easily be a $100 million venture within a relatively short
period of time.
Johnny Ray Arnold, Chairman of Prime Time Group, Wheel Workz
Prime Time Group Inc., an
investment group with holdings in areas as diverse as wireless
phone service to oil and gas, says it will open as
many as 50
Wheel Workz custom wheel rent to own franchise locations in Florida. The franchise
group also purchased development agreements for the Caribbean,
Brazil, Panama, Argentina and Venezuela.
"This acquisition represents the first in a number of
acquisitions to be announced that are consistent with the
business and strategic plan announced in January of this year,"
says Johnny Ray Arnold, Chairman of Prime Time Group Inc.
"This could easily be a $100 million venture within a relatively
short period of time," said Arnold.
According to Specialty Equipment Marketing Association (SEMA),
the accessories and appearance market segment of specialty
equipment has grown substantially over the years to reach $6.94
billion at the manufacturer level in 2005. Part of the reason
for this growth comes from the fact that automotive
customization has grown in popularity among mainstream
automobile buyers. Recent SEMA research showed that over the
first three months of this year, nearly one out ever 10 (9%)
consumers surveyed planned to purchase accessory and appearance
products. This translates to slightly over 10 million U.S.
households planning to purchase some type of appearance
accessory for their cars or trucks.
"The rapidly expanding automotive rent-to-own industry
represents nearly the same market percentage as the computer
rent-to-own or about 4.7%." Says Dale Ingram CEO of Wheel Workz.
"The opportunity for growth with Prime Time is enormous,
franchises alone currently have revenues of approximately $4
Million per year and that doesn't include the licensing fees."
Wheel Workz carries custom wheels for all vehicle types
including high end cars like Lamborghini, Ferrari, Bentley, BMW
Memphis Tennessee based Wheel Workz is the largest independently
owned supplier of original equipment and custom wheels in the
Mid-South region of the United States.
Wheel distributor Mizati Luxury Alloy Wheels, Inc. said today
that it will name it's custom wheel rent to own division
"Wheel Lots." Mizati has also reserved the domain name
establish a strategic online presence.
"We're excited about entering the $6.7 billion RTO market," said
Mizati CEO Hazel Chu. "Wheel Lots' product offerings will
consist of Mizati brands, including MIZATI, HERO, ZATI, as well
as a wide range of other wheel brands and wheel packages that
will be determined by market demands and demographics for each
Chu said the next step for "Wheel Lots" includes securing and
preparing retail locations, permits, staffing, promotion
activities and logistics. Also experiencing growth in its core
business, Mizati has added additional suppliers in China to keep
pace with growing demand.
Mizati will open it's first stores in the greater Los Angeles
area and Inland Empire area. The Inland Empire area is the 14th
largest metropolitan area in the country with a population
exceeding 4 million people. "These two areas are very
representative of our target market. Car culture thrives in
these areas with the 92,000 seat California Speedway in Fontana
that hosts major NASCAR Busch Series and NEXTEL Cup events,"
Ms. Chu shares strong feelings about Mizati's RTO strategy in
relation to the market segment it will cater to. "When I came to
the United States to attend college, I couldn't afford a decent
car. The ability to customize the car I had gave me a sense of
pride and individuality. Our RTO model will give our customers a
chance to attain luxury wheels at affordable prices," Ms. Chu
Mizati also sees the RTO segment as an opportunity to increase
brand equity and profitability. In a November, 2006
RTO Magazine article,
Premier Wheel Rentals President, Scott Savell asserted that his
company's stand-alone RTO wheel and tire stores consistently
produce revenues of $75,000 per month and higher. Mizati will
gain a competitive advantage in this segment by realizing higher
margins on Wheel Lots sales than competitors through vertical
integration. Wheels will be distributed internally, cutting out
the wholesale mark-up paid by most wheel and tire stores.
Mizati plans to open its first three locations by the end of the
second quarter of this year.
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