Business Plan Project

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Category: Business and Industry

Date Submitted: 09/24/2012 08:14 PM

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Business Plan Project

Group Report #6

Team #3

Estimating Sales

Our business Vi-band is a sporting good product that athletes and avid gym goers use after and in between workouts. As a starting business we have a lot of costs such as raw materials, advertising, and salaries. While starting our business we have come up with a price for our product, a target market, and units sold in a three year period. While trying to minimize costs and maximize profits we have found different raw materials and ways to cut down on advertising, but still maintain our sales over the years.

Our product consists of Velcro, nylon, miniature vibration motors, a small 3 volt battery, and some extra copper wiring. Based on our projected sales we have figured an amount needed to buy in bulk for all the products. With Velcro and Fabric being the most expensive materials at 3.00 dollars a yard for Nylon and 3.23 dollars for Velcro, our projected cost would be 300 dollars for Nylon and 325 dollars for Velcro. This gives us enough fabric to create up to 1000 Vi-bands of regular size, or 750 bands of regular size and 125 large ones. Each band would consist of 8 motors. With motors being 63 cents for a piece, the price of the motors would come out to 5,040 dollars. 2 3-volt batteries are used in our bands and buying in bulk over 1,000 makes each battery 25cents. 250 dollars for all the batteries we need and extra wiring being 100 dollars the total costs of raw material to make 1000 Vi-bands would be 5925 dollars. This is excluding the cost of production.

For production we plan on outsourcing our product to a Chinese manufacture of sporting good supplies. Chinese workers would make our product for relatively cheap we have estimated that it would cost a dollar per unit so 1000 dollars for the total bulk and 350 dollars for shipping. Totals costs for the product would then be a little under 7000 dollars. We have decided on a price of 30 dollars for our bands giving us a total profit...