Strategy and Implementation Summary
The following topics describe our competitive edge, marketing strategy and sales strategy.
5.1 Marketing Strategy
Marketing in our car wash business relies on the name recognition of the Laserwash system as an industry leader and the “curbside” appeal of the site for first time customers. Quality service will bring customers back time and time again. Also, use of a local radio station and the “word of mouth” advertising of satisfied customers will grow our customer base. We will offer a competitive price for all budgets. Our base wash will be $5 and our deluxe wash will be $8.
5.2 Competitive Edge
We start with a critical competitive edge: there is no competitor in San Angelo that offers a 2-bay, 24 hour, automatic and self-serve combination car wash. Our competitors consist of “event washes.” We define “event washes” as self-serve, lube+wash, gas+wash and friction washes. Currently, San Angelo customers must plan significate time and/or effort to get a quality car wash. Our positioning in these areas are very hard to match if we maintain our focus on customer service, speed, quality and reliability.
5.3 Sales Strategy
Sales in our business is client service. It is repeat business. We will ensure the following elements are the building blocks of our marketing/sales strategy:
- 24 hour service availability
- quality service at good value (attendants on duty: 10 – 6, Mon – Sat, who are always focused on customer satisfaction)
- Reliability in all seasons/weather.
5.3.1 Sales Forecast
The following table and chart give a run-down on forecasted sales. We expect to average over $26,000 in overall sales by the third month of operation. Being an all cash business we also expect to at least break-even during the first two months of operation.
Because of the all-weather capabilities of the Laserwash 4000 system and the mild winters in West Texas, we expect to have relatively consistent sales throughout the year. Variable expenses have been averaged to account for fluctuation in price from season to season.
Plan years 2004 and 2005 have the income and expenses for two sites with the same assumptions for the second site during its first year of operation.
Projected Gross Revenue:
- Both Automatic Bays are projected to average 61 cars/day the first two months and 105 cars/day after the business is well established. Wash prices will vary, currently $5.00 to $8.00, depending on the options the customers selects. Projected automatic wash revenue assumes an average of $6.25 per wash.
- Self-Serve Bay income is projected at $1,500 per month. This assumes 40 cycles per bay each day. A cycle is $1.25 for 4 minutes. The average self-serve customer spends $4.50 per wash.
- Vacuum and Vending revenue is projected to be 5% of aggregate automatic and self-serve revenue. This projection is based on a vacuum price of $.75 for 4 minutes.
- Reverse Osmosis Water revenue is projected to be $750 per/month. Drinking water in San Angelo is a significant market. Reverse osmosis water will be offered at $.25 per/gallon.
- ATM revenue is projected to be $100/month. First Convenience Bank will fully maintain the ATM.
Note: All numbers assume a second site is opened at the beginning of the second year.
|Year 1||Year 2||Year 3|
|Laser Car Wash Sales||$222,802||$462,334||$479,064|
|Vacuum / Vending Sales||$14,440||$29,600||$30,672|
|RO Water Sales||$8,500||$19,224||$19,920|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Laser Car Wash Sales||$50,130||$104,025||$107,789|
|Vacuum / Vending Sales||$2,834||$5,950||$6,231|
|RO Water Sales||$0||$0||$0|
|Subtotal Direct Cost of Sales||$60,297||$125,307||$130,018|