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The total targeted population is just over 43, Market Needs Soapy Rides is providing the market with a premium hand car wash service for the East Meadow community. SR seeks to fulfill the following benefits that are important to the customers: Exemplary customer service- The target customers have money and are used to having excellent customer service.
They will not regularly use SR unless they receive excellent service.
High quality washes- The target market value a higher quality wash for their upper-end cars. Convenience- The hours of operation as well as the time needed to provide the service must be convenient and fast respectively, to gain market share.
Market Trends The market trends for the car washing industry has been a gravitation from hand washing to automatic washing machine facilities. This trend has been fueled by the progression of technology. The automatic washing machines have become less expensive and more efficient over the last few years to the point that it is typically cost effective to invest in these machines.
While one might presume that this would lead to the demise hand washing, the abrasiveness of the machines will never be appropriate for expensive automobiles. This trend will luckily not have a significant impact on hand washing facilities that have a sufficiently large customer base that posess expensive cars.
Luckily for Soapy Rides which does have an upper end clientele, market supply will decrease and demand will increase.
Strengths Good relationships with many perspective customers in the target market. Strong family name recognition and equity in the community. The need for reliance on outside investors.
The learning curve associated with entering an industry without direct prior experience. The need to have a fairly constant volume of business to support the necessary service staff.
Opportunities Participation within a steadily growing industry. A high likelihood of repeat business. The ability to decrease the fixed costs as a percentage of an individual sale as volume increases. A slump in the economy, reducing discretionary spending. The perception that there is not a difference in quality between a hand and machine wash.
Competition There is one other hand car wash shop in East Meadow. It is quite new and is trying to compete with automatic car washes by offering low prices.
However, it is not targeting the customers who seek quality cleaning. The customers who Soapy Rides is targeting have their cars washed based on the quality of the job.Creating a professional, investor ready business plan has never been easier.
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