andreas boutique
DESCRIPTION
A comprehensive business plan for start-up company, Andreas. Designed, written and researched by Kaitlin Andreas from October 2010 to June 2011.TRANSCRIPT
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BBUUSSIINNEESSSS PPLLAANN
AAnnddrreeaass
Kaitlin Andreas June 2011
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Table of Contents
Executive Summary Mission Statement 8 Funding Success Factors 9 Section Summaries 10
Company Overview Owner and Organization 12 Basic Business Concept 12 Legal Form of Ownership 13 Organizational Chart 14 Overall Strategy 15 Gantt Chart Store Opening 15 Short Term Objectives 16 Long Term Objectives 17 Company Resources 18 Management Structure Finances Market Scope
Basic Orientation 20 Problems Expected and Contingency Plan 21
Market Analysis Consumer Profile 23 Demographics 23 Psychographics 27 “Day in the Life” Free Time Activities VALS
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Prizm NE Maslow’s Hierarchy of Needs
Target Market 34 Market Location 35 Market History 36 Geographic Analysis 37 Climate 39 Market Scope 41 Market Size and Growth Rate 42 Attractive Features of the Market 44 Difficulties and Problems in the Market 45 Existing Demand for Our Boutique 46 Competitive Analysis 47 Primary Competitors 47 Composite S.W.O.T. 48 Indirect Competition 49 Marketing Environment (Part 1) 50 Politics and Economics 50 Nation – United States State – Washington County - King
City – Bellevue Sub-City – Downtown Bellevue
Legal/Regulatory/Tax/Licensing Criteria 60 State – Washington County – King City – Bellevue
Top 20 Regional Employers 64 Marketing Environment (Part 2) 65
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Social Issues 65 Education Levels Family Size and Structure Birth Rates Housing/Poverty/and Crime Rates
Cultural Issues 70 Ethnicity and Sensitivity Toward Ethnic Mix
Religious Issues 71 Night Life 72 Restaurants The Arts Movie Cinemas Nightclubs; Bars; Lounges
Parks and Sports Spas and Salons Parades
Technological Advances 77 Environmental Issues 79 LEED Certification
Marketing Strategy Plan Promotional Plan 82 Image Statement 82 Marketing Mix 83 Product Price Place
Promotional Mix 87 Advertising Strategy Direct Marketing Strategy Public Relations Strategy Personal Selling and Sales Promotion Internet Strategy
Tactical Plan 90 Gantt Chart – Store Opening 90 Gantt Chart Outline Grand Opening 94
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Gantt Chart – 12 Months After Opening 95 Gantt Chart Outline Reach; Frequency; Advertising Budget 101 Pricing Plan 102 Pricing Objectives and Pricing Strategies 102 Mark-Ups and Mark-Downs 103 Stock Turnover 103 Forms of Payment (Vendors) 104 Distribution Plan 105 Off-Site Sales 105 Shipping Price Chart 105 Forms of Payment (Customers) 106
Operations Plan Inventory Control/Management Function 108 Planning; Forecasting; Projecting Seasonal Needs; 108 Buying Resources and Procedures Trend Analysis 109 Tracking Stock on Hand and External Control 109 Human Resources 110 Taxes; Legal; and Accounting 110 Hiring Process and Qualifications 110 Training Plan and Procedures 111 Dismissal Procedures and Criteria 111 Benefits and Qualification Criteria 112
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Facilities Maintenance 113 Janitorial Opening and Closing Procedures 113 Security 113 Customer Service 114 Complaints 114 Return Policy 114 Referrals 114 After Sale Problems 115
Financial Plan 116 Appendices 129 Appendix A 130 Appendix B 132
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AAnnddrreeaass EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY
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Mission Statement
At Andreas our goal is to dress the young 25 to 35 year old professional, career-oriented woman. Our
products offer a variety of chic merchandise that can be mixed and matched to be worn for many different
occasions. Whether it is work or play our consumer will feel fashionable and trendy no matter where they are.
Our products will give them a sense of sophistication and youthfulness at the same time. Our boutique is
H&M stylish, but with the quality of Banana Republic apparel. The Andreas consumer shops our store to find
clothing that is professional and comfortable with quality that will withstand wash and weather. They visit us
in search of apparel that sends a vibe of youthful sophistication.
Andreas is set to open June 1st, 2012 with a soft opening followed by a grand opening on June 7th,
2012. We will be located in the heart of downtown Bellevue, Washington. This area is surrounded with
restaurants, Bellevue Square mall, and a local park is located nearby. The market is flooded with our targeted
primary and secondary consumers.
At Andreas, we believe consumers should get more for their money. That is why our merchandise is
made at a higher quality at a price they can afford. Every woman at any age should be able to dress
professional, but chic. Our goal is create a bond with our consumers and make them fall in love with the
products we offer and the service we provide. Our friendly and knowledgeable sales staff will be able to help
and assist any customer who walks through our doors.
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Funding Success Factors
Bellevue, Washington has a high number of our targeted consumers.
o Our targeted consumer makes up 25.5% of Bellevue’s total population and the median
income in Bellevue is $79,954. We can also assume customers will come to our store from
surround cities such as, Seattle, Mercer Island, Renton, Issaquah, etc.
A wide selection of apparel as well as shoes and accessories to accent the clothing.
o At Andreas we offer the complete outfit. Consumer’s don’t just spend their money on a top
and a pair of pants. They also get to choose from shoes, and accessories to dress up their
new apparel. Also, by carrying these products we are given opportunities to upsell and bring
in extra revenue.
Warm and inviting atmosphere.
o Our environment at Andreas allows our customers to come into the boutique and wind
down from their busy, hectic lives. It is a place to get away, relax and spend some time
shopping for some well deserved merchandise.
Outstanding customer service and friendly, knowledgeable salespeople.
o Our sales people will not only be trained in basic customer service, but they will also go
through workshops to learn about the different types of VALS consumers and Maslow’s
Hierarchy, so when a customer comes into the store they can identify which type they are
and the best approach to sell to them.
Quality merchandise
o One of our goals is that consumers will keep coming back because they are impressed with
the quality that our merchandise offers. Consumers don’t want to buy a sweater or a pair of
slacks if it is going to fall apart in the washing machine. Other stores throughout the market
that target our demographic may offer similar products, but at lesser quality and consumers
want to buy merchandise that lasts.
Social networking and the launch of our store website.
o Social networking is a great, inexpensive way to reach potential consumers throughout the
area that may not know about our business already. Once the launch of our website takes off
we will have another source of revenue and it will raise awareness of our boutique.
