Car Wash Paper

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Words: 2162

Pages: 9

Category: Business and Industry

Date Submitted: 11/11/2012 07:06 AM

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VIP Mobile Detailing is a premier mobile car wash, providing detailing services to residential and commercial accounts in Washington, D.C. The primary revenue stream for the business will come from the sale of mobile car detailing services where 70 percent will be provided on site at a customer’s home or place of business and 30 percent of services will be provided to commercial accounts. As many car owners are very busy, the demand for onsite car washing and detailing services has never been greater. This is especially true among professionals and business executives that own expensive vehicles yet lack the time to properly keep the vehicle’s exterior and interior clean. The business will also recognize revenues from the sale of car detailing and car cleaning products that will be sold to customers for spot cleaning. Management expects that this will be a very small segment to the Company’s operations, and will aggregately provide approximately 10% of the Company’s top line income.

VIP Mobile Detailing will provide complete car washing services for people living within the target market. The car washing and detailing services will consist of both exterior and interior cleaning services including exterior washing and drying of the vehicle and internal vacuuming, window cleaning, and scent removal. The business will operate through a mobile truck that will allow the business to move from location to location throughout the area. The business will use two trucks to carry the equipment, and 1-2 employees to each location.

The five forces model is used “…to determine the setting in which companies compete and hence the attractiveness of the industry” (Scarborough, 2011, p. 102). In this portion of the feasibility analysis, we will assess industry competition, and bargaining power of buyers,

Washing cars is a $6 billion industry according to the International Carwash Association (There are over 57,131 car washing and detailing establishments (includes mobile...