Collins Car Detailing

Summary

        Colin’s Car Detailing, a small auto-detailing business started by Colin Ford has been growing consistently since its inception back 4 years. It has been named as one of the top three detailing establishments in the mainland comprising West Vancouver and North Vancouver. But with the recent increase in the demand, all of Colin’s timeslots were filled for the next one month and he had to turn away few customers who needed quick service. He worried that this would lead to a permanent loss of customers.

With the busy summer approaching, Colin is faced with the problem of choosing a course of action for CCD in light of ensuring enough funds to pay his college fee and personal expenses. Colin contemplated several opportunities to change CCD’s operations. The alternatives that Colin has are franchising, selling the business, include cut polishing in the services, converting into a mobile detailing company and partnering with a local golf course. Evaluation is performed on the basis of profit maximisation so that he could pay his college fee and that better customer relationship management is done. As Colin is passionate about cars and appreciates being his own boss, selling the business is not recommended. Also franchising always provides extra income, it is always an option to consider. As mobile detailing required heavy investment and would take long time to get return on investment, this option is not good for immediate feasibility. And partnering with local golf course involved many complex things like getting permissions, developing a new tracking system for the golf course, possibility of double booking problems and paying 10 per cent of sales to the golf course. This would not leave CCD with much profits and a limited customer base is only attracted. Hence this option is also not recommended.

It is recommended that Colin open a franchise and also expand the services with cut polishing as it attracts new segment of customers, increases sales and profits.

The action plan is to open a franchise in North Vancouver, expand services with cut polishing, train labour on cut polishing and hire temporary labour during peak season to cater to increased number of customers.

Situation Analysis:

Colin’s car detailing (CCD) is an auto dealing business in West Vancouver started by Colin Ford 4 years back when he was 14 years old. He distributed flyers and used one time promotional activities like advertising in his school yearbook to grow his business. He provided services at a charge 85 per cent less than other car-detailing companies, which he later increased to provide more services to more customers. As Ford’s skills and reputation for quality work grew, CCD grew consistently over the next three years. He charged $80-$120 for the services maintaining a profit margin of 35 per cent which was higher than the typical car detailing companies, as he had access to resources at lesser prices due to family connections. By the end of fourth year, CCD had a client list of 150 customers and had earned an annual profit of approximately $5000.