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Section Summaries
The business plan for Andreas Boutique is comprised of the following sections:
The Company Overview
o The Company Overview is comprised of the Owner and Organization section and the
Overall Strategy section. Information about our basic business concepts, legal ownership, a
store opening timeline, short and long term objectives, and company resources can be
found.
Market Analysis
o Our Market Analysis is made up of Customer and Client profiles, Target Market, the
Competition and the Marketing Environment. Information about our VALS consumer and
the statistics about Bellevue, Washington and surrounding cities are included in this portion
of the plan.
Marketing Strategy Plan
o The Marketing Strategy Plan includes the Promotional Plan, Tactical Plan, Pricing Plan and
the Distribution Plan. These sections include information about our pricing objectives and
strategies, mark-ups and mark-downs, our image statement and information about our
advertising plans.
Operations Plan
o The Operations Plan is made up of Inventory Control, Management Functions, Human
Resources, Facilities Maintenance and Customer Service. In these portions information
about our hiring and training and dismissal procedures can be found as well as, information
regarding security, our return policy, and referrals.
Financial Plan
o The Financial Plan includes Projected Income Statement with both best and worst case
scenarios, opening and closing inventory, opening balance sheet, a start up budget, closing
balance sheet with both best and worst case scenarios. Charts and graphs are also included.
Appendix A, B, and C
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AAnnddrreeaass CCOOMMPPAANNYY OOVVEERRVVIIEEWW
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Owner and Organization
Basic Business Concept
Andreas is a small boutique that offers mid to high end professional apparel. Our boutique offers
apparel, accessories, and shoes that are appropriate for the workplace and can be transformed to wear out for
date night. Andreas is a cross between H&M, Banana Republic, and J. Crew. The importance of Andreas is to
offer women stylish clothing of good quality that they can wear to work, or wear out on the town with the
feeling of looking youthful and fashionable.
Our main price point ranges from $50 to $100, but we carry low-priced and more expensive
merchandise to accommodate consumers with different budgets. Our brands we carry include Free People,
MICHAEL by Michael Kors, Kenneth Cole NY, Juicy Couture accessories, and shoes by Steve Madden and
Jessica Simpson. The market demand is affecting our decision making to carry these products because women
want chic fashionable clothing that they can wear both to work and a night out without spending a fortune.
The need for our business is that young consumers want a place to shop where they are getting
quality merchandise at a price that is not too expensive, but doesn’t say cheap material; women need a greater
variety of youthful, professional, comfortable clothing that work for multiple occasions; fashion is always in
high demand; and consumers want a place to shop that isn’t crowded and noisy.
Our business will be driven by both by volume sales and high margins of profit. Our price point lets
our consumers know that they are getting quality merchandise, but at still affordable prices. Our mark-ups are
around 200-300 percent so we can pay all of our expenses and still make a high profit off our sales.
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Legal Form of Ownership Andreas will be owned and operated by Kaitlin Andreas of Seattle, Washington. The local
boutique will function as a Sole Proprietorship. As an independent business owner with a Bachelor
of Science in Fashion Marketing and Management Degree the Art Institute of Seattle graduate has
the knowledge and skill set it takes to control a successful business.
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Overall Strategy
Short Term Objectives
Objective #1: To get involved in the local community.
Timeline: Within the first six months.
We will participate in local events around Bellevue to get to know people and potential
consumers throughout Bellevue. Events such as, the Seafair Marathon, the 24-Hour Relay,
the Strawberry Festival, Magic Season Downtown and the Family 4th of July.
Supporting local programs and sports teams around the community to show our
involvement such as, Bellevue’s Baseball/Softball Athletic Association, the FC Rainier Male
Soccer Team and the Seattle Jets Field Hockey Team will allow us reach new members of
the community.
Once we are known throughout the community by our support and involvement we can
depend on them to support our business in return through sponsorships, advertising, and
positive reviews.
Objective #2: To start up the Andreas website for an extra source of revenue.
Timeline: Within the first year.
Once we have a steady income from our brick and mortar we can start selling and shipping
merchandise from an online store.
We can broaden our market scope and sell to new consumers who don’t have the ability to
travel to our physical location.
We can utilize our website to locate new areas that could be potential locations to expand
our boutique bases on the number of visitors we get from certain locations.
Objective #3: Decrease advertising expenses.
Timeline: Within the first four months of opening.
We plan to do a lot of promotional events to get a lot of press such as, “VIP” customer
shopping advantages, webpage member advantages, buy two get one free accessories, and
buy one get one half price apparel, etc.
We will also be using social networking sites such as, Twitter and Facebook to get word out
about our business by contacting target consumers living in our area.
We can rely on our involvement in the community and the advertisements created for our
grand opening to get the word out about Andreas.
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Long Term Objectives
Objective #1: Develop our own Andreas brand clothing line.
Timeline: Within 4 years after opening.
Working with fashion designers to create a concept and a line of clothing branded with our
name or logo to be sold in the store.
Advertising and promoting our clothing brand could attract new consumers and get our
name out into the public more.
We will have the opportunity to not only connect with our loyal in store consumers, but also
have the ability to form a brand loyal consumer base as well.
Objective #2: Broaden our target market and carry merchandise for men and children.
Timeline: Within 3 year after opening in Bellevue.
Once we have a defined female consumer base we will start to target and advertise to men to
reach another market.
We will start trying to sell this new merchandise over our website to find out how successful
it sells.
We can build and add on to our venue to create space to carry more merchandise for our
new consumers.
Objective #3: Expanding to new areas around the state.
Timeline: Five years after opening in Bellevue.
By getting word out about Andreas Boutique and finding ways to bring in new business we
can increase our bottom line and with enough success start expanding into new areas.
We plan to acquire more consumer business by supplying popular brand names such as
Steve Madden, Jessica Simpson, and MICHAEL by Michael Kors that are popular among
shoppers.
By utilizing our website to track visitors we can locate areas that would make expanding a
successful business decision.
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Company Resources
Management Structure
In order for a business to be successful it has to be controlled by a knowledgeable
management team. Each position will have designated duties to perform in order to maintain
organization throughout the business.
Duties:
Store Manager: Buys merchandise Manages Assistant Store Managers Schedules Assistant Store Managers Focuses on income and expenses Inventory
Assistant Store Managers: Manages Sales Associates Schedules Sales Associates Counting and Recording hourly income Read and record labor reports Visual merchandising
Sales Associates Customer service Maintaining organization and cleanliness throughout the store Cashier
Store Manager
Assistant Store Manager
Sales Associate
Sales Associate
Assistant Store Manager
Sales Associate
Sales Associate
Assistant Store Manager
Sales Associate
Sales Associate
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Finances
Another factor that affects a business’s success is the financial aspect. We have decided that
for the best results 40% of the business’s total start up expenses will come from personal savings;
20% will come from family; and 40% will be taken care of by loans from Bank of America.
