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The mission of Paint by Camille is to provide high quality collision and refinishing services for motorcycles, specializing in super bikes and
road race bikes. The most important aspect of this business is to create/maintain high customer satisfaction in quality of work, customer
oriented/knowledgeable staff, and repairs completed in a timely matter at an affordable cost.
The purpose of this plan is to provide insight into this established, niche California-based, female-owned business with the intent of
soliciting and securing expansion capital for future growth and operations.
We love motorcycles. The US Census Bureau says that out of a total 129,141,982 commuters in this country (USA, 2003) 147,703 of them ride
motorcycles to work regularly, or 0.11 percent. The Motorcycle Industry Council reports that of all the motorcycles registered in the USA, 4.3% of
them are used for year-round primary transportation (282,389), with an additional 9.9% used seasonally for this purpose (932,542 total). The other
95%+ are more recreational or weekend warriors. Granted some of these people have more than one motorcycle and some are stockpiled in
dealerships around the nation.
According to the Research and Innovative Technology Administration, a department of the Bureau of Transportation Statistics, there were
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~7.1 million motorcycles registered in 2007, 751,000 of which are in California, the highest concentration in the US .
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According to BikeWorld, in 2005 alone motorcycle and Scooter sales topped 1 million units , seen in Figure 2 below . Sales of motorcycles
(including street, off-road and dual-purpose) and scooters totaled 1,088,994 in 2005, up from 965,399 in 2004, a rise of 4.5%. Overall sales have
been on a gradual increase since 1992. Street bike sales increased by 6.8% to 645,503 in 2005 from 604,396 in 2004.
1
http://www.bts.gov/publications/state_transportation_statistics/state_transportation_statistics_2008/index.html
2
Motorcycle Sales Statistics (2005) http://www.webbikeworld.com/motorcycle-news/2005-motorcycle-sales.htm
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According to the 2005 report, The U.S. Market for Motorcycles , the $14.6 billion U.S. market for motorcycles is set to see its 13th
consecutive growth year with the support of the of a key consumer bloc. Baby boomers are heading out on the highway in droves. This Packaged
Facts report covers the explosive market for motorcycles, including cruisers, sport bikes, touring and dirt bikes, which accounted for about 91% of
motorcycle sales in 2004 and scooters, standard bikes and dual-purpose bikes, which accounted for the rest of the market. All segments will get a
boost in the coming year, due to skyrocketing gas prices, bringing more cycle devotees into the core user group and further changing the face of
the motorcycle consumer.
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http://www.marketresearch.com/product/display.asp?productid=1097893#pagetop
Paint by Camille’s target market is the repair of street bikes. With an estimated 645,000 street bikes sold in the US annually (as seen in
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Figure 3, previous page), or ~65% of all motorcycles. When you scale this number to California’s 751,000 registered motorcycles that translates
to approximately 488,000 registed streetbikes in California– our target segment. This typically does not include the trackbikes which are not street
legal due to their myriad of performance enhancements. When you calculate the 1.6% of bikes actually crashed that equates to about 7,810
motorcycles that would are estimated reported crashed annually in California – including unreported crashes dramatically increases that number.
4
http://www.bts.gov/publications/national_transportation_statistics/html/table_02_22.html
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http://www.bts.gov/publications/state_transportation_statistics/state_transportation_statistics_2008/html/table_05_01.html
We have carved a niche with our target market – import performance street bikes. The majority of our work to date has been on the higher-end
Italian Ducati motorcycles. A large ratio of the Ducati owners race their bikes and drop them on the track and we’ve actually painted some of the
bikes multiple times. Beyond we also work on street bikes made by Honda, Kawasaki, Suzuki, and Yamaha. In September 2006 DealerNews
Magazine reported the most popular midrange sportbikes were the Suzuki GSX-R600, Honda CBR600RR and Kawasaki Ninja ZX-6R – all bikes
we work on.
Based on a Spring 2000 survey by popular online destination for motorcycle enthusiasts, SportBikes.com (600 person sample size), a
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typical SportBikes.com visitor is:
• 93% male
• Aged 18 to 35
• Well educated
• Highly skilled
• Affluent with disposable income
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http://www.sportbikes.com/about011a.html?id=60
We are more than confident we have more than enough work with our demographic. Our customers are seeking people or companies who
can provide this service. Something we hear over and over again. There are companies that exist that either provide horrible customer service and
quality or focus on different niche of motorcycles (ie: Harley Davidson, etc).
