Feasibility Studies of vehicle Sales and After-Sales Services Representative

in Feasibility Studies of vehicle Sales and After-Sales Services Representative  the Technical, Financial, and Economic aspects of the project are explained.

Project description 

vehicle sales and after-sales Representative play crucial roles in ensuring customer satisfaction and maintaining strong relationships with customers throughout the entire vehicle ownership experience by:

• Customer Support
• Service Coordination
• C-. Warranty Management
• Parts Ordering and Inventory
• Customer Follow-Up  
• Upselling and Cross-Selling

 Project access status to infrastructure

• Access to Water Resources

Region of Project  with  temperate weather over the year, is influenced by Mediterranean climate. Generally, having more than 400    mm  of rainfall and   The complex has no problem in supplying the required water

• Access to power supply infrastructure

Today, any economic activity relies on the supply of energy resources. Therefore, the access to energy and its cost play an important role in the economic justification of the project. Considering that the province has a combined cycle power plant, it is expected that there will be no problem in terms of electricity supply for the project.

• Access to transportation infrastructure

The land transportation roads of this project in the province are completely asphalted and are being developed and transformed into main roads. This complex is also located next to the main road to the provincial center and neighboring provinces.

• Access to the telecommunication infrastructure

Nowadays information and communication technology, telecommunications and internet infrastructures are of particular importance, and this complex has no problems in terms of telecommunications and providing its infrastructure, and telecommunications infrastructures are practically provided in most parts of the province.

Technical specifications| Feasibility Studies of vehicle Sales and After-Sales Services Representative

  Obtaining  Sales & after-sales  Services  agency license  has  the following  conditions :

The basic duties of a vehicle sales representative

• Prospecting and Lead Generation: Actively seeking out potential customers and generating leads through various methods such as cold calling, networking, and referrals.
• Product Knowledge: Having a deep understanding of the vehicles being sold, including their features, specifications, pricing, and options. This knowledge is essential for effectively communicating with customers and addressing their inquiries.
• Customer Consultation: Listening to customers’ needs and preferences, providing recommendations, and guiding them through the vehicle selection process. This involves conducting test drives, explaining financing options, and negotiating prices.
• Sales Closing: Closing deals by finalizing paperwork, processing payments, and arranging vehicle delivery. This includes ensuring all necessary documentation is completed accurately and efficiently.
• Relationship Building: Building and maintaining strong respectful relationships with customers to encourage repeat business and referrals. This involves providing exceptional customer service, addressing any post-sale concerns or issues, and staying in touch to ensure customer satisfaction.

The basic duties of an after-sales representative

• Customer Support: Providing assistance and support to customers after the sale. This may involve addressing questions or concerns related to vehicle operation, maintenance, or warranty.
• Service Coordination: Coordinating vehicle servicing and repairs for customers. This includes scheduling appointments, arranging loaner vehicles if necessary, and ensuring timely completion of work.
• Warranty Management: Managing warranty claims and ensuring customers receive appropriate coverage for eligible repairs or replacements.
• Parts Ordering and Inventory Management: Assisting customers with ordering parts and managing inventory levels to ensure availability for service needs.
• Customer Follow-Up: Following up with customers after service visits to ensure satisfaction, address any outstanding issues, and encourage feedback.
• Upselling and Cross-Selling: Identifying opportunities to upsell or cross-sell additional products or services to customers, such as extended warranties, maintenance packages, or accessories.

Technical specifications| Feasibility Studies of vehicle Sales and After-Sales Services Representative

The conditions for obtaining an automotive company representation and  the minimum requirements for completing the application form are as follows:

• The total area of ​​the property :At least 1000 square meters (except  for Certain areas in big cities)
• Width of the land next to the road: At least 20 meters
• Exhibition space:  At least 200 square meters of covered space for the exhibition (with a width of at least 15 meters in the vicinity of one of the main streets or high traffic roads)
• Repair space: At least 700 square meters of ready repair space (equipped with   building )
• Office space: At least 100 square meters (Reception, Customer waiting, Management, Technical expert’s room and Warehouse)
• Location of the property: located on the main street with a suitable distance of at least 5 km from the nearest Representative of the the Automobile manufacturing company (except for special cases according to the opinion of the Automobile manufacturing company)
• Ownership status: have ownership of property or a notarized 5-year lease in the applicant’s name.
• Status of duty system (gentlemen): Having a card of end of service or permanent exemption
• Educational qualification: Having a diploma or higher qualification (higher qualifications are preferred)
• Records: Having experience and expertise in one of the fields of car repairs, car sales, spare parts sales and management of companies and service centers, otherwise priority will be given to applicants with bachelor’s education and above.
• Investment ability: having sufficient financial ability to implement the desired standards of the company of car managers
• Age of the applicant: Maximum age of 55 years (Real Persons)
• Property guarantee: the ability to provide property guarantee to the extent determined by the company.

Alternative services| Feasibility Studies of vehicle Sales and After-Sales Services Representative

The official representatives of  Car sales and after sales services  have competitors who do not represent the car manufacturer directly, but They are Involved  in field Sale of cars, spare parts and repairs .

The problem of these businesses is that they cannot provide the standard level of service and  the right price of Cars and auto parts in competition with the Official Representatives of the company, and they do not have the possibility of providing after-sales service guarantees.