Market Scope
It is important to look at cities in a close proximity to the location of our business because
we can consider the people in these areas as potential consumers. Most people travel to different
areas when they go to work, school, shopping, running errands, etc. so it is crucial to know where
they are coming from. Potential consumers in surrounding areas could possibly be traveling from
Mercer Island (98040), Burien (98166), Renton (98055, 98056, 98057, 98058, and 98059), Issaquah
(98027, 98029), Redmond (98052, 98053, 98073), Kirkland (98033, 98034, 98083) and Seattle (for
zip codes see: http://www.city-data.com/city/Seattle-Washington.html).
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Basic Orientation
At Andreas our business is driven by margin and product. We rely on the need for our
merchandise to drive our business. Women want to be able to buy affordable, high quality clothing
that they can wear both to work and out on the town. The problem with existing shops similar to
ours only offer one or the other, affordable prices or quality merchandise. At Andreas we offer both
with our product.
We are also driven by margin. The bottom line is if we do not make enough in sales to pay
off our cost of goods the business will fail. This is why we are determined to train our sales people
in consumer behavior and motivation instead of just basic customer service. We have to be selling
and turning over merchandise at a rate that is high enough to exceed our cost of goods; as well as,
pay off our operational expenses as well in order for the business to be profitable.
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Problems Expected and Contingency Plan
Competitors lower price ranges are difficult to compete with.
o We will guarantee our consumers with better quality and constructed clothing. We will have
to show and demonstrate to them that our higher prices are worth paying for the quality of
our merchandise that our competitors lack.
Weather conditions may prevent people from shopping.
o We will offer in-store promotions that will be advertised on our website to give our
consumers incentive to come out and shop on days that the weather might try to keep them
indoors.
The growing population and market may cause crime rates to increase.
o A hired security guard could give our customer’s a sense of safety when they come to shop
our store.
The economy makes it more difficult for new businesses to attract consumers.
o Special promotions like, free style advice from a professional fashion stylist could bring
people into the store because when times are tough they want to find ways to feel good
about themselves.
Too much space is hard to fill without enough merchandise.
o Since we are not located inside a mall we have more space to do business; however, we may
end up with more space than we need for our merchandise. We could fill these vacant spots
with more visual displays or utilize them for events (i.e.: space to bring in a live DJ).
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AAnnddrreeaass MMAARRKKEETT AANNAALLYYSSIISS
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Consumer Profile
The consumer analysis provides information related to the demographics of Bellevue, WA where our
apparel boutique, Andreas, will be located. The psychographics of our targeted consumer also appear in the
consumer profile. These findings are extremely important to support our decision to locate the boutique in
this specific city because it is necessary to be located in an area where our targeted consumers are located or
the survival of the boutique would be very risky. It is also important to know the lifestyle of our consumer so
we will know how to reach them and spark their interest. Demographics of surrounding cities and King
County are also included because the short driving distance between cities allows residents living in these
areas to travel to our location.
Bellevue, WA
Latitude: 47.60 N
Longitude: 122.16 W1
Size of City: 30 sq. miles2
Demographics
The demographics are helpful in providing information that will help predict the success of a
business based on the targeted consumer market. As of July 2009 the total population for Bellevue,
Washington is 126,626 and has grown 15.65% since the year 2000.3 The population is important because the
higher it is the number of customers will increase. The success of the business and the profit are all
determined by how many customers come in.
Age and Gender
Most businesses target their consumers based on age and gender, these factors are important because
products and services appeal differently to each sex and age group, and when a business is able to focus on
the aspects that attract their target market the result is an increase in sales.
1 http://www.city-data.com/city/Bellevue-Washington.html
2 http://quickfacts.census.gov/qfd/states/53/5305210.html
3 http://www.city-data.com/city/Bellevue-Washington.html
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At Andreas, our main focus is to target women between their mid-20’s and mid-30’s. This also
includes women as young as 18 up to the early 40’s who dress to feel older or younger and can also be
included among our primary target consumers. Among the 63,819 females in Bellevue our target market
makes up 25.5% which does not include surrounding cities. 4
The first graph that is displayed
on the right represents the percentage of
our targeted consumer compared to the
total female population of the area. This
helps us to visualize the amount of
people we are primarily focused on.
The second graph displayed
below shows a population breakdown of
our targeted consumer (presented in the
first graph) based on age. What we can
tell by looking at this graph is that our
largest targeted age group is between the
ages of 31 and 35 years old which falls
into the median age not only in Bellevue, but in Washington State as well.5
4 http://www.city-data.com/city/Bellevue-Washington.html
5 IBID
Female Population
Female Population
Target Consumer
0
1,000
2,000
3,000
4,000
5,000
18-20 21-25
26-30 31-35
36-40
Primary Female Consumer
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Education, Income, and Occupation
At Andreas our products are in a mid to high price range. We carry a range of designer apparel,
accessories and shoes. In order to be sure our products sell and the boutique will survive in a certain location
education, income and occupation are all important factors that play in to the position of the business. The
higher level of education a person has, the better their occupation, and the higher their income to cover the
cost of our product.
Educational statistics
are exceptional in Bellevue to
support our boutique. The
women we are targeting have
higher educational degrees
and over half of the city has a
bachelor’s degree or higher.
The graph on the right shows
the percentage of each education level which offers visual evidence.
Because of higher education levels people are able to obtain jobs in higher paying industries. On
Bellevue’s city website there is graphical evidence that displays which industries women are working in
compared to women in the whole state area. The graph below is identical to the graph shown on their
website.
0%
2%
4%
6%
8%
10%
12%
14%
16%
Most Common Industries for Women
Bellevue
Washington
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
For Population 25 Years and Over
Education
High School Diploma
Bachelors Degree or Higher
Graduate or Professional Degree
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The median household income in Bellevue, Washington is $79,954.6 This number is over $20,000
higher than the median state income. This is a relatively high income compared to other cities meaning they
have a higher disposable income which can be spend in our store. This may be due to the higher education
and occupation levels people have in Bellevue.
The statistics concerning education, occupation and income is important for both our primary and
secondary consumers.
Marital Status and Family Size
Our ideal Andreas shopper is a single or married woman with no kids who has plenty of disposable
income to spend on herself. Therefore it is important to note that the average household size is 2.4 people
which may or may not include children.7
6 http://www.city-data.com/city/Bellevue-Washington.html
7 IBID
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Psychographics
It is extremely important to understand the lifestyles of our consumers. In order to be able to attract
customers we have to be able to know the general idea of what their life is like. Their interest, hobbies, and
their life on a day to day basis will give us a good idea of what they find interesting and exciting in their life.
