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Organization of a car wash with dry-cleaner’s and a cafe at the entrance to Moscow

Organization of a car wash with dry-cleaner’s and a cafe at the entrance to Moscow
  • Opening a car wash in conditions of modern megalopolises is becoming an increasingly profitable business. This requires selecting a land plot or a ready building with a convenient location, solving bureaucratic issues, buying the equipment and organizing the process itself. If additional services such as dry-cleaner’s or a café are rendered, the business promises great returns.

    The same conclusion was made by organizers of a car wash complex including a portal car wash, a steam wash, dry-cleaner’s and a café in Moscow. In order to properly organize their business as early as the planning stage they filed a request with Intesco Research Group.

     The aim of the business plan was justification of cost effectiveness of opening a car wash, as well as working out its creation and development program.

     

    Organized business structure

    The best variant for locating the car wash was suggested by specialists of Intesco Research Group. It was territories along car roads at the entrance to Moscow, which would provide the max. transport passability and, correspondingly, flow of customers.

    At the car wash customers will be offered services on washing both the whole vehicle irrespective of its body type (a car, off-roader, minibus) and its certain parts (bottom, body, engine), dry-cleaning of the passenger compartment, polishing the body, etc.

    The project concept includes 4 posts at the car wash. Specialists of Intesco Research Group considered the quantity to be optimal for the prospective car flow.

    Car wash services

    According to the initiators’ idea, the car wash will render the following services for cars, off-roaders and minibuses:

    • automatic car wash in a portal car wash room;
    • steam wash services (a set of services for passenger compartment and car body wash);
    • dry-cleaning of the passenger compartment;
    • café services.

    Having held a market research and conducted the required calculations, our specialists estimated the max. load for all suggested kinds of wash:

    • portal car wash – 6 000 cars per quarter;
    • steam wash – 3 000 cars per quarter;
    • dry-cleaning – 1 500 cars per quarter;
    • café services will be used by up to 50% of car wash visitors – 5 250 people per quarter.

    Car wash and café territory structure

    The calculations show that a 4-post car wash needs a building with the area of about 430 sq.m. It will include:

    • workshops - 200 sq.m.;
    • a box for purification facilities - 30 sq.m.;
    • a cafe - 40 sq.m.;
    • an office - 30 sq.m.;
    • utility rooms – 30 sq.m.;
    • access roads and parking lots – 100 sq.m.

    Project items of returns

    The developed business plan included the following items of returns:

    • automatic car wash in a portal car wash room;
    • steam wash services;
    • dry-cleaning of the passenger compartment;
    • café.

    The average bill for the services is given below:

    • portal car wash - 730 rub.;
    • steam wash services – 1 400 rub.;
    • dry-cleaning services- 2 300 rub.;
    • café – 300 rub.;
    • mark-up for the products of the coffee shop – 150%.

    Investments

    Having estimated the required expenses on purchase of the equipment for the car wash and café, signing the required documentation, purchase of detergents, employment of personnel and other, specialists of Intesco Research Group calculated the minimum volume of investment in the project. This sum amounts to 17 million rubles. The investment structure is the following:

    PROJECT EFFECTIVENESS RATES

    Net cash flow 84 018 thousand rubles
    Net present value 36 851 thousand rubles
    Simple payback period 1.37 years
    Discounted payback period 1.47 years
    Profitability index 3.72 units
    Internal rate of return 171.3 %
    Breakeven point 16 %
    Breakeven point 2 177 thousand rubles/quarter

    Organization of a car wash is, in its essence, a rather simple process. But even it requires a sound business plan which will take account of all nuances of the new business. For initiators of opening of a car wash in Moscow this fundamental document was the business plan developed by Intesco Research Group.

    You can order development of a business plan for your project by calling at +7 (495) 212-91-91 or filling in a request at the website, after which our manager will call you.

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