This Assignment Is Due Sunday May 25 at 7 pm

SAS Marketing Plan

Managerial approach to marketing (MGT 640)

December 7, 2013

Professor Dyrren Davis

American Intercontinental University

EXECUTIVE SUMMARY

Self Advanced Solutions LLC (SAS) is a company set up to produce smart sport shirts that are different from all other sports shirts and also to meet a niche in the sports apparel industry. SAS as a company plans on achieving this goal by producing and selling advanced shirt made of 100% polyester fabric Moisture-Wicking and UPF (Ultraviolet Protection Factor) fabric that is designed as high performance solution for following segments: athletes, sport teams, military personnel, police force and any individual customers who want to have maximum performance while staying cool and dry.

Vision statement

“Strive to be the best company that helps every customer to perform beyond physical abilities”

Mission Statement

“To provide superior quality, comfortable and advanced solution apparel to meet the needs of our customers”

SAS Product initial price is planned at the low end of competitor’s range of $20. Product will be available in a wide range of colors including military khaki and camouflage. Our unique focus is high quality and personal customization option of shirts that will give us advantage over other competitors. Currently, Moisture-Wicking Technology shirts takes around 35-45 % share of sport apparel in USA and market growth is currently stable. Major competitors such as Under armour, Nike, Puma, Reebok and Adidas, currently occupy the market share. However, there is great opportunity to gain a reasonable market share in the military, cadets, army, police force etc.

For startup period SAS plans to take loan of $1000 for 60 months with 15% rate. That amount should cover the first few months of operation till we reach the revenue break-even. The first year of operation is planned with break-even and profit of 30 k $ in 2014 followed by increased profit of $117 k in 2015. So the loan can be paid off much faster as there are neither contractual restrictions nor fines for early payment.

SAS’s market strategies will enable us to reach targeted 125,000 (estimated 625 $ k of profit) customers in age range of 16-45 that are 4.5% of market share of moisture-wicking apparel in the next 5 years of operation.

SITUATION ANALYSIS

Internal Analysis

Company plans to sell high-performance sport shirt at a minimum price of $20 compared to the price of our competitors which ranges from $ 20 to 29$ depending on brand name and type of shirt whether it is short or long sleeves. Estimated market share of high-performance sport shirt for individuals is 35-45% of sport apparel. For the last years the market continuously displaces basic cotton apparel with advanced technologies apparel. Also SAS has a huge opportunities and advantage over its competitors by covering the market segment of military, cadets, sport teams, army police force. This is a segment that is not currently covered by other competitors. Taking into account this opportunity, the market share could be much higher.

Figure 1: Moisture-wicking apparel market break down

Currently, our competitors’ price range is from $20 - $29 and our price is $20. This is strength an added advantage for our product to do well considering that our product will have added features that will enable customers to customize it if they want and also add customers initials, symbol any other personal inscription or colors mix.

SWOT Analysis

Strength

· High quality of products and level of service are the corner stone of our company’s operation.

· Ability to produce products that is unique and different from other products at a reasonable price.

· Ability to meet a niche in the sports apparels industry.

· Well trained staff who are able to demonstrate company’s code of ethics and has understanding of company’s vision and mission;

· The company processes and staff will meet ISO 9001 Quality management systems Certification to improve quality management system and sustain success of an company

Weakness

· It is clear that weak brand name of the products may not attract estimated sales plan at startup period. It will take approx. a year before the brand will reach its customers commitment or trust level within targeted segments;

· Despite the efforts to get professional staff, the hiring plan of desired candidates may not be completed, as professional employees may not accept risk of employment in starting company. Additionally offered startup salary may not be competitive for targeted experienced employees;

· There could be lack of budget for all planned promotions and probably additional financing will be required for startup period.

Opportunities

· Ability to produce Moisture-Wicking and UPF technology sport shirts at a reasonable price compared to that of competitors is an advantage that will help boost the success of the company.

· Increase in demand for shirts made with Moisture-Wicking UPF fabric, will increase our chances of larger market shirts.