When we are able to relate with a consumer and their lifestyle we will know that they will feel comfortable
and relaxed when they come in.
“Day in the Life” of Our Target Consumer
Lauren is the typical Andreas consumer. She is 26 years old, lives in a one bedroom apartment with
her golden retriever, Lucy. Lauren has a bachelor’s degree in business and works for Apple Inc. Every week
day morning her alarm goes off at 7am and she hops in the shower
to wake herself up while her coffee starts to brew. She loves the
smell of her Pantene shampoo and conditioner. An hour later she
runs out the door, jump in her newly purchased BMW and speeds
off to work. She walks in wearing her favorite Elizabeth and James
high heels, black Kate Spade New York pants, and the same
designer’s silk blouse.
She spends the next eight hours working on a project her
boss assigned her a week ago that he said is due at the end of this
week. Lauren is a well respected employee because she’s proven she
is a professional and there’s nothing she wouldn’t do for her career.
“Keep up this work and expect a promotion really soon” he told her
after she turned in her last assignment. Her college degree from the University of Washington is finally paying
off.
Lauren leaves work a little after 5 pm. to meet her cousin at their favorite local Italian restaurant for
dinner. They discuss life in general like they always do; work, family, and their barely existent love lives due to
their hectic work schedule. The two girls discuss their recent purchases and the new
pair of Marc Jacobs heels that Lauren just purchased because they were to die for!
After about an hour and a half of catching up she runs off to meet her college best
friends and her boyfriend, Ben, who complains she never has any time for him.
There are just more important things in life, but she doesn’t tell him that.
They all meet up at happy hour at the 520 Bar and Grill which they have
become familiar with for a glass of wine. The group jokes around for a while and
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decides to make plans to take a road trip one weekend to Oregon to go to the beach. Later, Ben comes over
to watch a movie since she kind of feels bad for never having enough time to spend with him. After she has
kicked him out because of her long day trying to balance her career and a social life Lauren lays in bed with a
book from her favorite author, Jodi Picoult to wind down for the night.
Free Time Activities
Television
Grey’s Anatomy
CSI
Project Runway
Entertainment Tonight
Lost
Law and Order
The Bachelor
The Bachelorette
Sex and the City Reruns
Friends Reruns
Movies
The Breakup
Little Miss Sunshine
Requiem
Titanic
The Notebook
Pearl Harbor
Sex and the City
What Happens in Vegas
Pirates of the Caribbean
Radio
KNDD 107.7fm Alternative
KISW 99.9fm Rock
KKWF 100.7fm Country
Hobbies
Exercising o Bikram Yoga
Shopping o Nordstrom o Urban Outfitters o Banana Republic o Abercrombie and Fitch o Gilly Hicks
Traveling o Europe
Paris, London, Italy, Ireland
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VALS
Based on their lifestyles, social activities and hobbies we can assume that our primary consumers fall
into the VALS categories of Innovators, Experiencers, and Thinkers. Our younger consumers most likely fall
into the category of Experiencers, while the more mature, career oriented consumers more than likely fall
among the Innovators and Thinkers.
Innovators
Innovators are successful, sophisticated, take-charge people with high self-esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. Image is important to Innovators, not as evidence of status or power but as an expression of their taste, independence, and personality. Innovators are among the established and emerging leaders in business and government, yet they continue to seek challenges. Their lives are characterized by variety. Their possessions and recreation reflect a cultivated taste for the finer things in life.8
Our Andreas consumer that we would identify as an Innovator is our independent woman who is
not afraid to step up and speak her mind. Her self confidence is what led her to be a successful individual.
She lives for herself and dresses to express her own tastes and personality without worrying about the
opinions of other people.
She is on the fast track to getting what she wants. Whether it’s this season’s new Prada handbag or
the new job opening higher up in the company she works for, she is going to get it. She always wants to learn
more and craves opportunities where she can excel. She probably doesn’t even know the definition of
“boring”. If the chance arises for her to solve new problems she takes it.
We know this consumer when she walks in the door because her self confidence is apparent and she
knows what she is looking for. In order to connect with this consumer we must notice what is unique about
her, like the brands, colors, and patters, she wears in order to know what appeals to her. From that judgment
we can steer her in the direction of what we believe she would be interested in.
Experiencers
Experiencers are motivated by self-expression. Young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having "cool" stuff.9
8 http://www.strategicbusinessinsights.com/vals/ustypes.shtml
9 IBID
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Our Experiencers make up most of our younger demographic. They lack the self esteem that our
Innovators have which is why they purchase items to make them “look good” and so they can have “‘cool’
stuff”. Women who are Experiencers like to feel like they belong and they also want to feel accepted by other
people their age.
Their impulsiveness causes them to buy without considering if they really need the product, how
often they are going to use it, whether or not it is overpriced, etc. They like to be the first to know about what
is new and happening. They crave social activities, sports, and outdoor recreation because it is another place
for them to fit in. These consumers are spontaneous and crave excitement in their life because if they didn’t
have it they would probably be bored and most likely wouldn’t feel like their life was fulfilling in any way.
Fashion, entertainment, and socializing are key aspect to the lives of Experiencers because it’s their
way of keeping up to date with what other people like. Without these aspects they wouldn’t have any
knowledge about what people are interested. They spend their money in ways to make them feel like they
belong somewhere and are accepted by other people.
We can recognize this consumer when she walks in the door because she is probably wearing the
latest trends, listening to the latest music on her iPod, she most likely has gotten her hair recently trimmed or
highlighted, and her nails are probably freshly manicured. We can connect with this consumer by
complimenting her new cardigan so she knows that we noticed and then leading her right over to our new
inventory to show her the new trends that are coming out.
Thinkers
Thinkers are motivated by ideals. They are mature, satisfied, comfortable, and reflective people who value order, knowledge, and responsibility. They tend to be well educated and actively seek out information in the decision-making process. They are well-informed about world and national events and are alert to opportunities to broaden their knowledge. Thinkers have a moderate respect for institutions of authority and social decorum but are open to consider new ideas. Although their incomes allow them many choices, Thinkers are conservative, practical consumers; they look for durability, functionality, and value in the products that they buy.10
We can identify our Thinker consumer who walks in the door by the way she carries herself. This
consumer is comfortable in her own skin, and presents herself this way. She doesn’t feel the need to be the
center of attention or voice her every opinion because as long as she is comfortable with herself then she is
happy. She doesn’t need other people to approve of her in order to make her feel satisfied.
She is well educated and knowledgeable which we know our Andreas consumer is based on her
higher level of education. Thinkers are the opposite of Experiencers in that they don’t buy on impulse. They
don’t spend money on a product unless they know it is worth it. They don’t focus on expression, or worry
about the latest trends, but their maturity, professionalism and income make them a target consumer.
