Car wash business thrives in Medan

Car wash business thrives in Medan

The Jakarta Post, Jakarta

Want to really wash your car? Head to Medan. Unlike in other
regions in the country where cars are still being cleaned
manually, the automated car wash business in the North Sumatra
city is starting to take off.

Despite the need for large amounts of start-up capital, there
is a surge of local entrepreneurs investing in the business.

"We tend to wash from at least 100 to 150 cars a day, charging
Rp 20,000 (US$2.2) or Rp 21,000 per car," a car wash attendant at
Medan's Modern Car Wash was quoted by Antara as saying recently.
The business is starting to flourish in line with the increasing
number of cars
in Medan.

Time seems to be the key reason why the automated facilities
are washing the floor with their manual competition. Only five
minutes is needed to clean a car's body and fifteen minutes for
the interior.

It usually takes longer, some 30 to 45 minutes, to service a
car the manually and a customer often has to queue for more than
an hour and still pay a tariff of Rp 18,000.

The quick service has received a positive response from car
owners, who are often short of time. While the automated-service
fees are higher than the conventional charges, regular customers
can also pay a monthly subscription fee of Rp 150,000 for an
unlimited number of services.

Profits gained from the business can be substantial. If 150
cars are washed daily, the machines could rake in gross profits
of about Rp 3 million (US$319).

"Investment in the automated car wash business is big.
However, the cost of procuring equipment could reach Rp 1
billion," a business owner said.

Car wash facilities are usually at their busiest during the
wet season when car owners bring in their cars after a rainy day
when the forecast for the next is clear.

There are five automated car wash facilities in Medan and all
of them are located in the city.

Dozens of other businesses are still worker-driven, with the
workers' paid commission for the number of cars they wash.

Washers are paid around Rp 4,000 a car, while those who wipe
them down are paid Rp 2,000.