Auto Accessories and Detailing Business Plan


AUTO ACCESSORIES UNLIMITED

1012 Lafayette Blvd.
Allen Park, MI 48101

This business plan for an auto accessories and detailing facility contains a comprehensive list of the physical needs of the business, as well as a detailed account of the financial status of the business.

  • BUSINESS DESCRIPTION
  • MARKET ANALYSIS
  • PRODUCTS AND SERVICES
  • MARKETING STRATEGY

BUSINESS DESCRIPTION

Auto Accessories Unlimited provides automotive aftermarket accessories, electronics, and glass repair and replacement.

Name

Auto Accessories Unlimited's corporate experience includes 29 stores in the Michigan tri-state area. Franchises for the stores have been offered since 1984. The Allen Park location has approximately 4,800 square feet, consisting of a 2,000 sqare foot retail showroom, 500 square feet in office space, and a 2,300 square foot on-site installation service area divided into six bays.

Products and Services

Auto Accessories Unlimited's products and services consist of:

  • Auto security
  • Car audio systems
  • Cellular
  • Car and truck accessories
  • Auto care protection
  • Glass repair and replacement
  • Classic car parts

Market and Competition

Nationally: steady continuous growth for the last ten years

Regionally: very popular, some areas fairly unexposed but continuous growth

Locally: untapped, virtually no advertising done. Not a single company in area offering even half as much. Very few of those companies even offer such products or services.

Competition:

Auto security - three players in town. No advertising.

Car audio systems - same three players. One major advertiser.

Cellular - many players. Both GTE and Cellular One. Very little advertising. Some newspaper, very little radio.

Auto accessories - almost non-existent. No advertising.

Truck accessories - no real competition.

Auto care protection - one major player; little advertising.

Glass replacement - three major players; one well established.

Classic car parts - no competition.

Management Expertise

Auto Accessories Unlimited is a partnership between Jane De Vries and Mike Hansen. As coowner, Jane will be the sales manager, with nine years of increased responsibilities in automotive aftermarket and cellular sales, including management of Car Tunes of Grand Rapids, Michigan. Mike will be the service shop manager, with more than five years of aftermarket installation experience. Both will be responsible for customer service in the overall operations of the business.

Business Goals

  • To establish and maintain the number one market position of the automotive after-market accessories business in the local market, opening two additional stores within the next five years.
  • To strive for 100% customer satisfaction by establishing a loyal and repeat customer base.
  • To provide consistent services and affordable quality products.

Summary of Financial Needs and Applications of Funds

The following table lists the top-level approximate investment needed to provide the resources to build, establish, and maintain a successful business. The second table lists business collateral along with a proforma with estimated annual sales of $500,000 for the first year.

Application of Funds and Financial Need
Franchise $24,000
Shop Equipment 17,900
Office and Showroom Equipment 21,000
Inventory 28,000
Store Awning 5,000
Signage 3,500
Neon Lighting 3,000
Working Capital 25,000
Set-up Costs 1,500
Interior Development 2,500
Training 1,000
Rent Deposit 3,800
Other Deposits 2,000
Insurance 2,000
CPA/Attorney 2,500
Grand Opening 5,500
Miscellaneous 2,000
TOTAL $150,000

Funds Breakdown

Shop Equipment

100 gallon air compressor
Heavy-duty pressure washer
Gold/chrome plating machine
Drive-on auto lift (7000 lb.)
Large tool chest with complete set of tools (approx. $2,500)
Makita cordless drills
Electric Makita drill
Assorted air drills
Makita air snips
Makita electric snips
Two shampoo interior extractors
Wet/dry heavy-duty vacuums
Two buffers
Two polishers
Heavy-duty jig saws
Impact air tools
Air ratchets
Heavy duty washer and dryer
Battery charger
Jumper cables
Dremeltool
Solder guns
Heat guns
Die grinders
Vice
Bench grinder
Fender covers
File set
Blow guns
Drop-cord lights
Tube lights
Extension cords
Air hoses
Multi-meters
Heavy-duty drill bit set
Punch and chisels
Tape measures
Rubbermallets
Utility knives
Large supply of electrical connectors
Various nuts and bolts
Ozonemachine (odorremover)
Metal storage cabinets
Large metal bins
Heavy-duty folding tables
Numerous detailing accessories
Miscellaneous