10 IBID
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In order to connect with this consumer we don’t need to focus on new merchandise or the latest
trend. The approach we need to take when selling to this consumer is quality. She wants to know she is
spending money on products that are going to last and be a good investment. She is also open to new ideas so
showing her a new product that she may not normally be attracted to and explaining the benefits may even
open her mind to it.
PRIZM NE
We can classify our targeted consumers using PRIZM segments which help us to identify our
consumer based on the location they live. According to each description we can identify our consumers as
Brite Lites, Li’l City, Up-and-Comers, and Executive Suites. A large number of Brite Lites, Li’l City and Up-
and-Comers are located in Bellevue, WA. Executive Suites, who are also described as our targeted consumer
are most likely located in cities nearby Bellevue, or may be tourists who are on vacation.
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http://www.claritas.com/MyBestSegments/Default.jsp?ID=30&SubID=&pageName=Segment%2BLook-up 12
IBID
Brite Lites, Li'l City
Upscale, Middle Age w/o Kids
Not all of America's chic sophisticates live in major metros. Brite Lights, Li'l City is a group of well-off, middle-aged couples settled in the nation's satellite cities. Residents of these typical DINK (double income, no kids) households have college educations, well-paying business and professional careers, and swank homes filled with the latest technology.11
Our Brite Lites, Li’l City consumer are similar to our Innovators. They are successful,
educated, professionals who know what they like and what appeals to them. They are able to keep up
with the latest technology and their “swank homes” are most likely decorated to express themselves.
Up-and-Comers
Upper-Mid, Middle Age w/o Kids
Up-and-Comers is a stopover for younger, upper-mid singles before they marry, have families, and establish more deskbound lifestyles. Found in second-tier cities, these mobile twentysomethings include a disproportionate number of recent college graduates who are into athletic activities, the latest technology, and nightlife entertainment.12 The Up-and Comers are most similar to our Experiencers. They are young people who are
very social, release their energy through sports and are very knowledgeable when it comes to
32
13
IBID
technology. Being young and social they are probably concerned with making an good impression,
so they wear the latest trends and are concerned with their appearance.
Executive Suites
Upper-Mid, Middle Age w/o Kids
Executive Suites consists of upper-middle-class singles and couples typically living just beyond the nation's beltways. Filled with significant numbers of Asian-Americans and college graduates--both groups are represented at more than twice the national average--this segment is a haven for white-collar professionals drawn to comfortable homes and apartments within a manageable commute to downtown jobs, restaurants, and entertainment.13
The Executive Suites are very similar to our Thinkers. They are comfortable with themselves
and their lifestyles. They are educated professionals and they know what they want out of life, but
they are also open to new ideas and they go with the flow knowing that life is unpredictable. They
don’t need brand names merchandise to feel good about themselves. They are most concerned with
what is practical.
33
Maslow’s Hierarchy
34
Target Market
Market Location
Market location is extremely important to the survival of the business. It is not only important to
know that it is in an area that is surrounded by our target demographic, but it is also important to be aware of
surrounding competition because a business won’t survive if it can not compete well enough with its rival.
We have chosen to locate Andreas in downtown Bellevue. This location is full of activity and
surrounded by appartment buildings, hotels, shopping centers, restaurants, art galleries and Bellevue
Downtown Park is located nearby. This area offers public transportation and has easy access to the interstate.
Downtown Bellevue is continuing to grow with developments that are happening currently and in the near
future. Most of these developments include apartment buildings, townhouses, and hotels.14
We have chosen to locate our business in the 200 Plaza Building in Downtown Bellevue at the
intersection of 105th Ave NE
and NE 2nd Street.15 This
location is one block East of
Bellevue Downtown Park and
one block North of Main
Street and is surrounding by
thriving businesses and
restaurants. We have available
parking for our customers
and easy access to main roads
and the interstate.16
14
http://maps.google.com/maps 15
http://www.cbre.com/usa/us/wa/bellevue 16 IBID
35
Real Estate Advertisement
EASTSIDE/BELLEVUE - RETAIL 10/20/2010 Bellevue s)
200 Plaza Building 210 105th Ave NE
Bellevue, WA
4,800 sq. ft. Rate: $25.00 PSF (plus $3.00 PSF NNN)
Visible end cap available with signage opportunities on three facades.
Excellent locations in the heart of downtown Bellevue–located one block off Bellevue Way and adjacent
to the new Safeway mixed-use development.
The 200 Plaza Building offers easy access from SR-520, I-90, I-405,
and major arterials.
59 parking stalls for customer use (19 surface stalls).17
17
http://www.cbre.com/usa/us/wa/bellevue
36
Aaron Mercer
Kemper Freeman
Market History
William Meydenbauer and Aaron Mercer were the first settlers in Bellevue.
They arrived in 1869. Meydenhauer was a baker and Mercer was a farmer. After they
sold their land and moved they left only their names behind (Meydenbauer Bay and
Mercer Slough).18
“In 1882, Isaac Bechtel Sr. bought land near the present downtown area.
For the next few years he and sons logged and cleared the land. Other settlers
followed, and by 1890 a sawmill, shingle mills, and farms dotted the area. The
growing community also had a school and a few businesses.”19
According to the 1900 census Bellevue population was 400 and grew to 1,500 by 1910. It was the
center for berry growing in King County, and many wealthy Seattle families were locating there. The Hewitt
Lumber Company of Tacoma was employing hundreds of men and as a result the city was growing.
Access to Puget Sound was available in 1917 when the Lake Washington
Ship Canal opened, which brought new and more
business to Bellevue.20 The farming business however,
was still the most productive industry.
The construction of the first bridge in 1939
over Lake Washington changed Bellevue from a
farming community to a active suburb.21 Then in 1946
the first shopping mall in downtown Bellevue was
opened by Kemper Freeman which caused business
growth nearby.
In 1953 the city was incorporated and was names the All-American City two years later by the
National Municipal League and Look Magazine. Skyscrapers were soon developed and many banks moved
their headquarters to Bellevue, making it one of the richest cities in Washington.22
18 http://www.historylink.org/index.cfm?DisplayPage=output.cfm&file_id=313 19 IBID 20 IBID 21
IBID 22 IBID
37
Geographic Analysis
Downtown Bellevue covers over 400 acres and includes 4.5 million square feet of retail and
entertainment space and more than 9 million square feet of offices.23 Two of the Eastside’s popular arts and
convention centers are located in Downtown Bellevue along with the King County Regional Library and the
two lead retail centers, The Bellevue Collection and The Bravern. “It has been estimated that over the next 20
years, 75% of Bellevue’s population and employment growth will occur in downtown”.24
Local destination nearby Downtown Bellevue include close to twenty businesses offering Art and
Culture services alone including, the Bellevue Arts Museum, Ballet Bellevue, Eastside Heritage Center,
Bellevue Chamber Chorus, The Theatre at Meydenbauer Center, Bellevue Youth Theater, and more. Kids
Quest Children’s Museum is a local place for a fun family activity. The Bellevue Aquatic Center and
Robinswood Tennis Center offers plenty of opportunity for sports and exercise. Many community parks and
recreational centers allow for entertainment in local areas as well.
