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This is a Business Plan Model for Shipwreck Decks, an extreme-sport brand and provider of customized longboards.

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Shiwpreck Decks

  1. 1.                                                                 SHIPWRECKED DECKS (SWD) Cruise OnBoard Christopher J. Conery Founder (514) 261-6399
  2. 2. Christopher J. Conery Founder (514) 261-6399  Executive SummarySWD manufactures and distributes custom longboards (elongated skateboard, with largewheels and loose trucks, meant to simulate surfing on tarmac) to customers in the GreaterToronto Area (GTA) and in Montreal; two urban Canadian cities with a high concentration ofconsumers within the target market. As a provider of extreme sport utilities, we strive formore than a quality product, we strive to integrate our band into extreme sport culture. Ourcompetitive edge is simple; our product becomes more than a longboard, rather a piece ofart that enhances the ride and lifestyle. How do we do this? It is our integrated productionmodel labeled TEACH: · Technical Specifications: customer chooses wood, wheels, trucks. · Explanation: Customer graphically, orally, or textually explains vision. · Art: artwork for grip tape and deck is processed in COREL DRAW by artist · Creation: Outsourced products are processed through Laser Engraver · Help: Customer support; not only for product, but for lifestyle. Website helps customers find: best spots to ʻshredʼ, fresh music, other riders, cultural news/events; and blog.This gives SWD a competitive edge in three ways: (1) customization, (2) unique deck art andtape designs, and (3) sustained interaction for a lifestyle brand.To continue, our product, first and foremost, satisfies the thrill-seeking needs of ourcustomers. From their it satisfies transportation, leisurely, athletic/fitness, and specific toSWD, creative, individual, and expressive needs of our clients. Our implementation plan,detailed in this document, requires start-up funds for production capital and supplies,promotion, and administration. Phase one focuses on market penetration; phase two,expansion of distribution channels, and three, increased product lines.       2
  3. 3. Christopher J. Conery Founder (514) 261-6399  Table of ContentsExecutive Summary 21. Mission 42. Management Team 53. Consumer Profile - Market Segmentation 64. Environmental Analysis 8 A. Strengths 8 B. Weaknesses 8 C. Opportunities 9 D. Threats 95. Marketing Plan 10 A. Product 10 B. Distribution 11 C. Pricing 13 D. Promotion 136. Quantitative Analysis 147. Implementation Strategy 14I. Appendix A-1 16II. Appendix A-2 17III. Appendix B-1 18IV. Appendix B-2 20V. Appendix C-1 21VI. Appendix C-2 22ViI. Appendix D-1 24VIiI. Appendix D-2 25       3
  4. 4. Christopher J. Conery Founder (514) 261-6399            1. MissionOur mission is to customize and distribute longboards to our target market segments andcreate a network through which the SWD brand be embedded into extreme sport culture. Todedicate ourselves to the SWD standard, SIQ [sik], working towards extended customerservice, innovation, and quality product. We have set three initiatives through which our mission can be accomplished. In orderbecome embedded into extreme sport culture, SWD must maintain a (1) position sellingmore than a product through added utility in service. There are two measures forachievement; (A) establish TEACH customization method, and (B) implement extendedcustomer loyalty program through ‘HELP’ portal (online customer service feature of TEACH). The second initiative involves (2) implementing strategic supply infrastructure by: (A)establish industrial supplier and increase buying power, and (B) invest in capital for productcustomization; acquire laser engraver. This initiative leads towards delivering quality,consistent, and fully customized longboards. Third, (3) raise awareness and create customer base to begin distribution. To preparethe market for a March 2012 entry date, we will use social medias, Facebook and Twitter to(A) raise pre-season awareness, (B) direct interest towards, and (C)conduct ongoing market research for brand development/integration. Refer to appendix D-1 for more information on the status of each objective.       4