Office Equipment

Fax machine
Copier
Phone system
Computers
486 × 100 pentium services
CD ROM drive
1 grey scale scanner
1 laser printer
1 dotmatrix printer
3 14" color VGA monitors
Software
3 large desks and 6 chairs
Assorted filing cabinets
Credit-card terminal and printer
Metal storage cabinets
Large deluxe customer counter (to be built)
Office supplies

Showroom Equipment

Large audio display and comparator/sound room (to be built)
Waiting room seating
Small TV for waiting room
Water cooler
Display racks
232 square feet of slatwall and hangers
Tint display

NOTE: Numbered items below correspond to items listed in the table - "Applications of Funds "

Collateral
Shop equipment $17,900
Office and showroom equipment 21,000
Inventory 28,000
Rent deposit 3,800
Other deposits 2,000 48%
Total 72,700
Additional Collateral (to sell at one-half value)
Franchise $12,000 56%
Total 84,700
Additional Collateral (to sell to other locations at 75% of cost)
Awnings 5,000
Signage 3,500
Neon lighting 3,000 62%
$11,500×.75 = 8,625
Total $93,325
Working capital of .5 of original figure ($25,000) 12,500 70%
Total $105,825
Operations Budget 500,000
Proforma 1996/1997
Income May 96 Jun 96 Jul 96 Aug 96 Sep 96 Oct 96 Nov 96 Dec 96 Jan 97 Feb 97 Mar 97 Apr 97 Total YTD
Sales-Auto Glass 5000 4000 4500 4000 4500 4500 3500 4000 3500 3500 4500 4500 50000 10%
Sales-Cellular 6000 4800 5400 4800 5400 5400 4200 4800 4200 4200 5400 5400 60000 12%
Sales-Security 13500 10800 12150 10800 12150 12150 9450 10800 9450 9450 12150 12150 135000 27%
Sales-Accessories 11500 9200 10350 9200 10350 10350 8050 9200 8050 8050 10350 10350 115000 23%
Sales-Detailing 6500 5200 5850 5200 5850 5850 4550 5200 4550 4550 5850 5850 65000 13%
Sales-Classic Parts 2500 2000 2250 2000 2250 2250 1750 2000 1750 1750 2250 2250 25000 5%
Sales-Audio 5000 4000 4500 4000 4500 4500 3500 4000 3500 3500 4500 4500 50000 10%
Net Income % 50000 40000 45000 40000 45000 45000 35000 40000 35000 35000 45000 45000 500000 100%
Cost of Sales
Cost-Auto Glass 2000 1600 1800 1600 1800 1800 1400 1600 1400 1400 1800 1800 20000
Cost-Cellular 300 240 270 240 270 270 210 240 210 210 270 270 3000
Cost-Security 4725 3780 4253 3780 4253 4253 3308 3780 3308 3308 4253 4253 47250
Cost-Accessories 4600 3680 4140 3680 4140 4140 3220 3680 3220 3220 4140 4140 46000
Cost-Detailing 325 260 293 260 293 293 228 260 228 228 293 293 3250
Cost-Classic Parts 1250 1000 1125 1000 1125 1125 875 1000 875 875 1125 1125 12500
Cost-Audio 2000 1600 1800 1600 1800 1800 1400 1600 1400 1400 1800 1800 20000
Direct Labor 4000 3200 3600 3200 3600 3600 2800 3200 2800 2800 3600 3600 40000
Total Cost of Sales 19200 15360 17280 15360 17280 17280 13440 15360 13440 13440 17280 17280 192000
Gross Profit Margin 30800 24640 27720 24640 27720 27720 21560 24640 21560 21560 27720 27720 308000
G&A Expenses
Salaries-Office
Salaries-Sales 2426 2426 2426 2426 2426 2426 2426 2426 2426 2426 2426 2426 29112
Sales-Management 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 72000
Casual Labor 45 45 45 45 45 45 45 45 45 45 45 45 540
Subcontract Labor 150 150 150 150 150 150 150 150 150 150 150 150 1800
Payroll Taxes 994 930 962 930 962 962 898 930 898 898 962 962 11289
Outside Services 50 50 50 50 50 50 50 50 50 50 50 50 600
Royalties 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000
Rent 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 42000
Office Supplies 125 125 125 125 125 125 125 125 125 125 125 125 1500
Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0
Uniforms 100 100 100 100 100 100 100 100 100 100 100 100 1200
