CAR WASHING
Introduction
A car wash
facility is a facility used to clean the exterior and the
interior of motor vehicles. There are many different types of car
washes, i.e Hand car wash facilities, Self-service facilities, that are
generally coin-operated, where the customer does the washing,
including "jet washing" In-bay automatics, which consist of an
automatic machine that rolls back and forth over a stationary
vehicle and many others around the world. In Uganda and the rest
of African Countries the commonest method of car washing is
hand car wash. The market and the demand for car washing are
readily available in Uganda but mostly in urban areas.
Production Capacity, Technology and
Processing Description
In Uganda
washing is done on a small scale and it also depends on
the size of the land. The size of the land is normally about two
acres. About 100 cars can be washed on this size of land per day.
TEPO tunnel and TP-8000S washers are the modern technology of
car washing but in Uganda, car washing does not use sophisticated
technology. It requires a piece of Land, simple equipment, human
labour and water. Liquid soap or any other detergent is mixed with
water. The mixture is then put in the jet washer and sprayed to the
car and in case of hand washing; the car is cleaned using hands.
Scale of investment, Capital investment
Requirements and
Equipments
This small
scale investment with capital investment of Monthly
Start up costs
Market Analysis
The market and the demand for car washing are readily available
in Uganda but mostly in urban areas. There many players in this
sector across the Country.
Raw Materials Requirements for 12 months
A piece of
land of about 2 acres will accommodate about 100 cars
and will cost US$2,000 while equipment will cost US$ 3,782.
Wages (Labour) will cost US$ 4,590 and each vehicles pays US$ 5
which will fetch US$115,000 a year as gross Revenue. This will
require the following
Project Costs (Fixed Capital and Working
Capital) and
Revenue in US$
|
item |
Units |
Qty |
Unit cost |
Amount |
|
Jet Washers |
Number |
2 |
1,000 |
2,000 |
|
Hoovers |
Number |
2 |
225 |
450 |
|
Water Connection |
1 |
100 |
100 |
|
|
Other equipment |
1 |
200 |
200 |
|
|
Total |
2,750 |
Production and operating costs in US $ Direct materials, supplies and costs in US $
|
Cost item |
Units |
Unit |
Qty/ |
Cost |
Cost/ |
Cost/year |
|
Direct Costs |
||||||
|
Water |
units |
12.0 |
3 |
36 |
936 |
11,232 |
|
Detergents |
kg |
0.5 |
20 |
10 |
260 |
3,120 |
|
rags |
No. |
2.0 |
120 |
240 |
6,240 |
74,880 |
|
Subtotal |
14.5 |
143 |
286 |
7,436 |
89,232 |
|
|
General Costs(Overheads) |
||||||
|
Administration expenses |
350 |
4,200 |
||||
|
Labour |
1,500 |
18,000 |
||||
|
Utilities |
200 |
7,800 |
||||
|
Rent |
500 |
6,000 |
||||
|
Selling & Distribution Expenses (Advertising) |
233 |
2,800 |
||||
|
Depreciation |
57 |
688 |
||||
|
Miscellaneous |
208 |
2,500 |
||||
|
Subtotals |
3,049 |
41,988 |
||||
|
Total operating Costs |
10,485 |
131,220 |
Project product costs and price structure
|
Item |
Qty/day |
Qty/ year |
Unit Cost |
Prod/ year |
Unit price |
Re |
|
Lether purse |
100 |
31,200 |
4.21 |
131,220 |
4.8 |
1 |
Profitability analysis in US $
|
item |
Per day |
Per month |
Per year |
|
Revenue |
480 |
12,480 |
149,760 |
|
Less: Production operating costs |
421 |
10,935 |
131,220 |
|
Profit |
59 |
1,545 |
18,541 |