· Ability to produce for a particular segment of the market like the military, army, cadets, etc. which has not been penetrated by our competitors will increase our market

· There are stable supply chains available from a number of resources and relatively cheap labor in Asia, which will result in minimum, cost of production and contribute to success of the company.

· Also, there are a number of suppliers of Moisture-Wicking and UPF fabrics in Asia and also, a cheap labor force in Asia along with increasing demand for high performance shirts in USA give our company a great opportunity in developing this product.

· Growing demand on local market and available offers from Asia with low manufacture cost and stable supply chain gives opportunity to this product to be successful.

Threats

· There are quite a number of Competitors with the similar products. Hence, the fear of been displaced.

· Due to customers’ current loyalty to brands, it might be difficult to penetrate the market in order to gain customers commitment;

· Threats of new entrants because, the same raw material is widely available and accessible to any other company who intends to come into the market. This means that high demand for raw materials from other companies may lead to shortage in the supply of fabric to our company.

External Analysis

It is our duty as a company to make sure that all the environmental factors that can affect the company are properly checked and analyzed in order to be compliant. Before start up we will make sure that the following environmental factors are checked.

Legal/ Regulatory factors

Company checked and made sure that Trade Mark “SAS” is not occupied and is not patented by any other party and will be available for legal usage by the company. Also, First-level domain name www.sastech.com was available and was registered to SAS as well.

Figure 2: SAS official logo

SAS is aware of The Federal Trade Commission's (FTC) Care Labeling Rule that requires manufacturers and importers to attach care instructions to garments.

ASTM D5489 - 07(2013) International Standard Guide for Care Symbols for Care Instructions on Textile Products covers all label requirements and SAS will fully comply with these regulations. Only the ASTM Label symbols have been approved for use in the United States.

Also SAS is aware of U.S. Retail Pricing Laws and Regulations that differ from state to state and company will follow them.

Figure 3: ASTM guide to care labels

Social / Political external factors

SAS has thoroughly researched but has not found any association company’s abbreviation “SAS” and its product with any political, social or religious areas that can initiate any dispute or negative impression of our potential customers.

From custom stand point SAS is fully aware of U.S. import tariffs and custom clearance duties and procedures according to U.S. International Trade commission regulations.

Technological / Innovative external factors

Though Moisture-Wicking and UPF technologies apparel is not new technology but still developing product, like SAS will require consistent upgrade and advancement in order not to be displaced from the market

Economic factors

Due to comparative advantage of China in apparel production it is most reasonable source of products with minimal cost to SAS. Even taking into account US tariffs on imports from China that have increased recently this country represent highest importance to SAS. In an attempt to protect the SAS from going through future changes, we will put in place other options to get raw materials, such countries will include China, the Philippines and Taiwan will be considered as supplier of raw material and final product manufacturer in worst case scenario.

Competitive environmental factors

SAS realize potential influence and competition from well-established brands in the market. Also we understand that there are other additional threats possible e.g., our suppliers may start importing product under their own brand name and new companies may try to use our source or other similar sources in China.

Company Objectives

SAS has set and confirmed following short term objectives for the first year of operation in 2014:

(1) Is is our objective as a company to make sure that Moisture-Wicking and UPF shirts becomes popular with stable demand increase pushing out conventional cotton-like apparel due to obvious technology advantages.

(2) It is also our objective as a company to make sure that Many individual customers and professional athletes are aware and have positive experience with these products and prefer to use them instead of basic cotton that doesn’t provide advanced features during intensive workout sessions.

Financial objectives:

1. Reach break-even point in Q3 2014 and gain $30 profit by the end of 2014;

2. All costs should stay within calculated and agreed percentage range.

Marketing objectives:

1. Implement all annual planned promotion campaigns.

2. Reach 85% customers’ satisfaction evaluated at the base of web survey.

3. Create clients’ database (CRM) and reach 160 accounts (Businesses + individuals)

4. Successful launch Loyalty program by the end Q1.

Corporative objectives:

1. Train personnel on product, company’s ethics and cornerstone principles of operation;

2. Meet ISO 9001 Quality management systems Certification by end of year.

TARGET SEGMENTATION

In order for SAS as company to be able to target its customer’s base, the company needs to be able to segment its customer so as to carfully analyze who its customers will be and how to focus on them. SAS will segment based on the following demographic segmentation types such as lifestyle, age and gender.