Utilities 400 400 400 400 400 400 400 400 400 400 400 400 4800
Operations Budget
550,000 10% increase from previous year
Bldg & Grds Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0
Automobile Lease 0 0 0 0 0 0 0 0 0 0 0 0 0
Automobile Expense 150 150 150 150 150 150 150 150 150 150 150 150 1800
Postage 200 200 200 200 200 200 200 200 200 200 200 200 2400
Printing 125 125 125 125 125 125 125 125 125 125 125 125 1500
Forms & Stationery 100 100 100 100 100 100 100 100 100 100 100 100 1200
Telephone 333 333 333 333 333 333 333 333 333 333 333 333 3996
Advertising 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 39996
Membership 20 20 20 20 20 20 20 20 20 20 20 20 240
Dues & Subscriptions 20 20 20 20 20 20 20 20 20 20 20 20 240
Office Equipment Rental 25 25 25 25 25 25 25 25 25 25 25 25 300
Contributions 10 10 10 10 10 10 10 10 10 10 10 10 120
Training/Education 100 100 100 100 100 100 100 100 100 100 100 100 1200
Entertainment 250 250 250 250 250 250 250 250 250 250 250 250 3000
Legal & Accounting 350 350 350 350 350 350 350 350 350 350 350 350 4200
Bank Charges 250 250 250 250 250 250 250 250 250 250 250 250 3000
Bank Business Loan 1983 1983 1983 1983 1983 1983 1983 1983 1983 1983 1983 1983 237%
Interest Expense 10 10 10 10 10 10 10 10 10 10 10 10 120
License & Fees 30 30 30 30 30 30 30 30 30 30 30 30 360
Property Tax 0 0 0 0 0 0 0 0 0 0 0 0 0
Property Tax-Personal 50 50 50 50 50 50 50 50 50 50 50 50 600
Insurance-General 70 70 70 70 70 70 70 70 70 70 70 70 840
Insurance-Medical 70 70 70 70 70 70 70 70 70 70 70 70 840
Insurance-Workers Comp. 70 70 70 70 70 70 70 70 70 70 70 70 840
Employee Benefits 40 40 40 40 40 40 40 40 40 40 40 40 480
Equipment Lease 0 0 0 0 0 0 0 0 0 0 0 0 0
Total G&A Expenses 22879 22815 22847 22815 22847 22847 22783 22815 22783 22783 22847 22847 273909
Operations Profit/Loss 7921 1825 4873 1825 4873 4873 −1223 1825 −1223 4873 −1223 4873 34091
Proforma 1997/1998
Income May 97 Jun 97 Jul 97 Aug 97 Sep 97 Oct 97 Nov 97 Dec 97 Jan 98 Feb 98 Mar 98 Apr 98 Total YTD
Sales-Auto Glass 5500 4400 4950 4400 4950 4950 3850 4400 3850 3850 4950 4950 55000 10%
Sales-Cellular 6600 5280 5940 5280 5940 5940 4620 5280 4620 4620 5940 5940 66000 12%
Sales-Security 14850 11880 13365 11880 13365 13365 10395 11880 10395 10395 13365 13365 148500 27%
Sales-Accessories 12650 10120 11385 11880 10120 11385 8855 10120 8855 8855 11385 11385 126500 23%
Sales-Detailing 7150 5720 6435 5720 6435 6435 5005 5720 5005 5005 6435 6435 71500 13%
Sales-Classic Parts 2750 2200 2475 2200 2475 2475 1925 2200 1925 1925 2475 2475 27500 5%
Sales-Audio 5500 4400 4950 4400 4950 4950 3850 4400 3850 3850 4950 4950 55000 10%
Net Income % 55000 44000 49500 44000 49500 49500 38500 44000 38500 38500 49500 49500 550000 100%
Cost of Sales
Cost-Auto Glass 2200 1760 1980 1760 1980 1980 1540 1760 1540 1540 1980 1980 22000
Cost-Cellular 330 264 297 264 297 297 231 264 231 231 297 297 3300
Cost-Security 5198 4158 4678 4158 4678 4678 3638 4158 3638 3638 4678 4678 51975
Cost-Accessories 5060 4048 4554 4048 4554 4554 3542 4048 3542 3542 4554 4554 50600
Cost-Detailing 358 286 322 286 322 322 250 286 250 250 322 322 3575
Operations Budget
605,000 10% increase from previous year
Cost-Classic Parts 1375 1100 1238 1100 1238 1238 963 1100 963 963 1238 1238 13750
Cost-Audio 2200 1760 1980 1760 1980 1980 1540 1760 1540 1540 1980 1980 22000
Direct Labor 4400 3520 3960 3520 3960 3960 3080 3520 3080 3080 3960 3960 44000
Total Cost of Sales 21120 16896 19008 16896 19008 19008 14784 16896 14784 14784 19008 19008 211200
