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Cost Per Minute Analysis

wrightwash

wrightwash

Member
I spent the past snowy Saturday evening crunching numbers trying to develop a cost-per-minute of use estimate.

5 Bay Self Service Car Wash
2HP Single Phase Motors on Cat310 Pump

Here's what I calculated below:

For Electricity Cost:
230V x 12 Amps = 2530 Watts
2530/1000= 2.53 Kilowatts/Hour
2.53/60= 0.42 Kilowatts/Minute
O.42*0.101 (TVA Current Rate) = $.042 (per minute run)
10% Deviation (End Rush, Switching) = $.046 (per minute run)

For Water Cost:
TVA Water Cost .0129 per Gallon
5GPM Pump = $.0645

The chemical cost is where I'm a little fuzzy.
I took each of my chemical costs, divided by the final dilution rate, and then averaged these numbers together.
Average Chemical Cost: $.149 (Parts Per 5 Gallon) This is assuming chemical is used for the minute.

Without taking wear and maintenance into consideration, I'm calculating it costs roughly $.26/minute.

Does this seem about average?
I know this is merely speculation, but I want to determine a baseline so that I can track all my P/L in a spreadsheet.
 
That's about the same pricing in our area, although those washes are out of date and customers seem to pick the Wash that works BEST.. So we are higher for sure, but so is our income.. It's not all about price, it's Quality.. You get what you Pay for.. :)
 
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wrightwash said:
... cost-per-minute of use estimate ...
Click to expand...
wrightwash said:
... track all my P/L ...
Click to expand...
a
Not trying to be pedantic here, but "estimate" and "track" are not really compatible.
I get what you are trying to do, I've tried to do the same with some success. But eventually I always end up looing at actual numbers, which I can then use as a functional estimate moving forward. I.e. actual chem costs divided by actual minutes sold for a given time period, those are a lot easier to figure out and a lot more accurate/useful. To me anyway.
 
PaulLovesJamie said:
a
Not trying to be pedantic here, but "estimate" and "track" are not really compatible.
I get what you are trying to do, I've tried to do the same with some success. But eventually, I always end up looing at actual numbers, which I can then use as a functional estimate moving forward. I.e. actual chem costs divided by actual minutes sold for a given time period, those are a lot easier to figure out and a lot more accurate/useful. To me anyway.
Click to expand...

I agree completely, I think there's just too many variables in place to get a strong number.
 
wrightwash said:
We're $1 for 4mins on vacuums! All local competition is either $1.25 for a combo vac or .50 for 2 mins
Click to expand...
In my opinion that is WAY to Cheap of pricing.. How can you make money at those prices.. We have lots of competition with same prices as you mentioned and we are $5- 5 minutes in bays and $3 - 3 minutes vacs.. Business is GOOD.. no coins, just credit debit, cash on all bays and vacs with Tap to Pay as well.. Vacs cleaned daily, new nozzles often and hoses replaced often as well.. If you are better than your competition it really doesn't matter.. plus you keep the bad guys out.. :) :)
 
wrightwash said:
I spent the past snowy Saturday evening crunching numbers trying to develop a cost-per-minute of use estimate.

5 Bay Self Service Car Wash
2HP Single Phase Motors on Cat310 Pump

Here's what I calculated below:

For Electricity Cost:
230V x 12 Amps = 2530 Watts
2530/1000= 2.53 Kilowatts/Hour
2.53/60= 0.42 Kilowatts/Minute
O.42*0.101 (TVA Current Rate) = $.042 (per minute run)
10% Deviation (End Rush, Switching) = $.046 (per minute run)

For Water Cost:
TVA Water Cost .0129 per Gallon
5GPM Pump = $.0645

The chemical cost is where I'm a little fuzzy.
I took each of my chemical costs, divided by the final dilution rate, and then averaged these numbers together.
Average Chemical Cost: $.149 (Parts Per 5 Gallon) This is assuming chemical is used for the minute.

Without taking wear and maintenance into consideration, I'm calculating it costs roughly $.26/minute.

Does this seem about average?
I know this is merely speculation, but I want to determine a baseline so that I can track all my P/L in a spreadsheet.
Click to expand...
Good evening. I am new to the site and considering buying a SS wash in my town. Thanks for the crunching of numbers: the first real thread I have seen as such. Too bad it got hijacked and everyone replied with their meter pricing not actual costs. Now a year later, do you think your numbers are correct?


wrightwash said:
I spent the past snowy Saturday evening crunching numbers trying to develop a cost-per-minute of use estimate.

5 Bay Self Service Car Wash
2HP Single Phase Motors on Cat310 Pump

Here's what I calculated below:

For Electricity Cost:
230V x 12 Amps = 2530 Watts
2530/1000= 2.53 Kilowatts/Hour
2.53/60= 0.42 Kilowatts/Minute
O.42*0.101 (TVA Current Rate) = $.042 (per minute run)
10% Deviation (End Rush, Switching) = $.046 (per minute run)

For Water Cost:
TVA Water Cost .0129 per Gallon
5GPM Pump = $.0645

The chemical cost is where I'm a little fuzzy.
I took each of my chemical costs, divided by the final dilution rate, and then averaged these numbers together.
Average Chemical Cost: $.149 (Parts Per 5 Gallon) This is assuming chemical is used for the minute.

Without taking wear and maintenance into consideration, I'm calculating it costs roughly $.26/minute.

Does this seem about average?
I know this is merely speculation, but I want to determine a baseline so that I can track all my P/L in a spreadsheet.
Click to expand...
 
You are Very close depending, I would say 30 cents per minute if you give the Customer what they want and need to be Happy and Come BACK!
 
GaCarWasher said:
Good evening. I am new to the site and considering buying a SS wash in my town. Thanks for the crunching of numbers: the first real thread I have seen as such. Too bad it got hijacked and everyone replied with their meter pricing not actual costs. Now a year later, do you think your numbers are correct?
Click to expand...

They are close! I would say we tend to be in the 25-30 cents per minute range. There are so many variables ultimately it's hard to average it out by the minute though.
 
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