SERVICING MOTOR VECHICLES
Introduction
This business idea is for servicing motor vehicles. Motor vehicle service is a series of maintenance procedures carried out at a set time interval or after the vehicle has traveled a certain mileage. The service intervals are specified by the vehicle manufacturer in the manual and some modern cars display the due date for the next service electronically on the instrument panel. The service capacity is 7cars per day; total investment is estimated at US$232,500 per year and estimated revenue is US$ 600 per year.
Servicing Process
Clean-out is accomplished by applying suction near the top of the oil layer in
the first compartment until it is completely removed, then proceeding directly
to the sludge layer and removing the same. The intermediate water layer is left
to act as a seal. The other chamber(s) should also be checked to ensure no
significant quantity of oil or sludge is present. The interceptor should then
be inspected by the operator immediately after servicing to ensure that it has
been properly cleaned and that the water level has been restored for operation.
Market Analysis
Serving a vehicle is mandatory to all owners of cars. The market is in both
urban and rural areas since motor vehicles work in both areas. The quality of
service would influence the market.
Capital Investment Requirements
|
Capital investment item |
Units |
Qty |
Unit |
Amount |
|
Compressor |
No. |
1 |
1,250 |
1,250 |
|
Service tunnel |
No. |
1 |
2,000 |
2,000 |
|
Cc pump |
No. |
1 |
150 |
150 |
|
Tool box |
No. |
1 |
1,250 |
1,250 |
|
Grease pump |
No. |
1 |
100 |
100 |
|
Spray gun |
No. |
1 |
10 |
10 |
|
Total cost on equipment |
4,760 |
Servicing and Operating Costs
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Oil |
Ltrs |
3 |
8 |
24 |
624 |
7,488 |
|
Break fluid |
Ltrs |
8 |
2 |
17 |
450 |
5,400 |
|
Oil Filter |
Pieces |
4 |
2 |
9 |
225 |
2,700 |
|
Coolant |
Ltrs |
8 |
2 |
12 |
300 |
3,600 |
|
Fuel Filter |
Pieces |
1 |
20 |
20 |
520 |
6,240 |
|
Battery |
Ltrs |
5 |
2 |
8 |
200 |
2,400 |
|
Sub-total |
36 |
90 |
2,319 |
27,828 |
||
|
General costs(overheads) |
||||||
|
Utilities (water and power) |
400 |
4,800 |
||||
|
Labour |
900 |
10,800 |
||||
|
Rent |
350 |
4,200 |
||||
|
Administrative cost |
300 |
3,600 |
||||
|
Miscellaneous costs |
200 |
2,400 |
||||
|
Depreciation (Asset write off) Expenses) |
99 |
1,190 |
||||
|
Sub -total |
2,249 |
26,990 |
|
Total Operating Costs |
4,568 |
54,818 |
Serving costs assumed 312 days per year with a daily capacity of 8 cars.
Depreciation (fixed assets write off) assumes 4 years life of assets written
off at 25% per year for all assets
Project product Costs and Price Structure in US $
|
Item |
Qty/ |
Qty/ |
Unit |
Prod |
Unit |
Total |
|
Big cars |
2 |
624 |
44 |
27,409 |
75 |
46,800 |
|
small cars |
6 |
1,872 |
15 |
27,409 |
30 |
56,160 |
|
Total |
2,496 |
102,960 |
Profitability Analysis
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
330 |
8,580 |
102,960 |
|
Less production and operating |
176 |
4,568 |
54,818 |
|
Profit |
154 |
4,012 |
48,142 |