The next thing to write after the general description should be your marketing strategy. For new or existing businesses, market analysis is an important basis for the marketing plan and will help justify the sales forecast. Existing businesses will rely heavily on past performance as an indicator of the future.
Companies in this industry provide repair and maintenance services for passenger cars and light trucks.
The industry is expected to grow at a low rate over the next two years. More consumers replacing their old cars after postponing new car purchases during the recession may contribute to slow industry growth in the near term.
The profitability of individual companies depends on convenient location and good marketing. Large companies can maximize use of expensive diagnostic equipment and have advantages in purchasing, distribution, and marketing.
Small companies can compete effectively by providing superior customer service or offering specialized services.
The industry is highly fragmented: Competition diy auto business plan other venues that provide automotive services, including some gas stations, car dealerships, and branches of chain stores, like Sears and Kmart.
Auto repair shops perform an estimated 70 percent of repairs for out-of-warranty vehicles This Auto Repair Business market research report summary is from IBISWorld which also sells a full version of this report.
The slower general economic conditions had led many consumers to repair their own cars. This increasing demand is forecast to raise the number of repair shop business locations by an annualized rate of 0.
Stronger demand for automotive repair services is also expected to lead to industry operators charging for services that they offered for free during the recession, which in turn could fuel growth in auto repair business profits.
Customer retention was a focus area during the past five years of generally slow economic growth. As auto repair business conditions improve going forward, auto repair shop operators will shift their focus to expanding their customer base by providing quality service.
Forecasts for higher personal disposable income suggest that auto repair industry operators will enjoy higher profit margins from services that they previously offered for free or at heavy discounts during the recent recession.
Advances in auto manufacturing technology are having many impacts on the auto repair business: Hybrid designs and other new systems require additional training for mechanics; sometimes these changes can give auto dealers an advantage, if their teams are trained on a more regular cycle than the local auto repair shop.
New designs also can require new diagnostic tools that can be expensive for auto repair shops to acquire. New designs can require less frequent traditional repairs like tuneups that are a source of recurring revenue for independent auto repair shops.
During the five years towages are projected to increase at an estimated average annual rate of 1. Auto repair mechanics who are trained on the the new auto systems can demand higher wages, which auto repair shop operators will need to factor into their repair pricing schedules.
Here is a brief excerpt of an automotive repair industry report available for purchase from the Freedonia Group.This sample business plan has been made available to users of Business Plan Pro®, business planning software published by Palo Alto Software.
Names, loc ations and numbers may have been c hanged, and substantial portions of the original plan text may have been omitted to preserve confidentiality and proprietary information. Discover how to develop a business plan that will make bankers, prospective partners and investors line up at your door.
It will help you predict problems before they happen and keep you from losing your shirt on a dog business idea. The marketing and sales plan section of your business plan details how you plan to reach your target market segments, how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.
n profile (business plan f updates 1 Flexible and Cost-Saving Automotive Repair Unplanned automotive repairs create a financial emergency for most middle and . In the eyes of John Pennella, owner of a new do-it-yourself auto garage in Wichita, Kan., these trends are a business opportunity to provide DIY mechanics with commercial-grade spaces for performing their own repairs in the comfort .
Home〉Business Plan〉Diy Business Plan Marketing Analysis/Strategy: The next thing to write (after the general description) should be your marketing strategy. For new or existing businesses, market analysis is an important basis for the marketing plan and will help justify the sales forecast.