SALES
POSITIONING STATEMENT
The group we want to focus on are everyday people who are interested in buying high end chairs. Some things they would want it to be are
Comfortable
Practical
High Quality
Affordable
Durable
Some ways we could meet these needs are to price them lower at first and over time as our company grows, the price will go up. Also we will design them specifically to be used in the homa making it practical, also we will use the best quality materials and test them to make sure they’re comfortable and durable.
PRICING STRATEGY
To price our product, we chose to use penetration pricing. This strategy will start the price at a low cost, and increase the price as time goes on. When the Procrustes is more recognized and in high demand, we will increase the price to start making profit.
SALES STRATEGY
The product we are creating is an adjustable memory foam office chair. Each cushion is memory foam and can be adjusted to the height that is most comfortable. The chairs currently on the market are uncomfortable and only adjustable in height and the angle of the back. Ours is different because the hardness or softness of each foam cushion can be adjusted and then the seat can be adjusted to your specified height and angle. This product will hopefully be sold to people who are in need of a comfortable chair in the workplace to boost productivity.
REVENUE STREAMS
The revenue stream that will most fit our business is the Sale of the Physical Product. If we stay honest and sell all our products in the store with cash, we will be known as a reliable business.
MILESTONES
Our goal is to make $20,300 annually. This number is based off of our sales forecast if each monthly profit continues to grow each year. This will not happen in the first 5 years but by 2027 we should be able to make this milestone. Our other goal is to be able to break even within the first year and a half.
ASSUMPTIONS
No economic disasters
No significant change in technology
Steady supply of materials
No local competitors
BREAK-EVEN ANALYSIS
At the beginning we will be spending money on advertising and product creation etc. Once we are done with that we will be $15,500 in debt. If we start selling our chairs steadily and sell 52 chairs by January 2018 we will break even in February 2019.
PROJECTED PROFIT AND LOSS
Our projected profit will be $0 for the year of 2018 as far as advertisements on social networks is where some of our money is lost as much as $5000, also they cost to make the chair to make to start out is 15,000. This first year will be a lost until February 2019 is when we will break even and profits will come in.
PROJECTED CASH FLOW
The cash flow forecast we estimated the company will make on average annually is $11,500. This could change over time if the business booms or busts after 5 years.
BUSINESS RATIOS
Our sales are projected to go up by 2% in 2019. This is based on the overall sales produced over each year.
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PROJECTED BALANCE SHEET
