![]() If you followed along with this article, you may have had to make some educated guesses for certain figures or had to rely on industry averages for others. Now that we have all of the raw materials for cash flow figured out, you can calculate your projected profitability for any given location. This might be another figure that you should phone a friend for. It is important to determine your total revenue for a sufficient period of time (greater than a year of data if you have it), subtract your total expenses for that period and divide the resulting figure by the number of cars that you serviced in that time. Your car wash could easily be above or below this amount. Brandongaille reported that the average profit per car for in-bay automatics was $4.35 (or 29% of an average ticket price of $15). ![]() The profit margin that your car wash will make per vehicle is last and most crucial number when you are calculating the cash flow and profitability of your car wash. If you don’t know these numbers, an industry average in 2017 was $15 per ticket. You can figure this by taking the total revenue for your car wash and dividing it by the total number of cars serviced. Your average ticket price is a number based on the average amount that your customers are spending each time they use your car wash. If you are starting a new car wash, you can either ask other car wash owners in the area or use a moderate 0.75% figure. If you have the previous years data on the number of cars your car wash serviced, you can divide that by the estimated annual traffic volume on your street to determine a capture rate for calculating profitability for future years and future locations. If your car wash is difficult to notice because of trees, other businesses or a lack of signage, this will decrease your capture rate.Įstimating capture rate can be difficult if you don’t have the data to support what would be an accurate number. A road with a higher speed limit or a median may have a more difficult time capturing cars than one with a slower speed limit. The capture rate for your car wash can depend on a number of factors. ![]() This figure gives you an idea of how many cars out of the thousands that pass your car wash every single day actually stop in to get their cars clean. ![]() We’ll use an average of 320 days of the year in operation for our calculations. If you are unsure about these variables and how many days you are actually open a year, you should use a worst case, median, and best case scenario figures. Take into account closing for holidays, inclement weather, routine maintenance or occasional equipment failure. Next, you need to write down how many days out of the year your car wash is open. If you don’t know this figure quite yet, you can use an average annual traffic count of 30,000 as a baseline. You can usually find this data by looking online for traffic volume from the Department of Transportation (you can find Virginia’s traffic data here). Banks typically want to know this data to determine the risk of loaning your car wash the necessary funds to begin operating. Some car wash owners have had to research this figure before they ever broke ground. ![]() Annual Traffic Countįirstly, you need to know how many cars drive past your car wash site per day. We’ll also suggest average car wash profit margin and revenue figures that you can use to stand in for unknowns. For this article we’ll discuss how to get these numbers. It can also help with deciding what location your car wash empire should expand into next.īuilding Blocks for Calculating Cash Flowīefore you can get to the calculations, there are some building block numbers that you will need to know. Routinely calculating cash flow may also uncover insights into why a particular car wash might not be as profitable. However, if you are buying an already established car wash, it may still be valuable for you to calculate these figures to wrap your mind around the true value of your investment. Typically, calculating the cash flow to determine profitability is part of the process of securing a business loan to start a new car wash. Why Calculate a Car Wash’s Profit Margin?Ĭalculating cash flow is important for both the established car wash and for founding a new car wash. ![]()
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