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Business Idea - will this work? Opinions please...


Soapsuds
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Ok, sitting on the beach on holiday, you get thinking...... sekret.gif

After a good few months now of fancying a change of career completely (i.e. not just a change of job in a similar industry), i am looking at a few ideas around my passion in life - cars! I also have another couple of ideas i might roll with, but i thought i would pass this one by the TSN colective.....

helps and comments at this VERY early stage much appreciated. If it dont fly, i can put it to bed.... wink.gif

Concept: similar to P1 and Ecurie25 club, but with a heavy bias upon performance cars, NOT supercars. This way, i would be looking at a lower membership cost and a higher mileage availability and vehicle availability. All backed up with online booking yada yada yada - you know the drill.

What i am getting at is the likes of Audi RS4's., BMW M3/M6/M5/Z's, Golf R32, Evo's, Scoobys etc.... the kind of stuff that are still dreams to many people and that are a blast to drive and still put a smile on your face without being a balls-out supercar.

Aimed at true drivers, not posers which i am sure that a % of P1 and ecure members might just be.... sekret.gif

To my knowledge (i might be wrong here) there is no such Club / Agency that offers this. Now, is this because P1 and ecurie25 have a market stitched up and also offer some 'lower-class' cars on their schemes, or is this just because its really a no-brainer that no-one would want to chose from a new Golf R32 up to a Porker 997 (or similar)???? confused.gif

I for one would...... plus, being based in Cheshire, i would have Liverpool, Manchester, Leeds / Bradford and possibly Birmingham as traget areas.

Thoughts?? Ideas?? Comments??

Or should i feck-off and forget this idea!?? grin.gif

Muchos Gracias peeps 169144-ok.gif

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It sounds like a good idea (Will there be a TSN discount as I'm in one of those area's 169144-ok.gif) But my concern would be the boy racer brigade getting a membership and possibly causing problems, i.e. putting it into something while showing off to some girls.

Prahaps a limit of over 21's with x years NCD?

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[ QUOTE ]

Big £££ to set it up I would guess. Problem is with mid-range cars and a lower membership price the people you are looking at selling to probably have these cars already?

But worth looking into I think 169144-ok.gif

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yea, exactly what i thought...... then i thought, well i kinda fall into the same bag: need a diesel for work etc. etc. and would love a change of taking an RS4 or similar for a blast every months or something.

Aimd at 20-30 something professionals (and beyond obviously!) i think it might have legs.

I am kind of thinking along the lines of someone in my situation. 29, house, wife, possibly kids (not me yet), another house on the way, daily driver for work etc...... cant afford to run the petrol monster i really want......

Still confused.gifgrin.gif

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[ QUOTE ]

It sounds like a good idea (Will there be a TSN discount as I'm in one of those area's 169144-ok.gif) But my concern would be the boy racer brigade getting a membership and possibly causing problems, i.e. putting it into something while showing off to some girls.

Prahaps a limit of over 21's with x years NCD?

[/ QUOTE ]

naturally a TSN discount would apply.... grin.gif

Yea, the insurance would be the defining factor without a doubt and big XS's would apply probably. Min of 25 would be more likely. Cars would al be owned on finance / by the bank etc., so they would need to be 100% covered without a doubt.

Read the P1 and ecurie insurance clauses and it's scary!! blush.gif

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P1 fee's are -

Monaco

Joining fee - £2,500

Annual fee - £13,750

Miles allowed - 6,000

Silverstone

Joining fee - £2,500

Annual fee - £11,750

Miles allowed - 5,000

They have a minimum of 40 members who were first to join up in 2000, not sure of how many member they have now though.

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It'd depend on how much the service costed to use [which would be dependant on your costs], but it might be feasible...

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yea - a decent balance needs to be struck. P1 and ecurie are out of many peoples reach, unless you factor in the cost of membership when looking at purchasing your new car.

I think the next logical step is a business case / plan which i am used to writing. Need some membership estimation figures to back it up though. 169144-ok.gif

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It's all about ROI- return on investment.

There's also the chicken and egg thing. How do you attract 200+ members paying £3000- £7000 a year (if it's a graded points system, membership price will vary) without having a fleet of cars first?

With the basic fleet, mid performance range, buying nearly new R32's, VXR's, S4's, BMW Z4's etc each at £20k+ is likely to run up a £500k fleet very easily.

Then there's storage for the cars, prep for the car body and mechanicals and killer insurance (Ins J will help, I sure he would be interested in x 30+ car fleet).

It's a business that will have high start up and the cars will be required to be registered as hire and reward, killing resale value.

200 members x £3k year (for 13 weekends use) = £600k or round up as £2m over 3 years.

50 x cars at average £20k= £1m out

50 x cars being prepared/ valeted(2 x weekly), serviced, tyres, tax = £200k p.a.

Insurance= £75k p.a.

Premises, storage and security £150k p.a.

Marketing £50k p.a

Salaries, you and staff and bonuses / dividends £150k p.a.

It's not looking good! I've guess-timated figures, but o/heads are very close to the yearly income via membership without having taking buying and selling cars in to the business model.

I'd suggest you build a model based on your thoughts and run the slide ruler over your figure work- hopefully it will show benefit, where mine doesn't 169144-ok.gif.

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chri5 - many thanks for that!! It's always good to have someone come up with guestimation figures like that 169144-ok.gif

I think i will have a sit down and try and work out a model and apply some figures. We have some good procedures i currently use (albeit in Software dev), BUT with key areas foucesed on ROI, cost applicable etc.

Thanks again. 169144-ok.gif

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[ QUOTE ]

[ QUOTE ]

It'd depend on how much the service costed to use [which would be dependant on your costs], but it might be feasible...

[/ QUOTE ]

yea - a decent balance needs to be struck. P1 and ecurie are out of many peoples reach, unless you factor in the cost of membership when looking at purchasing your new car.

I think the next logical step is a business case / plan which i am used to writing. Need some membership estimation figures to back it up though. 169144-ok.gif

[/ QUOTE ]

Put together a market research survey and post it on here. I'm sure TSN would be happy to give their thoughts/opinions 169144-ok.gif

The system of giving points to members seems to be the most common system... Higher yearly fee would net more points to spend, with the option of buying more points through the year, etc.

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thanks all - food for thought. Im off home now to write up some thoughts and figures..... take it to the next stage.

Market reasearch on here is a good idea 169144-ok.gif Will put some sort of survey together as the loaner of the money wil also want the figures backed up.

169144-ok.gif

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I'm happy to look at the insurance for you, we have facilities for self drive hire. The cars don't need to be registered any different to just the name of your firm on the log book BTW. Just insured for self drive hire.

I also have an idea for another market for you.

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Jon - i think i might have to get in touch soon. Drop me a PM with your other idea and also business contact details good buddy.

Ta 169144-ok.gif

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