  5. 5. Christopher J. Conery Founder (514) 261-6399  2. Management Team Christopher John Conery is the sole-proprietor of SWD; single ownership allowsconsistency, fast decision-making, and accountability. Conery is responsible for managingand coordinating different factors of production, marketing, and development, to worktowards company objectives. Christopher John Conery (June 17, 1992) is a young entrepreneur, student, andextreme sport goer. Conery previously founded DogPound (2005), a hot dog stand, Retro-Pops (2006), a candy manufacturer, Sawmill Valley Landscaping (2007), and KnockoutButtons (2009). Currently, Conery is a business undergraduate student in the DesautelsFaculty of Management at McGill University. Conery discovered his passion for the extremesport lifestyle in 2000, when he began mountain biking the biggest mountains in EasternCanada. His passion for extreme sports, and presence on the mountain led to asnowboarding obsession by the age of twelve. His conformation to board sports, led Coneryto skateboarding. Realizing the similarities between longboarding and snowboarding, hequickly abandoned the short-board, for the longboard. His passion for longboarding led tothe establishment of SWD in 2011, an idea that was born four years earlier in 2007. Conery is a dominantly right brain thinker. His intuition, creativity, and view of the bigpicture allow him to think on his toes, and come up with fresh innovative ways to connectSWD to the extreme lifestyle. He is able to come up with creative solutions to industry,company, and customer problems quickly. Conery is strong at connecting with customers,and corporate partners, which has created a strong network for SWD. He is majoring inmarketing and has innovative ideas for promoting his brand. His attention to detail ensuresthat nothing is overlooked in production and can confidently guarantee his products.Coneryʼs confidence distracts his young age; he is not intimidated by any situation, andlooks at them as opportunities. Time-management and organization skills are important forConeryʼs ability to balance his education, business, extra-curricular activities, and social life.       5
  6. 6. Christopher J. Conery Founder (514) 261-6399  3. Consumer Profile - Market SegmentationThree market segments have emerged as key target markets; (1) Grom, (2) Stud, and (3)Curve. The following is a list of characteristics describing the Grom: • Male, between the ages 12 and 18; he attends high-school. • Lives in urban settings with parents (ex. GTA, Montreal). • Minimal/no income; the ʻGromʼ is the customer, his parents, the consumer. • In the GTA, this segment is estimated to 172 5001, in Montreal, 106 0002. The Grom’s need is in love/belonging, SWD welcomes the Grom into adolescenthoodand unites him with the Stud (aspiring mentor they long to become). More; it allows them toseek thrill and rebel against parents/society that they have trouble connecting to at theirtender age. The following list describes the characteristics of segment 2, referred to as the Stud: • Male, 19-24 years; enrolled in post-secondary education or has a low-income job. • Living in urban areas, without parents, has little disposable income as consumer. • In the GTA, this segment is estimated at 195 000 3 ; Montreal, 66 6064 (excludes temporary residents attending McGill University, Concordia, UQAM, etc.; the actual market size is estimated to be over 100 000). The Stud’s need is unique from that of the Grom (although both satisfy the need for thrill),the Stud’s need is in self-actualization. SWD allows the Stud to express himself through hislongboard and provides an activity through which he can ponder morality and spontaneity.                                                                                                                1 ,3 Statistics Canada, Consensus 2006. ,4 Statistics Canada. Consensus 2006. www.stat.gouv.qc.cam2       6
  7. 7. Christopher J. Conery Founder (514) 261-6399   Segment 3, titled the Curve, is our female segment between the ages 15-22. We havekept the female market separate from the male and less classified due to their lesserpresence in the industry; however, we understand that this segment’s interest in the extremelifestyle is growing, and that it is important to develop relationships with this market now togain loyalty in the future. USAtoday says growth rates of females in the longboarding sectorare 2% higher than males5. The customizability of SWD boards liberates female riders to express themselves throughtheir board in an industry centered around males. The Curve introduces a new need andrequires a unique position of SWD. Through extreme culture, the Curve satisfies esteemneeds; SWD provides confidence, achievement, respect, and empowerment. Along with our customizable product and unique artistic stylings, our integrated websitewill connect SWD to extreme culture, and will establish customer loyalty, growth, andexcitement. Moreover, by involvement in cultural events, consumers get to know SWDpersonally, and get to see our artwork and board quality. Also because our product is also aunique piece of art, it keeps customers open to multiple purchases.                                                                                                                             7