Lifestyle: under the life style demographic factor, SAS will segment my concentrating on individuals who practice a healthy life style either by choice or by profession, for example, we will target the army, military, cadets, police force and all other individual who are interested in the health and fitness activities. Also, our shirts will be used for all types of active sports like running, football, basketball and etc.

Occupation: Also those who are involved in outdoor professional activities such as hunting, hiking, cliff climbing, snowboard or ski etc. will also be marketed to. The military, army population will be covered with special camouflage and police and cadets will have available standard green and sand colors shirts that are like their uniforms

Age: The next stage of segmentation is by age. From the research we carried out, people are most active during their life span from between the ages of 16-45 and hence, we will be focusing on that age group in order to carefully segment, select, and target properly. Hence the reason while we are including different sports teams which consist of young adults from different schools along with the military segment of the market.

Gender: Segmenting by gender is also a very important form of segmentation for SAS as a company because, research shows that men are naturally more active than women and hence the reason while we are segmenting by gender in order to target men. Taking this step will help SAS carefully outline its plans.

Location: Demographically, we will also target the all the segments mentioned above irrespective of their location. This can be made possible through our online sale tools.

POSITIONING STRATEGY

SAS will apply the differentiation and the focus/niche generic market strategies in positioning its products. The company’s priority will be to create a product that is different from all other similar product not just in the quality and style, but also by meeting a niche in the market, which has not yet been met by other competitors. However, before this can be done, It is important for us to know who our competitors are because knowing their strengths and weaknesses will help SAS position its products strategically. For example, we have companies like Nike, Reebok and Adidas as major competitors. According to hoovers .com a database that provides internal information about different companies, the weaknesses of our competitors are as follows. Poor online presence, that means that it is not so easy for customers to purchase directly from the company’s website without having to go through a retail channel distribution source. Another weakness is loss of military market, which means that there is a niche that is yet to be met by competitors in the military athletic clothing because competitors have not been able to produce fire redundant athletic shirts for the military. High price is also an issue or a weakness because from research, it was gathered that only a small percentage of people who are active are able to purchase Nike or Adidas products. Lastly, there is the issue of low barriers to entry, which means that many competitors can easily move into the market.

Considering all of the weaknesses of competitors mentioned above, SAS would use these weaknesses as a market strategy to gain an edge over its competitors. The company will focus mostly on using the two main weaknesses, which is high price and loss of military market as an edge over competitors. Knowing these weaknesses, we are going to build on that as a market strategy. This can be done by extending SAS products to the military and making sure that the ones for the military are specially made with fire retardant materials, which is a niche that has not been met by our competitors. Also, sales representatives will also be sent to the cadets, police and different school football teams.

Value Proposition

The basis of out value proposition is our vision “Strive to be the best company that helps every our customer to perform beyond physical abilities”. We consider this statement to be strong motivator, clear message content and identify to whom it is addressed and properly communicate what benefit we provide to our customers.

Moisture-wicking technology helps to cool down body temperature up to 10-degF preventing body overheating, keeps body cool and dry at all times. We believe that this main feature of the product will be valued and considered as critical advantage by professional athletes and sport teams members whose result highly depends on physical condition, police, cadet, military and army population who perform in tough environmental conditions where it helps to stay alive, hunters who must stay dry and do not get cold and any individual customers.

The benefits of our product will be reinforced with product flexibility as customization with combination and colors mix (camouflage for military and hunters) of the shirts and any symbol or inscription of 20 characters. That option will help our customers to identify themselves at self-esteem level equal to car license plates that reflect name, occupation or hobby of the owner. Thus military, army and police population will have critical information like blood group and type that could safe life in certain circumstances, athlete can order inscription of his marathon result with date, time and distance run, weight indication lifted in gym and etc.

