Millenium Automotive Repair Business Plan

1. Millenium Automotive RepairBusiness Plan Brought to you by Howard & Kathryn Bazinet Market Summary Competition Analysis Launch & Promotion Parts and Labor Pricing Support Documents

2. Market Summary • Millenium Automotive Repair is scheduled to open in the Fall of 2000 to bring the Burnsville/Apple Valley area a higher level of automotive customer service and expertise than ever before. • As an A.S.E. Certified Master Technician with over 12 years experience, Howard considers himself to be a leader in automotive technology and is dedicated to achieving the highest degree of customer service ever in a market plagued by stereotypically low standards. The name says it all… Millenium Automotive Repair. Support Documents

3. Market Summary (continued) • Millenium Auto will be a six bay service center specializing in all aspects of underhood and undercar service including, but not limited to: engine repair, electrical system diagnosis and repair, brakes, suspension, exhaust, cooling system & air conditioning repair and periodic maintenance (tune-ups, oil changes, etc.) • Hours of operation will be Monday through Friday 7AM to 6PM and Saturday 8AM to 5PM. This will enable us to maintain a competitive edge by being available for service throughout the day. Evening hours are planned as the business grows. Support Documents

4. Market Summary (continued) • Millenium Auto will initially employ three trained technicians and one additional general service technician. As the business grows, additional technicians will be added to meet the growing demand. • The shop area will be equipped the the latest equipment available. High tech items such as lab scopes and diagnostic scanners will implement cutting edge technology enabling us to work on late model vehicles. All equipment will be purchased new or leased where necessary. Bids are currently being submitted from various venders. Support Documents

5. Competition Analysis • Millenium Auto’s competition can be defined as any automotive repair shop within a three mile radius. Burnsville Amoco and Sioux Trail Goodyear are competitors to the North. Cedar Cliff Amoco is to the East, and Crosstown Amoco is to the West. A Goodyear store is located 1 and 1/2 miles South. None of these stores come within a one mile radius to the proposed site of Millenium Auto. This gives us sole access to a customer base whose average household income exceeds $100,000. Visibility and high traffic counts (34,000 vehicles per day) afford high profit potential. Support Documents

6. Competition Analysis (continued) • As part of the planned “Autocare of America” service center, Millenium Auto would share an auto-mall type facility with other businesses related to automobiles. This would include auto glass shops, auto body repair shops and possibly tire dealers such as Goodyear or Firestone. • Agreements with the developer would include a none-compete clause to protect the tenants from direct competition from within the auto care center. The project developer has a similar car care center currently thriving in West Bloomington Minnesota. Support Documents

7. Launch & Promotion • Millenium Auto plans to announce our grand opening date to the public as soon as possible. This will occur shortly after Hoffman Development begins construction. At that time, a five month promotional period will begin. Large signs announcing the launch will be constructed at the site and advertising in local papers will begin. As opening day nears, advertising will increase to ensure adequate customer volume at startup. Various marketing strategies after start-up will be implemented depending on customer volume and demand. Support Documents

8. Launch & Promotion (continued) • Examples of marketing plans: • Direct mail coupons • “V.I.P” cards offering values to cardholder • Roadside billboard advertising • Radio spots • Local cable television spots • Door to door coupon distribution • Local business employee discounts • Yellow page advertising • Tie-in with towing vendors Support Documents

9. Parts and Labor Pricing • Initial shop labor rate will be set at $69.50 per hour for flat rate (book time). Labor times will be based on current published labor guides such as Chilton, Mitchell or Motor labor estimating guides. • Menu pricing will be in effect for maintenance services (tune-ups, brakes, oil change, etc.) and will be based on competitive levels in the market. • Parts mark-up formulas and menu pricing for maintenance services will be defined under supporting documents for further review. Support Documents

10. Success Metrics • As the founders of Millenium Automotive Repair, Howard and Kathryn Bazinet fully believe that our business will be an instant success. The two of us have enough experience within the automotive and financial industries to enable us to combine forces and become a formidable competitor. Our goal is to become the leader in automotive repair by staying ahead of local competitors in knowledge and resources. As the business matures, customers will come to rely on Millenium Automotive for all their auto service needs. Support Documents

11. Schedule: • As of August 24th, 1999, Hoffman Development has secured approval from the city of Burnsville’s planning commission and and proceeding with plat drawings and physical layouts of the planned site. Kevin Hoffman suggested a possible July 2000 opening date. We are preparing to be ready by that time. Support Documents

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