  8. 8. Christopher J. Conery Founder (514) 261-6399  4. Environmental Analysis A. Strengths   SWD is strong in: (1) production capability, (2) product width, (3) distribution, and (4)power over customers. (1) Buying materials wholesale reduces variable costs, and the needfor capital in fixed costs (minimizing investment risk), and also displaces legal accountabilityfor injuries and damaged goods. Outsourcing also allows increased supply withoutemploying more staff and capital investments. To continue, (2) multiple product lines,separated and justified through strategic pricing, captures riders at any skill level:competitive to recreational. Further, (3) the online store attracts customers through itsinteractive lifestyle space and reduces storefront costs; it is enhanced by targeted segmentstime spent online. Also, being located on the McGill campus allows for fast penetration ofMontreal student market through trendsetters enrolled at McGill. Finally, (4) the SWDcompetitive advantage displaces buyer power through product differentiation, i.e.customization and grip tape designs, which also entices multiple purchases. B. Weaknesses   Although weaknesses can be found through a company analysis of SWD, they can beturned into strengths through simple administration. (1) Creative spirits of artists cannot beconsistently timely; however, motivations from customers can foster artistic capital. (2)Without market share at start-up, there is an obligation for SWD to gain customer loyaltythrough engaging with extreme culture (integration in lifestyle events). (3) The on-line storepresents opportunity for international market, but it cannot be reached because of shippingincapabilities; there is, however, a potential to test foreign markets through the online storein the future to maintain an economy of scale. (4) Reliance on suppliers removes control overdeadlines; however, suppliers are made accountable through contingencies.       8
  9. 9. Christopher J. Conery Founder (514) 261-6399   C. Opportunities   The current industry presents an opportune climate for SWD. (1) The socio-politicalmovement towards environmental sustainability and alternative transportation offers apotential new market for SWD. Also raising gas and oil prices powers the search foralternative transportation for economic reasons. USA Today reports the latest trend intransportation amongst adults is longboarding. 85% of skateboarders leave the sport by thetime they are 18, 80% of which return to recreational and transportation-basedlongboarding6. (2) Municipalities in the GTA and Montreal area are funding renovations ofskate parks; as well (3) the rejuvenation of the Toronto boardwalk and Montreal warf,presents a new space to longboard that is similar to California, a novelty that attracted newathletes in California and potentially will do the same in Canada. (4) Socio-culturalopportunities are seen through local industry/target market events that attract mediaattention (Wakestok, SnowJam, etc.). (5) Increasing online interactions offers an opportunityfor the SWD online store. (6) There is a potential opportunity to innovate by partnering withSlowBros; a company on the verge of developing a patented longboard disc break. Theowner is a student at McGill politically tied to Conery. D. Threats   SWD is threatened by (1) direct competition including: Sector 9 (cheap), Loaded(prestigious), Landyatz (solely slalom decks), Arbor (focus on sustainability), and Original(high value). (2) Substitutes include bikes, rollerblades, and skateboards; however, extremesport enthusiasts are not deviated from one discipline for another. (3) Political concerns aremunicipal regulations and by-laws regarding skateboarding. The requirement to ride on theroad, for example, may present a threat to the Grom segment; however, similar regulationson biking, did not affect young bikers. (4) Socio-cultural concerns in raising interests in videogames displaces the desire for physical activity. However, government advertising topromote physical activity will work in SWD’s favor. (5) Technology poses a threat in SWDsinability to innovate longboard technologies because of a reliance on suppliers.                                                                                                                6       9
