successful business, it is not only the right customer but the production volumes must be constant and steady.

If you have not already done so, get an estimate of the business traffic needed to make your business profitable, ensure the density of your target market in your chosen locale meets and better still, beats your estimates. The more popular the vicinity, the denser the numbers, the better the chances your marketing efforts in building strong and regular demands for your services.

Market Analysis Of The Competition

After you have narrowed down the ideal spots that have a good concentration of potential customers, it is vital to do a market analysis of your competitors in the area. You will have a tough time vying for clients where there are already many long established car wash businesses. So, do look into their car wash locations, the services they offer, their rates and packages, how long they have been in business, their business traffic, how accessible and attractive is their establishment, what niches they are missing that you offer, etc.

At What Price

In meeting the above criteria on how to choose a location, a site that is easily accessible and visible to your prospective customers will come at premium costs. Before you sign on the dotted line, make sure that you are aware of local state laws (e.g. drainage, expansion, recycling, water management, etc.); licenses that are needed to open such a business and that the above expenses are well within your budget.

As with any business, the groundwork has to be done and the devil is always in the details. The homework has to be done right, analyzed accurately and then executed accordingly, in order that your car wash business starts off in the best possible position or location in this case, to win customers and beat the competition.

For further tips on how to succeed in the car wash industry, check out the DetailXPerts blog for more helpful insights.

Car Wash Business Plan: Why You Need a Business Plan

Car Wash Business Plan: Why You Need a Business Plan

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When going into a long term commitment, business or personal relationship, some people jump in with their eyes closed shut and hope for the best. It pays, however, to take a step back to get to know, observe, and analyze the situation as much as possible if it is right to wholeheartedly commit. Particularly in business, it is even more important to do a business plan to visualize how best to make an ongoing success of it, while factoring in issues that may crop up or even preempt them beforehand.

Let’s take a closer look as to why you need a business plan:

9 out of 10 Businesses Fail

So the car lover in you has always toyed with the idea of running your own car wash business and now, you have accumulated enough funds to get the ball rolling. When it comes to a long term investment in the tens or hundreds of thousands of dollars, you need to take the time and effort to research and critically think through the concept before you embark on this major undertaking.

While it may be a profitable venture, it has its fair share of challenges as one’s focus has to simultaneously be on many balls – financing, sales, marketing, hiring competent staff, processes, equipment, operations, growth, and not least of all, compliance with regulations. A business plan makes you focus on the big picture.

Customers are the Key to Grow Your Business

Without customers, there is no business to talk about. That’s why the car wash business plan includes sections about the industry, the competitors, the market segments, the growth prospects, goals and strategies. This makes you study your market and analyze where and how you can source, maintain and grow your customer prospects.

Milestone Gauge

Another good reason why you need a business plan is it forces you to step through each phase of your business from an idea on paper to start up, and then growth and expansion. For each stage, you will make related assumptions and projections to give perspectives on what to expect and be prepared for. Like milestones, they help you gauge if your operations are on or off track with its strategies, progress and desired outcomes.

Re-channel Resources Within

When you are able to accurately pinpoint when things are going right or wrong, you can more quickly re-channel available resources from where it is in excess to where it is needed most. When it comes to containing a situation in business, speed is of the essence as well as minimizing the waste of resources involved.

Access to External Resources

The importance of a business plan cannot be downplayed. At some point of your operations, you may well need to use it as a means to raise money or other resources from other organizations. They will want to understand your business objectives, check that your financial projections are sound and business prospects are favorable before they extend credit lines or give you a loan.

If you want to own a thriving business, time is of the essence and you have to have some sort of business plan that demonstrates how best to max out your resources for the strategies you have in mind. The plan is like the compass for your business; it outlines the direction you have in mind and helps you navigate your business towards its projected targets while staying alert to incidental issues that may crop up.

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What Types of Car Wash Businesses are Available Through Franchise

Car wash is a promising business nowadays as that provides a huge business opportunity at low investment.

The fact that more than 135 million vehicles ply on the roads of US makes it a multibillion dollar business. Other major reasons for starting a car wash business are low startup time and minimal man power requirement that goes well with difficult economy. In slump, a business that runs strictly for payments on cash basis is worth following. That saves our precious time on raising invoices and from hardships in collecting receivables.

