Wash and Earn: How to Start a Car Wash Business in the Philippines

Jay Pagkatotohan

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Are you passionate about cars? Do you love making your auto look sparkly clean? Do you want to make extra money? If you answer “Yes!” to all, a car wash business is something you should consider.

However, starting a car wash business in the Philippines isn’t a walk in the park. It requires careful planning and execution. If you do it right, you can earn good money.

Don’t know where to start? We’ve got you! Here’s a comprehensive guide to starting a car wash business.

Top Reasons to Start a Car Wash Business in the Philippines

Why is a car wash good business? Starting a car wash in the Philippines in 2023 comes with the following advantages:

👍 You are Your Own Boss

Just like other entrepreneurial endeavors, a car or motor wash business offers flexibility and independence. You get to call the shots on everything, from the opening hours to the number of cars the shop will clean per day. And since you’re the boss, you’re more than free to implement out-of-the-box ideas that will make your business stand out.

But the greatest benefit of being a business owner is a healthy life-work balance. If your shop achieves the quota for the day, you can leave early and attend to other important things in your life.

👍 There’s Always a Need for a Car Wash

car wash business in the philippines - always a need for a car wash

In 2022, more than 1.27 million private cars were registered with the authorities. [1] Add to that the number of public vehicles on the road.

A lot of these cars will regularly need cleaning, which means business for car wash shops. In other words, a car wash will always have clients.

👍 You Can Earn Good Money

Is a car wash business profitable in the Philippines? As mentioned earlier, a car wash will always have clients.

An average car wash price list may peg the cleaning service between ₱200 and ₱500 per car. On the other hand, auto detailing prices in the Philippines may cost between ₱2,000 and ₱15,000 per car.

Depending on your car wash size, your business may earn a net income of around ₱35,000 per month.

👍 You Can Offer Other Services

If you’re creative, you can offer non-car wash services, such as a snack bar or a mini grocery, to earn extra bucks. You’ll learn more about this later in this guide.

How to Start a Car Wash Business in the Philippines

Starting a car wash business in the Philippines requires you to take calculated steps. This will help you minimize risks while increasing your odds of success.

Here are the things to keep in mind:

1. Do Your Research

One of the first steps you need to take is to scope out the industry landscape. Research the process, the technologies involved, and customer insights.

Start by having your car cleaned by different car wash shops. Subtly ask the employees about their operations. If you’re lucky enough to meet the owner, ask them about how they started their business.

As you go about your research, you’ll realize that car wash shops follow different business models. Generally, you can categorize them into the following:

car wash business in the philippines - do your research

Consider looking into the industry of car wash franchises in the Philippines as well. While a franchise may be quite expensive, you can easily mount your shop with a tried-and-tested business model and professional assistance. Popular car wash franchise brands include Speedy1 Carwash, Zorro Contactless Carwash, and Nice Day! Carwash.

2. Scout for a Great Location

A good location greatly contributes to the profitability of a car wash business. When scouting for a location, take note of the following factors:

3. Know the Start-Up Costs

How much does it cost to open a car wash? It will primarily depend on the type of shop you want and the range of services you plan to offer.

For starters, your car wash business capital should cover the following:

Note that these prices are just estimates. They can go up or down, depending on other factors.

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4. Create Your Car Wash Business Plan

car wash business in the philippines - business plan

A business plan is a document that shows your car wash shop’s feasibility and profit potential. Think of it as the blueprint of your venture. You’ll need it to convince your business partners and lenders that the car wash can actually come to life.

Your car wash business plan in the Philippines should include the following details, which are included in the template developed by the Department of Trade and Industry (DTI): [2]

5. Choose a Business Name

Coming up with a business name is something you shouldn’t overlook. Spend some time crafting a brand that people will remember.

Here are some tips to help you formulate car wash name ideas:

6. Register Your Car Wash Business

You can’t run a business without the right permits. Make sure your car wash business in the Philippines is registered with the proper authorities.

Register your business with the DTI first. Then register it with the Bureau of Internal Revenue (BIR) for tax purposes.

These may seem like a hassle, but they’re necessary. Ultimately, a duly registered business allows you to confidently advertise your services and foster relationships with customers and suppliers.

7. Source the Necessary Equipment

car wash business in the philippines - equipment

You can source some of your equipment for car wash from hardware stores and even online shops, such as Lazada and Shopee. Your car wash equipment list should include the following:

8. Hire the Right People

Build an amazing team by hiring the right people. You can hire newbies if you have the resources to train them.

Since this business is labor-intensive, hire people who have the physical capacity and stamina. If you’re offering more technical services, such as detailing and automatic cleaning, look for employees with experience and expertise.

Attract the right people with competitive wages and benefits. On top of that, foster a healthy workplace culture. All of these will help prevent employee turnover.

9. Offer Value-Added Services

As a car wash owner, you’ll eventually find that your customers have needs other than having their cars cleaned. This is an opportunity to offer them value-added services that will keep them coming back to your shop.

Here are some ideas:

10. Create a Marketing Strategy

Your car wash business in the Philippines can attract more clients with the right marketing strategies. Flyers and posters are a given, but if you want to up your tactics, consider the following:

Final Thoughts

Starting a car wash business in the Philippines is a feasible and lucrative venture since there will always be someone who needs their car cleaned. Setting it up, however, comes with challenges. You’ll need a big space, technical expertise, and manpower.

Minimize risks and increase your odds of success with a well-thought-out plan. Start with the pointers above, but don’t forget to talk to seasoned business owners.

Apply for a personal loan through Moneymax

Sources:

Jay Pagkatotohan

Jay Pagkatotohan

Jay is a marketing communications professional who specializes in short-form and long-form content. He has written ads for TV, radio, print, and digital. He has also produced corporate blogs, magazine features, white papers, product listings, reviews, and press releases for clients here and abroad. When he’s not writing, Jay plays the piano or takes pictures for his visual diary. Follow Jay on LinkedIn.