autojob econ

8/12/2019 Autojob Econ

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U

O

LANSANG|

REYES|

SANCHEZ|

SUN


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AUTOJOB Auto body shop Aiming to reduce a neglected sector of those

unemployed Located in San Juan City Basic vehicle services: Washovers with minor

body repair & per panel painting with minorbody repair

Fully equipped with the latest painting

and body repair tools and equipment Total capital requirement: P600,000


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MAIN REASONS

Unmanageability in Life:

Loss of work

Money

Education


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AVERAGE

IN

25

OUT

21


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Escape


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SUCCESS RATE7%

68%

Comes Back In/Relapses


7/75OUNGEST

15

25-40

60

AVG/majority

OLDES


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MIDDLE CLASSGood family Background$

FACILITY


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ctivitiesCleaning

Nurse-patient interaction

KaraokeCigarette breaks

Games

ArtworksProblem solving activities


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Easy to d is t ingu ish

DOMINANTTraits & Skills


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Rehab ProcessVaries Per

DOCTOR PATIENT


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DOCTOR = FAMILY

RESLEASE


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AS OF JANUARY 2014

Unemployment rate 7.5%

3 Mil l ion Peop le

NCR 11.2%


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AS OF JANUARY 2014

Males (63.9%)

Age group o f 15-24 (48.2%)

Age group 25-34 (29.9%)


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AS OF JANUARY 2014

College Graduates(19.8%)

Undergraduates(13.3%)

High Schoo l Grads (34%)


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2010: 90,361 total population (NCSB) First class income classification 2010: 67, 783 registered private vehicles (LTO) Estimated average increase of 1.39% per year (LTO)

Target market for the business: individual carowners, insurance companies, and businessenterprises (vehicles or fleet)

Target Ma

R l t M k t Si


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Relevant Market SiTOTAL PRIVATE VEHICLES IN SAN JUAN 67,783

RATE OF ACCIDENT 79%TOTAL ACCIDENTS PER YEAR 53,549

CARS WITH COMPREHENSIVE INSURANCE 4,326 cars

CARS WITHOUT COMPREHENSIVE INSURANCE 15,338 cars

TARGET SHARE 1.5%

RELEVANT MARKET SIZE 803 cars

Sh f


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Repairs andRepaint

Insurance Companies 50%

Individual 10%

Car Dealers 40%

Share of

Run-of-the-mill autobody shop

High-end body shops Casa

Market Seg

Business

M k t Ch t i ti


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Brand new cars have 3-5 years insurance warranty =claims for repainting Expiration of warrantyowners choose auto body

shops Casa costs twice as much Car owners rely on the reputationor by word-of-mouth on the serviceand quality big chunk of customers are from

insurance companies Insurance companies are responsiblefor providing these body shops with asteady flow of customers

Market Characteristic


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New paint technology

New materials

Competition Lowering of price of competitors

Increased buyers of secondhand cars

New painting processes

A. To be able to capture a portion of the market byproducing good quality paint jobs with lesser back

jobsB. If I can provide a service of equal or better quality

than Casa for a cheaper price, I would be able to

gain control of a part of the market that opts torepaint their cars in Casa

C. If I surpass my main competitors, like Auto LabD. If I am able to get accreditation from insurance

companies

E. Retain the loyalty and skills of workers to gainconfidence of the market

C U H bit & P


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Consumer Usage Habits & P Minor or major accidentbody shop or Casa for repainting

Comprehensive insurance: minor scratch would be brought to abody shop of the customer or insurance companys choice Car owners acquiring a paint job even if there are no scratches or

dents change the color of their car or because their car paint istoo old

Customers look for a reasonable price followed by the painting

process Brand of the paint, the warranty, and the location are not really

that important to them as long as they get a quality repaintingservice at a reasonable price

ti


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ompeti Good Wheels Auto Shop Along with 6 other auto shops in the area Average of 5 cars a day with a waiting line of 30 cars

Catering to Class B & C

Good Wheels Auto Shop

6%

Other Auto Shops

31%

Casa

40%

Persoanl Painters

23%

Good Wheels Estimated Market Share

Service Price

Wash Over 30,000-40,000

Per Panel 3,000

P iti i d St


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A quality body shop offering repainting andinterior detailing services

