ACTIF Conference 101104

1
Left Click with Mouse to Continue Slide
Presentation
2
WEALTH
The FINAL FRONTIER
These are the voyages of the American auto
rental entrepreneur,
The Ongoing MISSION

• To explore new business opportunities!

• To challenge existing business models!

• To BOLDLY GO where no competitor has gone
  before!

3
2004 Car Truck Rental Conference
Creating WEALTH in Tomorrows Auto Rental
Industry THE NEXT GENERATION
Presented By Neil F. Abrams, President
ABRAMS CONSULTING GROUP, INC.
4
Can anyone make real money renting cars?
-- 1996
Henry Silverman Chairman Cendant Corporation
Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
5
REMOVING EXCUSES AND PSYCHOLOGICAL BARRIERS
Fugetaboutit

• PRICING --

• INSURANCE --

Fugetaboutit
Fugetaboutit

• --

Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
6
OWNERSHIP CHANGES
1976 2004
RCA
FORD
ITT
CENDANT
Household Finance
VANGUARD
TransAmerica
CENDANT
Hank Caruso
DTAG
Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
7
WHY DO COMPANIES SUCCEED?

• Challenge business models
• View is multi-dimensional
• Take calculated risks
• Execute with precision

Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
8
WHY DO COMPANIES SUCCEED?
EXAMPLES

• Enterprise

• Alamo

• CCRG

• DTAG

• Flexcar

Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
9
Why didnt I think of that?
Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
10
SUCCESS

• Its about

• THE PLAN
• THE EXECUTION
• TENACITY

Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
11
WHY DO COMPANIES FAIL?

• Static business model
• Ill-conceived PLAN
• Poor EXECUTION

EXAMPLES

• Allegis Corp.

• Autonation Car Rental

• Hertz Truck Rental

Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
12
Im glad I didnt think of that!
Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
13
WHAT IS VEHICLE RENTAL?
Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
14
THE ROAD TO BUILDING VALUE
Build an organization of smart, motivated, and
well-paid people.
Become obsessive about numbers know them inside
and out.
Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
15
PROFIT LOSS
CATEGORY REVENUE

• Fleet
• Labor
• Occupancy
• SGA
• TOTAL
• NET PROFIT (pre-tax)

40 - 50 15 - 20 8 - 12 10 - 15
TOTAL 73 - 97 27 - 3
Abrams Consulting Group, Inc
ACTIF CONFERENCE 10/11/04
16
PERFORMANCE BENCHMARKING

• Number of rental transactions (ins outs)
• Revenue time mileage operating
• Average fleet size total and by car class
• Revenue per unit
• Utilization - on rent vs. total Fleet
• Daily dollar average
• Market share
• Average length of rental by car class
• Average revenue per rental time mileage
• Reservation build
• Direct vehicle expense as a percent of revenue

• Personnel expense as a percent of revenue
• Earnings as a percent of revenue
• Car sale gain or loss
• On rents at point of time during week
• Reservation mix by car class
• Total man hours by job class regular hours vs.
  overtime hours
• Out of service analysis service, body shop,
  admin., cars stolen, etc.
• Market segment rentals
• Incremental/Sales conversion rate

Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
17
THE ROAD TO BUILDING VALUE
Build an organization of smart, motivated, and
well-paid people.
Become obsessive about numbers know them inside
and out.
Take stock of your market position strengths
and liabilities.
Create execute new Business Plan.
Find new niche, market position, revenue
opportunity.
Challenge your business model.
Merchandise and exploit that dominance.
Establish dominance.
Manage evolution with passion.
Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
18
CAH IN!
19
ADJACENCY MOVES
Transition Markets
CORE BUSINESS
Optimize R.O.I. On Assets
Expand Services
Specialize Products
Chris Zook, Beyond the Core, Harvard Business
Press, 2004
Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
20
BRAND DEVELOPMENT
Especially in a commodity business, its about

• Finding a niche

• Creating a distinction/uniqueness If
  you cant find one, make one up

• Building perception

• Merchandising the heck out of it

Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
21
BRAND DEVELOPMENT
Especially in a commodity business, its about

• Finding

• Creating

• Building

• Merchandising

Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
22
THE ABRAMS MODEL
Neil Abrams Associates, Inc.
1982
Abrams Consulting Group, Inc.
Abrams Travel Data Services
Abrams Technology Advisory Services
Abrams Consulting International
Adler Abrams Advisors
Convergence TravelWorks An Abrams Company
2004
Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
23
PRESERVING THEENTREPRENEURIAL SPIRIT
CREATIVITY
PLANNING
EXECUTION
WEALTH
Hire
Consultants!
Abrams Consulting Group, Inc.
ACTIF CONFERENCE 10/11/04
24
Return to AbramsConsulting.com