Feasibility Study of Cleaning Vehicle Shop in Palawan

“Wheel-Clean-Wash”

Submitted by: John Kenn Arboleda

Introduction

This paper present a feasibility study entitled Wheel-Clean-Wash. This business is a

small branch in Puerto Princesa that offers cleaning services for any vehicle such as car,

motors and etc. The flow of this paper are the forecast, feedback and also the different

strategies of many company of Palawan car wash. How does a successful company work

in a market with a lot of competitors, it shows the different strategies and marketing

system of a company in Palawan. Wheel-Clean-Wash was conducted a feasibility study

that promotes a forecast in every car wash here in Palawan especially in the City of

Puerto Princesa. Conducting a feasibility study is one of a key of successful business. The

purpose of this study is to find out if those car wash company has a fast increasing rate of

success based on the feedback and survey of the customers. This study gathered a data in

different sources.
Project Idea

Wheel-Clean-Wash is a shop that offers services to the customers, we accept walk in

customer. It is a car wash shop in Puerto Princesa with different equipment used in order

for the customer to be satisfied. Because of many vehicle or transportation in Puerto

Princesa, our team organize an easy to clean and very approachable and friendly staff that

can manage the shop. Wheel-Clean-Wash planned to create another branch in some area

in Palawan, by that we are accepting new staff to assign in some area.

Literature Review

Puerto Princesa is a small city with a big population, our city was developed because of

many entrepreneurs in Palawan. Many different content or business idea was created,

that’s why creating a business in Palawan is a big challenge to all entrepreneurs because

of many competitors in different location. You only need to have a good planning and

study in conducting a business in order for you to have an increasing rate of income.

Business strategy

A successful business takes and accept failure and changes in their system. In order for a

company to go to the next stage you need to have a plan for development and

implementation to go to the main goal.

One of the development of wheel-clean-wash is the manpower, hiring new sets of team

and well trained staff to operate and managed the function of the car for a proper

cleaning, that is one of the key that can satisfy the customer because of their trust.
Another one is an increasing amount of investment, the more money you invest the better

quality and high standard you produce and offer to the customer. Investing on a large and

good quality tools and cleaning equipment of the shop.

Providing a voucher card or promo to our loyal customer/repeated customer, that is one

of a good way to have a repeated customer and go back to our shop by availing our

offered voucher.

A simple and good strategy of a business can help a business to be more productive and

have an increasing rate day by day by the proper process.

Market feasibility study

Wheel-Clean-Wash is being established to provide good cleaning services to the

customer. Providing them a high standard services and approachable staff that will make

them comfortable.

Our target market is in public, those people that has a vehicle and don’t have enough time

to manage their own car, that’s why we offer a fast and good quality services to public.

technical feasibility study,

Location and site selection study

It is located at Rizal Ave. Puerto Princesa City, Palawan. At “bayan” area. We located it

at Rizal Ave. because there are some of hotels, restaurant, clinic etc. there that their

employees and clients can visit our shop. It is an easy-to-locate shop.

Social and an environmental study

Population in Palawan belongs in what we called IP or Indigenous People, those family

of course lives far away from the city where there a high standard of living with a lots of

businesses and jobs. That’s why we chose to create a car wash shop in the City for the

business man/woman.

Also in terms of staffs and other employees, we can offer our services to those IP’s who

wants to have a job and wants to apply in our small business, we are ready to accept and

train them to use different cleaning equipment.

Our shop is surrounded by trees, by washing the vehicle the water and dirt will flow to

some trees area, enable for us to prevent harmful effect to the road side and that can’t

affect some of our customers. It is good to our environment and can help our natural

resources and also it doesn’t have a negative effect to the people that surrounds us.

Economic feasibility study

Because of increasing rate of entrepreneur in Puerto Princesa City, some of its places are

inspired to start and provide services in some small places in Philippines. One this is

Palawan, because of growing population, they also have increasing rate of transportation

in Palawan, that’s why many business man/woman take this chance to start a business or

services.
Market Study

In order for us to know the target market and their feedback, we create a survey

questionnaire to some of the people in one location near in our chosen located shop.

