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Finding an average profit margin

How to answer one of the most frequently asked questions in the carwashing industry.

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Ryan Essenburg, president of Tommy Car Wash Systems, says one of the most searched questions in carwashing is the average profit margin per car washed. The answer varies depending on a number of factors.

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These factors include the:

  • Region
  • Quality of the vehicle output
  • Quality of the operator
  • Equipment brand.

According to Essenburg, the region impacts a wash's electric rates, water and sewer rates, and labor costs. Average ticket price (revenue) is a more consistent number but can still vary from market to market. The biggest impact on average revenue per car is the service offering and the menu format. Average revenue doesn’t differ as much based on regional demographics as you would think. In fact from Europe to Australia the average revenue per car (services being equal) is quite close.

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Vehicle and equipment quality affect the results and output of a location, operator expertise can "dial in" results and guarantee customers the most bang for their buck.

Click here to read Essenburg's full article on factoring a profit margin.

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