Business Methodologies

Business Methodologies

  • Submitted By: adamlb59
  • Date Submitted: 03/02/2009 6:06 PM
  • Category: Business
  • Words: 800
  • Page: 4
  • Views: 282

I believe it is difficult for anyone to analyze numbers and decide on an exact cost for a service that one is marketing. Of course it is easy to second guess the price as either being too low or too high and one is afraid that potential customers will not be interested. I believe that the numbers that have been listed throughout our market research demonstrate an extremely accurate cost of our product and will allow for a healthy company profit as well as an attainable cost for potential customers. After analyzing the appropriate costs of all of our services and over head costs I have come to the conclusion that the cost of our service per month will be $5,000.00 per company, per bus route they would like to supply to their employees. It is difficult to come up with an exact cost per month for our services, or an exact number of our profit per year because our profits and service charges will be based on the price of diesel gas per gallon. The average expenses that our company would incur in a year time period per bus route per company would be $31,776.00. The gross profit of our company with the current market price of our services would be $60,000.00. The current numbers that I have come up with would allow our company a net profit of $28,224.00 per bus line per company in a year. These numbers were derived by the current market price of diesel gas per gallon, the average MPG for a bus of the size that we would be using the cost of the bus as well as the median hourly salary of a bus driver. On top of this I included the cost of wi-fi per bus as well as the average monthly cost of a parking lot to provide adequate parking for our bus lines. From this data I was able to derive, weekly, monthly and yearly costs from the averages and derive an average monthly cost that would be attainable for a large company. We must realize as well when marketing this service to potential customers we don’t have to market solely to large companies based on the relatively high...

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