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It seems that many people who are laid-off, or in the process of changing professions are looking for a new business model to get into. A mobile car wash business looks very attractive, because it usually doesn’t cost much to get into. What about buying an existing business you ask? Sure, that is one way to do it. There are many service businesses which you can purchase which probably won’t cost that much and already have an income flow.

Let’s take a look at a mobile car wash business as a case study for this discussion. Not too long ago, someone had asked me the following question about an existing mobile car wash business to buy in Arizona – and he described a scenario; he stated:

It is my understanding that the dealership cars are billed at $0.55 to $0.60 per vehicle while the small used car lots are done on a flat rate basis allowing for a much higher return in the $1.5 to $2.00 per vehicle area. Can one make money at these fees for washing vehicles?”

Now then, to answer your question, I suppose they are making money if they hire illegal immigrants for $5 per hour, and are getting paid on time by the new car dealerships. But they could make a lot more by speeding up the wash process with better equipment and getting some larger fleet accounts to go along with this business model of theirs. It turns out the business owner claims that he is paying his workers as independent contractors? This seems highly suspicious, let me explain.

It would be pretty tough to run an independent contractor scenario using those numbers, and still leaving any money for you. If all the cars were compacts like Toyotas and Honda’s or Ford Tempo’s and Dodge Neon’s maybe, but remember how many vehicles will be full size SUVs, pick-ups, and luxury sedans with chrome and nice wheels.

It’s very hard to clean them without water spots, and then there are the Monsoons to deal with in Phoenix occasionally when it rains Mud basically. Simple water won’t clean those cars, no way, not on those days or that time of the year. The smaller dealerships at $1.50 to $2.00 are a good kill, but the way the company has set up its trucks, the time to set up and break down, kills the profit, and uses up the time.

If they are not drying the cars at all, they might be able to make money at $.55 each, but if they were doing that they wouldn’t need 3 people per truck. One problem with this mobile car lot washing business model is that it’s hard to manage with so many multiple job sites, and it’s easy for your workers to work slow, not complete all the work, thus making your customers irate at times.

We always considered the lot washing; busy work, or side work to keep the equipment working 24/7 never our mainstay. Although we did have a few teams which concentrated on car dealership washing, but our focus was to wash every lot in the row. Without moving to another location across town, if you can do that you can make money on that low-ball price, and it usually helps if the owner of the mobile car wash is actually on-site keeping the team hustling.

Indeed, hope you will please consider this.

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