The market already exists, obviously. Our penetration in the San Francisco Bay Area was certainly rapid and with impact. We aggressively
network with associates with alliances on message boards, rider groups, our website and social networks and most importantly, word-of-mouth.
Our explosive growth in the market within the riding community is hard to ignore – something we hear repeatedly (and with pride). Having people
satisfied with their experience and finished product is what we are in business for.
Typically the cost of supplies is very low. When customers want replacement or aftermarket panels we get a markup there as well. We are
authorized dealers of multiple vendors and get a discount typically of 25-50%.
In a move to stay ahead of the herd PBC has started training for waterborne and should be certified by early summer. PBC is committed to
meeting all California requirements and implements other earth-friendly practices in our operations.
There are many companies and products rising to the challenge and help provide solutions to meet this increasing regulations including
DuPont, Sherwin Williams, BASF, PPG and others.
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http://www.asashop.org/autoinc/march2007/collision.htm
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According to Jay Kaiser, representative for DuPont , "California and Canada are the two active places for VOC regulation right now. Other areas
of the country might be discussing change, but the places with real activity are California and Canada."
Darlene Eilenberger, BASF marketing director, said, "The new VOC recommendations will take effect in some California districts in July 2008. The
suggested control measure has been adopted or is pending adoption by the different air quality management districts across the state.
"There are several states that are currently considering the same or similar VOC regulations in the United States. Also, Canada has proposed
similar regulations that are projected for 2009-2010."
"Some air districts are considering adopting stringent VOC compliance levels in 2010, and some will follow after that," said Kaiser. "Also, some of
the requirements for compliance for different paints - such as specialty coats, clearcoats, etc. - take effect at different times."
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http://www2.dupont.com/Automotive/en_US/products_services/paintCoatings/paintCoatings.html
California has quickly become the focus of new product promotion, as most paint companies are on board in an effort to control the level of VOCs
emitted during the refinishing process. Waterborne paint is the most available new product designed to reduce VOC emissions during the
automotive painting process. Many paint companies are working to make this transition smooth and less costly for body shop owners.
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Sherwin-Williams Automotive Finishes recently introduced AWX, a waterborne basecoat/ clearcoat system.
"Utilizing a proprietary resin system that behaves like the solvent-borne system of today, AWX is designed to meet the strict VOC-emissions limits
recently adopted in California," said Nick Bartoszek, Sherwin-Williams product manager. "[This product] adheres to the environmentally friendly
guidelines soon to be implemented in Canada and throughout the Midwest and Northeastern United States."
BASF's waterborne system is another well-known paint option for auto body shops seeking to become VOC-compliant. BASF brought waterborne
products to the market 14 years ago. "BASF anticipated the future a decade before the recent regulatory changes in California with the launch of
the Glasurit 90-Line," said Eilenberger.
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http://www.sherwin-automotive.com
"Fully compliant with all current and impending VOC legislation, Aquabase Plus gives body shops an easy route to conversion," said Doug Beuke,
PPG compliant segment manager for North America. "Aquabase Plus ... is fully supported by a comprehensive range of cross-referenced color
tools and state-of-the-art training." Camille is completing her PPG certification.
A. NATURE OF BUSINESS
As stated, PBC is in the business of repairing damaged motorcycle body work and providing motorcycle paint service, including custom paint
work.
The motorcycle-specific Surety Bond is $10,000. Additionally, the fees to become a licensed dealer are nominal, but include:
B. DISTINCTIVE COMPETENCIES
Our core competency is first and foremost our service and the high quality we provide for our customers for their prized motorcycles. Since
Camille is trained in all facets of vehicle repair, including body and mechanical. Paired with her driving passion for motor vehicles she has a unique
understanding for quality and will not let a bike leave without her stamp of approval.
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http://www.dmv.ca.gov/vehindustry/ol/dealer.htm
Camille has since relocated to the San Diego metro area and is set to make an impact, expand business
and grab market share. If her success in the Bay Area is an indicator Southern California will be
providing Camille with work for years to come.
Eric started riding in high school and has owned Honda CBR-600s, Kawasaki Ninjas and Vespa’s.
4) Easy Access
Out of the motorcycle repair and/or paint facilities that do exist we stand out from the pack. We are already among the top in search
ranking on mostly all search engines. We answer our calls, emails, Tweets, etc with consistency and promptly.
Figure 11: Official PBC online presence samples. PaintByCamille.com homepage, Twitter, and MySpace pages.