Bellevue has over 145 headquarter companies and its’ key industries include finance, real estate,
insurance, professional services, retail, high-tech, wholesale, trade, communications and utilities.25
Traffic patterns in downtown
Bellevue are modeled in the map on the
following page. What is evident by looking
at the map is that traffic in the downtown
area is usually light in most areas.
Intersections where traffic is turning onto
main roads and either entering, or exiting
the interstate are where traffic becomes
more moderate, but not too extreme. The
heavier areas of traffic are in the most
active areas where there are intersections
near the interstate, but these areas are very
rare.
23 http://www.bellevuedowntown.org/downtown/index.html 24 IBID 25 http://www.bellevueadvantage.com/advantage/advantage.aspx
38
Downtown Bellevue Traffic Map
http://trafficmap.cityofbellevue.net/default.asp
39
Climate
Climate is important to consider when finding a location for your business because it can be useful in
predicting what parts of the year will be slower and which will be busier. It is also helpful when deciding
which items to carry in your business because consumers are going to buy weather appropriate clothing to
suit their needs.
What we can tell by examining the graphs below is that compared to the US average climate
Bellevue’s average and high temperatures fall into the US average, but the low temperatures during the
summer months fall below. It is also very clear that Bellevue gets much more rain during the fall and winter
months that other areas do. The city also doesn’t receive as much sunshine throughout the year and gets very
little clear days even during the summer season; however, wind speeds don’t reach as high as other locations.
Even though precipitation and cloud cover are above average, during the winter months the amount of
snowfall falls right into the US average.
**Graphs provided by City-Data.com/city/Bellevue-Washington.html
40
**Graphs provided by City-Data.com/city/Bellevue-Washington.html
41
Market Scope
It is important to look at cities in a close proximity to the location of our business because we can
consider the people in these areas as potential consumers. Most people travel to different areas when they go
to work, school, shopping, running errands, etc. so it is crucial to know where they are coming from.
Mercer Island: Zip code: 98040 Direction: South West Distance: 6 miles Population: 22,036 Female Pop: 12,748 Burien: Zip code: 98166 Direction: South West Distance: 18 miles Population: 31,881 Female Pop: 16,266 Renton:
Zip codes: 98055, 98056, 98057, 98058, 98059 Direction: South
Distance: 11 miles Population: 50,052 Female Pop.: 31,212
Issaquah:
Zip codes: 98027, 98029 Direction: South East Distance: 12 miles Population: 11,212 Female Pop: 6,241
Redmond: Zip codes: 98052, 98053, 98073
Direction: North Distance: 9 miles Population: 45,256 Female Pop.: 26,181 Kirkland: Zip codes: 98033, 98034, 98083 Direction: North Distance 7 miles Population: 45,054 Female Pop: 24,932
Seattle:
Zip codes: See: http://www.city-data.com/city/Seattle-Washington.html
Direction: West Distance: 11 miles
Population: 563,374 Female Pop: 309,450
*City information was provided by: http://www.city-data.com **Distance was found at: http://www.mapquest.com
42
Market Size and Growth Rate
We want to know when we locate our business that the market is thriving and continuing to
grow. In order for the business to be a success and to keep surviving it is crucial that consumers
choose to come to our location than go somewhere else. The market has to be able to keep up with
the advancements of other cities or it will lose its attraction and its consumers.
As of 2008 Bellevue has 2 million square feet of office space, 403,000 square feet of retail
and commercial space, and 3,300 apartments and condominiums under construction and the city has
continued to grow.26 Ever since Symetra Financial placed its headquarters in downtown Bellevue in
2004 there has been an increase in technological businesses including Microsoft, Yahoo, Google and
Expedia.27 Two years ago city officials were looking over proposals that would increase office square
footage by 1.3 million, retail and commercial by almost 650,000, and 2,700 apartments and condos.
The growth of the city is mainly due to commuting issues. People wanted to live close to
work so they wouldn’t have to drive as far. Another reason is that downtown Bellevue seems a lot
safer to people than downtown Seattle, so when they are looking to relocate they want to go where
they are going to feel safe and comfortable.
26 http://www.seattlepi.com/local/366203_bellevue07.html 27 IBID
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Po
pu
lati
on
2008 2020
Downtown Bellevue Predicted Population
Growth
2008
2020
0
2,000
4,000
6,000
8,000
10,000
12,000
Nu
mb
er
of
Ho
use
s
2008 2020
Dowtown Bellevue Predicted Housing
Growth
2008
2020
43
*Information for graphs provided by http://www.seattlepi.com/local/366203_bellevue07.html
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Squ
are
Fo
ota
ge
2008 2020
Downtown Bellevue Predicted Retail Space
Growth
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Squ
are
Fo
ota
ge
2008 2020
Dowtown Bellevue Predicted Office Space
Growth
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Nu
mb
er
of
Job
s
2008 2020
Dowtown Bellevue Predicted Job Growth
44
Attractive Features of the Market
Downtown Bellevue offers many forms of entertainment, restaurants and recreational
activities to its community.
o People are attracted to communities that offer a lot of entertaining things to do.
They like having a variety of options, and when those options are all offered in one
location it is a bigger advantage to them because they save time and money without
having to commute elsewhere.
The city continues to grow with new developments of new office buildings, apartments and
condominiums, and new retail and entertainment venues.28
o The expansion of the city brings new job opportunities and more residents change
locations to be closer to the developments. In conclusion, population rises along
with new consumers who need our products.
Many events take place in Bellevue which gives residents a chance to get involved in their
community.
o People like to get involved and feel connected with their community. They feel
comfortable with the area they are living when they form connections with other
residents. They feel a need to support their community and the businesses in it.
Crime rate statistics prove Bellevue has lower crime rates than the US average.29
o Safety is the biggest concern to most people when they leave their home. People
don’t like to go out into an area where they feel threatened. So, it is an advantage
that crime rates are lower because the residents feel comfortable to run errands, go
shopping, etc. This may even give more people a reason to choose Downtown
Bellevue over Downtown Seattle where crime rates are much higher.
