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Non-Tech : APCO Automobile Protection Company -- Ignore unavailable to you. Want to Upgrade?


To: Cary C who wrote (617)12/26/1997 1:55:00 PM
From: James Strauss  Read Replies (1) | Respond to of 3351
 
Projections....

Gary:

The next time you speak with Todd can you ask him the following questions:

1. Does APCO have statistics on the ratio of Warranty contracts vs total cars sold...

Ex: APCO's contract with Sonic exposes them to 50,000 potential car sales per year... Their other contracts expose them to (X) car sales per year... If, for example, APCO sells contracts to 20% of the car buyers, that would be worth 10,000 Warranty contracts for the Sonic relationship...

2. What is the average retail price per Warranty contract...

3. What is the average net income per Warranty contract...

4. How many cars are the dealerships that APCO has a relationship with, expected to sell in 1998...

For those dealerships that APCO doesn't have an Exclusive agreement, try and see what the total number of projected car sales are, and then, what % of that total APCO can expect to sell Warranty contracts to...

I guess you can see where I'm going with this... If we can fill in the holes, we should be able to project Revenues and Earnings...

Jim