  10. 10. Christopher J. Conery Founder (514) 261-6399  5. Marketing Plan A. Product SWD strives to offer more than a quality product; this is done through what SWD callsbrand-culture integration. This SWD a competitive edge; the product becomes more than alongboard, rather a piece of art that enhances the ride and lifestyle, and it is done throughthe TEACH customization model (refer to appendix A-1): 1. Technical Specifications 2. Explanation 3. Art 4. Creation 5. Help. The TEACH production method allows the customer to be part of the creation of theirboard and remain involved with SWD through lifestyle enhancements. In step one thecustomer chooses technical specifications of their board; such as wheels, trucks, bearings,and deck material, all affecting the total cost of their board. Customers can choose from alist of brand name, and non-branded trucks, and wheels to create a ride suited to them. Ifthey are looking for a more competitive level ride they can choose a bamboo deck withGator trucks, and Abec wheels; or a beginner rider, or someone looking for a lower pricedproduct, still high in quality, can choose a maple deck, with select trucks, and hybrid wheels. In step two, explanation, the customer explains their vision for their board. This isdone in a graphical method where the customer sketches, on-line, the top and bottom oftheir board. In step three the interface displays a mock-up of their customized longboard fortheir approval. Step four is the creation of the board. Inventory will be kept in order to fulfilthe requested features. In this stage the order is processed on CORELdraw and sent to alaser engraver through wich the deck is engraved with the design created by the customer. Step five, help, is continued support for both the product and lifestyle. Manufacturerdefects are guaranteed and nothing further, like most utilities in extreme sports. The helpfeature is most apparent on (refer to appendix A-2).       10
  11. 11. Christopher J. Conery Founder (514) 261-6399   B. Distribution In the initial stages of start-up operations, SWD products will be e-tailed through theironline store; a direct channel of distribution, the product moves directly from themanufacturer to consumer. The online store is a strong distribution method because (1) theamount of time the target market spends on the computer, and (2) the traffic attracted byother features of the website (music, routes, news, etc.). Customers walk through the TEACH integrated production method online to submittheir order. The order is processed, the deck engraved, and parts assembled; the finishedproduct is delivered to the customer in different ways depending on the customer’s deliverypreferences and location. If they are outside the downtown areas of Montreal or Toronto, theproduct is delivered via FedEx. FedEx is a reliable company that has an excellent reputationin timely delivery. If the customer opts out of delivery, and is within the Montreal or Torontodowntown areas, they can choose to pick-up their finished product at 3451 Aylmer St.Montreal, or 129 Walmer Rd. Toronto at an arranged time. After growth, SWD will sell products in local skate shops in Montreal and the GreaterToronto Area. At this point, a second distribution channel will run parallel to the former; SWDwill continue direct distribution for online buyers and establish a second channel:manufacturer to retailer to consumer. Retailing in local skate shops will enhance the reliabilityand credibility of SWD, and will enhance market share growth by extending competition tooff-line sellers. This will also expand the reach of the SWD brand to customers of the localskate shops. SWD will use selective distribution when selling to retail outlets. This is becausethe company plans to place the products in a selected amount of retail outlets thatcorrespond to the SWD brand. The skate shop would offer a new product line with set (non-customized) packages, as well as information on the original TEACH process, and orderforms. Moving into retail stores, online orders will be picked up at a retail location chosen bythe customer, rather than the previous address. Set packages will be created through acontest where customers post pictures of their custom SWD longboards on the SWD site       11
  12. 12. Christopher J. Conery Founder (514) 261-6399  and other riders vote on their favorite design. The winners have their boards produces as aset package sold in retail stores, credit will be given as not to distract the originality of theirride. In order to maintain the Curve segment, female and male winners will be selectedproportionately. Customization allows SWD to capture the Curve market, as woman cancreate a board they will enjoy with whatever colours and designs they desire; it is importantto maintain their representation when selling set packages. As a long term goal in distribution, SWD plans to move into retail outlets thatmaximize the TEACH customization process and allow for complete integration into both thevirtual and real