As a start-up in the industry, our goal is to penetrate the market and build up our reputation. In order to do that, we are waving the set up cost for
our business partners. We believe it will attract more companies to use our service at the beginning stage.
PBC will continue targeting and selling our services throughout California. We will be launching our services in the San Diego area, expanding to
the rest of southern California, and retaining our established clientele in the San Francisco Bay Area. We anticipate being able to expanding our
service outside of California, and not much longer after that, nationwide.
Another great avenue for expanding business is networking with dealerships and mechanic service shops who can refer us work. Mechanic
service shops always have their clients asking about available body repair and paint shops. Having that established connection with service shop
will guarantee mass volumes of work for us.
PBC will also be focusing a lot on racers, and track riders. Racers and track riders are notorious for crashing and wrecking their motorcycles. This
means repeat business, and residual income.
D. COMMUNICATIONS
As previously stated we help nurture open, two-way communication with our current and prospective clients. The marketing aspect is what plays a
key role in gaining new clients. The current clients refer their fellow racers, and everyday riding friends to us. That is always a good thing because
the word-of-mouth multiplies quickly. Beyond general web searches we communicate via the PBC website, popular social networking sites, as well
as seeing our popular t-shirts, flyers etc. Also, we plan on expanding our presence at events – giving us a way to meet people and network.
E. SALES STRATEGIES
To date we have a very soft sales approach and let the work, portfolio and word of mouth speak for us. We have consistent, repeat business and
keeps us busy enough, that, at this time, we do not have to seek out additional work.
When clients order new bodywork from other companies (ie: SharkSkinz, Hotbodies, AIr Tech, Armor bodies, etc.), they have the option to have
the company ship the bodywork directly to PBC, or the client has the option of ordering the bodywork and bringing it to our shop. PBC is an
authorized reseller for many of these companies’ products and can also order the bodywork for the customer, saving them the hassle, saving them
some money, and increasing PBC’s overall profit.
In submitting parts to PBC, the client has the options to drop off their bike, or bring in the damaged parts directly to the shop. The latter
has proven to be a preferred option, eliminating the need of having to transport the whole motorcycle, allowing them the use of the bike. Many
customers have multiple sets of body work so they can ride while the damaged parts are repaired. Parts can easily be taken off of the bike and
brought in. This also helps create more working space in the shop. I can have more jobs in the shop if there is less complete bikes that have to be
stored.
PBC accepts work via mail. A client can remove their damaged parts from the motorcycle and ship it. Many motorcycle riders are willing to
ship their motorcycle parts to other states, or across the county because of the lack of repair facilities available. Depending on what method the
client would like, their completed bodywork can be picked up in person, or shipped back.
PBC should be able to complete two to three race bikes daily (depending on the job), which we estimate to roughly eight to ten bikes a
week. To increase PBC's volume and turnover of work, more staff would necessary. Having a body man, a mechanic/estimator, prep worker, and
Communication
We place communication as utmost importance is our continued success. Promptly responding to emails and answering calls helps us
keep the client well informed of their repair and paint process. PBC will always focus on open and accessible communication with the
client. Being accessible is something clients greatly value and why many people have sought out different service providers.
Quality
PBC, hands down, will be top-notch in quality of work being produced. Spending that extra time with attention to detail and getting the job
done correct the first time will eliminate having to redo the job. We put so much pride and passion in our work, and it shows in the end
result, as proven by praise and repeat business from our clients. We love working on bikes, and enjoy every project and in helping bring
each bike back to their potential.
Many other shops try and get the job out the door as quick as possible without paying attention to detail. Most of the time they
repair things in ways that would not be acceptable here at PBC.
Being known for dependability makes clients feel very comfortable with PBC's services, and work being completed on time. This is very
important because most racers need to have their bikes repaired or painted before their next race and shouldn't have to worry, or have the
extra stress about having a complete bike to race.
Value
Motorcycle riders are always looking for shops that are reasonably priced and offers a great value. We are not the lowest price but we offer the
value they seek. This also creates more of a possibility for PBC to get the job over other shops that are not affordable.
Personality
PBC is always known for being very helpful and positive. This makes the client feel very comfortable, and welcomed to our shop anytime.
PBC also likes to be able to relate to clients with their style of riding and getting to know each client individually. Whether it is always
wanting to hear about their successes in races, or down to their weekend adventure rides, PBC always has an interest in the clients’ bikes
or riding.
Our vendors and suppliers are crucial to our success and Paint by Camille works with several established suppliers. Our primary suppliers are for
body work and also for paint. There’s obviously other suppliers we have for tools, spray booths, and other assorted supplies.