SAS will also strive to meet customer’s needs closely and that is reflected in our vision to strive to be best. For example, because SAS major competitors are well established, they seem to be invisible and they don’t have the ability to interact directly with customers to know exactly what their wants and needs are. SAS is going to use that weakness of our competitors as a strategy by making sure that there is direct communication with customers and also assurance that they can reach us at any time and have individual approach to every customer’s situation.

Additionally we will deliver boosters to customer like free returns, free shipping of orders over 60 $, next day shipping and full refund in case customers are unsatisfied.

Product positioning strategy

SAS will be positioned in a way that customers’ needs can be met through our unique product features. Products will be marketed through different ways such as through social media like Facebook, Twitter, etc. to keep customers engaged and connected to the company. Also, SAS will use Internet marketing as a marketing strategy by using pop up ads, Google ad words and Google keywords search so that whenever new customers are looking for sports search, SAS will be the first to pop up. SAS will also use direct marketing by sending out sales men directly to different schools sports teams and coaches by offering discounts if they sign up to purchase in bulk and also allowing them to print their team logo if they want. These are services our competitors cannot provide. In addition to the other marketing strategies, SAS will also develop a mobile app features which will allow customers to be notified when new products are lunched and also, there will be a feedback section which will allow customers to give feedback of what they think the company can do better and how the products can be improved to satisfy their needs profitably. SAS will also frequently organize different photo contest that will enable customers to participate and have their pictures used for advertisement of the product. Sales reps will be sent to the different military departments to directly market to them and also offer discounts and other features like customizing names on the shirts and a logo if they want. Easy online steps will also be created for customers to enable them place orders without any glitches. Also, flexibility to honor special request from customers will also be granted because been able to do this will help to create that closeness and bond between the company and customers and this will help to build the commitment trust paradigm which involves satisfaction, commitment, trust and loyalty. With all of these marketing strategies put in place, SAS will be well positioned and able to gain a good market share.

MARKETING MIX ACTIONS/ 4PS

SAS marketing mix will be grouped into the following categories, which comprise of the following: product, price, place and promotion.

Product

The concept of our product is to create a product that can meet the wants and needs of our target market profitably. Using the generic marketing strategy of differentiation and niche/focus, this product which is a smart athletic shirt made from moisture-wicking and UPF fabric will help to absorb sweat during work out while keeping the body at a regular temperature and therefore helping our customers work out for longer period of time. In terms of meeting niche, there will be a special type specifically produced for the military with a special type of material that will make the product fire redundant. Been able to meet this niche will give our products an edge over our competitors since they can’t meet that niche. This product will also come in different colors and sizes and customers will be able to choose from a wide variety of options.

Figure 4: Shirts colors variety

Also, customers will be given the option to customize their products product with combination and colors mix (camouflage for military and hunters) of the shirts and any symbol or inscription of 20 characters.

Figure 5: Shirts customization option

As the product moves through the product life cycle, future modifications will be made. Also, full refund will be granted to customers who are not satisfied with the outcome of their orders. There will also be free shipping upon return.

Pricing

In terms of pricing, our overall pricing policy is to price our product in a way that is affordable and not too expensive compared to that of our competitors. We can either set our price to be the same as the competitors or slightly lower or slightly higher. These three pricing process will be observed as our product goes through the life cycle stages. SAS pricing objectives will be categorized into the following groups

Premium pricing: SAS is going to use the premium-pricing objective at the growth stage of the company. This pricing objective will help us to penetrate the market, increase sales and build our market share. This pricing objective can be achieved by keeping the price slightly a little lower than that of our competitors. For example, from our market research, we found out that our competitors are charging $20-$29 per shirt but we are going to charge a maximum of $20 per shirt. This pricing objective will be favorable because at the end of the day, our cost of production is lower than that of our competitors because the production center is going to be located in china where the cost of production is low as well as taxes.

Competitive pricing: At the maturity stage of the company, competitive pricing will be used because at that stage, the SAS will be well established by then with a large market share and it will be easier to match prices with competitors and based on the fact that SAS is offering a product that is very unique and different, the competitive price strategy should work. SAS as a company will also put into consideration three basic pricing objectives when setting price.

