DIY Wash N' Fix

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Auto Repair and Car Wash Business Plan

Market Analysis Summary

Target Market

This business aims mainly at people performing basic auto repairs on their own vehicles. In addition, we will target those people wishing to work on their vehicles but unable to do so, because of restrictions (apartment rules, etc.) or weAther conditions, or because they do not own the necessary equipment and tools to perform this activity.

The considered locations for the DIY Wash N' Fix project are California, Texas and Florida.

Unique Market Niche

Our concept is a coin-operated car wash combined with do-it-yourself auto repair facilities equipped with professional tools. This a a one-stop place for washing and fixing your car by yourself, which will appeal to auto repair enthusiasts.

Business Identity

The brand name of this facility will be "DIY Wash N' Fix," which fully expresses the comprehensive set of services offered to do-it-yourself car owners. In terms of physical characteristics, facilities will be clean, bright and well lit. The various bays will be well organized. The objective is to create a place where people will feel comfortable working.

Pricing

ServicePrices
Automated Car Wash Bay $5 (wash) + $1 (vacuum)
Oil Change Bay rental fee $15/hr (oil and filter not provided)
Car Paint Bay rental fee $50/hr
Other Repair Bay rental fee

$30/hr (bay) + $10/hr (tools)

Vending Machines $2.50 per item

Competitors' Prices

There are no comparable competition prices, as our services are different from any in the market, except, however for the coin-operated car wash which has an average price of $5.  For full-service oil changes, the price ranges from $25 to $30.

7.1 Marketing Strategy

Advertising & Promotion

We will utilize an existing car wash for expanding into DIY auto repair; communication will be developed to inform current customers of the coming opening of DIY Wash N' Fix. Billboards will announce the project, and posters and flyers will be available on-site, as well as in local specialized stores (automotive) and department stores.

The marketing budget will be dedicated to actions with a local scope. Print advertising will focus on local newspapers and direct-mail marketing. Broadcast advertising will be used on local radio stations and television channels.

The Internet is an additional media channel. A company website can inform current and potential customers of the services being offered at the DIY Wash N' Fix facilities. The website address will be communicated through all the previously mentioned communication tools to incite people to check its offers. Visitors to the website can get pricing information and locations nearest them.

Business relationships will have to be created with local businesses such as auto parts stores, so that they would give referrals to their own customers to use the DIY Wash N' Fix facilities.

Marketing Budget

The marketing budget allocated to the launching of the DIY Wash N' Fix business is 10% of the estimated sales, i.e. $88,812 for year one. This budget will be used with a local scope in the media. The break down is 10% for billboards, 20% for posters and flyers, 25% for local newspapers and magazines, 27.5% for local radio stations and television channels, 10% for direct marketing operations, 5% for setting up and maintaining a Web site, as well as 2.5% that could be used to nurture relationships or partnerships with local stores providing referrals to their customers.

7.2 Media Plan

Uses and costs of specific marketing tools for the first year:

Communication ToolBudget %CostTiming
Billboards10%$8,881Starting before opening.
Posters and flyers20%$17,762Announce the opening of the facility.
Also steady flyers to inform about the facilities.
Local newspapers and magazines25%$22,203Opening time + steady ads.
Local radio stations and television channels27.5%$24,423Opening time + steady ads.
Direct marketing10%$8,881
Website5%$4,442Available before the opening of the facilities + updates to allow online reservation for a bay.
Relations with local businesses2.5%$2,220
Total100%$88,812

7.2.1 Service and Warranty

DIY Wash N' Fix will not give any warranty of the repair operations made by individuals. When checking in, the customer fills out a form with a disclaimer relinquishing DIY Wash N' Fix from any liability resulting in the customer's inability to perform the repair, as well as any lost or stolen property if the customer leaves the bay unattended. However, DIY Wash N' Fix provides advice and information to its customers in terms of which tools to use, and repair guides are available for consultation.

7.3 Target Market Segment Strategy

Primary Target Markets

The broad target market for DIY Wash N' Fix consists of individuals who are willing and able to perform minor repair and maintenance on automobiles. Specifically, we are targeting an individual who wants to work on his vehicle, yet does not have the proper tools or adequate workspace to do so. We believe there is a segment of the population that would like to perform their own maintenance, but do not for the following reasons:

  1. They do not have an appropriate space to work on their vehicle, such as a heated, well-lit garage.
  2. They do not have the right equipment, such as hydraulic lifts, pneumatic wrenches, etc.
  3. They do not have the right tools, such as torque wrenches, star-headed screwdrivers, extension socket wrenches, etc.

Certain auto parts require special tools to replace that specific part. These tools can be expensive and impractical for the average consumer to buy. Targeting individuals with physical space constraints is essential to our success. Our target market must have the desire to do this work but lack the area to do it in. For example, individuals living in apartment buildings cannot do maintenance on their vehicles in the apartment building parking lots. The number one reason individuals do DIY work is to save money. Therefore, we are targeting the lower income do-it-yourselfer who will find our services beneficial.

Secondary Target Markets

The secondary target market for DIY Wash N' Fix is focused on individuals who wash their own vehicles. This is a broader market that includes our entire primary market. This individual bears the responsibility of maintaining their vehicle's appearance. The cost savings and act of washing their own vehicle is more attractive to them than paying someone else to do it.

Demographics of Target Market

In a comprehensive survey consisting of 2,584 interviews with do-it-yourselfers, approximately 89% of the respondents were male. The breakdown of the respondents according to age was as follows:  

Age

Percent

< 18  

2%

18-25  

18%

26-35

30%

36-45  

24%

46-55  

16%

56-65  

7%

> 65  

3%

As previously mentioned, saving money is important to the do-it-yourselfer. Therefore, income is also important in identifying the target market.  The following is a list of the amount of DIY activity as a function of income:

IncomeAmount of DIY activity
< $20,00012%
$20-$29,00018%
$30-$39,00022%
$40-$49,00012%
$90-$99,99914%

Broken down by race, the number of Asians and Hispanics that are do-it-yourselfers was approximately 60%. Caucasians and African Americans registered at approximately 48%.

To determine geographic locations for this target market, the top locations for retail after-market auto parts were evaluated. According to the U.S. Department of Labor, the following states have the most auto parts stores:  California (5,030), Texas (3,280) and Florida (2,558).  Therefore, we are going to locate our facility in one of these states because of the high percentage of DIY sales.