High quality at a lower price Tie UpsInsurance Companies, Government

Agencies, Rehab Centers On-line, Forums, Car Shows

Positioning and Str

PANEL WASHOVER

SELLING PRICE 2,500.00 25,000.00

LESS:

LABOR 375.00 5,000.00

MATERIALS 375.00 3,750.00

TOTAL COST 750.00 8,750.00

GROSS PROFIT 1,750.00 16,250.00

S l F t


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JANUARY 75,000.00

FEBRUARY 100,000.00

MARCH 100,000.00

APRIL 112,500.00

MAY 125,000.00

JUNE 112,500.00

JULY 112,500.00

AUGUST 100,000.00

SEPTEMBER 100,000.00

OCTOBER 150,000.00

NOVEMBER 175,000.00

DECEMBER 187,500.00

Sales Forecast


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Operations Plan

Car Detailing and Painting


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Service Specifications

The business specializes in painting, detailing

and paint repairs for privately owned cars.

Services include washovers and per panel

painting

Washovers are also known whole body paintings

Per panel painting includes paint repairs and

painting of portions of a car.


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Service sample

Before After


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Standard costs


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sedan

Washover Per Panel

Pricing 25,000.00 2,500.00

Standard Variable Cost:

Labor 5,500.00 400.00Materials 6,000.00 800.00

Electricity 500.00 100.00

Others (Buffing Pad could

last around 10 cars, wax,

brill compound)

500.00 100.00

Total Expense (12,500.00) (1,400.00)

Contribution Margin 12,500.00 1,100.00


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SUv/pick-up/van

Washover Per Panel

Pricing 35,000.00 3,000.00

Standard Variable Cost:

Labor 6,500.00 400.00Materials: 7,000.00 800.00

Electricity 600.00 100.00

Others (Buffing Pad could

last around 10 cars, wax,

brill compound)

500.00 100.00

Total Expense (14,600.00 ) (1,400.00 )

Contribution Margin 20,400.00 1,600.00


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Monthly fixed costs

Depreciation 10,388.89

Rent 20,000.00Salaries 25,480.00

Utilities 2,000.00

Total 57,868.89


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Location: site/ viciniy


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Supply chain


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Service Schedule

The auto shop is open from 8am to 5pm from Mondays to

Saturdays

Customers will be catered on an appointment service. Walk in

customers will be asked to wait for available time slots and

will be given queuing numbers.

Services will be done for the day, any unfinished jobs will be

continued in the succeeding days depending on workload.


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Service flow diagram

ServiceA l d

Place body


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Service

writer will

do a check

list

Apply sand

paper on

dent

10 mins

Place body

filler mix

hardener on

dent

Apply sand

paper on the

whole panel

Place a

primer on

the panel

Apply sand

paper after

paint is dry

Paint with

painting

color

Apply top

coat directly

after color

Apply sand

paper on the

panel

Buff the car

with brill

compound

Service writer

will check the

work and do a

check list

5 mins

30 mins2 hours

30 mins 28 hours

2 hours

30mins

30mins

15m

ins1

hr


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Sourcing plans

The business will be having two suppliers (Dupont

Automotive Paints and Project Accessories) Orders

will be made upon agreement with customer

regarding the services to be rendered. Generic colored paints for common cars (Altis,

Fortuner, Civic, etc.) will be kept on stock for panel

painting services.


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Purchasing procedures

The business will be directly buying from the two

suppliers for paint and other materials on 30 day

credit basis or cash basis.

The business will be bought as needed based oncurrent supply and current service requirements.


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Material prices


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Material

QuantityUnit Cost

Per Panel

Cost per

liter/ piece

Amount

sold in

store

Initial

Purchase

Paint

Thinner 750 ml 108.75 145.00 1 liter 25 liters

Paint Color 200 ml 200.00 300.00 300 ml per job

Top Coat 500 ml 277.50 555.00 1 liter 25 liters

Masking

Tape 6 rolls 42.00 7.00 1 roll 1 box

Sand Paper#120 1 piece 9.00 9.00 1 piece 50 pieces

Sand Paper

#240 1 piece 9.00 9.00 1 piece 50 pieces

sand Paper


Sand Paper


Brill

Compound 100 ml 64.90 649.00 1 liter 5 liters


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Supplies Requirement schedule

Keep an initial inventory for common cars for panel

paint repairs

Paint will bought as needed based on colored agreed

with client. Common materials will be kept in inventory as they

will be needed regularly.

