Summit Racing Essay

The high-performance auto part industry was established when the automakers first introduced the muscle cars in the 1960. Every speed crazed fanatic wanted one of those cars. After the 1964 Pontiac GTO was produced, there was two separate speed junkies in different parts of Ohio started selling performance parts to accommodate these addicts. They both realized they has a passion for high performance parts, they decieded they wanted to make a career out it. Jeg Coughlin Senior, started out of it Garage in Columbus, Ohio in 1960 to form Jegs performance parts. Eight years later, Summit Racing Performance auto parts started out in a spare bedroom part time. The two men deduced that it was niche in that market. Even though, Jegs was the first

If the company is extremely profitable, they will use more supplies to maintain or exceed their progress. To determine how much each average total cost of the supplies is divided by quantity sold or inventory. Average fixed cost is the average of all fixed cost within the company. This calculation will help create a budget for the operating cost. Explicit cost is used when Summit Racing uses their earnings to pay for supplies, employees’ wages. They are explicit cause they cannot use that money anymore for other purchases. Implicit is the opposite cost, it’s an income that can be earned elsewhere instead of working for the Summit Racing. The success of the company produces positive externalities to the states and local community. The positive attribute that it’s increasing the value of the housing market in the local community. The business addes activity and things to do in the area. The new and modern building is improving the community curb appeal. The effect of the company being located there is generating tax dollars for the state. The states use those funds for government sanction programs and

The company does not have enough exposure to potential consumers who are in the culture. Majority of the people, who eventually become customers heard about it through the previous customer. Expanding the advertising into mechanic shop, car shows, and car cruises. Summit Racing has exploited the internet already, but the other channel is rarely touched. Flyers should be mailed out in general mail to target every household. Word of mouth is the biggest form of advertising; Summit Racing has been successful using this method. Summit Racing is taking advantage of the technology era with the internet advertising. Their consumers, promote their company by sending them stickers and logos in the mail. A lot of time cars fanatics labeled high performance vehicles with stickers of equipment that's installed on their car. Since 1968, Summit Racing equipment has demanded the attention from the other competitors with low prices and free shipping, and massive expansion to three locations soon to be fourth location. The company started out as part time in a bedroom. Though this company was eight years’ junior to Jegs. They have surpassed the company in sales and company