What are the specific site selection and construction metrics a developer should evaluate when building an automatic carwash to maximize ROI?
According to Grand View Research, in 2022, the US drive through car wash services market was valued at $15.2B USD. The forecasted 8-year CAGR for this market is 5.7%. Additionally, in the US, 66% of people wash their cars 13 times per year. Georgia has 1.6M registered vehicles; using the national conversion rate above, that’s an average of 13.7M car washes in the state of Georgia annually. Back of the napkin, at $4.35 average profit margin per vehicle (Source: Brandongaille), that’s approximately $60M net revenue across all automatic carwash facilities in Georgia.
The demand and ROI are certainly present in this growing market of conveyor carwash chains, so it’s important to start with a general contractor. At RTF Construction, we understand the intricacies and environmental regulations involved in the construction process of automatic car washes and can help a developer with how to start a car wash business. Below, we will provide you with some important metrics to help guide your decision-making process and optimize your venture:
1. Research the Market and select the optimal location:
Conduct thorough market research to determine the demand for a car wash business in your area. Analyze the competition, demographics, and target market to identify potential opportunities.
a. Lot size – For a 120’ tunnel, the construction team will need a minimum of 225’ on one side of the lot for vehicles with an average turn radius.
b. Traffic count – Ideal traffic count should be in the 30,000 – 50,000 cars per day with an average speed of 35 mph.
c. Visibility – No business wants to be out of site to passers-by, so 300 feet of frontage along the road with the ideal traffic count is best.
d. Ingress and egress – Avoid U-turns and other complicated patterns like service roads, which will reduce patronage.
2. Obtain Necessary Permits and Licenses:
Research and obtain the required permits and licenses to operate a car wash business in your area. These may include business licenses, environmental permits, and water usage permits. With carwash construction experience in Gwinnett County, RTF is familiar with the rules and regulations in Georgia.
3. Equipment and Supplies:
Purchase high-quality automatic car wash building kits, equipment, and supplies. This typically includes car wash tunnels, conveyor systems, water treatment systems, cleaning chemicals, recirculation tanks, and vacuum stations. Ensure that the equipment meets industry standards and consider factors such as durability, efficiency, and maintenance requirements. RTF Construction will work with the carwash chain’s preferred vendors and subcontractors to create the best outcome for the investor.
4. Marketing and Promotion:
Develop a marketing strategy to attract customers to your car wash. Utilize both traditional and digital marketing channels, such as signage, flyers, social media, local advertising, and partnerships with nearby businesses. Offer introductory discounts or loyalty programs to incentivize repeat customers.
5. Monitor and Improve Operations:
Regularly monitor and assess the performance of your car wash business. Track financial KPIs, customer feedback, and operational efficiency. Adjust as needed to improve service quality, reduce costs, and increase profitability.
For questions regarding RTF General Contractors and how our firm can help you realize your next commercial construction project, please feel free to reach out today.
