RacingEngineering wrote:Bdr29, so my estimations without analysis were right. As i understood for 9 hours i have to give 19 rides(absolutely possible). I dont know what car you had used as a landmark, but it proves that this idea is not that unrealistic. You have not mentioned some overheads but even if we ll increase it by 40%, it will require not 19 but 25 rides, that is still possible. Thanks for encouraging and proving my point.
I'm glad the work I'v done to prove your point has given you some encouragement to keep going.
How about a thumbs up for the work, or are you proving my point that your ungrateful
Now before you go off to spend the company profits, you should take a good look at it one more time
A reminder of what I left out of my calculations and my noted low estimation for overhead cost as previously stated
1) - Cost of
Track, Cars, Insurance, and Safety not included
2) - missing overhead costs go under
incidentals and etc...
3) - estimation of overhead
£25 is a low
Cost of Overhead : I used a 2001 VW golf tire size 195/65/R15 and cheap brake pads £40/car
I based my £125/week estimation on replacing every tire and brake pad once per year, £40/tire, £40/brakes front & back
20 cars x 4 tires = 80 tires x £ 40 = £3200, Brakes 20 cars x £40 = £800 total £4000 or £80/week, that leaves £45 a week to cover things like mechanical car parts, advertising, personal costs fuel/phone,
£45/week is very low for this
Cost of Track rental : I used £ 240.00 because it was easy to correlate into the rental of 6 cars. I can't imagine being able to rent a track for £ 240/ day, but I'll go with it for now
Cost of Safety : Helmet £35, Neck Collar £15 = £50/car x 20 = £1000 divided by 50 weeks = £20 per week
Cost of cars : The cheapest 20 VW golfs on autotrader.uk came to a total of £ 7723.00 round up = £ 8000 (£400/car avg)
Cost of Debt ; whether you use a bank or family/ friends for a loan, interest is around 4% the cheapest you'll get
20 cars cost £ 7723 + interest = £ 8032/ 50 weeks = £160/ per week in Debt payment
Basing everything on a cost per week to get a more realistic look at expenditures
And please remember I have left out Insurance, Legal costs, Taxes and a lot of other things
4 facts to remember ---20 cars x 5 days =
100 rentals per week,
50 work weeks per year and
£4220.00 is break even
all cost provided by me have been rounded up for ease of math and/or are just estimates
That means £4220 divided by 100 rentals = £42.20 That's your new Rental cost for a day
100 rentals x 50 weeks = 5000 rentals per year needed to break even
If you wanted to make a profit of 6% approximately £250/week, you would have to charge £45/day
if you wanted to pay the debt (loan) off over 2 yrs. it would only drop your costs by £80/week
My personal view-- this business model is not sustainable based on rental fees of £42/day let a lone £45
and I'm still not taking into account the cost of Insurance, Legal costs, Taxes, and all the other costs I'v not mentioned
£5/gallon fuel can't last for ever,--£6.50/hour seems low to me, --- £40 for tires or brakes seems low to me
£240 Track rental fee is a long shot, but I can't be bothered to check and I'd bet twice that much is still way to low
getting 100 people a week I think would be difficult and sustaining that for 50 weeks is a lot to ask.
We'll discuss my consulting fee later