world of extreme sport culture. Online sales will remain available; however,will be directed towards international markets, as SWD expands to European and Asianmarkets. The main focus will remain in North America with testing markets in Toronto andMontreal, and later in Vancouver and California. The retail outlets aim for a prestigiousimage, where apparel and accessories will be sold in the front of the store leading to thefocal point along the back wall. This will be the ʻshopʼ. At the ʻshopʼ there will be artistsworking on products ordered by customers in the store. Customers will be able to see theirboards being made right in front of them, as they enjoy a complementary Redbull to enhancethe experience. There will be a lounge for customers to interact and remain informed oncultural and SWD news. Distributed at the counter of the ʻshopʼ will be touch screeninterfaces where customers can go through the TEACH process, and even sketch thereideas on the tablet provided. The order goes directly to the artists who create the boards assoon as possible. The outlet will lead into other markets as well. In Canada, longboards areonly sold two seasons of the year; however, the TEACH customization method is not limitedto longboards; nor is the help feature, both are open to the entire extreme sport culture. Thisallows SWD to open new product lines in snowboarding, wake boarding, skiing, water skiing,etc. This is an opportunity for the future, that starts by building the SWD brand, and capitalthrough the online store.       12
  13. 13. Christopher J. Conery Founder (514) 261-6399   C. Pricing SWD will use introduction psychological pricing strategies. To elicit a prestigiousimage, initial product lines take a skimming pricing strategy. This will allow capitalization overconsumer surplus, and will give the SWD brand a prestigious image that will be passed on tosecondary lines in the future. This pricing strategy, paired with a gorilla style promotionalcampaign will penetrate the market and embed SWD in extreme culture as a prestigiousbrand. To do this, the price will be set to $250.00-$275.00/brd. pending on customercustomizations. After moving towards the growth stage of the product’s life cycle, SWD will introducea second product line at a lower price in order to stimulate quick growth and develop arelationship with a variety customers. This line will maintain the SWD image; however, willincrease market share by targeting lower income demographics. In order to maintain theprestigious image, products will have even number pricing. This directs consumers tobelieve that they are getting a better product because it costs more than competition;however, they understand that they did not have to pay much more to get it. This line will bepriced at $200.00-$225.00. SWD will also use geographic pricing strategies; demand will be higher in downtownregions than rural suburban areas. Therefore, to maintain a supply-demand equilibrium, SWDwill charge consumers in cities more money than in rural areas. Lower costs in areas thatotherwise would not purchase the product will encourage consumption. D. Promotion SWD has developed strategic promotional plan that revolves around TEACH;specifically the HELP portal (refer to appendix A-2). To enhance brand integration intoextreme culture SWD will target specific market segments as they have different needs,which requires unique product positioning. Asides from promoting shipwreckdecks.comthrough social media; SWD will also involve themselves in many cultural events that areimportant to extreme culture as well as other events important to the target segments. An       13
  14. 14. Christopher J. Conery Founder (514) 261-6399  example of such events include: FROSH week at McGill and Concordia, Carnival at McGill,Wake Stock, SnowJam at Mt. Tramblant, etc. At these events boards will be on display andavailable to demo. There will also be sticker give awaways with a reminder of the brand andwebsite. SWD will also engage in poster advertisements around University Campuses, skateparks, and cultural stores (refer to appendix B-1 and B-2).6. Quantitative Analysis With a start-up capital investment of $10 000, SWD could begin operationsimmediately. First, SWD would acquire a laser engraver in order to perform customization.The investment in inventory will be the basis of the TEACH customization model. It wouldalso allow for SWD acquire a wider variety of inventory. By investing in brand name supplies,SWD can capture a higher end market of more competitive riders in the penetration phase ofimplementation. It would also stimulate the development of an online store and building ofthe interactive homepage crucial for the HELP step of the TEACH customization