Application

 Overall, both vehicle sales representatives and after-sales representatives play crucial roles in ensuring customer satisfaction and maintaining strong relationships with customers throughout the entire vehicle ownership experience.

The ISIC code of services

The International Standard Industrial Classification of All Economic Activities (ISIC) is the international reference classification of productive activities. Its main purpose is to provide a set of activity categories that can be utilized for the collection and reporting of statistics according to such activities.

The ISIC code of the products of this plan is as follows:

• Agent for selling domestic and foreign light and heavy vehicle:     501013  
• Agent for vehicle’s  After- Seles  Services:   5020

Buildings required |Feasibility Studies of vehicle Sales and After-Sales Services Representative

 The building space required for the production, administrative and headquarters departments, according to the site plan and layout of the vehicle service center, is as follows:

• Roofed hall for Car repair and technical services     1500     Mr2 
• Warehouse of raw materials and spare parts store 1,200    Mr2   
• Auto Exhibition 350     Mr2   
• Office (Administrative building) 400     Mr2   
• Welfare building 300               Mr2
• Security and janitor )   400         Mr2

Technical Equipment and Machinery  

The equipment and machinery required for vehicle technical services are as follows:

• Two column jack
• Four-column jack with a capacity of more than four tons
• 3 Ton floor Lifting   Jack
• Hydraulic press
• Steering adjustment
• wheel balance
• 5 Gas analyzer  
• Acetylene ( carbide ) welding
• Engine tuning up equipment
• Air compressor and pneumatic tools
• Charge the cooler
• Injector fault detector

• Standard chassis tensioner jack

• Suction oil drain
• Table Grinding
• Grease Gump
• Battery charger
• Electric welding
• Dehumidifier and dryer
• Washing device
• Digital light test device
• General tools

The purchase price of technical equipment and machinery of standard quality required for providing services in the vehicle sales and after-sales service representation, as well as for purchasing office equipment, is intended

Spare parts and intermediate components

 The price of needed raw materials and spare parts  is announced  by   car producer co.  and these parts can be easily provided by the company.  Raw materials and spare parts have a wide range due to the variety of the company’s manufactured Cars and the number of parts used in the production and assembly of all types of cars are large and diverse . In this regard, mentioning all their names is avoided.

It is necessary to explain that these raw materials and spare parts are mostly used in the car warranty and warranty service sector, and the required amount is estimated according to the agency’s capacity.

Out of the total number of cars in the country, excluding agricultural vehicles, there are nearly 22 million active cars. According to the statistics published by the Ministry of MIMT in 1401 year, 1348 thousand cars were produced, of which 93 thousand and 110 cars were produced  by the  Car producer.

Therefore, this company as a private sector producer, has about 6.9 percent of the country’s production capacity and has succeeded in producing one car per  every 1000 people. Statistics show that the vehicle Manufacture CO. with a production increase of more than 35 percent compared to the previous year, based on the competitive advantage of the price and quality of their cars could have more representatives in country.

With Considering the upward trend and diversity of production over the years, it is expected that the process of increasing production capacity and demand for buying cars as a replacement for existing cars and buying new cars will continue. Based on the demand share of population could have a representative have a representative in  city to sells more than 100 cars.

Therefore, based on the demand share of the population   vehicle Manufacture CO.   can have a representative in   city to sell more than 100 cars annually.

Introduce target market

Most of the applicants for buying cars and using after-sales services and car warranty   are People who residents of the cities in which there are representatives to use.  

Despite progress of technology and industry and according to Increasing social well-being, the evidence shows that nowadays people use cars more for doing personal things and traveling, so paying attention to better quality cars with competitive prices and fast suitable service in the place of residence has become the priority of customers. Therefore, existence of proper after-sales service  has a significant impact in increasing car sales.

Financial Projection  

In this chapter, the financial and economic graphs of fixed and circulating capital, as well as operational costs of services are shown.

According to the finished price of the services and the annual profit of the car service center as well as the examination of the results performed by the COMFAR software, this project has an acceptable status from the point of view of expertise, and it is reliable from the financial point of view, The results of the financial data output  show the benefit of the plan’s investment.

Service Sales Ratio

The largest amount of revenue comes from car technical services. Obviously, the annual price increase rate is applied based on the discount rate. The pie chart below shows this situation better. 

 Dynamic Pay Back Period (DPBP)

Comfar’s calculations show that the normal capital return period will be three years and the moving cumulative capital return period of the project will be four years with the application of a discount rate of 25 %   on costs and revenues.

Break- even analysis

Given the conducted financial calculations, the break-even value is 20.6%. Other cases related to the break-even analysis are presented in the table below.

 Summary of Study Results

• The proposed Capacity of car Sales and After-Sales Services  in Relation to the Size of the Marker and location in the province  can be Increased due to the higher Quality and Competitive Price of services Compared to Domestic competitors.
• Executive Experience of more than a Decade in the construction and effective communication with the distribution market network of the Sales and After-Sales Services as well as the lack of car agent technical services in the country, can guarantee the success of this activity.

For more information about the Feasibility Studies   of Sales and After-Sales Services  you can contact  Karduk.INC  via WhatsApp, Telegram or E-mail.

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