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This sample marketing plan was created with Marketing Plan Pro software.

This section will offer a financial overview of QuickReturns as it relates to the marketing activities. QuickReturns will address break-even analysis, sales forecasts, expense forecasts, and how they link to the marketing strategy. Please see the following tables and charts for graphical representations of this important information.

Break-even Analysis

QuickReturns will need to generate $172,857 in monthly revenues to cover its average monthly fixed expenses. The company will reach that sales level at the beginning of year two.

Break-even Analysis

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Break-even Analysis
Monthly Revenue Break-even$127,368
Average Percent Variable Cost30%
Estimated Monthly Fixed Cost$121,000

Sales Forecast

Sales revenues will be derived from three primary sources:

  1. Annual fees from retailer partners;
  2. Return processing fees;
  3. Commissions from purchases and exchanges made at QuickReturns locations.

The following sales forecast is based on the following assumptions:

  • Annual retailer partner fees are waived in years one and two. Starting from year three, annual fees are $250,000 per retailer. These fees will be pro-rated for new retailers based on their activation date. (Note: by the end of year three, QuickReturns estimates to have 76 retailer partners; however, the table below shows a different number in order to accommodate for the lower total annual revenues due to pro-rating of such fees.)
  • In years one and two, each new client pays a one-time technology integration fee in the amount of $60,000 in order to recover direct costs of integrating QuickReturns system into the retailer's database. These fees are not pro-rated. Neither annual partner fees nor technology integration fees are shared with franchisees.
  • It is estimated that on average one new retailer per month will join the QuickReturns program in year one and three retailers per month will join in years two and three.
  • Return processing fees are shared with the distribution partners at a ratio of 1:1 (i.e., QuickReturns receives 50% of those fees).
  • Product exchange fees are based on a 10% commission off the average product exchange value of $42. These fees are also shared with the distribution partners at a 1:1 ratio (i.e., QuickReturns receives 50% of those fees).

Based on the following assumptions, QuickReturns estimates to increase its revenues from $1.6 million in year two to over $2.1 million in year three.

Expense Forecast

The marketing expense forecast will serve as a tool to keep the department on target and indicate when modification is needed. Please see the following graph that illustrates the monthly expense forecasts.

Marketing Expense Budget

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Marketing Expense Budget
Business Development$94,500$110,000$130,000
Total Sales and Marketing Expenses$179,500$210,000$250,000
Percent of Sales57.53%17.90%16.13%

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