The car washing business has significant potential for growth. The growing number of vehicles on the road has only increased the demand, so if you have started the car wash business after deciding on the business model and obtaining the necessary licenses.
At this point, you would want to implement strategies to improve profits. Improving the profit can often be tricky. You don’t need to worry, however.
We have come up with 10 tips that will surely improve the profits of your car wash business.
1. Invest to achieve long-term goals
Investments are essential expenditures that will help you to start the business. Irrespective of the services you intend to offer potential customers, you require a considerable investment to start the car washing business.
For instance, if you want to open a car wash in multiple locations, you can consider applying for a loan. Or, if you invest in greener technology, the investment required will be slightly higher.
Furthermore, you must align the investment with your long-term goals when you invest. As the business expands, you may have to invest in human resources, equipment, branding and marketing. When making investment decisions, you should try to match them with the long-term goals you have envisioned for the business.
As a result, you will be in a better position to understand where to make the investment and the return on investment. That will, in turn, improve the profit.
2. Use car washing management software
The car wash business is customer-oriented. You have to deal with customers from varying backgrounds and schedules daily. Keeping track of the customer schedule can be difficult as the company expands.
You can use car washing management software like Picktime to manage and organize the customer schedule. The software has a dedicated 24/7 booking page where customers quickly book appointments. The software handles not only the customer schedule but also the employee schedule.
That would make your car wash more accessible to customers. Moreover, you can also integrate payment gateways to receive partial or complete customer payments. That ought to avoid no-shows by customers and, in turn, improve the business’s revenue. You can also keep an eye on the service schedule of equipment.
3. Payroll management
It would be best if you managed the payroll depending on the carwash you have started. For instance, if you have begun an automatic car wash, you need not invest much in human resources.
In such a situation, you only have to invest in equipment maintenance. Furthermore, you can run the carwash 24/7. That will give you a competitive advantage in the market and generate a higher sales volume.
On the other hand, if you choose hand-washed car washing. That is labor-intensive. In such a case, you would have to hire more staff.
You can compare the pros and cons of automated and manual car washing businesses. You can start an automated car wash business if the pros and cons outweigh the others.
4. Cost cutting measures
You may implement cost-cutting measures that can improve the profit. The operational cost of running a car wash includes administrative, commercial and payroll expenses.
To implement cost-cutting measures, you can begin by roughly estimating how many cars would come to your car wash on a given day. You can also roughly estimate the electricity bill and the water bill.
More cars that come to your business increase the electricity bill you have to pay and the water bill. You can offer a waterless car wash service to reduce the water bill. When you provide such services, the cleaning agents and the payroll for the staff become the primary cost.
Next, you can look at the cost of space where you run the car wash. If you wish to expand the business, you would require ample space. Before that, you must consider the price and the returns generated from renting from a larger area.
Besides, you can contact multiple suppliers who supply cleaning agents. As a result, you may receive better discounts when purchasing in bulk.
5. Offer additional services
You can offer additional services to your customers. When you provide other services, you diversify your income source. That can improve the profits.
The strategy will help you to offer municipal services simultaneously. For instance, you can give your customers polishing services when they come to get their cars washed. Consequently, you can attract a greater number of customers..
6. A sound marketing strategy
You have to invest time and effort in developing a marketing strategy to promote the car wash business. For instance, you may have started an excellent washing business, but the customers are unaware of it. How will they come to you?
Therefore, you have to develop a marketing strategy. A robust marketing strategy includes market research and identification of the audience. Market research enables you to understand the trends in the market and the services offered by the competitors.
7. Focus on customer experience
You have to focus on improving the customer experience at your car wash. Customer experience is an abstract concept. In a nutshell, it is a customer’s experience while visiting the car wash.
If the customers receive a positive experience, they return to your car wash whenever needed. That improves the customer retention rate and, as a result, more sales. That will improve the profits.
8. Maintain the equipment from time to time
You have to service your equipment from time to time. That would ensure that the equipment operates optimally. Otherwise, an equipment malfunction can cause a severe dent in profits. Therefore, you must keep track of the equipment maintenance schedule and maintain it properly.
You have to create a website for the car wash business. You may wonder why it is so essential. Potential customers these days search online whenever they need a product or service. A website adds more credibility to your business. You can also list the services that you offer to the customers. They can decide on the services they want.
10. Google My Business account
You have to create a Google My Business Account. When potential customers search online, the Google My Business account would be the primary point of interaction for the customer.
While creating the account, you have to enter the accurate data in the relevant fields. That will guide the customers to your business. That also improves the ranking of your business locally.