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margin over quantity when running a car wash business

FEWER CARS AT HIGHER PROFIT, OR MORE CARS AT LOWER MARGIN?

With costs increasing across all sectors, it’s tempting to look at your car wash margins and add a few extra dollars to absorb overheads.

But is margin over quantity the right move?

We are all in business to make money and run successful car washes. It’s proven in our industry that if you provide consistency in key areas, success follows. 

Wash quality, customer service, wash cleanliness, buyer perception and presentation are all factors your clients are making decisions on when using your wash. Consistency is Key.

Lower Margin
more washes
Higher Profit
less washes

Some operators prefer to wash less numbers at a higher car wash margin, as it means the machine doesn’t have to work as hard and will last longer. Yet other operators want their machines as busy as possible (lower margin), enjoying a much quicker ROI.

I prefer to wash more cars over an idle machine. 

Don’t drive customers out of your car wash for the sake of a few dollars
per wash. I would much rather my wash do 100+ cars per day, over 30 at a higher car wash margin. Additionally, the perception of a busy wash further attracts more cars, as customers see value and quality in the offer. 

Think about it…when deciding on a place to grab a bite to eat, you’re more likely to form a positive association toward a busier place, rather than empty.
The same applies to your wash site, perception is crucial.

margin over quantity when running a car wash business
Therefore, I choose more cars, lower margin. 
John Sewerle - owner / director of Carwash World

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