Profits: as we all know, been able to maximize profit is usually the main objective of any organization because, most companies rely on price to cover the costs of production, pay off expenses, and provide the profit required to continue to operate the business. Therefore, it will be the company’s best interest to increase sales in order to increase profits because the primary profit based objective of pricing is to maximize price for a long term of profitability.

Sales: the use of sales a s a pricing objectives will help to boost and increase market share because more sales at a reasonable price means increase in market share and profits. We are certain that using sales as a pricing objective will work because from our research our price will still be the best price when compared to that of our competitors and we are certain that our target market will be able to afford the price. Before setting our price, we will put into consideration the different steps involved in setting price which will consist of “ selecting the price objective, estimating the amount of demand, estimating how much it will cost us as a company to produce this products. We will also analyze our competitors’ price mix before selecting our final price”. As the company progresses through its different stages, we will apply the different pricing strategies.

Place / Distribution

It important for SAS as a company to be able to meet the customers’ demands profitably because we know that shortages in supply of excess supply can hinder the company from reaching its goals and objectives. In terms of distribution, we intend to use the following place/ distribution strategy.

The exclusive push strategy: Due to the fact that our product is new to the market place, it is our responsibility as a company to make sure that we are able to get our products to our target consumers. The exclusive push strategy will be used to get our products out there to our target customers and to inform potential customers and create awareness for our products. The following distribution channel techniques will be used for distributing our products.

The producer-customer channels of distribution: This form of distribution will be used because it is the easiest and cheapest channel of distribution and also, because we intend to build a good relationship with our target customers, this channel of distribution will help the company to be directly involved with customers and this is something our competitors are not offering. In the near future and as we expand to other states in the United States, we can then use more middlemen. But in the early stage of the business, it is important for the company to cut and minimize cost. Using producer-customer distribution channel will also help us to have an edge over our competitors because from the research conducted on our competitors, we noticed that they all use a long chain of distribution channels and hence, they are unable to build a good relationship with their customers. SAS as a company will build on this weakness of our competitors to meet our customers’ wants and needs profitably. Also, products will be distributed and sold via the our own online shop with hot lines, Amazon marketplace etc

Promotions

At the introductory stage of the company, it is our goal and objective to create awareness and also inform our target market and all other potential customers about the benefit of our product. Having that in mind, different promotional programs and tools will be used to promote our products. These techniques include the following:

Free sample trials: under this promotional technique, free samples will be given to certain but not all target customers for example, since schools sports teams and coaches, samples to marathoner leaders. Since it is still a new product, it is important for us to be able to convince them with regards to why they should use our products. Taking this step will help to attract and retain target customers because a trial will convince them. Also products will also be promoted by placing convincer stands in mall to show people samples of the fabric and how it can absorb sweat very quickly.

Loyalty program. Loyalty programs will also be used whereby customers will accumulate points for purchase. It is important point to get repeated customer.

Sales promotions: Sales promotion will also be used as a promotional strategy to hopefully attract and retain more potential customers buy sending out coupons via email to targeted customers and other potential customers. For example, we can do that by subscribing to a service that will give us access to email address of our target customers that has been identified.

Discounts: in this case, discounts will be given to target customers in order to boost sales and profits. For example, if they place an order over a certain quantity, then they will be given a certain percentage off. Doing this will help to increase sales

Refunds will be used as a promotional technique to help gain the trust of our target customers. This will be done by giving full refund back to customers who are not satisfied with their purchase for whatever reason. For example if our customers know that they can get 100% back after purchase, they will be willing to take a risk and try our products. Sending out sales representative directly to our target customers to communicate our value proposition to them by enlightening them on the benefits they can get from using the our products will also be another promotion or communication technique used to communicate our products to our target customers.

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BUDGETING AND FINANCING

This section address company’s financial recaps with estimated product price, demand and revenue calculations that may differ and changed with actual data as the section below only represent the ability and approach of company’s management to plan operations in profitable way. The Main part of company financial statement is Profit and Loss statement shown below with demand of 3000 shirts.

Figure 6: Profit and Loss sheet

For startup period company expect to take a loan of 100,000 $ for 60 month with 15% interest rate. This amount will be sufficient to purchase one van for local deliveries and cover losses for first months of company operation before revenue will come to break-even point.

