Auto Repair Service Business Plan

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Quick and Dirty Auto Repair

Opportunity

Problem & Solution

Problem Worth Solving

 

Between having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, there is a constant significant demand for auto repair services and auto parts. Convenience is a must for most middle and upper-class consumers and travelers. Where can they go to meet their needs

Our Solution

Quick and Dirty Auto Repair aims to offer high-quality auto repair services and a full range of auto parts. QDAR focuses on personalized service to its customers by offering convenience and rapid service. Additionally, QDAR is technologically savvy with computerized monitoring of all parts inventory, to ensure that parts are always in stock, while keeping a balanced level of inventory to maximize inventory turnover. Finally, QDAR has strong vendor relationships with the most service conscious vendors who are capable of shipping major parts rapidly (on an overnight timeline in most cases).

Target Market

Market Size & Segments

QDAR has a focus on meeting the demand of a regular local resident customer base, as well as towed vehicle drop-ins from local and freeway traffic traveling on nearby freeways. QDAR has established relationships with a few major local tow truck companies for referral business of stalled vehicles requiring a tow to an auto repair facility.

The company estimates that about 80% of revenues will come from the established local clientele and 20% from the local and freeway traffic tow-ins. The table below further estimates the total market potential of the type of services rendered by QDAR in the Portland metropolitan area.

4.1 Market Segmentation

QDAR focuses on the middle and upper-income markets. This market looks for high quality, rapid service with as much convenience as possible. Most individuals in this market segment are willing to pay an extra premium within the pricing of auto repair services to avoid the common inconveniences of having a vehicle tied up in a repair shop.

Local residents regular customer base
QDAR wants to establish a significantly large regular customer base. This will establish a healthy, consistent revenue base to ensure the stability of the business.

Emergency towing local and freeway traffic
Emergency towing of local and freeway traffic comprises approximately 20% of revenues. Convenience, regular referrals from tow truck companies, and high quality, rapid service are critical to capturing this segment of the market.

Current Alternatives

There are over 400 auto repair and auto parts competitors in the local area. Only a quarter of these competitors offer both auto repair services and auto parts inventories. Among these, only a few are major national chains. The remainder are small privately-owned establishments. QDAR will compete well by focusing on convenience and offering a high level of customer service. Additionally, its honest reputation will be a major factor in repeat business and building a large base of regular, loyal customers.

Primary competitors are engaged principally in the retail sale of automotive parts, tires and accessories, automotive maintenance and service and the installation of parts. Larger competitors have adopted the "supercenter" store model, a freestanding, "one-stop" shopping automotive warehouse that features state-of-the-art service bays. These "supercenters" carry thousands of stock-keeping units and serve the automotive aftermarket needs of the "do-it-yourself," the "do-it-for-me" (automotive service), tire and "buy-for-resale" customer sectors.

Large competitors’ stores typically carry the same basic product line, with variations based on the number and type of cars registered in the different markets. A full complement of inventory at a typical supercenter includes an average of approximately 25,000 items.

Automotive product lines usually include:

  • Tires.
  • Batteries.
  • New and remanufactured parts for domestic and imported cars, including:
    • Suspension parts.
    • Ignition parts.
    • Exhaust systems.
    • Engines and engine parts.
    • Oil and air filters, belts, hoses, and air conditioning parts.
    • Lighting.
    • Wiper blades.
    • brake parts.
  • Chemicals, including oil, antifreeze, polishes, additives, cleansers and paints.
  • Mobile electronics, including sound systems, alarms, and remote vehicle starters.
  • Car accessories, including seat covers, floor mats, and exterior accessories.
  • Hand tools, including sockets, wrenches, ratchets, paint and body tools, jacks and lift equipment, automotive specialty tools and test gauges.
  • A selection of truck, van, and sport utility vehicle accessories.

Many competitors have adopted point-of-sale systems in their stores, which gathers sales and gross profit data by a stock-keeping unit from each store on a daily basis. This information is then used to help formulate pricing, marketing, and merchandising strategies. Electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery.

Additionally, a number of competitors have electronic work order systems available amongst their various service centers. This type of system creates a service history for each vehicle, provides customers with a comprehensive sales document, and enables the service center to maintain a service customer database.

Our Advantages

QDAR’s competitive edge is the heavy focus on customer convenience by offering unlimited shuttle service, rapid turnaround on auto repair jobs, and a referral network of a few local major tow truck companies.

Keys to Success

Keys to Success

Our keys to success will include:

  1. Expedient and convenient auto repair services.
  2. Growing and maintaining a referral network of local towing service companies.
  3. A wide range of auto parts inventory that is (nearly) never out of stock.
  4. Rapid order and delivery of major auto parts items.
  5.  

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