Is the Car Wash Business Still Profitable in Nigeria? What You Should Know & Helpful Tips

Starting any form of business in Nigeria today requires a lot of willpower, especially considering the high cost of living, the increase in prices of fuel and other commodities, and the low demand for services by many Nigerians who are also grappling with these harsh realities.

One of the businesses that has stayed around in Nigeria for years is the car washing business. For many Nigerians, car wash has become a sustainable means of income. But with a growing number of many who can easily wash their cars at home, many wonder if the car wash business is still lucrative and whether or not they should get into it.

In this article, we share information about starting a car wash business in Nigeria you should know about in 2023 and helpful tips to guide you.

How Profitable is the Car Wash Business in Nigeria?

Making money off your car wash business today depends largely on the location. The location you choose will determine how much money you can make. These are some of the top things that should be at the forefront of your consideration when thinking of a car wash business: 

1. Number of Car Owners in Your Area

The number of cars or the number of people using cars in the area. Since cars are your means of doing business, the number should be the first thing you focus on. More cars in any particular area mean more sales. Likewise, few cars mean bad sales.

2. Class of Car Owners in Your Area

The second consideration should be the class of the people. In Nigeria today, N1,000 – N1,500 and above is considered the base price for washing cars. However, this price is higher in some locations and also the type of vehicle than others. Therefore, a location with wealthy individuals with a good number of cars is a big selling point and should be considered in determining your choice of business location.

3. Recurring Cost 

Note that there are some recurring expenses you’ll have to shoulder when starting a car washing business in Nigeria. Some of them include buying water, detergent, and other resources needed for washing the car. You might want to find alternative ways of getting water easily and at an affordable price. This helps in lowering business costs and is vital in the long term.

4. Cost of Labor

Another tip that can determine how much profit you take home is labour. Are you washing the cars yourself, or will you be employing the services of others? If you are paying for labour per car, you should know that all the revenue won’t be going into your pocket. Otherwise, if you can do it yourself, fine, but this might prevent you from expanding your business into other territories and doing lots more.

Conclusion

The car wash business is still lucrative in Nigeria. The most important thing is finding a strategic position for your business. The amount needed to start a car wash business depends on the facilities you want to have. You have to consider that cost as well. Car wash is also a low-expense entry business. As such, you can start with whatever amount you have and grow.