Gross Profit Margin 33880 27104 30492 27104 30492 30492 23716 27104 23716 23716 30492 30492 338800
G&A Expenses Salaries-Office
Salaries-Sales 2426 2426 2426 2426 2426 2426 2426 2426 2426 2426 2426 2426 29112
Sales-Management 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 72000
Casual Labor 45 45 45 45 45 45 45 45 45 45 45 45 540
Subcontract Labor 150 150 150 150 150 150 150 150 150 150 150 150 1800
Payroll Taxes 1026 956 991 956 991 991 920 956 920 920 991 991 11609
Outside Services 50 50 50 50 50 50 50 50 50 50 50 50 600
Royalties 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000
Rent 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 42000
Office Supplies 125 125 125 125 125 125 125 125 125 125 125 125 1500
Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0
Uniforms 100 100 100 100 100 100 100 100 100 100 100 100 1200
Utilities 400 400 400 400 400 400 400 400 400 400 400 400 4800
Bldg & Grds Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0
Automobile Lease 0 0 0 0 0 0 0 0 0 0 0 0 0
Automobile Expense 150 150 150 150 150 150 150 150 150 150 150 150 1800
Postage 200 200 200 200 200 200 200 200 200 200 200 200 2400
Printing 125 125 125 125 125 125 125 125 125 125 125 125 1500
Forms & Stationery 100 100 100 100 100 100 100 100 100 100 100 100 1200
Telephone 333 333 333 333 333 333 333 333 333 333 333 333 3996
Advertising 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 39996
Membership 20 20 20 20 20 20 20 20 20 20 20 20 240
Dues & Subscriptions 20 20 20 20 20 20 20 20 20 20 20 20 240
Office Equipment Rental 25 25 25 25 25 25 25 25 25 25 25 25 300
Contributions 10 10 10 10 10 10 10 10 10 10 10 10 120
Training/Educations 100 100 100 100 100 100 100 100 100 100 100 100 1200
Entertainment 250 250 250 250 250 250 250 250 250 250 250 250 3000
Legal & Accounting 350 350 350 350 350 350 350 350 350 350 350 350 4200
Bank Charges 250 250 250 250 250 250 250 250 250 250 250 250 3000
Bank Business Loan 1983 1983 1983 1983 1983 1983 1983 1983 1983 1983 1983 1983 23796
Interest Expense 10 10 10 10 10 10 10 10 10 10 10 10 120
License & Fees 30 30 30 30 30 30 30 30 30 30 30 30 360
Property Tax 0 0 0 0 0 0 0 0 0 0 0 0 0
Property Tax-Personal 50 50 50 50 50 50 50 50 50 50 50 50 600
Insurance-General 70 70 70 70 70 70 70 70 70 70 70 70 840
Insurance-Medical 70 70 70 70 70 70 70 70 70 70 70 70 840
Insurance-Workers Comp. 70 70 70 70 70 70 70 70 70 70 70 70 840
Employee Benefits 40 40 40 40 40 40 40 40 40 40 40 40 480
Equipment Lease 0 0 0 0 0 0 0 0 0 0 0 0 0
Total G&A Expenses 22911 22841 22876 22841 22876 22876 22805 22841 22805 22805 22876 22876 274229
Operating Profit/Loss 10969 4263 7616 4263 7616 7616 911 4263 911 911 7616 7616 64571
Proforma 1998/1999
Income May 98 Jun 98 Jul 98 Aug 98 Sep 98 Oct 98 Nav 98 Dec 98 Jan 98 Feb 98 Mar 98 Apr 98 Total YTD
Sales-Auto Glass 6050 4840 5445 4840 5445 5445 4235 4840 4235 4235 5445 55445 60500 10%
Sales-Cellular 7260 5808 6534 5808 6534 6534 5082 5808 5082 5082 6534 6534 72600 12%
Sales-Security 16335 13068 14702 13068 14702 14702 11435 13068 11435 11435 14702 14702 163350 27%
Sales-Accessories 13915 11132 12524 11132 12524 22524 9741 11132 9741 9741 12524 12524 139150 23%
Sales-Detailing 7865 6292 7079 6292 7079 7079 5506 6292 5506 5506 7079 7079 78650 13%
Sales-Classic Parts 3025 2420 2723 2420 2723 2723 2118 2420 2118 2118 2723 2723 30250 5%
Sales-Audio 6050 4840 5445 4840 5445 5445 4235 4840 4235 4235 5445 5445 60500 10%
Net Income % 60500 48400 54450 48400 54450 54450 42350 48400 42350 42350 54450 54450 605000 100%
Cost of Sales
Cost-Auto Glass 2420 1936 2178 1936 2178 2178 1694 1936 1694 1694 2178 2178 24200
