Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
460 views9 pages

ECO7 Worksheet

This document summarizes pricing and sales projections for Eco7, a new oil change product. It finds that at full price, Eco7 would generate significantly more revenue than conventional oil changes. At a discounted price, Eco7 still gains revenue over conventional but loses some versus synthetic. Overall, Eco7 is projected to increase annual revenue by millions of dollars for Aventage stores and independently-owned shops.

Uploaded by

Saswat Kumar Dey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
460 views9 pages

ECO7 Worksheet

This document summarizes pricing and sales projections for Eco7, a new oil change product. It finds that at full price, Eco7 would generate significantly more revenue than conventional oil changes. At a discounted price, Eco7 still gains revenue over conventional but loses some versus synthetic. Overall, Eco7 is projected to increase annual revenue by millions of dollars for Aventage stores and independently-owned shops.

Uploaded by

Saswat Kumar Dey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 9

Eco7 Aventage Price

Aventage
Total Stores 4400
Penetration 95%
Stores 4180
Upgrades per store annual 1260
Total Upgrades 5266800

Rev per change Eco7 $ 13.29


Rev per change , conventional $ 7.11
Incremental rev per change $ 6.18
Cost to company $ 10.05
Grss profit per change Eco7 $ 3.24
Gross Profit per change, conventional $ 1.11
incremental gross profit per change $ 2.13

Incremental Rev $ 32,548,824.00


Incremental GP $ 11,218,284.00
Avelin Auto
436
100%
436
1800
784800

$ 13.29
$ 7.11
$ 6.18
$ 10.05
$ 3.24
$ 1.11
$ 2.13

$ 4,850,064.00 $ 37,398,888.00
$ 1,671,624.00 $ 12,889,908.00
Eco7 Full Price

Aventage Non Aventage


Total Stores 4400 1600
Penetration 75% 45%
Stores 3300 720
Upgrades per store annual 1260 1260
Total Upgrades 4158000 907200

Rev per change Eco7 $ 13.29 $ 13.29


Rev per change , conventional $ 7.11 $ 7.11
Incremental rev per change $ 6.18 $ 6.18
Cost to company $ 10.05 $ 10.05
Grss profit per change Eco7 $ 3.24 $ 3.24
Gross Profit per change, conventional $ 1.11 $ 1.11
incremental gross profit per change $ 2.13 $ 2.13

Incremental Rev $ 25,696,440.00 $ 5,606,496.00


Incremental GP $ 8,856,540.00 $ 1,932,336.00
Others Avelin Auto
6500 436
30% 100%
1950 436
1260 1800
2457000 784800

$ 13.29 $ 13.29
$ 7.11 $ 7.11
$ 6.18 $ 6.18
$ 10.05 $ 10.05
$ 3.24 $ 3.24
$ 1.11 $ 1.11
$ 2.13 $ 2.13

$ 15,184,260.00 $ 4,850,064.00 $ 51,337,260.00


$ 5,233,410.00 $ 1,671,624.00 $ 17,693,910.00
Eco7 Discounted Price

Aventage Non Aventage


Total Stores 4400 1600
Penetration 90% 60%
Stores 3960 960
Upgrades per store annual 1620 1620
Total Upgrades 6415200 1555200

Rev per change Eco7 $ 11.81 $ 11.81


Rev per change , conventional $ 7.11 $ 7.11
Incremental rev per change $ 4.70 $ 4.70
Cost to company $ 10.05 $ 10.05
Grss profit per change Eco7 $ 1.76 $ 1.76
Gross Profit per change, conventional $ 1.11 $ 1.11
incremental gross profit per change $ 0.65 $ 0.65

Incremental Rev $ 30,151,440.00 $ 7,309,440.00


Incremental GP $ 4,169,880.00 $ 1,010,880.00
Others Avelin Auto
6500 436
40% 100%
2600 436
1620 2160
4212000 941760

$ 11.81 $ 11.81
$ 7.11 $ 7.11
$ 4.70 $ 4.70
$ 10.05 $ 10.05
$ 1.76 $ 1.76
$ 1.11 $ 1.11
$ 0.65 $ 0.65

$ 19,796,400.00 $ 4,426,272.00 $ 61,683,552.00


$ 2,737,800.00 $ 612,144.00 $ 8,530,704.00
Conventional Synthetic Private Label Synthetic
cost per quart 1.2 1.95 NA
cost per5 quarts 6 9.75 NA
DIFM
Avg Retail price per quart 3.25 7 4.75
Avg Revenue, per oil change (5 quarts) 16.25 35 23.75
Gross margin %, DIFM outlet 50% 60% 65%
Wholesaler
Avg Revenue, per oil change (5 quarts) 6.86 11.14 NA
Gross margin %, DIFM outlet 12.50% 12.50% 15%
Avellin
Avg Revenue, per oil change (5 quarts) 7.11 12.25 NA
Gross margin %, DIFM outlet 15.611814346 20.40816 NA

Eco7 Full price Avellin stores (150 units)


Eco7 vs Conventional Monthly
Revenue,conventional 16.25
Revenue Eco7 33.75 5062.5
Additional revenue gained 17.5 2625

Eco7 vs Synthetic 35
Revenue Eco7 33.75 5062.5
Additional revenue lost -1.25 -187.5

Eco7 vs Private Label Synthetic 23.75


Revenue Eco7 33.75 5062.5
Additional revenue gained 10 1500

Eco7 Discounted price Avellin stores (180 units)


Eco7 vs Conventional Monthly
Revenue,conventional 16.25
Revenue Eco7 26.25 4725
Additional revenue gained 10 1500

Eco7 vs Synthetic 35
Revenue Eco7 26.25 3937.5
Additional revenue lost -8.75 -1312.5

Eco7 vs Private Label Synthetic 23.75


Revenue Eco7 26.25 3937.5
Additional revenue gained 2.5 375

Fast lube customers 6000 other interdependents (25% of 6000)


Through Aventage Program 4400
oil change plus stores 6500
independent DIFM customers 68% of sales

Eco7 full price


Adoption of Eco7 Aventage only Eco7 full p Eco7 discounted

Aventage program 4400


Penetration 95%
Total stores 4180
Eco7 full price Eco7 discounted
2.01 2.01
10.05 10.05

6.75 5.25
33.75 26.25
55% 50&

11.31 11.06
12.50% 10.00%

13.29 11.81
24.379232506 14.9026248942

Conventional stores(105 units)


Anually Monthly Anually

60750 3543.75 42525


31500 1837.5 22050

60750 3543.75 42525


-2250 -131.25 -1575

60750 3543.75 42525


18000 1050 12600

Conventional stores(135 units)


Anually Monthly Anually

56700 3543.75 42525


18000 1350 16200

47250 3543.75 42525


-15750 -1181.25 -14175

47250 3543.75 42525


4500 337.5 4050

pendents (25% of 6000) 1500

You might also like