Aftermarket Bodywork //
Started the revolution in material technology and production and continues to lead the market in quality and innovation. Sharskinz
advanced process enables them to build the most durable, best fitting and best-fitted bodywork available.
www.sharkskinz.com
After market bodywork and accessories for motorcycles specializing in race bikes. Affordable bodywork.
www.hotbodiesracing.com
Worlds largest manufacturer of exotic motorcycle bodywork and fairings. Fairings from Aprilia to Zundapp, from little 50cc, to huge 3000cc
streamliners, and any year from vintage 50's to current models.
www.airtech-streamlining.com
Armourbodies-
Aftermarket racing body work from Canada. Roadracing World comparison test findings rated ArmourBodies #1 in finish, flexibility,
exceptional fit and no burn through.
www.armourbodies.ca
PBC has established a very long going business relationship with FinishMaster Inc., an established paint company in San Carlos, CA.
FinishMaster has been PBC's preferred supplier for automotive paint, supplies, products, services and technology that has been ongoing success
for our shop. Some of the leading brands FinishMaster sells include:
www.finishmaster.com
PPG
As the world’s leading supplier of automotive, industrial and architectural finishes, PPG is one of the only companies that can supply any
type of coating needed for a vehicle body. PPG is the self-proclaimed (and for due reason) world leader in automotive finishes.
As an advanced 2nd generation waterborne basecoat, PPG’s Aquabase® Plus is the ideal compliant solution for high-production body
shops seeking to make the transition from solventborne without sacrificing quality, color accuracy or throughput performance. Well- proven
in Europe where stringent VOC regulations have been in effect for the past several years, Aquabase Plus is now available in North
America.
https://corporateportal.ppg.com/NA/Refinish/PPGRefinish/1-0-About/EN
Representing the 3rd generation advancement of the innovative, waterborne technology that PPG first introduced in 1999, Envirobase®
High Performance basecoat offers a premium-quality solution for collision centers that can benefit from a simple, easy-to-use system
offering maximum throughput with globally-accepted OEM approvals. Developed to integrate seamlessly with PPG’s Global Refinish
System® of undercoats and clearcoats, Envirobase HP is available in North America.
https://corporateportal.ppg.com/NA/Refinish/PPGRefinish/2-0-Products/050_Envirobase/EN
The OMNI™ system offers outstanding value for the collision repair shop seeking good performance from a refinish system at a very
economical price. The full-line system offers a choice of 5 topcoats and a wide choice of primers and clears, so a system can be
configured to meet very specific operation requirements and cost considerations.
https://corporateportal.ppg.com/NA/Refinish/PPGRefinish/2-0-Products/100_Omni/EN
Dupont
DuPont Automotive Systems is the largest global manufacturer of automotive OEM coatings – providing technologically sophisticated and
environmentally responsible coatings. DPC Refinish Systems is the largest global manufacturer of coatings for aftermarket car repair.
http://www2.dupont.com/Automotive/en_US/products_services/paintCoatings/paintCoatings.html
House of Kolor
Custom paint colors that are brighter and richer than their competitors, using the best pigments and solvents that money can buy. The 50
year old House of Kolor specializes in creating paint that stands out from all of the rest.
http://www.houseofkolor.com
The current estimated costs of goods provides allowances for experienced workers at or above market rate. These prices are negotiable
and will be adjusted for the fair wages in San Diego. The actual profit is expected to be significantly higher, especially in the beginning as Camille
will be doing the majority, if not all, of the work herself. As the business gets more established we expect PBC to scale up and expand to be able
to accommodate a higher volume of work, without sacrificing quality.
Our business hinges on two significant assumptions. The first assumption is that there will be no radical shifts from current motorcycle statistics
(sales, registrations, crashes). The second assumption is that we will continue to expand market share as there are no major regional players.
I am confident that Paint By Camille can continue to be a successful business and can grow exponentially with expansion capital. There is very
low risk and the ability to repay loans is expected to be easy. I am ready to commit all of the energy to my company. All my passion and money
has already been invested and I am excited to help take this to the next stage of success.
In the other two expansion capital scenarios I would operate my own shop and be able to be more productive, have the freedom to work
more and flexible hours and help bring jobs to other people. My actual operation costs can be covered by less than four jobs per month. The
amount of people requesting work from me is significantly higher than that and operation costs can be recoupable.
