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Car Wash Business Plan

Soapy Rides Car Wash

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Strategy and Implementation Summary


5.0 Strategy and Implementation Summary

The key differentiator for Soapy Rides Car Wash is Mark Deshpande and his business and personal connections within the East Meadow neighborhood. For this reason, the sales and marketing focus will be on a one-to-one basis, with the emphasis on gaining loyal and repeat customers as "friends" of the business. Soapy Rides, therefore, will depend on word-of-mouth advertising for the immediate community.


5.1 Competitive Edge

Soapy Rides' competitive edge will be Mark Deshpande and the quality of the family name in the East Meadow area. As mentioned, the family has been in the car business for over 30 years, and has an excellent reputation and a myriad of both business and personal contacts. In addition, Mark has put a great deal of emphasis on creating a system that is both fast and efficient, which will keep costs, in terms of time spent per car, to a minimum.


5.2 Sales Strategy

Sales strategy is on a one-to-one basis. All customers will feel they are a valued friend of Soapy Rides, and that all employees care about the care and upkeep of each vehicle. We must be aware that there are low switching costs in the car washing industry, so we have to work hard to develop and keep repeat customers.


5.2.1 Sales Forecast

The following chart forecasts sales based upon the Market Segmentation Strategy. Sales are seasonal in this industry, tending to be higher in the warmer summer months, and to drop off in the winter. However, we will aim to flatten sales across the sales cycle by targeting segments that will want to keep their cars clean and looking good year round.


Sales Monthly

Sales_Monthly

Sales Forecast
Sales Forecast
Unit SalesFY 2002FY 2003FY 2004
Full Wash1,7602,2882,974
Exterior Wash2,0502,6653,465
Interior Clean7701,0011,301
End User Detail129193290
Business Fleet Washes6159231,384
Car Dealership Details494642963
Total Unit Sales5,8187,71210,376
Unit PricesFY 2002FY 2003FY 2004
Full Wash$15.00$15.00$15.00
Exterior Wash$9.00$10.00$12.00
Interior Clean$8.00$9.00$9.00
End User Detail$140.00$145.00$150.00
Business Fleet Washes$10.00$10.00$10.00
Car Dealership Details$70.00$75.00$80.00
Sales
Full Wash$26,400$34,320$44,616
Exterior Wash$18,450$26,650$41,574
Interior Clean$6,160$9,009$11,712
End User Detail$18,060$27,985$43,425
Business Fleet Washes$6,150$9,225$13,838
Car Dealership Details$34,580$48,150$77,040
Total Sales$109,800$155,339$232,204
Direct Unit CostsFY 2002FY 2003FY 2004
Full Wash$0.70$0.80$0.90
Exterior Wash$0.40$0.45$0.50
Interior Clean$0.30$0.35$0.40
End User Detail$3.00$3.50$4.00
Business Fleet Washes$0.70$0.75$0.80
Car Dealership Details$3.00$3.50$4.00
Direct Cost of SalesFY 2002FY 2003FY 2004
Full Wash$1,232$1,830$2,677
Exterior Wash$820$1,199$1,732
Interior Clean$231$350$521
End User Detail$387$676$1,158
Business Fleet Washes$431$692$1,107
Car Dealership Details$1,482$2,247$3,852
Subtotal Direct Cost of Sales$4,583$6,994$11,047

5.3 Milestones

The following table outlines the important milestones in the planning and implementation of Soapy Rides.


Milestones
Milestones
MilestoneStart DateEnd DateBudgetManagerDepartment
Complete Business Plan2/1/20015/1/2001$0ABCDepartment
Sign Rental Contract3/20/20013/20/2001$475MarkOwner
Convert Premises4/1/20014/30/2001$0ContractorsContractors
Hire Car Wash Staff4/20/20014/20/2001$200MarkOwner
Hire Admin Staff4/20/20014/20/2001$200MarkOwner
Open for Business5/1/20015/1/2001$0StaffStaff
Distribute Flyers4/28/20015/5/2001$75FriendsFriends
Press Release4/29/20014/29/2001$25MarkOwner
Follow-up on Press Release4/30/20014/30/2001$0MarkOwner
Totals $975
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