Yes No Others

1. Do you stay here in Palawan? 

2. How old are you? 26

3. Do you have a stable job? 

4. Do you have your own vehicle? 

5. Do you clean your car every week? 

These are some of the answered question of survey questionnaire.

Product Description

Our product/services is the vehicle/car wash shop, we offer services to our walk in

customer and offer them a better quality of cleaning transportation. It is offered for all in

public who has owned a car.

Process Description

In a simplest way we can give satisfaction to our customer by giving them a trusted way

of car wash services. This are the steps on how to properly clean the vehicle with any

damage:
  Prepare the car, remove all the important things inside the car.

 Start with the tires.

 Wash the car.

 Lastly dry the car, it is better to start up with the tire.

Selection of Equipment

To have a better and consistent quality of your equipment, it is important for you to be

loyal and have a consistent dealer and supply of equipment. It is good to have a one shop

where you can always buy or order your equipment.

EQUIPMENTS COST

Pump Station (3) Php 2000

Coin Box Toggle Switch (2) Php 500

Foam Brush Package (4) Php 200

Reverse Osmosis System (2) Php 5,780

Jumper hose to boom (5) Php 135

Wire run to control box (4) Php 200

Gun hose wash package (5) Php 250

Total Php 22,085

Human Resource

Every business with more than just a few dozen employees has a human resources

department. It may be only one person who handles all the human resources functions.

Or, as in the largest organizations, there may be hundreds of professionals who specialize

in just one functional area.

 HR and Salary Expenses

Designation No. Monthly Salary (SAR) Yearly Salary

(SAR)

CEO 1 80, 000 960, 000

Assistant Manager 1 35,000 420,000

Accountant 1 40, 000 480,000

Purchasing Officer 1 15, 000 180, 000

Cleaner 6 36,000 434 ,000

Total Php206, 000 Php2,474, 000

Site Selection

Our shop is located at Rizal Ave. because of many store, malls, and hotels in that place.

We chose a big space for our shop for parking area and of course the rest area of our

customer while waiting to finish their car, and also one room for our office for financing

and other private transaction.

Site Layout

We have there our washing area, and on the left side we put a one room for our office for

any private transaction and also for financing area.

Office Layout
 PROFITABLITY MARGIN

PROFITABILITY MARGINS 31-Dec-23 31-Dec-24 31-Dec-25

NET INCOME MARGIN 14% 23% 27%

RETURN ON EQUITY 0.44 0.62 0.5

TABLE 3: PROFTABILITY MARGINS

The table 11 represents the profitability margins for the years 2023, 2024, 2025.

ECONOMIC FEASIBILITY

MEASURE UNIT VALUE

PAYBACK PERIOD YEARS 1.7

DISCOUNTED PAYBACK PERIOD YEARS 1.8

NET PRESENT VALUE SAR 2, 474, 000

IRR % 26%

PROFITABILITY INDEX X 11.8x

TABLE 4: REPRESENTS THE ECONOMIC FEASIBILITY

Conclusion

After all the study, observation, and gathering data in economic, social and

environmental, it concludes that Wheel-Clean-Wash can be established in an open area

where there’s a lot of professional citizens who have their owned vehicle. Majority of the

customers that want to visit and bring their cars are those who has job and in a high class

family, because some of the people in that area are students and only tourism/visitor who

don’t have their own car.

Recommendation

Since the respondents are more enticed to avail a service that has a good quality services,

this should be the focus of every car wash services. To do this, car wash services should

define the quality standards from the customer's point of view by considering their wants

or suggestions. Quality or standard improvement is a continuous process, and to attain

better services quality takes constant effort not just from the cleaning team but the entire

employees.

Aside from that, regulating the operations is the most important step in the lean operating

technique. Standardization is the process of doing specific tasks in a certain way over a

period to attain accurate results. Moreover, car wash services should also have a powerful

response plan for unprecedented disorganization, which may have an unfavorable impact

on the services quality.

References:

https://www.carmudi.com.ph/journal/car-wash-business-101-equipment-and-investment-
requirements-for-2020/
https://www.philippinetaxationguro.com/carwash-business-philippines/
https://www.augustana.edu/blog/what-environmental-studies-and-why-should-you-
major-it
https://www.educba.com/feasibility-study-examples/