Soapy Rides Car Wash

Start your own business plan »

Car Wash Business Plan

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 Forecast
Year 1 Year 2 Year 3
Unit Sales
Full Wash 1,760 2,288 2,974
Exterior Wash 2,050 2,665 3,465
Interior Clean 770 1,001 1,301
End User Detail 129 193 290
Business Fleet Washes 615 923 1,384
Car Dealership Details 494 642 963
Total Unit Sales 5,818 7,712 10,376
Unit Prices Year 1 Year 2 Year 3
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 Costs Year 1 Year 2 Year 3
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 Sales
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
Milestone Start Date End Date Budget Manager Department
Complete Business Plan 2/1/2001 5/1/2001 $0 ABC Department
Sign Rental Contract 3/20/2001 3/20/2001 $475 Mark Owner
Convert Premises 4/1/2001 4/30/2001 $0 Contractors Contractors
Hire Car Wash Staff 4/20/2001 4/20/2001 $200 Mark Owner
Hire Admin Staff 4/20/2001 4/20/2001 $200 Mark Owner
Open for Business 5/1/2001 5/1/2001 $0 Staff Staff
Distribute Flyers 4/28/2001 5/5/2001 $75 Friends Friends
Press Release 4/29/2001 4/29/2001 $25 Mark Owner
Follow-up on Press Release 4/30/2001 4/30/2001 $0 Mark Owner
Totals $975