Additionally, I have people that I can sublet space to, such as custom painters, pinstripers, decal makers, etc to help offset my costs,
making the recurring costs much easier to handle.
The second scenario is a streamlined budget which would include a leased-to-own spray booth and does not include tools, marketing
costs, etc. This budget is estimated at $41,400 for an entire year’s operation expenses. The main difference between the two scenarios is that the
first scenario includes the spray booth paid forward. The first scenario includes more itemized detail.
We are confident that either scenario of expansion capital will help us dramatically increase our work output and customer base. The loan
payments would be easily recoupable from just one or two jobs.
Following is a sample of some listings that I found. I like the areas that are more North, and North East of San Diego including San Marcos and
Oceanside. East San Diego is also a good value for the kind of industrial space I need.
4. 1125 SQFT
http://sandiego.craigslist.org/esd/off/1752813920.html
(Rancho San Diego Plaza, Spring Valley)
5. 1213 SQFT
http://sandiego.craigslist.org/nsd/off/1751415637.html
(Escondido)
Who is your competition and what are their strengths and weaknesses?
PBC doesn’t have much competition in California and throughout the rest of the country. There are either small hole in the wall shops, or a
few small shops that don’t accept a lot of jobs, with quality of work being very poor. I have noticed a large amount of emails from all over
the country, stating the same thing over and over; there can’t find any local shops. I haven’t heard any positive talk from motorcycle
owners about the other motorcycle repair and paint shops.
My credit score is above average. I am building my credit line as much as I can. I have a few credit cards, and nothing is delinquent.
I have invested approximately $10,000 into the business so far. Most of the money invested has been on tools for the trade.
I have worked in the body repair and paint industry for about ten years now. I also took extra training to receive industry certifications for
repair and paint. These courses were a total of 1,500 hours.
1975-2007: U.S. Department of Transportation, National Highway Traffic Safety Administration, National Center for Statistics and Analysis, Traffic
Safety Facts, Final Edition, (Washington, DC: Annual issues), table 10, available at http://www-nrd.nhtsa.dot.gov/ as of March 2009.
2008: U.S. Department of Transportation, National Highway Traffic Safety Administration, National Center for Statistics and Analysis, Traffic
Safety Facts, Early Edition, (Washington, DC: Annual issues), table 10, available at http://www-nrd.nhtsa.dot.gov/ as of Dec. 2, 2009.
1975-2004: U.S. Department of Transportation, National Highway Traffic Safety Administration, National Center for Statistics and Analysis, Fatality
Analysis Reporting System Database and General Estimates System Database, personal communication, May 25, 2006.
2005-07: U.S. Department of Transportation, National Highway Traffic Safety Administration, National Center for Statistics and Analysis, Traffic
Safety Facts, Final Edition, (Washington, DC: Annual issues), table 35, available at http://www-nrd.nhtsa.dot.gov/ as of March 2009.
1970-2008: U.S. Department of Transportation, Federal Highway Administration, Highway Statistics (Washington, DC: Annual issue), table VM1,
and similar tables in earlier editions, available at http://www.fhwa.dot.gov/policy/ohpi/hss/hsspubs.cfm as of Feb. 17, 2010.
Spray Booths //
www.autobodytoolmart.com
http://www.autobodytoolmart.com/cross-flow-bike-booth-p-12569.aspx
http://www.paint-booths.com/motorcycle.htm
http://www.bencostuff.com/mpages/paintbooths.html (they don’t have prices listed)
http://cgi.ebay.com/ebaymotors/NEW-PAINT-SPRAY-BOOTH-Made-USA-
/320534412025?cmd=ViewItem&pt=Motors_Automotive_Tools&hash=item4aa156faf9#ht_500wt_1182 (ebay car booth)
http://www.spraytech.com/products.asp
http://www.accudraftpaintbooths.com/product-details.php?r_ID=8 (cost not listed)
http://www.spraysystems.com/Autodd.html (cost not listed)
http://www.tecorbooths.com/automotive.html (cost not listed)
http://motors.shop.ebay.com/__?_from=R40&_trksid=m39&_nkw=spray+booth
http://www.autobodytoolmart.com/industrial-batch-powder-booth-p-10785.aspx
Paint by Camille™
Mission Valley, CA
PaintByCamille.com
paintbycamille@gmail.com
http://www.facebook.com/paintbycamille
http://www.linkedin.com/companies/pain
t-by-camille-motorcycle-repair-and-paint
http://MySpace.com/paintbycamille
http://Twitter.com/paintbycamille