
Cars & rental analysis
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Description
Experience Level: Intermediate
1- i want to calculate how much i need to get sales every day if only X% of people used the service.
2- what is the maximum car rental service cost we can handle compared to owning our cars ? and how does it correlate to sales. need to find the equilibrium point.
I want to start a new business that is:
if your car got into car accident we provide a replacement car for 10 days or 15 days (depending on the type of coupon)
and anything beyond that will cost the customer Omani Rial 5/day
we have some data which can be used... like % of people got into car accident compared to number of people who bought car insurance policy
Total number of accidents ( 20% small accident vs. 80% big accidents) . As in small accidents their car will be in service for maximum 10-15 days if not less. In big car accidents it can be 30 days.
if we used our car, it will cost us RO 2.2 per day (including finance/full price cash cost over 3 years) + RO 0.74 per day ( 0.00496 OMR cost of service per KM, we give customer 150 km max per day) + RO 2 of fuel cost in car per customer every time they take the car.
out sourcing (using car rental companies) will cost us RO 8/day but here no need to pay a lot of money & no long term monthly commitment like owning our car. OR no need upfront big cash to buy the cars. So basically we will be losing RO 3/day as the balance will be paid by customer.
*** Explaining the coupons service:
those coupons will be sold to insurance companies for RO 20 each. and also to car dealers. Who they will resell it or give it for free to their customers. We don't expect the customer will use our service in the first 3-4 months especially if he bough a new car (meaning he received this coupon for free from the car dealer as a gift).
Coupon A features ( 10 Free days ) - 1.5 year :
* Valid for 1.5 year from purchase. 10 free days of car.
* we send the car to his location within 12 hours of notice approval . Anywhere in Muscat.
* Validity of coupon starts 10 days of purchase & his car must be insured with valid car ID (Mulkiya)
* User can register up to 2 cars for the same price in the registration page. For example his car and wife car.
* Can be redeemed for one of the registered cars only. If redeemed for example for 7 days for car A, then the balance of 3 days can be used for one of both cars A & B.
* In case the coupon is fully redeemed (10 free days are fully used); the person can use the feature of OMR 5/day car rent anytime during the 1.5 years period. He can use only 1 car rental that will be rented for OMR 5/day only from us.
Coupon B features ( 15 Free days ) - 1 year :
* Valid for 1 year from purchase. 15 free days of car.
* we send the car to his location within 12 hours of notice approval . Anywhere in Muscat.
* Validity of coupon starts 10 days of purchase & his car must be insured with valid car ID (Mulkiya)
* User can register up to 2 cars for the same price in the registration page. For example his car and wife car.
* Can be redeemed for one of the registered cars only. If redeemed for example for 7 days for car A, then the balance of 3 days can be used for one of both cars A & B.
* In case the coupon is fully redeemed (15 free days are fully used); the person can use the feature of OMR 5/day car rent anytime during the 1 years period. He can use only 1 car rental that will be rented for OMR 5/day only from us.
2- what is the maximum car rental service cost we can handle compared to owning our cars ? and how does it correlate to sales. need to find the equilibrium point.
I want to start a new business that is:
if your car got into car accident we provide a replacement car for 10 days or 15 days (depending on the type of coupon)
and anything beyond that will cost the customer Omani Rial 5/day
we have some data which can be used... like % of people got into car accident compared to number of people who bought car insurance policy
Total number of accidents ( 20% small accident vs. 80% big accidents) . As in small accidents their car will be in service for maximum 10-15 days if not less. In big car accidents it can be 30 days.
if we used our car, it will cost us RO 2.2 per day (including finance/full price cash cost over 3 years) + RO 0.74 per day ( 0.00496 OMR cost of service per KM, we give customer 150 km max per day) + RO 2 of fuel cost in car per customer every time they take the car.
out sourcing (using car rental companies) will cost us RO 8/day but here no need to pay a lot of money & no long term monthly commitment like owning our car. OR no need upfront big cash to buy the cars. So basically we will be losing RO 3/day as the balance will be paid by customer.
*** Explaining the coupons service:
those coupons will be sold to insurance companies for RO 20 each. and also to car dealers. Who they will resell it or give it for free to their customers. We don't expect the customer will use our service in the first 3-4 months especially if he bough a new car (meaning he received this coupon for free from the car dealer as a gift).
Coupon A features ( 10 Free days ) - 1.5 year :
* Valid for 1.5 year from purchase. 10 free days of car.
* we send the car to his location within 12 hours of notice approval . Anywhere in Muscat.
* Validity of coupon starts 10 days of purchase & his car must be insured with valid car ID (Mulkiya)
* User can register up to 2 cars for the same price in the registration page. For example his car and wife car.
* Can be redeemed for one of the registered cars only. If redeemed for example for 7 days for car A, then the balance of 3 days can be used for one of both cars A & B.
* In case the coupon is fully redeemed (10 free days are fully used); the person can use the feature of OMR 5/day car rent anytime during the 1.5 years period. He can use only 1 car rental that will be rented for OMR 5/day only from us.
Coupon B features ( 15 Free days ) - 1 year :
* Valid for 1 year from purchase. 15 free days of car.
* we send the car to his location within 12 hours of notice approval . Anywhere in Muscat.
* Validity of coupon starts 10 days of purchase & his car must be insured with valid car ID (Mulkiya)
* User can register up to 2 cars for the same price in the registration page. For example his car and wife car.
* Can be redeemed for one of the registered cars only. If redeemed for example for 7 days for car A, then the balance of 3 days can be used for one of both cars A & B.
* In case the coupon is fully redeemed (15 free days are fully used); the person can use the feature of OMR 5/day car rent anytime during the 1 years period. He can use only 1 car rental that will be rented for OMR 5/day only from us.
Ahmed A.
100% (1)Projects Completed
1
Freelancers worked with
1
Projects awarded
50%
Last project
21 Nov 2019
Oman
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