J&M REPAIR SHOP

Executive Summary:
J & M Repair Shop is a full-service automotive repair facility dedicated to
providing top-quality maintenance and repair services for all types of vehicles.
Our team of skilled mechanics is committed to excellence, efficiency, and
customer satisfaction.
Business Description:
Our mission is to offer high-quality, convenient and comprehensive auto
repair at affordable prices. Trust is the cornerstone of our business, and we
strive for 100% customer satisfaction.
We offer, repair, maintenance, or diagnostic services for vehicles.
Revenue is generated through service fees charged for labor and parts.
Our shop is located along the road of Mendez, Polangui Albay and it
operates at 8:00 AM to 5:00 PM.
Market Analysis:
Since J & M Repair Shop will be able to service any vehicle on the road,
including motorcycles and E-vehicles, it does not make any sense to segment
our market. Our potential customer includes every household in Polangui,
Albay that owns one or more vehicles. The industry does not have any
seasonality that affects it.
The chief competitors in this industry for J & M are the high-quality
automobile dealerships and licensed service reps. This includes Toyota, Ford,
and other major brand names. Each of these direct competitors have a service
facility. These competitors dominate the market place, have the largest market
share, and have advantages such as specially trained personnel, access to
lower priced parts and tools, and deep pockets. The advantages of these firms
are that they can seek a low-cost leadership strategy due to lower personnel
costs. However, they have a much more fluid customer base and higher
customer turnover.
J & M will seek to compete initially in the low-cost strategy. At the same
time, it will seek to provide a higher level of customer satisfaction by having
more rigorous quality control and seeking ways to enhance the entire service
experience (not just repairing a person’s car). In this way it will lock in a loyal
customer base who value the client-service provider relationship.
Marketing and Sales Strategy
J & M has a modest program of marketing its services that include the
following:
 Flyers
 Discounts
 Social media like Facebook and Instagram
 Referrals through other local services
Each of these marketing approaches has the advantage of being low cost
and creating service awareness.
Operation Plan:
Writing up estimates for repairs and communicating with customers.
Completing preventative maintenance on vehicles, including: tire rotations, oil
changes, filter replacement. Ordering parts, performing repairs and working
with other mechanics to help diagnose problems and decide the best course of
action.
Management Team
J & M’s initial staffing will consist of Jade and Marjorie, Marjorie is the
office manager. The company will seek two entry level mechanics to be hired
within a few months after the company is operating. Accounting, bookkeeping,
and marketing services will be outsourced. The company’s intermediate goal is
to have four full time, fully trained mechanics at the original facility, plus a
full-time office manager. However, management has decided to await future
developments before determining the best time to bring on such personnel.
Financial Plan:
Start Up Cost = 450,000
Projected Sales/year P 788,000
Total Expenses/ year P 193,000

Break-even Analysis
Monthly Revenue Break-even P 24,564
Analysis
Average Percent Variable Cost 10%
Estimated Monthly Fixed Cost P 23, 108
Source of Funding: Personal Savings
Appendix:

Service
Quality

Pricing Perceived Customer

Strategy Value Satisfaction

Shop
Attributes

Prepared by: Jade B. Soriano