Kwic Lube Project

Abstract The purpose of this paper is to evaluate the data in regards to Kwik lubricators business success and determine the validity of dismissal in sales out-of-pocket to its competitor, Speedy Lube. Once the data has been analyzed a description of the observations is made. The paper is concluded by a short interpretation of the lawsuit and suggestions on creating a stronger case. Analysis Dick Johnson started a business, Kwik Lube, which specialized in oil changes and lubrication jobs. His predilection started from a gentleman in Los Angeles, who charged Johnson $3,000 to give him the schooling needed to start his own business, as long as he did not develop a store uprise Los Angeles as competition. In 1997, within a matter of a ten month frame, Johnson opened up his first cardinal stores, all in Seattle. In addition to these three stores he also opened up separate stores in Washington, Oregon, Idaho, and Montana. The centre take in sales for the first three stores combined from 1997 to 2007 argon shown below in Table 1. Table 1. Total raw sales for cars serviced in first three Kwik Lube stores.

course of instructionTotal Gross Sales 1997$260,000 1998$680,000 1999$750,000 2000$750,000 2001$780,000 2002$990,000 2003$1,040,000 2004$1,200,000 2005$1,330,000 2006$1,110,000 2007$1,110,000 As shown in Table 1, the constitutional gross sales quickly increased to large amounts. Johnson believes this unbroken increase in total gross sales was due to the small increase in price of the banner service, which include the following: oil change, filter change, and lube job. In 1997, the standard service cost $19.95, while in 2000 and 2001 it cost $21.95 and $24.95 respectively. With such great success Johnson decided to turn his business into a franchise, and spent a total of $30,000 by talking with lawyers and other franchise owners about the process to convert his business. He counterbalance his franchise fee at $28,000, plus 6% of the gross sales of the stations. He sold his first one... If you want to endure a full essay, order it on our website: Orderessay

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