| RESIN WELD's initial plan is to divide the
New Zealand market into 10 franchised areas each with an average
population density of 250,000 people. At current vehicle density,
or numbers of vehicles per head of population, this will provide
a territorial market size of 200,000 vehicles. The Auckland
region will be divided into 4 areas and will be the initial
and primary focus of our advertising and promotional campaign.
The 10 franchised areas will cover a population of 2.5
million people or approximately 60% of the total population
of New Zealand. RESIN WELD believes that this will provide
each Franchisee with a good return on their investment.
The Franchisee will be responsible for the development of
his licensed area either by sub-franchisee or by the addition
of mobile repair technicians.
There are different models used to determine the size of
the repair market. RESIN WELD has adopted the more conservative
model which assumes a 10% replacement market. This model
assumes that for every 1,000 vehicles on the road 100 windscreens
will be repaired rather than have to be replaced every year.
Based on a territorial population of 200,000 vehicles the
above model would produce a 100% market share as being 20,000
repairs. A projected 5% market share in the first year would
represent 1,000 repairs.
The LTNZ WOF/COF regulations will increase the demand for
repairs beyond the replacement rates quoted above. Vehicle
owners previously driving vehicles with unrepaired damage
will now be required to have the damage repaired in order
to meet the WOF inspection criteria.
Click here to read about the
franchise package »
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