Car Wash Marketing Plan

Soapy Rides Car Wash

Financials, Budgets, and Forecasts

4.0 Financials, Budgets, and Forecasts

This section will offer a financial overview of Soapy Rides as it relates to the marketing activities. SR will address Break-even Analysis, sales forecasts, expense forecasts, and how they relate to the marketing effort.

4.1 Break-even Analysis

The break-even analysis indicates that $9,122 is needed in monthly revenue to break-even.

Break-even Analysis



Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even	$7,508
Assumptions:
Average Percent Variable Cost	5%
Estimated Monthly Fixed Cost	$7,500

4.2 Sales Forecast

The following chart forecasts sales based upon the Market Segmentation Strategy. Sales are seasonal in this industry, tending to be higher in the warmer summer months, and to drop off in the winter. However, SR will aim to flatten sales across the sales cycle by targeting segments that will want to keep their cars clean and looking good year round.

Sales Monthly



4.3 Expense Forecast

The expense forecast will be used as a tool to keep the department on target and provide indicators if corrections need to be made. Additionally, it will require the department to undertake long-term analysis.

Monthly Expense Budget



Marketing Expense Budget

Marketing Expense Budget
	2003	2004	2005
Advertisements	$14,100	$19,000	$24,000
Networking	$1,600	$2,000	$2,500
Other	$1,575	$1,500	$1,500
	------------	------------	------------
Total Sales and Marketing Expenses	$17,275	$22,500	$28,000
Percent of Sales	20.94%	17.07%	15.94%