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The company estimates that about 80% of revenues will come from the established local clientele and 20% from the tow-ins local and freeway traffic.The table below further estimates the total market potential of type of services rendered by QDAR in Portland metropolitan area.
Between having a high level of commuting traffic, and an equally high level of tourism traffic on local highways, there is a constant significant demand for auto repair services and auto parts.
Convenience is a must for most middle and upper class consumers and travelers.
Electronic parts catalogs are available in many competitor stores along electronic commercial invoicing systems that offer commercial parts delivery.
Additionally, a number of competitors have electronic work order systems available amongst their various service centers.
The sale of tires will provide a 20% profit margin, but will also help us sell service such as front-end parts and front-end alignments as needed. Service should provide 90% of the total sales with tire sales making up the remaining 10%.
The only time our services will be performed is when and if they are needed or they are recommended on the O. The parts and products we will use will also help in our appeal to customers.
Most individuals in this market segment are willing to pay an extra premium within the pricing of auto repair services to avoid the common inconveniences of having a vehicle tied up in a repair shop.
Emergency towing local and freeway traffic Emergency towing of local and freeway traffic comprises approximately 20% of revenues.
Many competitors have adopted point-of-sale systems in their stores, which gathers sales and gross profit data by a stock-keeping unit from each store on a daily basis.
This information is then used to help formulate pricing, marketing and merchandising strategies.