The median resident age in Bellevue is 38.2 and the median household income is $79,954.30
o Our target market is women between the ages of 20 to about 40 with a higher
income and the demographics of Bellevue fall into this target. Without these women
it would be difficult for our business to survive in the area.
Unemployment rates have been dropping since 2009.31
o With unemployment rates going down more and more people are earning an
income. This allows them to have more money to spend on necessities, as well as, a
disposable income for entertaining activities.
28
http://www.bellevuedowntown.org/downtown/index.html 29
http://www.city-data.com/city/Bellevue-Washington.html> 30 IBID 31 IBID
45
Difficulties and Problems in the Market
There is a lot of direct retail competition, as well as, indirect competition in Bellevue.
o The active area of Downtown Bellevue may bring more people and tourists to the
area which is good for our business, but people are only willing to spend so much
money. Consumers have a lot of opportunities to spend their money elsewhere,
whether it be at another retail store, a theatre, restaurant, etc.
Weather conditions may prevent people from going out.
o Bellevue spends a lot of the year covered in clouds and is in a location that receives
a lot of rain. A person’s serotonin levels drop in areas that don’t receive as much
sunlight. So, depression rises, which prevents from people from leaving their home.
So, it may be more difficult to bring consumers into the store when they are in the
mood to stay at home.
Residents and tourists may choose to go to Seattle instead of Bellevue.
o There are higher levels of activity in a big city like, Seattle. People who enjoy the
bustle of activity are more likely to travel the short distance to Seattle to do their
shopping which would cause our sales to drop from the loss of business.
The median rent in Bellevue is $1,17232 which is higher than the average Washington State
rent which is $730.33
o The higher cost of rent causes people to have less disposable income. They won’t
come to our business if they don’t have enough money to spend because they have
to pay for rent instead.
The lack of advertisements in Bellevue creates a barrier for our non-resident consumer.
o Not many tourists know of Bellevue, Washington and there is a shortage of
advertisements throughout Seattle and surrounding areas broadcasting Bellevue’s
businesses and attractions. Since tourists mainly visit Seattle and residents of other
cities most likely don’t venture out too often it might be more difficult to bring
them to our location.
32 IBID 33
www.rent.com/rentals/washington
46
Existing Demand for Our Boutique
Young consumers want a place to shop where they are getting quality merchandise at a price
that isn’t too expensive, but doesn’t say cheap material.
o Our boutique is a cross between H&M and Banana Republic. We offer the prices
that Banana Republic does, which ensures a higher quality of product that will last
longer; however, we offer the trends similar to H&M for the younger target market.
Fashion is always in high demand.
o Consumers, mostly women are always keeping up on current trends. They buy what
is in fashion to look up-to-date and chic. Fashion is everywhere, on television, in
magazines, on the internet, fashion sites and consumers are doing what they can to
keep up with it.
Women need a greater variety of youthful, professional, comfortable clothing that work for
multiple occasions.
o Women dress to feel youthful and fashionable. It is difficult to find merchandise
that is good quality, trendy, professional and age appropriate. Young women want
to be able to find an outfit that works both for day and the night at prices that mean
quality, but without feeling like they are wearing their mother’s clothes.
Consumers want a place to shop that isn’t crowded and noisy.
o Our boutique has its own free standing location near Bellevue Square mall so our
consumers won’t be overwhelmed with a large amount of people, but it is still close
enough for consumers who want to shop at other stores.
The location of Andreas is convenient for many consumers to get to.
o A large number of our customers will be coming from cities outside of Bellevue so
easy access to our store is crucial. Public transportation is also available and will
make traveling easier.
47
Primary Competitors
There are many retail shopping stores located in Downtown Bellevue. Based on
target market, price point, and merchandise each store carries we found Abercrombie &
Fitch, Loft, and Arden B. to be three of our biggest competitors at Andreas.
Abercrombie & Fitch
Loft
Arden B.
Location
Bellevue Square
NE 8th St. and Bellevue Way
Bellevue Square
NE 8th St. and Bellevue Way
Bellevue Square
NE 8th St. and Bellevue Way
Brief Description
Classic, casual apparel for men, women, and an online store for kids.
Carry their own brand.
Partners with Hollister and Gilly Hicks.
Price Point: $30-$200
Ann Taylor Loft
Offers value prices.
Products that coordinate career and casual pieces.
Carry only Ann Taylor brands.
Price Point: $30-$150
Dressy and casual apparel, accessories, and footwear.
Target women from 20-45 years old.
Partners with Wet Seal
Price Point: $30-$150
Why they are our
competition
Internationally known
Similar target market
Competitive price point
Similar target market
Located in many US states
Similar product
Competitive prices
Same target market
Carry the same product categories
Competitive Prices
Sources: www.abercrombie.com www.anntaylorLOFT.com www.ardenb.com
48
Composite S.W.O.T.
We, at Andreas boutique have compiled a condensed and co-related charting of non-
redundant areas of strategic interest and implication with our new business venture. The
emphasis resides in how Andreas compares to its’ major competitors and illustrates the
strategies to overcome obstacles as well as those to better leverage company growth. Our
top competitors are Abercrombie & Fitch (A), Loft (L), and Arden B. (B).
Strengths Andreas:
A wide selection of apparel as well as shoes and accessories to accent the clothing.
Warm and inviting atmosphere.
Outstanding customer service and friendly, knowledgeable salespeople.
Quality merchandise
Competition:
Good customer service
Average price points.
Cater to both men and women (A).
Well know brand names (A) (L).
Weaknesses
Andreas:
Too much space is hard to fill without enough merchandise.
Competitors lower price ranges are difficult to compete with.
Weather conditions may prevent people from shopping.
Competition
Locations inside Bellevue Square have closer direct and indirect competition.
Limited space inside the venues.
Dimmed lighting prevents consumers from seeing the merchandise properly (A).
Opportunities
Andreas:
Great community that provides opportunities to get involved and raise awareness about the business.
Broaden our target market and carry merchandise for men and children.
Widen our market internationally with an online store.
Competition:
Great location in the Downtown Bellevue.
Well known brands will attract new consumers (A) (L).
New up to date merchandise brings in more customers.
Threats
Andreas:
The higher priced merchandise may affect sales.
The growing population and market may cause crime rates to increase.
The economy makes it more difficult for new businesses to attract consumers.
Competition:
Consumers might become aware of the cheaper quality of their merchandise.
The growing population and market may cause crime rates to increase.
Internal and external theft if security is not tight enough.
49
Indirect Competition
Our consumers at Andreas spend on average $200 when they come into our
boutique. Therefore, one business that provides us with indirect competition would include
Schwartz Brother’s Daniel’s Broiler Restaurant. Daniel’s is a fine dining steakhouse
restaurant. Their appetizers run between $11 and $17 and their entrees $28 and $90 entrees.
