Nine Lives Outdoor Gear Consignment Shop
This sample marketing plan was created with Marketing Plan Pro software.
This section will offer a financial overview of Nine Lives as it relates to the marketing activities. Nine Lives will address break-even analysis, sales forecasts, expenses forecasts, and how those link to the marketing strategy.
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The Break-even Analysis indicates $16,000 be need in monthly revenue to reach the break-even point.
|Monthly Revenue Break-even||$8,054|
|Average Percent Variable Cost||50%|
|Estimated Monthly Fixed Cost||$8,000|
The first month will be used to get the store ready for business and there will be no sales activity. To prepare the store, display counters will be set up, as will all of the racks. Dressing rooms will then be built. Month two will mark when the store is officially open, and business will be slow. During month two Nine Lives will begin to build up inventory. This will be done through advertising in the local outdoor magazine/journal, as well as advertising at the University of Oregon, as well as through their Outdoor Program.
Month four will finally have a decent amount of sales activity and it should steadily improve from there.
|Participants w/limited resources||$135,152||$185,214||$210,412|
|Direct Cost of Sales||2001||2002||2003|
|Participants w/limited resources||$67,576||$92,607||$105,206|
|Subtotal Direct Cost of Sales||$92,600||$124,378||$139,480|
Marketing expenses are to be budgeted so that they are high for the first five months and then trim down until the winter holiday season where they will spike again. During the second year, expenses will be higher during the winter holiday season as well as during the spring and fall, marking the beginning of the new sports/outdoor season.
|Marketing Expense Budget|
|Local outdoor magazine||$1,600||$2,000||$2,500|
|Total Sales and Marketing Expenses||$4,775||$6,000||$7,500|
|Percent of Sales||2.58%||2.41%||2.69%|
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