Cost-Cellular 363 290 327 290 327 327 254 290 254 254 327 327 3630
Cost-Security 5717 4574 5146 4574 5146 5146 4002 5474 4002 4002 5146 5146 57173
Cost-Accessories 5566 4453 5009 4453 5009 5009 3896 4453 3896 3896 5009 5009 55660
Cost-Detailing 393 315 354 315 354 354 275 315 275 275 354 354 3933
Cost-Classic Parts 1513 1210 1361 1210 1361 1361 1059 1210 1059 1059 1361 1361 15125
Cost-Audio 2420 1936 2178 1936 2178 2178 1694 1936 1694 1694 2178 2178 24200
Direct Labor 4840 3872 4356 3872 4356 4356 3388 3872 3388 3388 4356 4356 48400
Total Cost of Sales 23232 18586 20909 18586 20909 20909 16262 18586 16262 16262 20909 20909 232320
Gross Profit Margin 37268 29814 33541 29814 33541 33541 26088 29814 26088 26088 33541 33541 372680
Salaries-Office
Salaries-Sales 2547 2547 2547 2547 2547 2547 2547 2547 2547 2547 2547 2547 30568
Sales-Management 6300 6300 6300 6300 6300 6300 6300 6300 6300 6300 6300 6300 75600
Casual Labor 45 45 45 45 45 45 45 45 45 45 45 45 540
Subcontract Labor 150 150 150 150 150 150 150 150 150 150 150 150 1800
Payroll Taxes 1095 1018 1056 1018 1056 1058 979 1018 979 979 1056 1056 12365
Outside Services 50 50 50 50 50 50 50 50 50 50 50 50 600
Royalties 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000
Rent 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 42000
Office Supplies 125 125 125 125 125 125 125 125 125 125 125 125 1500
Repairs & Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0
Uniforms 100 100 100 100 100 100 100 100 100 100 100 100 1200
Utilities 400 400 400 400 400 400 400 400 400 400 400 400 4800
Bldg & Grds Maintenance 0 0 0 0 0 0 0 0 0 0 0 0 0
Automobile Lease 0 0 0 0 0 0 0 0 0 0 0 0 0
Automobile Expense 150 150 150 150 150 150 150 150 150 150 150 150 1800
Postage 200 200 200 200 200 200 200 200 200 200 200 200 2400
Printing 125 125 125 125 125 125 125 125 125 125 125 125 1500
Forms & Stationery 100 100 100 100 100 100 100 100 100 100 100 100 1200
Telephone 333 333 333 333 333 333 333 333 333 333 333 333 3996
Advertising 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 3333 39996
Membership 20 20 20 20 20 20 20 20 20 20 20 20 240
Dues & Subscriptions 20 20 20 20 20 20 20 20 20 20 20 20 240
Office Equipment Rental 25 25 25 25 25 25 25 25 25 25 25 25 300
Contributions 10 10 10 10 10 10 10 10 10 10 10 10 120
Training/Education 100 100 100 100 100 100 100 100 100 100 100 100 1200
Entertainment 250 250 250 250 250 250 250 250 250 250 250 250 3000
Legal & Accounting 350 350 350 350 350 350 350 350 350 350 350 350 4200
Bank Charges 250 250 250 250 250 250 250 250 250 250 250 250 3000
Bank Business Loan 1983 1983 1983 1983 1983 1983 1983 1983 1983 1983 1983 1983 23796
Interest Expense 10 10 10 10 10 10 10 10 10 10 10 10 120
License & Fees 30 30 30 30 30 30 30 30 30 30 30 30 360
Property Tax 0 0 0 0 0 0 0 0 0 0 0 0 0
Property Tax-Personal 50 50 50 50 50 50 50 50 50 50 50 50 600
Insurance-General 70 70 70 70 70 70 70 70 70 70 70 70 840
Insurance-Medical 70 70 70 70 70 70 70 70 70 70 70 70 840
Insurance-Workers Comp. 70 70 70 70 70 70 70 70 70 70 70 70 840
Employee Benefits 40 40 40 40 40 40 40 40 40 40 40 40 480
Equipment Lease 0 0 0 0 0 0 0 0 0 0 0 0 0
Total G& A Expenses 23401 23324 23363 23324 23363 23363 23285 23324 23285 23285 23363 23363 280041
Operating Profit/Loss 13867 6491 10179 6491 10179 10179 2802 6491 2802 2802 10179 10179 92639
Operating Profit by Year
Year Operating Profit
96-97 34091
97-98 64571
98-99 92639
99-00 129520
00-01 158623
01-02 158623
02-03 158623
03-04 158623
04-05 158623
05-06 158623
06-07 182419
Total (10 Years) 1454975

