Case of Opening a Car Wash

How it all started

The first car wash was opened in Voronezh in the fall of 2012 Year prior, I saw this idea in the United States. It took around 6 months to find the car wash equipment supplier, at the same time we looked for a place for our first car wash. It was a new business for the Russian market, which could create some issues. Things like equipment type, number of bays, and size of washing bays were selected based on the experience of our US colleagues and at our own risk. At that time, no company could provide any data and analysis on the self-service car wash business in Russia.
The first car wash was opened in Voronezh in the fall of 2012 Year prior, I saw this idea in the United States. At that time, no company could provide any data and analysis on the self-service car wash business in Russia.

Preparation for the opening of the car wash

First, we opened an LLC to import equipment from the USA. Then we signed a land lease agreement for our first car wash. Our first location was chosen on the land of an old factory, not far from the central district of the city. When we opened up, car traffic was 500- 600 cars an hour. The chosen location had its own advantages: a large land area for the car wash, presence of all utilities, and it was privately owned. Then we had made a construction plan for a non-capital structure. We wrote a letter to the city's architecture to collect permits for the construction of the non-capital facility on the private territory. We received a response stating that we need a construction permit for a non-capital facility. Registering car wash as a non-capital facility allowed us to reduce the construction time of the car wash by at least 6 months.

Registering car wash as a non-capital facility allowed us to reduce the construction time of the car wash by at least 6 months.

The car wash was fully built in 6 months. At the planning stage, we were thinking about how to make a metal structure – galvanize or paint? To save money, I decided to make it from ferrous metal and cover it with special paint. The technical room was three by six meters. The slopes in the bays were one centimeter by one meter. The floor surface was not reinforced with anything. Bays were divided by the banners.

Equipment Installation

To save money, we hired local contractors to install the equipment. For three weeks, we were installing the equipment while getting help from the American colleagues via Skype. Problems were immediately revealed after the launch: unstable pressure and increased iron content in the water. I had to buy a booster pump, change the filling in the softener.

Before the opening, there were a lot of doubts that people would wash cars themselves because this format was a novelty for the Russians. As it turned out, people up to try out the car wash.

Final Stages

When everything was ready, we received the conclusion of the SES, made an environmental passport, made a contract for the export of solid waste, a contract with the security company, and began operation. Before the opening, there were a lot of doubts that people would wash cars themselves. We decided to make the first 3 days free of charge. People reacted very well - something new, and plus for free. We thought that when we make the car wash paid, people will leave. As it turned out, people were lining up to try out the car wash. We are often get asked “How much does it cost to open a self-service car wash?" and “How quickly does the car wash pay off?”. At that time, we invested into the car wash around 9 million rubles. This money paid off in 1 year and 2 months with an average customer spend of 90 rubles and the cost per minute being 12 rubles.

We had already invested into the car wash around 9 million rubles. This money paid off in 1 year and 2 months with an average customer spend of 90 rubles and the cost per minute being 12 rubles.

How things have changed in 2020

Employees of our company conducted an analysis of the site for the placement of the self-service car wash on it. Studied the factors like:

  1. Traffic (1800 cars per hour)
  2. Competitors analysis and their location (1 car wash on the way out of the city)
  3. Road interchanges (the site is located on a road connecting two districts)
  4. The population of the district (currently 70,000 inhabitants)
  5. Outlook (development of the district, potential increase in population by 50 000)
  6. The presence of a residential area
  7. Shopping mall (there are two shopping complexes within a kilometer)
Six bay car wash project plan costed 300 000 rubles. Investments amounted to 18 million rubles. The payback period of the project is from 5.5 months. The average customer spend is 120 rubles at a cost of 20 rubles per minute.

After winning the auction, the collection of permits for construction and obtaining technical conditions for water consumption, sanitation, gas and electricity began. The AMC project for 6 posts cost 300,000 rubles. Water and electricity were on the border of the plot, and the sewer was pulled 1200 meters (paid 1 million rubles). Gas cost 800 thousand rubles. If possible, we connect all objects to gas, because diesel takes an average of 120 thousand per month. The boiler works 4-5 months a year. The facility was built for 1.5 months.


Car wash upgrade after 7 years

  • The slope in the boxes is now 5 cm (so the water flows better into the flat and does not flow out of the box)
  • Hardening and grinding of the top layer of the concrete plate (increases the service life)
  • Increasing the concrete plate to 8 cm width with a warm floor (in winter it does not allow ice to form at the entrance and exit from the bay)
  • Galvanized metal structure (in the future it will be cheaper than painting it every year)
  • The technical room is 5 by 8 meters (allows you to make a toilet, put cleaning equipment)
  • Installed partitions made of sandwich panels (makes it more comfortable to be in the bay)
  • Increased the service life of banners
  • Made a shed over the after-wash area (comfort of our customers and competition with other car washes)

Investments amounted to 18 million rubles. The payback period of the project is from 5.5 months. The average customer spend is 120 rubles at a cost of 20 rubles per minute

Now opening your own car wash doesn't seem so intimidating. The valuable experience we gained after all the mistakes we made allowed us to create a verified action plan that takes into account all possible difficulties. Our experts will help you choose the optimal solution for you.

Working with us, you can be sure of a stable income!


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