| A quarterly direct mail campaign directed at both current customers and prospective new customers consisting of an informative newsletter. A toll-free national 800 number will be used for customer orders and inquiries. [I/we] will print complete four-color catalogs on a yearly basis. Price lists will be updated as needed. [I/we] intend to be aggressive in trade magazine advertising. Consideration will also be given to attending trade shows around the country. With this level of capitalization, should an unexpected downturn occur, [I/we] will be able to continue operations on a positive scale. Innovation. [I/we] have a history of innovative ideas. [List your most meaningful ideas and any new ideas you have for the future.] <Service> The distinctive competitive advantages which [My Company] brings to this market are: Experience in this market. [I/we] have XX years of hands on experience in this industry. Sophistication in management and finance. We are able to run an efficient and lean structure, yet still provide quality service to our clients and customers. Because of the nature of this industry, we will be able to rent office space in more moderately priced buildings. As a unique service company, we will be able to keep our margins high, allowing us to provide internal financing for growth possibilities. A level and policy of Capitalization that will allow [me/us] to fully address the respective markets with comprehensive marketing and customer service plans. By keeping my overhead low, [I/we] will be able to funnel my profits back into operations thus avoiding high debt ratios or lost sales opportunities. Our initial marketing campaign will allow us to book a sufficient amount of business so that we can implement our telephone customer service support program.
Innovation [I/we] have a history of innovative ideas. [List your most meaningful ideas and any new ideas you have for the future.] Summary Through [my,our] leadership, [I,we] will be able to reduce overhead as a percentage of sales thereby increasing the amount of profit to be retained in the business. Because of our pricing policy, more people will purchase our merchandise thus increasing the size of the market and we will be increasing our market share. What [My Company] proposes to use are just good solid business sense, economies of scale, and the use of efficient financial techniques. This will allow us the following options: § increase service § increase advertising § reduce prices § increase profits § increase selection <Service> Through [my,our] leadership, [I,we] will be able to reduce overhead as a percentage of sales thereby ncreasing the amount of profit to be retained in the business. What [My Company] proposes to use are just good solid business sense, economies of scale, and the use of efficient financial techniques. This will allow us the following options: § increase customer service § increase advertising expenditures § increase profits § increase selection of services offered This plan will give us tremendous flexibility to use any of these options or a mix of them to effectively attack our target markets and meet our long term goals. This combination of experience, sophistication, capitalization and innovation will assist [My Company] as it strives to reach its sales, profit and return objectives.
Pricing <Product> Before [I/we] set the price for my complex widgets, [I/we] determined on a unit basis what my costs were going to be. [I/we] then determined what the market price was for the normal widget. At this price it was determined that for all but the lowest sales projections, this product would turn a profit at this price. However, since our complex widgets offer additional features, we felt that we could price it approximately 50% above simple widgets. To test this price, we called a database of 50 large users of simple widgets. We first questioned them about the desirability of our extra features and then asked them directly if this price would be acceptable if such a product were available. We found that 75% of those polled would be interested in this product. Of this 75%, we received 10 firm orders representing approximately 30% of this group. OR: We have determined that the market price is $ XX per unit. This will equal a margin of XX%. OR: Our unit cost has been figured at $XX. We need a margin of XX% to pay our overhead and earn a sufficient profit. Therefore, our selling price will be $XX. <Service> Before [I/we] set the price for our [service], [I/we] forecast what our fixed monthly costs were going to be. [I/we] then determined what the market rate for comparable services were. At this rate it was determined that for all but the lowest billing projections, this [Service] would turn a profit at this rate. [Optional, if applicable] However, since our service is unique and demands a higher level of expertise, we felt that we should bill above other comparable rates. Specific Markets Market #1 General History <Product> The first widget was introduced into the market in 1036. Widgets remained much as the original production until well into the 20th |
