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REVENUE ANALYSIS�LARIAT RENT-A-CAR

By: Kaydia Castaneda

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GOAL

Increase revenue and for Lariat Rent-a-Car with a focus on inventory from rental fleet data

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AGENDA

  • Baseline Data: a retrospective
  • Strategy 1
  • Strategy 2
  • Strategy 3
  • Recommendation

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BASELINE DATA

Our Data as it stands today with a retroactive look at 2018

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Baseline Data

Total # of Customers

81,318

Revenue

$52,830,207

Cost

$2,353,692

Profit

$50,476,514

Sum # of Days Rented

325,608

Utilization Rate

24%

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STRATEGY 1: GIVE A DEMOGRAPHIC A DISCOUNT

  • 10% Discount to a demographic
  • Anticipate a 20% increase in # of customers in demographic
  • % Profit Increase 3.3%

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STRATEGY 2: RAISE DAILY PRICE ON ALL CARS

  • Price raised by $10.00 per day on each car
  • Assume cost remains the same
  • Assume no decrease in rental utilization
  • % Profit increase by 6.5%

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STRATEGY 3: OFFER MEMBERSHIP CARD

  • Membership card offers early access to promotions
  • The numbers calculated are for new customers joining
  • Assumes cost remains the same
  • % Profit increase 10.5%

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RECOMMENDATION – STRATEGY 3

  • Increase # of Customers by 10%
  • Increase profit by 10.5%
  • Overall profit increases by more than $5.2 million

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THE END

Thank you for your time!�Questions?