  • Mobile car wash business is a novel concept that surfaced when marketing concepts flung into action for the growth of any business. Any product or services that increase the convenience of consumers sell like hot cakes. Consumers prefer mobile car wash because the service provider goes to their doorsteps. Apart convenience to consumers, it saves them a great deal of time. For these reasons, mobile car wash business is in limelight.
  • Self service car wash usually needs an open bay for the car to sit in during the cleaning. The system is made of pressure sprayer, a foaming brush and a pump. Self service car wash system is coin-operated and provides various options of cleaning such as soap, wax or rinse. The system works for a fixed duration. User keeps on feeding more coins until washing is over. As per the industry research, men tend to go for self-serve more than women.
  • Steam car wash is an eco friendly and green ways of car washing. Traditional car wash consumes huge amount of water as well as harsh detergents that spoils environment. Steam wash offers many benefits over traditional wash. The car is cleaned with safe steam temperature of around 177 degrees F safeguarding the gloss and texture of the surface. It preserves finish of exteriors and interiors of the car as fresh as original.

DetailXPerts is the world’s first eco friendly steam cleaning franchise. The company employs steam and specially formulated chemicals to provide ultimate in car washing. Steam wash sterilizes and sanitizes the vehicle and gives extra safety, particularly to truckers who romp home with a lot of dust and grime.DetailXPerts has developed a unique business model for car wash franchise that promotes mobile detailing units and free standing auto detailing shops. The specialty of their business model is low entry and operating cost. Mobile detailing eliminates a need to lease a building. Cleaning process uses only 2 gallons of water to wash 15 cars. They provide “auto spa” service from free standing and mobile units. Competitive prices, low cost of supplies are hallmarks of their business model.

Thus, car wash business franchises are available right from traditional washing ways using water to a sophisticated and mobile steam based car detailing franchises. Choice is entirely yours but remember that trend is toward environmentally friendly operations. Customers also prefer to patronize those who use such methods and practices. Mobile car wash business is going to spread because consumer demands convenience and quick turnaround. Self service car wash is for those who are cost conscious and want to use their spare time.

How to Choose a Home Based Franchise

Now-a-days many home based franchises are available in variety of businesses. Some are good to chase but many of them are not suitable for varied reasons. How to choose a home based franchise is bit of an art; however, much of it is a science based on a systematic approach. At hindsight, you need to know about your liking for a business that you plan to venture into. Never enter a business that does not match with your traits. How is it when a person without a penchant for tastes and flavors enter into a food franchise? Or for that matter a person ventures into a financial services business but gets bored with math tricks. Here are some proven tips and ideas on how to choose a home based franchise.

The basic purpose of choosing a home based franchise is surely comfort and convenience – a convenience that saves you from every day hassles of commuting large distances to your workplace or office.

Not only you tend to save gas but keep your environment safe and clean.Always remember that home convenience is never a substitute for work ethics and discipline required at workplace. On the contrary, one finds work program more at place and methodical.

Many people have notion that home based franchise means business of fast food, fitness or some beauty salon. But that is far from true. You will get numerous home based franchises to choose from.

Home based franchise works best when you don’t have to put any extra effort on marketing, which means franchise is a well known brand and has already proved itself in the market place.

And consumers look at the company with awe and eager to buy its product or services; for they know that they get a good value in buying the company’s products or services.

Franchisor with the proven business model and training methods means additional cushioning for your successful business start.Some franchisors provide even business training to their franchisees. This makes you fit to handle daily business nuances, particularly, when you do not know everyday business methods. See that this does not come to you at any extra cost!

Meeting local regulatory requirements and saving our environment is a need of the hour. Consumers value this and patronize those who put efforts in improving them.

You prefer a franchise that constantly upgrades to remain ahead of the competition.

That is sign of a true leader and who does not want to stay with the leader? Selecting a thriving business franchise, thus, lessens your efforts to gain success later on. Your crucial decision at this juncture can get you on the threshold of business success in a short duration.

