old book store in skardu

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Sunday, November 23, 2014 3

• K-2 Books is a start-up used bookstore in the
Skardu Ali Chowk area.
• It is the goal of the company management to
acquire local market share in the used bookstore
industry through low price, a dominant selection of
products, a competitive variety of services including
a buyback/trade program, membership offering and
hard to find book search, plus a relaxing, friendly
environment that encourages browsing and reading
room with DSL and Wi-Fi facilities etc.

• K-2 Book's mission is to provide used quality
literature of all types at the lowest possible prices
in the city of Skardu.
• The company additionally seeks to provide a
comfortable atmosphere for its clients that
promote browsing, relaxation, and an enjoyable
environment with DSL and Wi-Fi facilities to
spend extend time in. K-2 Book's attraction to its
customers will be our large selection of books,
magazines

• K-2 Book will offer a wide range of old books
• This includes just about every conceivable
category including
• fiction, non-fiction,
• business, science,

•
• books for college and university students.
• K-2 Books will have a relaxed "reading room"
type atmosphere that we will encourage
through the placement of chairs, couches, DSL
and Wi-Fi facility etc,
• a separate portion for female
customers/students.

• The bookstore industry as a whole is going through a large
consolidation.
• Previously, the market was dominated by local, small stores.
• With the advent of the "superstore" as created by Afzal
brother”s,Modern Stationary mart and Mr Books , the largest
players in the market have been able to gather significant
market share and drive many independent booksellers out of
the market.
• Where independent booksellers can still create a viable
position for themselves within the market is in the used books
segment.
• This segment generally does not attract big companies since
the "superstore" concept is much more difficult to replicate in
a market with such low profit margins.

• This tends to favor the local independent bookseller in
the used book market segment
• Our business is a newly introducing and unique
featured business in the city as there is no such kind of
Book shop is available to facilitate the residents
,especially the college and university students.
• As Skardu is a developing city and new professional
colleges and university are establishing but the
students have facing difficulties in finding books and
other materials related to their course. They have to
demand their books from down cities which is very
difficult and costly and hard to get on time

• Management believes that the economic
slump may be an advantage to the used
bookstore industry. As customers cut back on
purchasing, used bookstores will look more
attractive to customers who still wish to purchase
books. Therefore, management believes this may
be a good time to get into the industry and gain
market share.
• Our main competitors are: Modern
stationery,afzal Brothers,Sodey Book depo and
other local new and used bookstores.

• Increasing rate of literacy in the city.
• Limited number of competitors
• Establishment of KIU campus.
• Coaching centers and schools.
• Professional colleges
• No legal restriction

• Our competitor may adopted our business
trend
• Keep changing the syllabus
• E-Book concepts

• Q = n * q * P
• Q = Total market potential
• n = Number of buyers in the market
• q = Avg. quantity purchased by a buyer/year
• P = Average unit price
• n=122500,q=2,p=$2
• Q=122500*2*2=$490000

• We divide the population of Skardu into four
different segments according to age.
• 5 to 20 Years(30 %),
• 20 to 35 years(35 %),
• 35 to 50 years(20 %) and
• 50 to 65 years(15%)

Segmentation on the basis of education
• 5 to 20 Years(30 %), Nursrey to intermediate
• 20 to 35 years(35 %),Graduation to Master
level
• 35 to 50 years(20 %)professionals and
• 50 to 65 years(15%) others

• our target area 20 to 35 years old are the students of
Graduation to Master level students and professional colleges
Population of Skardu
5 to 20 year, 30%
50 to 65 year, 15%
20 to 35 year, 35%
35 to 50 year, 20%
5 to 20 year
20 to 35 year
35 to 50 year
50 to 65 year

• Original used book on reasonable price
• Buy back trade
• Membership facility

• In order to survive and expand, K-2 Books must
keep the following issues in mind:
• We must attain a high level of visibility through
the media, billboards, and other advertising.
• We must establish rigid procedures for cost
control and incentives for maintaining tight
control in order to become the low-cost leader in
used books.
• We must continuously organize promotion
campaign every year in University and colleges.

• Our targeted buyers is 35% of total population of
skardu which is 122500 and the 35% of our
targeted buyers will purchase averagely 2 books
which average price is $2.00 per year.
• 1st year 42875 buyers purches averagely 2 books
on average sale price is $2.00 so the frist year we
can generate $171500.Based on 1st year sales we
can sale out 128625 units within 3 years and can
generate 514500 dollars revenue.

• Our start-up expenses come to $178,000,
which are largely single time fees associated
with opening the store. These costs are
financed by both private investment and
short- and long-term NBP guaranteed loans.

Expense Asset Investment Loan
$112,180 $65820 $70,000 $108000

-200000
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old book store in skardu

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