There is a possibility for an exciting and profitable new business in Eugene, Oregon. University Mopeds will to rent mopeds to University of Oregon students, as well as anyone who would have a need for efficient, around-town transportation. There is currently no business like this, in Eugene, which caters to this market.
For slightly more than the cost of a monthly cellular phone bill, it is possible for a student to have their own mode of transportation during the school year. Mopeds have many positive advantages over cars: lower operating costs, fuel efficiency, and are less costly to maintain. It is also possible to insure these vehicles for around $30-$50 per year.
The target market for this business would be the approximately 15,000 full-time students. There are also thousands of students who are commuting daily from the Autzen Field area. Parking on campus is hard to find, and the bus offers few options. This is where the economical moped comes into play.
Many students do not have the disposable income that it takes to purchase a moped, but they are in a position to pay $50 per month to rent one. University Mopeds would purchase used mopeds for $400-$700 and lease them out. The average moped would be paid off in under one year.
In year one, University Moped would attempt to get 1% of all full-time students. This would equate to 150 mopeds rented. We expect the five year growth rate to be at least 15%.
Assuming an average purchase price of $550, and a ten month rental contract at $50 per month, it is possible for University Mopeds to be profitable in year two.
- Rent 150 units in year one.
- University Mopeds will be fully self-sufficient and profitable by year three.
- Rent at least 199 units by year three and 263 units by year five (15% annual growth rate).
University Mopeds will service the student first. At University Mopeds, clients will be able to rent a quality means of transportation at a fair price. University Mopeds will also be a profitable business which will treat employees fairly and provide financially for its owners.
1.3 Keys to Success
- Good customer service and value.
- Affordable rental prices.
- Reaching the target market.
- Integrity in serving our customers; resulting in repeat purchases.