We plan company’s P’n’L with loan payment of 2,000 $ monthly. So calculation represent loan with interest rate goes:

Figure 7: Loan calculation

There is example of Break-Even analysis based on company’s monthly P’n’L starting with initial sales of 1000 ea of products at 20$ price each till 6000 ea.

The Break-Even quantity for our company is 3,276 shirts at 20 $ each.

BE – 3276 ea

Figure 8: Quantity break-even analysis

Also we made price sensitivity analysis that can be performed at any month to see influence of product price to profit. Demand curve was not take into account and we kept theoretically the same 3000 ea shirts demand with changing price of product.

Break-even price of shirt is 21.35 $ per shirt.

BE – 21.35 $

Figure 8: Product price break-even analysis

As result of marketing research we identified demand curve for high performance shirts on market that helps to estimate the flexibility in product price and profit as result.

The break-even point is price of 30 $ per shirt with demand of 3,000 ea. The demand curve represents inelasticity as lowering price below 30$ come to revenue decrease.

Figure 9: Demand curve

So there is a potential gap between current price of 20$ to 30$ to maximum revenue in our case and we may increase price to maximize revenue and to cut associated product and delivery costs.

Marketing manager will be responsible for price and promotional distribution according to market change and Company operation manager will be responsible for P’n’L review and adjustments. Monthly when P’n’L is finalized at the end of month company management will have review meetings to take necessary action items to maximize revenue and minimize costs. So in case of revenue decrease, company will try to maximize demand with promotions or will try to cut operation costs.

The key performance indicator for company will be income percentage and stable percentage for costs that should not increase set up range.

Figure 10: Short terms period Profit and Loss Analysis

IMPLEMENTATION, MONITOR AND CONTROL

In terms of implementation, necessary actions will be put in place to make sure that the marketing plan is evaluated frequently at the different stages in order to meet the needs and wants of our customers profitably.

Actual implementation plan/ Key to success.

As a company we will make sure that the attributes of brand equity is adhered to which includes

· Differentiation

· Esteem

· Relevant

· Energy

· Knowledge

Also, plans will be put in place to make sure that we are able to:

· Communicate our value proposition to our target markets in a way that they will understand

· Develop and maintain a strong bound with our customers using customers relationship management techniques and programs.

· Conduct regular feedback sections that will continue to help us serve our cutomers better.

· Conduct regular training sessions that will help us to stay updated and informed with regards to latest trends and how to upgrade our standards up to date.

Alongside with the implementation plans, other control measures will still be taken into consideration both internally and externally to make sure that the company is in good shape. Such measures will carried out in different areas which includes the following:

Internal control/monitoring measure: SAS as a company will put in place certain internal and external control measure to make sure that there is check and balances in the following areas of the business.

Customer satisfaction: in this case, constant feedback measure will be used to make sure that customers are satisfied with our product. For example, regular calls will be made to customers after purchase to make sure that they are satisfied with the products.

Revenue: this will be monitored at the end of every month to make sure that the company operates profitable.

Costs/expenses: this will also be measured monthly to make sure that expenses are been minimized and less than revenue in order to maximize profits.

Quality of products: We will put in place a quality assurance team that will consistently help monitor the product quality by going to the factory quarterly or semiannually to make sure that the quality of the product is consistent. Also we will perform random check of production for size, quality and durability.

External control/monitoring measure:

External measures will be put in place to make sure that the company is adhering to the local standards especially because the factory is located in a foreign country; we have to make sure that we meet all the required government standards. Please refer tom Legal section of this plan.

Contingency Planning/ Fear of the unknown

Should incase SAS is faced with the following in the future, a contingency plan will be put in place to ensure that the company can bounce back and continue to strive. For example,

· Risk of closure due to loss: SAS will put in place measures to ensure that full recovery is possible in a situation where there is lose due to natural disaster, vandalisms, etc. This plan will be planned for by making sure that an insurance company covers the company.

· Inability to meet up with target revenue: In a situation where we are not able to meet up with revenues, products will be reevaluated and restructured with company P’n’L adjusting in a way that profit can be maximized.