MARKET ANALYSIS

Auto Accessories Unlimited covers the retail, wholesale, commercial fleet, insurance and business-to-business markets.

Description of Total Market

The primary market consist of females between the ages of 18-50 and males between the ages of 16-5 5. We will target high-school graduates with an annual income of at least $15,000.

The county-wide market (population) to be targeted is 78,000+ of 130,000. The eight-county market targeted is 203,000 of 290,000. Market ratio of men to women is 50/50.

Average income of the target market is $27,500 with roughly 22% of income going toward automobile purchase and improvements. Eleven percent of additional income is used toward vehicle maintenance and insurance.

  • Average number of cars per household is 2.
  • Average amount paid for new vehicles is $17,000.
  • Average amount paid for used vehicles is $7,100.
  • Average finance time for new vehicles is 4+ years
  • Average age of vehicles on road today is 7+ years.
  • Average mileage per year is 13,000-18,000.
  • Average daily amount of time spent in vehicles is 60 minutes.

Industry Trends

Economic

In good times—more cars are purchased (in turn providing more miles to be driven). Steady production of new cars and a very high trend toward leasing. Usually spend more money on service and appearance work. Costs for service is greater. Increased number of cars on the road. Tradein market becomes healthier but much more inexpensive, thus allowing owners to spend more money on extras.

In poor times—people keep cars longer, thus requiring more service and care of cars. Owners try to make cars look better and last longer. The market keeps resale value higher. People like to feel good about their older cars being in such good shape.

Vehicles

The number-one selling vehicle in America is the truck. With that comes the need for a number of accessories and vehicle protection. Trucks and sports cars have the highest theft rate of all stolen vehicles, thus a need for auto security (insurance) increases.

Because today's vehicles have more glass than earlier models, the need has increased for glass repair and replacement. Today's vehicles also have thinner paint and more clearcoat than before, requiring more outside attention and care.

Vehicle owners today feel more secure with the help of cellular phones and security systems.

These trends develop almost as fast as a new model or design arrives on the market.

Market Segments

Retail (Primary Target Market)

Retail sales are generated in three ways: 1) walk-in traffic; 2) advertising traffic; 3) phone inquiries and orders. Retail sales payment methods include cash, check, special financing (90 days same as cash), and major charge credits. Specific areas defining sales terms are shown later in this document.

Wholesale

Wholesale accounts consist of auto accessories, window tinting, rust-proofing, and sunroofs. These accounts are subject to net-thirty sales terms and are usually automobile dealerships within the eight-county market.

Insurance

These accounts are set up on an as-needed basis. They are for the recovery of stolen or vandalize property, interior damage due to fire or water damage, exterior reconditioning and rustproofing, and after-collision repair, etc.

Commercial Fleet and Business-to-Business

This includes communications equipment and car care products for large businesses (blanket protection), employee discount programs, incentives, bonuses and additional auto security for large business fleets.

