Free Essay

Product Pack

In: Business and Management

Submitted By cowboy1211
Words 1428
Pages 6
Basic Company Information Mechanical Wash System is a company based out of Troy and Grand Rapids, MI that supplies and distributes and maintains Hanna Carwash System. Hanna is corporately owned and licenses off their products to companies like Mechanical Wash Systems. Hanna is a corporate company that is ran by their CEO Jim Perris that is based out of Portland Oregon that designs and builds all of the cash washes and products. Mechanical Wash System is a private business owned by Chris Davis. Mechanical Wash System is in charge of all maintenance and customer care of a local level. Company History: In 1955 while vacationing in Mexico Dan Hanna Sr. saw his first car wash. Hanna was amazed by this site and studied it in depth while in Mexico. Once he returned home Hanna opened his first car wash in Milwaukie, Oregon. Two years later he opened his second carwash and over time Mr. Hanna owed a total of 31 carwashes. People started to take notice and wanted to open their own carwashes. In 1960, Hanna started Hanna Carwash Systems and started making carwash equipment for others. In 1982 Entrepreneur’s Magazine named Hanna the #1 Franchiser in the world. Today Hanna has more patents and trademarks than any other carwash builder. Through the years Hanna has installed over 90 million carwashes in 90 countries. Mechanical Wash System was founded in 1984 by Chris Davis after had attended a Franchiser convention in Las Vegas, NV. Davis started out of his house in Troy, MI as a part-time job to earn extra income. Six months into Mechanical Wash System Davis had to quit his full time job because of the opportunities he was getting from MWS. Today MWS has offices in both the Detroit area and the Grand Rapids areas so they can cover the whole state of Michigan and MWS has become the exclusive supplier of the Hanna Carwash Systems to the state of Michigan. For the year 2004 Hanna Carwash Systems Financial numbers were as follows:
Revenue: $100 Million
Sales: $90 Million
Profit: $15 Location: MWS has two locations in the State of Michigan. 53245 Big Beaver Rd. 342 Pearl St.
Troy, MI 48007 Grand Rapids, MI 49501
Phone (248) 259-6121 Phone (269) 377-0042 Product or Service

Types of Models

1. A. UltraSelect Conveyor System utilizes a combination of high-pressure water applicators, soft cloth and foam brushes for the perfect balance gentle yet effective cleaning. The UltraSelect system is configured to minimize vehicle incident while providing motorists with and open and inviting view all the way through the car wash. The UltraSelect system addresses hard to clean areas such as wheels, bumpers and window edges.
B. This product basically does it all it can by cleaning 240 cars an hour, clean with the highest quality, and be customer appealing all at the same time. It is the high-end model for the carwash industry. This product takes 6 months to complete Vehicle Clearance: 9 feet
Vehicle Width: 6 feet

2. A. Master Touch: High volume washing. Master Touch is designed with your customer’s preferences in mind. Motorists typically find the closed in sensation of tunnel washes unappealing, so Hanna responded with the sleek, open design of stainless steel, freestanding structure.
B. This product will wash at high volumes and create a quality wash. Can clean 200 cars an hour. The product takes 4 months to complete Vehicle Clearance: 9 feet Vehicle Width: 5 feet

3. A. MetroWash: Packs the power and efficiency of a conveyor system into a smaller package. MetroWash can process up to 60 cars per hour and fit a building as short as 40 feet long. With quick and easy installation and low maintenance costs. Metrowash is the easiest investment you’ll make. Plus, operators appreciate how simple the system is to operate. MetroWash may be compact, but it more than makes up for that in quality. It thoroughly cleans front, back and sides of vehicles, while the soft, gentle self-cleaning cloth removes tough dirt. The textured wash material not only cleans, it polishes and shines for a finish that pleases customers and brings them back. This product takes 2 months to complete.
B. MetroWash gives one of the best quality cleaning of a car wash. Vehicle Clearance: 9 feet
Vehicle Width: 6 feet

Comparison
All rating is on a 1-10 system with 10 being the best and 1 being the worst.

Price
Quality Wash
Cars/ Hour
Clearance
Building Time
Space
UltraSelect
$90000
8
10
10
5
5
Master Touch
$50000
4
9
8
8
7
Metro Wash
$30000
10
4
10
10
10

Competitor Information Mechanical Wash System has two major competitors when it comes to getting the sale with Maple Hill Motors. The first competitor is for Maple Hill Motors to stay with what they are doing and keep their detailers to continue to wash their cars. The second option is for Maple Hill Motors to make a deal with a local car wash and drive their cars there and have them washed. Detailers
Right now Maple Hill Motors has 10 detailers on staff to wash a detail their cars. Each of the car detailers work about 45 hours a week. Advantages: Besides doing a great job of detailing all of your cars on the lot the details are able to help you out with other activities when they are not busy with detailing cars. Some of these regular activities that they perform are; cleaning up the dealership, park cars, setting up and taking down balloons, and shuttle customers back and forth that are having service work performed on their car. Disadvantages: The main disadvantage to employing these workers is the price that it cost to employee them. Each detailer makes $15 an hour and with an average of 45 hours a week they make $712.50. When you account for that Maple Hill Motors employs 10 of these detailer, they are paying $7125 a week which adds up to over $350,000 a year for having their cars cleaned. The other issue is that even though they do other work around the dealership sometimes there is not always other work for them to do and they just sit on their butt and cost the dealership money. $4 Carwash
Recently the $4 Carwash on Stadium Dr. has come to Maple Hill Motors and offered them a deal. They want you to wash your cars at their carwash. They have offered you a deal for $2 a car instead of their normal $4 a car. Advantages: The biggest advantage of going with $4 Carwash is that you wouldn’t have the large start up cost of opening your own and you wouldn’t have to worry about maintaining it. You also wouldn’t have to deal with the hassle of learning and dealing with a new product/business. Disadvantages: The biggest problem with going with $4 Carwash is that it is over 3 miles away from your dealership. If you need a car washed during rush hour, who knows how long it is going to take to get back. There could also be long lines at the car wash at that time and that could make your customers wait even longer. Another big problem is the drive back is also over 3 miles. What if it’s winter time, the car is going to look horrible by the time that you get back.

Selling Scenario Update Us: We are Mechanical Wash Systems a supplier and distributor of Hanna Car Wash System. Mechanical Wash Systems is based out of Grand Rapids, Michigan and sells, builds, and maintains Hanna Car Wash Systems. Hanna Car Wash System is based out of Portland, Oregon and has the largest customer base of installed conveyor systems with over 30,000 car wash operations worldwide. Me: Jim Eckert is the general manager of Maple Hill Motors located on West Main in Kalamazoo, MI. Maple Hill Motors sells a large variety of makes and models including Subaru, Volvo, Audi, Volkswagen, and Chrysler-Plymouth. Scenario: Jim Eckert has recently contacted Mechanical Wash System about setting up a meeting with Mechanical Wash System to see what their car washes have to offer his dealership. Jim first heard about Mechanical Wash System from Larry David a friend and the general manager of a Chrysler dealership in Grand Rapids, MI. Larry purchased a carwash about 6 months ago and has been raving to Jim ever since about how it is paying for it’s self, speeding up daily activities and just making his life easier.

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