A search that how to choose a home based franchise takes you at the doorstep of and DetailXPerts. Here is a franchisor that is reliable, proven and caring. DetailXPerts can turn your business fortune and put you into high trajectories of growth, which you always cherish for. DetailXPerts, a steam based car wash business, charges a fixed monthly fee and does not charge any royalty based on revenues. Now, what are you waiting for? Join DetailXPerts and flourish with them.

Mobile Detailing: How To Expand Your Car Wash

If you are the owner of a successful car wash company, a natural step you will want to take is the expansion of your company. One of the best ways to mark the success of your car wash is by growing the company. By following these three general guidelines, you can effectively implement the changes you would like within your company and create positive growth opportunities for you future;

1.Make a Plan

Even though you should already have a business plan for your original start-up car wash company, this document is supposed to evolve with you. As your company grows and blossoms, so too should your business plan. What are the expansions you are looking to make? Would you like to open a new location? Would you like to offer more services? Whatever the case may be, coming up with an actionable plan with a hypothesized timeline will keep you focused and on track.

2.Implementation

Once your business plan is complete, it is time to take the steps towards implementation. For most business owners, the next step here will be to procure financial advice and assistance. Generally speaking, when you are attempting to grow your company, you will usually want a large sum of money to invest into the expansion. Depending on what your expansion includes, some of the activities you may expect to undertake are training new staff, hiring contractors, and overseeing the entire expansion.

3.Promotion

So, you have put all this thought, time and energy into your new car wash expansion. What now? It is time to get the word out that your company has grown. If you are not an active member of your community yet, start there. Offer promotions and discounts in honor of your new expansion. Advertise these new and exciting changes on your website and social media pages. Use the old fashioned marketing techniques by posting flyers, posters and other mail based promotions. It is very important to ensure that your existing and potential customers are aware of your changes. Expansion can sometimes leave a temporary hole in your pocket, the goal is to keep your customers engaged and informed so that we can fill it back up.

When it comes to expanding your car wash company, the opportunities are endless. Whether you are moving to a new location, opening another location in a new area, or offering new products and services, by making sure that you have a reasonable plan, focused implementation and quality promotion, your expansion is certain to be a success.

DetailXPerts is expanding! We now offer a wonderful fanchise program for would-be car wash owners. Check out our website for more information and become part of the eco-friendly DetailXPerts team.

Car Wash For Sale: What To Consider When Buying A Business

Investing into an existing car wash company is a great way to step into the role of a business owner. Before you jump in, feet first, there are many questions you need to ask about the company and about yourself;

1. How Does the Community Feel About This Company?

Use the internet to your advantage here. Check out the car wash company’s social media pages, google their name and look at customer opinions. Has this company been an active part of the community? Are they in good standing with the locals? Remember that positive word-of-mouth is one of the key selling qualities for any business.

2. Why is the Owner Selling?

Probe the owner to determine the reason for the sale of the company. Are they retiring? Is this a personal matter? Be sure to check the business records, building, and neighborhood.  You want to purchase a company that has a good location, foot traffic, and has a clean business history.

3. How are the Company’s Finances?

Sift through the previous years’ financial records. This is self-explanatory. Your goal when purchasing a company is to be able to sustain yourself. Make sure you are not inheriting someone else’s debt-load. Find out if the company owes anything on leases, what their current operating costs are, and anything else you can think of.

4. What is the Timing Like?

Historically speaking, car wash companies are pretty seasonal.  Are you attempting to purchase this car wash in the wrong season?  Ensure that the car wash company has a strategy to fight seasonal lows. DetailXPerts offers mobile cleaning services that are great all year round.

5. Where are You in Your Life?

This is one of the most important questions you will ask yourself on the road to business ownership. Where do you stand? Do you have the support of your loved ones? You will find that on the road to business ownership, there are bumps and bruises. Friends and loved ones make this road a gentler ride.

There are so many questions one needs to consider when purchasing an existing company. A great way to own your own company and get a helping hand along the way is to consider operating a franchise. DetailXPerts is proud to offer would-be car wash business owners a franchise opportunity of a lifetime Join our winning team of ecologically responsible car wash facilities! Contact Us for more information.