model.Further, in order to participate in cultural events, SWD would need an attractive, portable,display. It is important that this booth is inline with the SWD brand image. It will need tofacilitate the needs of artists in producing boards on site. The booth would include a tent,banner, counter top, and speakers. SWD would also need to invest in stickers as give-awaysat such cultural events. Refer to appendix C-1 for a projected budget with the proposed $10000 grant, as well as a break-even analysis in appendix C-2 (2 pages).7. Implementation Strategy The implementation plan is divided into three phases: (1) penetrate market, (2) expanddistribution channel, and (3) increase product lines. In the penetration phase we will beginpromoting (point of purchase) to the Stud and Curve marketssegment; the; Grom idolizes the Stud allowing us to penetrate the Grom segment throughsuccess with the Stud. Penetration of the market will be swift with promotional campaigns(posters, displays, demonstrations, giveaways, etc.) in Montreal at McGill University (starting       14
  15. 15. Christopher J. Conery Founder (514) 261-6399  point to test the market). We will put posters up around the McGill campus as well as thesurrounding residence ghettos. We will also get involved with lifestyle events at theUniversity specifically. With a launch date set for March 2012; we will raise awareness forcustomers in the pre-purchase stage of the buying process. Doing this over social medias,we will also get involved with Carnival; a university-wide event that lasts an entire week atthe end of February. Here we will have samples of our product to demonstrations anddisplays. We will have sticker give-a-ways meant to direct attention From there, promotional campaigns will extend to otherunivertities and CJEBS in Montreal, Laval, and Kirkland. After an evaluation the Montrealmarket, we will look into penetrating the Toronto market starting with Ryerson U and theUniversity of Toronto. In the expansion phase, online store operations will continue; however, we will focuson sales to independent (local) skate shops in the GTA (ex.: Noise, So Hip, Gravity), andMontreal (ex.: Off the Wall, Underground, Empire). To maintain and enhance TEACH(integrative production), there will be an Artist/Salesperson at each shop (during the busiesthours) who creates the board on-site while the customer enjoys a Redbull (branded asextreme, enhances mood) on us. To celebrate the transition, we will host ʻpartiesʼ in theshops with live music from bands/DJs on our website, refreshments, giveaways, anddiscounts. In phase three we will increase the product lines to lifestyle apparel and accessoriesthat perpetuate the originality and individuality of the SWD brand. These products will skimthe market, first to be given away with boards, later to be sold at a discount whenpurchasing a board. Refer to appendix D-2 for an outline of each phase of the implementation plan.       15
  16. 16. Christopher J. Conery Founder (514) 261-6399  I. Appendix A-1 Below is the, Marketing Layout for TEACH: Below the marketing layout for TEACH appears on the website. Each step is clickable;a pop-up explains what happens during the corresponding stage and how it contributes tothe process. There will be pictures, videos, and copy:         16
  17. 17. Christopher J. Conery Founder (514) 261-6399  II. Appendix A-2 Step five, HELP, is continued support for both the product and lifestyle. Manufacturerdefects are guaranteed and nothing further, like most utilities in extreme sports. The helpfeature is most apparent on The home page is divided into fourquadrants, and is shown below: The home page will be interactive with each of the four quadrants linked to a pop-upwindow. In the Leisure (top left) quadrant, users can find friends, blog, post pictures, and findtips (in video form) on executing new maneuvers (dancing, carving, etc). They will also findlifestyle events, festivals, and music from bands we will support in the future. In the Routines(bottom left) quadrant, users can find the best routes in their area to navigate through the cityseamlessly. They can also find some of the more challenging places to ride; boarders will beable to post new places, comment on certain routes, and ʻlikeʼ them. Under the Athletics(bottom right) quadrant, users can find information on the industry’s top riders, andcompetitions, as well as what is going on around the world, relevant to extreme culture. TheSHIPWRECKEDDECKS quadrant will link to information about SWD. It will be a blog-likesetting that keeps customers up to date with what’s new with SWD. This is a website thatextreme sport goers would appreciate as a personal homepage.       17
