Business management teams need to consider very carefully whether to open an additional outlet in an outskirts market. Building brand and making money is important and therefore you need to look at all options, possibilities and areas. When they review areas they need to be thinking on many issues; from demographics to seasonality. Small Business owners also need to do the same thing when planning their businesses. Now then in this case analysis we will be looking at a Mobile Oil Change Business to be operated in Lake Havasu City, AZ. This city is small in total population, but is growing and it is located in the desert between AZ and CA along the Colorado River. Well then should they consider changing the oil in marine craft and boats? Indeed that makes sense, good idea, yes then I completely agree on the Boat thing, as changing oil in boats makes sense, smart thinking especially if you could get into the lots by the London Bridge there, everyone comes in and parks there. How many oil change stops per day could be done at residences? 10-stops per day is tough, but it can be done. If you have to travel between homes, better make it 5-7 or so. Better to use grouping, get in good with the Motor Home Parks, small fleets and tourist transportation (lots of that) too. Especially if you consider the Casinos in Laughlin, NV up the road. There is a truck stop in Laughlin also; I bet the Pilot Truck Stop there would allow you to do Truck Oil Changes there on the property if you promised not to spill any. Nice Amenity for what is left of the Independent Truck Driver. Also Laughlin, has lots of new expanded parking structures and auto car washing is available why not oil changes too. What about competition? Any low-cost oil change facilities there; like the oil change industry devil; Super Wal-Mart. The industry is sure worried about their $12.99 oil change arent they? No Wal-Mart? Yes, I noticed that once traveling thru in my RV. Well that is good and yes it does keep the price point higher, you are correct. Now what about advertising? The advertising in the newspaper up front may not be needed, but radio, Cable TV and newspaper is not so expensive in such small markets. Even so it may not be needed in this case. Flyers, Chamber of Commerce inserts, small business direct sales, (walk in with flyer) or call and ask to fax them one. All the Chambers of all those cities I have been to and visited, might be surprised how well that might work. What about word-of-mouth advertising? Also realtors make sense to hit up for oil changes; big net-workers, know everyone. All at the weekly real estate office meetings too one day a week lined up, captured audience. Also the casinos (Laughlin, NV nearby) have transportation, easy kill on those customers, they need you. I think you could make it work there. Well next we need a mobile oil change unit; The Oil Change Guys does not sell their Trailers in the United States. Perhaps you should call that NJ firm "Oil Butler" but they want you to buy a whole franchise some $40K or more; maybe that is a total package option? There is a guy in NC and one in GA that make a similar trailers. Some oil change trailer manufacturers are not interested in selling stuff in the US, too many regulations, it is not worthy of their efforts they say. Too many lawyers, Business Opportunity Laws and the franchise rules are absurd, as they only serve the lawyers, not the entrepreneurs of course. You see it is important when doing case analysis to look at the details and consider all these inane things in advance of opening an outlet and for a small businessperson it is essential to survival. I sincerely hope this mini-case analysis gives you some insight into business decision-making and what works in the real world. Consider all this in 2006. |