· Threats of new entrants: in a situation where there are threats from new entrants/ competitors, our products will be reevaluated and restructured using advanced marketing technologies to make sure that product is at competitive level.

References

Hoovers, Inc. (2007) under armour fact sheet. Retrieved from http://subscriber.hoovers.com/H/company360/overview.html?companyId=858957140

U.S Census Bureau. (2013). Retrieved from: http://quickfacts.census.gov/qfd/states/00000.html

Winer, R. S., and Dhar, R. (2011) Marketing management. Boston, Mass: 4th ed. Pearson publications

Break - Even Analysis

Product Quantity, ea

Money, $ k

Break-Even Analysis

Product Price, $

Money, $ k

Demand 10 15 20 25 30 35 5000 4500 4000 3500 3000 2500

Produc Price, $

Quantity, ea

Moisture-Wicking apparel market share

Nike Adidas Reebok Others 35 24 16 25

DescriptionMar-14%

Product Quantity3000.00

Product cos with delivery5.50

Product price20.00

Product Sales60.00100.00%

TOTAL REVENUE60.00100.00%

Staff20.0033.33%

Contractors6.0010.00%

TOTAL COMPENSATION26.0043.33%

Legal0.500.83%

Product cost16.5027.50%

Transportation & Mobilization1.001.67%

Training Costs2.003.33%

Other Var Expense1.001.67%

TOTAL VAR COST21.0035.00%

Office Materials and Supplies0.500.83%

Vehicles Depreciation2.003.33%

Utility Bills0.500.83%

Warehouse Lease1.001.67%

Business Post Services1.001.67%

Office Lease4.006.67%

Financing payments2.003.33%

Marketing and Sales4.006.67%

Web Site Maintanence2.003.33%

TOTAL FIXED COST17.0028.33%

TOTAL COST64.00106.67%

INCOME/LOSS BEFORE TAX(4.00)-6.67%

Tax 30%0.000.00%

NET INCOME STATEMENT(4.00)-6.67%

Demand, eaPrice, $Revenue, $

5,0001050,000

4,5001567,500

4,0002080,000

3,5002587,500

3,0003090,000

2,5003587,500

Description2014%2015%2016%

Product Quantity42300.0054400.0061000.00

Product cos with delivery5.505.505.50

Product price20.0021.0022.00

Product Sales846.00100.00%1,142.40100.00%1,342.00100.00%

TOTAL REVENUE846.00100.00%1,142.40100.00%1,342.00100.00%

Staff240.0028.37%250.0021.88%260.0019.37%

Contractors72.008.51%73.006.39%74.005.51%

TOTAL COMPENSATION312.0036.88%323.0028.27%334.0024.89%

Legal6.000.71%6.200.54%7.000.52%

Product cost232.6527.50%299.2026.19%335.5025.00%

Transportation & Mobilization12.001.42%13.501.18%15.001.12%

Training/Monitoring Costs24.002.84%24.002.10%24.001.79%

Other Var Expense12.001.42%12.001.05%12.000.89%

TOTAL VAR COST286.6533.88%354.9031.07%393.5029.32%

Office Materials and Supplies6.000.71%6.000.53%6.000.45%

Vehicles Depreciation24.002.84%24.002.10%24.001.79%

Utility Bills6.000.71%6.000.53%6.000.45%

Warehouse Lease12.001.42%16.001.40%18.001.34%

Business Post services12.001.42%12.001.05%12.000.89%

Office Lease48.005.67%48.004.20%48.003.58%

Financing payments24.002.84%24.002.10%24.001.79%

Marketing and Sales48.005.67%60.005.25%75.005.59%

Web Site Maintanence24.002.84%24.002.10%24.001.79%

TOTAL FIXED COST204.0024.11%220.0019.26%237.0017.66%

TOTAL COST802.6594.88%897.9078.60%964.5071.87%

INCOME/LOSS BEFORE TAX43.355.12%244.5021.40%377.5028.13%

Tax 30%13.011.54%73.356.42%113.258.44%

NET INCOME STATEMENT30.353.59%171.1514.98%264.2519.69%