Excess paint and thinner can be used for other

projects.


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Inventory management policy

Excess materials such as paint and thinner will be

used for next projects or the next month.

Ordering more materials from suppliers will be done

when inventory left is only good for 2 washover or 26panels of painting.


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Organizational chart


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Manpower requirement

Proprietor/Manager

Job Description:

Keeps constant communication with workers

Handles customer complaints In-charge of paying salaries and wages

Head Painter

Duties and Responsibilities:

In-charge of painting the cars

In-charge of making an estimate of how much the

materials would cost


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Paint Helper


Helps the head painter in painting cars

Welder


In-charge of molding the car back to its original state

Service Helper/ Security Guard

Duties and Responsibilities: Cleans the car after it is painted

Stay-in/ in-house worker


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Cashier Duties and Responsibilities:

Calls and checks-up on customer

Keeps the receipts Records the payments and billings

Service Writer Duties and Responsibilities:

Receives the customers that enter

Estimates the work that needs to be done

Handles the customer complaints

Re-checks the painters work

Helps in deciding if a back-job is needed


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Shop layout

21'-9" 2'-3"


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16'-9

5/8"

16'-6"

EXISTING BUILDING

16'-6"

5'-0"

SHED

2'-6"

2'-4

1/2"

1'-0"

2'-7 11/16"

10'-0"

3'-3"


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Manning schedule

Time Service Writer Cashier Service Helper

7:30 8:00 Service writer will

arrive in the shop

and check the

unfinished jobs.

Cashier will arrive Service helper will

arrive and clean

the shop.


attend to

customers.

Cashier will call

and check up on

customers

Service helper will

detail cars.


attend to

customers.

Lunch Break Lunch Break

12:30 1:30 Lunch Break Cashier will

prepare checks

needed

Service helper will

detail cars.


attend tocustomers

Cashier will collect

bills and receipts

Service helper will

detail cars and willpurchase the

materials needed.


double-check what

works are done

and need to be

finished

Cashier will do a

sale summary

Service helper will

clean the shop.


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Equipment/assets


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Construction costs

Renovation CostUseful Life in

Years

Yearly

Depreciation

Monthly

Depreciation

Office

Renovation250,000.00 3 83,333.33 6,944.44


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Furtnitures


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Quality control measures

Since the materials and supplies that I will be using will onlybought every time there is job, it can be easily controlled sincewe would only have to buy the materials needed. The service

helper will be the one in-charge of buying the materials neededby the painter.

In order to control the quality of my product, the service writerwill double-check if the newly painted panels match the originalones. The service writer will be the one to notify that head

painter if ever he finds any mistake in the paint. If ever thereare any impurities spotted, the head painter and the servicewriter will notify the proprietor, and he will be the one todecide on what to do. If ever there any differences in the paintof the car, a back job would be done so not to disappoint thecustomer.


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Customer service procedures


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Risk Analysis

POSSIBLE RISK SOLUTION

My painter or welder gets sick. We would have a back-up painter and

welder that would be able to fill in for

them only for that day.

My employees short-change me. We will list down the common cost of

the materials needed per panel and

washover. I also have knowledge on

the cost of these materials because my

father has prior knowledge about the

costs since he has been in the car

industry for many years.

My customers dont have the money to

pay for the paint job on time.

We wouldnt release the cars of my

customer until I am fully paid. I will do

this so that I wont have to run after

these customers.

Insurance companies want to pay

later.

But when it comes to dealing with

insurance companies, I will ask them

to pay 50% of the job as down

payment. I will collect the rest of the

sum after 30 working days.

Customer complains that a part of his

car is missing.

We created a checklist that I would use

in order to make sure that no part of

the car is missing. This checklist would

also serve as evidence if ever a

customer complains that his car has

some missing parts or kits.


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Financial plan

A starting capital of 600,000 pesos is needed

to cover the all the necessary equipment and

cost needed to run the business

Depreciation of equipment is by 5 years

For the 1styear we will only have 1 employee

that will be paid 350 pesos per day

For the 2ndyear we will have another

employee that will be paid also 350 pesos


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Financial plan

Payment to supplier will be with cash

Payment of customers will also be with cash

I t


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Impact

C l i


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Conclusion

autojob econ

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