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.