Auto Accessories and Detailing

BUSINESS PLAN

AUTO ACCESSORIES UNLIMITED

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1012 Lafayette Blvd.
Allen Park, MI 48101

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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.

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• 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.