Competition

Auto Security

Good Vibes Sound
Pro Audio
Soundlab

Car Audio Systems

Same three listed above.

Cellular

Cellular Express
Cellular One

Car and Truck Accessories

Zeibart Tidy Car
Unique Auto Options

Auto Care Protection

Zeibart Tidy Car
Two or three small detail shops (wash and wax)

Glass Repair and Replacement

Lafayette Glass
Magie Glass
Safe Lite Autoglass

Classic Car Parts

None

PRODUCTS AND SERVICES

Description of Products and Services

Auto Security

Complete security systems including remote car starters, power windows and door locks, trunk releases, sunroof closers, and complete keyless entry systems. State-of-the-art vehicle recovery systems.

Car Audio Systems

From the most basic to the most exotic, including all installations and a wide range of audio name brands. Interactive radar systems that interface with stereo components.

Cellular

The most complete line of cellular phones including name brands and a complete line of cellular accessories in the eight-county area. Service provided by Cellular One.

Car Accessories

Sunroofs, ground effects, spoilers, luggage racks, trim molding, light covers, driving lights, rear wings, splash guards, interior woodgrain kits, body side moldings, bras, louvres, etc.

Truck Accessories

Running boards, tonneau covers, brush guards, bed liners, roll bars, driving lights, lift kits, lowering kits, tailgate nets, bumpers, bug shields, hitches, grills, light covers, rear sliding windows, etc.

Auto Care Protection

Rustproofing, electronic rustproofing, undercoating, paint protection, scotchguarding, buff and shine, washing, detailing, ozoning (odor removal), steam cleaning, engine cleaning, waxing, pinstriping, leather and vinyl protection. Rustproofing, paint protection, and scotchguarding are exclusive service and guarantees.

Glass Repair and Replacement

Complete autoglass replacement and minor chip repair; the area's most complete auto window tinting, shades, and colors.

Classic Car Parts

The most extensive classic car parts catalog center in the Midwest.

MARKETING STRATEGY

Auto Accessories Unlimited is a retail store. Sixty percent of the business base will be storegenerated customers. Thirty percent of the business will be wholesale/dealership generated business. The remaining ten percent will be commercial and business-to-business. All retail business will be generated by incoming phone inquiries and sales and over-the-counter product purchase, service, and installation.

The retail sales will be generated through advertising media such as newspaper, radio, and direct mail. Wholesale sales will be generated through dealership and business-to-business outside sales personnel. Commercial and business-to-business sales will be generated through phone contact and direct contact from the owners.

Pricing Policy

Auto Accessories Unlimited will maintain a 50-60% price margin on all in-store products. A basic shop labor rate of $3 5 per hour will be charged on all service and non-warranty work. Electronics, bench-testing work rate of $25 per hour (with a one hour minimum) will be assessed on all electronics out-of-warranty date or being purchased from outside sources.

Sales Terms

Retail services and products carry a limited lifetime product and labor warranty. This warranty covers all workmanship and/or product to be free from defect. All over-the-counter electronics will have an exchange only policy. These products must be returned within 15 of purchase. After 15 days have lapsed, customers may receive in-store credits for the amount of purchase.

Any problems or discrepancies of products or services not reported within 48 hours of installation are subject to void warranty.

Wholesale terms will consist of general business practices, net 30 days. 30-on will carry APR interest rate of 2% per month.

Method of Selling, Distributing, and Servicing Products

All products sold by Auto Accessories Unlimited will be purchased from industry distributors.

Auto Accessories Unlimited offers monthly sales. These sales change every month, providing better customer awareness for different products.

January New Year Super Cellular Sale
February 2 Presidents Sale
March Shape Up for Spring Sale
April Auto Accessories Unlimited Summer Audio Tune-Up
May Super 7 Sunroof Spectacular
June Auto Security Super Saver
July Beat the Heat Sunroof and Tint Sale
August Back to Business Cellular Blowout
September Super 7 Sunroof Spectacular (twice-a-year event)
October Watch Out for Winter Auto Care Sale
November Neat Tricks for Trucks Clearance
December Car Care—Christmas for Cars

Hours of Operation

Monday through Friday 7:30 a.m. to 7:00 p.m.

Saturday 8:00 a.m. to 3:00 p.m.

Closed for all national holidays.