Persuasive Message
Jennifer White
COM/295
April 20, 2015
Glenn Shivers
Part I memorandum to:
Dan Medlock, owner from: Jennifer White, Admin subject: profitable Alignments date: April 20, 2015 cc: Gracie McGuire, managing owner
We are losing money on our current alignment machine and wasting the time of our office staff and technicians as well. Our current alignment machine is loaded with outdated software and is broken. The cost to repair the circuit board and purchase a software upgrade is in excess of $15,000. We received calls almost daily from customers requesting an alignment and we have to turn them away. Take a look at how much we are losing in sales:
Alignment Services Lost Profit
One missed alignment per day $ 189.99
Five missed alignments per week 949.95
20 missed alignments per month 3,799.80
To save time and start making a profit on our alignments again, I have been considering a new alternative. Hunter Engineering is offering 20% off their purchase price for a brand new, top of the line, state of the art, alignment machine and rack. This new alignment machine and rack can assess a vehicles’ alignment needs in as little as 90 seconds from start to finish. Our old machine set up would take as long as 15 minutes. Along with the extended time of assessment, the old machine could not reset the computers on new model steering systems even with a software upgrade. The new Hunter Hawkeye Elite comes equipped with all the tools and accessories needed to perform the most complicated procedures we could come across on new vehicles and older models as well. After we make the initial purchase of $65,475.00, we would only need to complete 5.9 alignments per month to break even. Here is what our numbers would look like in ONE month doing three alignments per day:
Alignment Services Gained Profit – 3 per day, 6 days a week Alignment charge RO total $ 14,808.00 Cost of labor & parts - 4,442.00 Gross profit 10,365.00 Total investment (7 yr depreciation) - 779.00 Net profit 9,587.00 Full equipment payback 6.8 months
As you can see, the new Hunter Hawkeye Elite Alignment machine and rack can give us a Net profit of over $9,000.00 each month on top of all the other work being completed in the shop. The new machine will pay for itself in less than a year. Hunter offers free installation and onsite training with purchase. We have shop space available and the technicians are eager to have an alignment machine again.
Please call me at Ext. 262 if you have any questions. This alignment machine is such a good opportunity that I have prepared a purchase requisition authorizing the agreement with Hunter Engineering. With your