  18. 18. Christopher J. Conery Founder (514) 261-6399  III. Appendix B-1         18
  19. 19. Christopher J. Conery Founder (514) 261-6399  Describing the Advertisements On the previous page, in Appendix B-1, is a temporary promotional poster/newspaperad. It is meant to connect the brand back to the roots of longboarding on the boardwalk,away from the city. The ad implies the sexual innuendo: itʼs better on top. It is aimed towardthe Stud as it gives him the opportunity to explore his own roots through longboarding, allthe while teasing him with his sexual counterpart, the Curve; portraying the Curve asunattainable, enhancing desire. This ad also target the Curve as the female in the imagerepresents a woman empowered by longboarding; she is free from the stereotypesrestricting her in the ‘real’ world. On the following page, in Appendix B-2, the ad aims towards the need of thrill, andrebel, and is largely targeted towards the Grom. The ad also captures the Stud at is presentan opportunity to exceed expectations the world has of him as he is at a point in his life thatpressures him to succeed for the sake of his future. As this as allows the Grom to rebel, itallows the Stud to go further.       19
  20. 20. Christopher J. Conery Founder (514) 261-6399  IV. Appendix B-2       20
  21. 21. Christopher J. Conery Founder (514) 261-6399  V. Appendix C-1 Projected  Start-­‐Up  Budget     Allocation     Value     Future  Cost  to  Acquire     Margin   Production   Made  prior  investment     Capital          Laser  Engraver     $8,000       $8,000       fixed        Ocilating  Spindle  Sander   $200     $200     fixed        Jig-­‐Saw   $125     $125     fixed        Cat  Sander   $75     $75     fixed        Drill   $75     $75     fixed        Tool  Box  (wrench,  screwdriver,  knife)   $50     $50     fixed   Supplies     (price/unit)        Deck   $20       $400       20  units        Truck  (2  pcs.)  [includes  hardware]   $15     $300     20  units        Wheel  (4  pcs.)  [Includes  Bearings]   $25     $500     20  units        Grip  Tape   $3     $60     20  units   Sub-­‐Total   $9,785         Distribution           Online  Store              TEACH  Portal  development     $300       $250       fixed          HELP  Portal  development   $200     $250     fixed          Store   $500     $500     fixed          Hosting/Domain   $30     $30     /yr.     Sub-­‐Total   $1,030         Promotion           Advertising              Posters     $200.00       $200.00       fixed        Business  Cards   $300     $300     fixed        Stickers/Buttons   $100     $100     fixed   Event  Sponsorship        Tent     $75       $75     fixed          Speakers   $150     $150     fixed        Banner   $50     $50     fixed   Sub-­‐Total   $875           Total         $11,690       Total       $10,260         *Highlighted  is  the  arrangement  for  grant  that  will  be  spent  within  6  months         21
  22. 22. Christopher J. Conery Founder (514) 261-6399   VI. Appendix C-2   Break-­‐Even  Analysis   Costs       Fixed  Costs     Capital  Investment  for  Production          Laser  Engraver     $8,000            Ocilating  Spindle  Sander   $200          Jig-­‐Saw   $125          Cat  Sander   $75          Drill   $75          Tool  Box  (wrench,  screwdriver,  knife)   $50     Capital  Investment  for  Distribution        TEACH  Portal  development   $300            HELP  Portal  development   $200          Online  Store   $500          Hosting/Domain   $30     Capital  Investment  for  Promotion        Advertising                Posters   $200.00                  Business  Cards   $300                Stickers/Buttons   $100          Event  Sponsorship              Tent   $75                  Speakers   $150                Banner   $50     Total   $10,430.00     Variable  Costs        Deck   $20            Truck  (2)  [includes  hardware]   $15          Wheel  (4)  [Includes  Bearings]   $25          Grip  Tape   $3     Total   $63     Contribution  Margin        Avg.  Price/unit   $250            Avg.  Cost/unit   $63     Contribution  Margin   $187     Break-­‐Even  Analysis       Number  of  Units     55.77540107   Sales   $13,943.85           22
  23. 23. Christopher J. Conery Founder (514) 261-6399   Break-­‐Even  Analysis   20000   18000   16000   14000   12000   Sales   10000   8000   6000   4000   2000   0   1   6   11   16   21   26   31   36   41   46   51   56   61   66   71   Number  of  Units                       23
  24. 24. Christopher J. Conery Founder (514) 261-6399  ViI. Appendix D-1                                                                                                                   24
  25. 25. Christopher J. Conery Founder (514) 261-6399  VIiI. Appendix D-2             25