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Operation Plan
A means of providing both private and retail customers with a showroom facility has been reviewed and it is proposed that a small location in the upper level of the new shopping centre the leased for the dual purpose requirement. The position will permit advertising for personal buyers and it will be convenient, inclusive of parking for retail buyers to visit and be introduced to the several lines of product. The available site comprises 500 sq ft. of open plan space at a rate of $30 per sq ft. per annum on a three year lease with no renegotiation until the end of the first term.The site will be sufficient for a small office and storage area with display racks and table to exhibit the dinnerware and related products. As a location it will also be central for personal sales visit to regional retail prospect and accessing the product manufacturers in the local area. Although additional inventory storage space will be needed, it is intended that the garage at the Janes’ home will be used.
It is estimated that half the business revenue will initially come from casual store visitors buying for domestic use the balance from retail and commercial sales. Approximately 15 – 30 visitors per day can be expected to visit the shop with an average equivalent day’s sale of two setting for 4 bringing shop revenue of $3600 per week. Based on discounting commercial sales to retailers by 30% the external sales income per week is forecast at $2500 for a weekly gross of an estimated average $6100 (annual sales of $317,200). Some seasonal sales effect will be seen as customers both private and retail will order ahead for holiday and some gift periods. For private customers, a gift register will be offered enabling gift recipient to return to the shop and add or replace items in their sets.