Page 14 - MB BUSINESS PLAN PDF_Neat

8.3 Price

MB Tyre and Auto Centre will make use of a multiple pricing strategy that is set out as follows:

INCOME STREAM COST PRICE SELLING PRICE PROFIT MARGIN
Budget £18.00. £36.00 50%.

Mid £25.00. £43.00 40%.
Alignment 0 .£15.75 . 100%
Puncture 0 £6.50. . 100%

Service 0 .10.00 Per Hour 100%

Prices will be increased by 8% on a yearly basis to take increased interest rates and inflation
into account.

These price increases will be reflected in new price lists that will posted at the premises.
Customers are generally price sensitive, as they do not want to pay too much for what is not
an essential service. Although a segment of above-average clients will be served, the general
client is still of average income and therefore price sensitive.
Competing products are generally priced in the same manner or higher.
The demand for the service is generally responsive to increases in price; demand will drop
when prices are increased.
The business will not respond to changes in competitors' prices, especially as it has few
competitors in its local geographical market.
Prices will not be affected by changes in exchange and interest rates.

8.4 Promotions

MB Tyre and Auto Centre’s main selling point will be the provision of affordable, accessible,
quality services in a clean comfortable environment offering a collect ad deliver service

MB have in readiness an innovative sales promotion for opening of the business and a plan which
has been used in another business segment with great effect only once to our knowledge in the
North of Ireland This is a low cost high yield opening promotion

MB Tyre and Auto Centre will use the following promotional methods to promote the business:

• Signage, road-side markers and direction indicators

These items will identify the business, as well as providing an indication of where the business

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