They also offer wines by the glass and the bottle at a range of prices. We consider Daniel’s to
be indirect competition as they are in close proximity to our business and their prices are
similar to our own.
50
Marketing Environment
Politics and Economics
It is important to look at the standing of the country, state, county and city that our business
is located in. There are many factors that affect our business and our consumers. The political and
economical environment influences our consumers’ ability and willingness to buy. It also affects our
business because of taxes, health care coverage, and trade and tariffs on imported products. The
more aware we are of these conditions and obstacles the better we will be able to prepare and work
around them.
Nation – United States
Political Environment
After two years with fellow Democrats leading Congress, Obama now must deal for the rest of his term with the jarring reality of Republican control of the House, a diminished Democratic majority in the Senate and a new flock of lawmakers sworn to downsize government at every chance.34
In the middle of midterm elections changes in the government are
happening at a rapid pace. Since the beginning of the Obama ministration
democrats have been the majority in the House of Representatives as well
as the Senate. Now, with midterm elections taking place and many
unsatisfied US residents things are starting to change. Democrats still have
the majority in the Senate, but the lead over the Republicans has reduced
by a great amount. Also, based on poll data the House of Representatives
will be mostly in control by the Republicans who have a significant
majority. It is predicted that the Republican’s will be working to make
changes in the government; one of their biggest challenges is changing the
health care law.
Repealing the health care law, with its mandates and subsidies to extend health insurance to nearly all Americans, has been a Republican rallying cry for months but Obama, with his veto power, and the Democrats still in control of the Senate stand in the way…Obama, indicated he was open to changes, saying Republicans who complain about the burden on small businesses might have a point.35
US residents and businesses are expecting changes by the Republicans. ““Americans voted for jobs
and economic growth” and “resoundingly rejected” Democrats’ policies on taxes and regulation,”
34
http://news.yahoo.com/s/ap/20101103/ap_on_el_ge/us_election_rdp;_ 35
IBID
51
Thomas Donohue, president of the U.S. Chamber of Commerce, the biggest business lobbying
group”36 The results of the midterm elections are taking the pressure off of businesses to pay high
taxes and offer health care. “Businesses “are not going to be seen as a pool of funds to be pillaged by
Congress anymore,” said Curtis Dubay, a senior tax policy analyst at the Washington-based Heritage
Foundation, a research organization that usually sides with Republicans”.37
According to the National Retail Federation the Senate is expected to vote on a China
currency bill that could lead to higher tariffs on merchandise imported by retailers. They are also
expected to approve extension of trade preferences programs that are a priority for retailers. We are
also waiting approval from the Senate on a legislation that would create on Organized Retail Crime
unit at the Department of Justice. This legislation is supported by the National Retail Federation and
has been passed by the House of Representatives already.38
Economic Environment
According to a CNN poll 52% of American’s voted that the economy was the biggest issue.
After the real estate and banking problems hit in 2008 unemployment rates began to rise quickly as
many citizens were losing their jobs and being laid off. “Jobless Americans topped 15 million this
year, according to the Labor Department. About 9 million others work part-time because their hours
have been cut or they can't find full-time work”.39 As of September 10, 2010 unemployment was at
9.6%.
Another concerning issue is the amount of money Washington is spending. According to
CNN and the Treasury Department, the federal budget deficit is expected to reach 1.56 trillion
dollars which is a rise from 2009’s 1.41 trillion.40
Every dollar Uncle Sam spends that it doesn't have in the bank, it has to borrow. When the
federal government has to borrow so much money, economists say it can lead to higher
consumer interest rates for loans and perhaps rising prices for consumer goods and services.
Federal Reserve Chairman Ben Bernanke said continued high deficits might threaten the
nation's economic recovery.41
We have to consider the money that our consumers are spending on car loans, house
payments, necessities such as food and utilities and realize that if their payments are rising they will
have less money to spend on our products which will ultimately affect our business.
Retail businesses should expect changes during the 2011-2012 session of Congress. The
following synopsis of key issues that could be affected is provided by the National Retail Federation:
36
http://www.businessweek.com/news/2010-11-03/business-looks-to-republicans-to-block-rules-taxes.html 37
IBID 38
http://www.nrf.com/modules.php?name=Newsletter&op=viewlive&sp_id=272&id=51 39
http://www.cnn.com/2010/POLITICS/05/31/issues.economy/ 40
http://www.cnn.com/2010/POLITICS/05/31/issues.deficit/ 41
IBID
52
Health Care Reform – The House is likely to take a vote on repeal of the Patient Protection and Affordable Care Act health care reform law for the sake of politics. But the Senate is unlikely to go along, and President Obama would certainly veto any outright repeal. More realistically, retailers may be able to push for action on the size or existence of employer mandate penalties, fine points of eligibility for health coverage, the auto-enrollment requirement and the Form 1099 reporting requirement. Taxes – The divided government resulting from the Republican takeover of the House provides an important backstop against potential tax increases over the next two years. In particular, it makes it far less likely an add-on Value Added Tax will be enacted as a revenue raiser to reduce the deficit. In particular, incoming Ways and Means Committee Chairman Dave Camp, R-Mich., has been outspoken in opposition to a VAT. Retailers still need to be cautious because incoming Budget Committee Chairman Paul Ryan, R-Wisc., has introduced legislation to replace the corporate income tax with a business consumption tax, which is a form of a VAT with similar impacts on consumer spending. Labor – The Republican House majority will bring about a dramatic change in priorities on labor-related issues. The House Education and Labor Committee will be chaired by Representative John Kline of Minnesota, who has a 9 percent AFL-CIO lifetime voting record compared with current Chairman George Miller’s 93 percent score. Controversial pro-union legislation such as the Employee Free Choice Act “card check” bill will not be considered by the House in the next two years. Rather, Kline is expected to focus on oversight of the Labor Department’s aggressive regulatory and enforcement activities, as well as anticipated action by the National Labor Relations Board to enact EFCA provisions administratively. Trade – After two years of avoiding action on trade, the Obama administration will push a more proactive trade policy emphasizing expansion of exports while continuing tough rhetoric on imports. It is unclear how responsive a divided Congress will be when free trade remains unpopular with the American public, most congressional Democrats and organized labor. In addition, many Republican gains came in Southern states with protectionist business constituencies such as textiles. Tea Party candidates, meanwhile, have no clearly articulated position on trade. U.S.-China trade will remain a hot topic, especially if China currency legislation is not completed in the lame duck. Credit and Debit Card Swipe Fees – In this election cycle, Wall Street shifted its support from Democratic to Republican candidates while calling for less government involvement in banking operations and specifically urging lawmakers not to take additional steps with respect to credit card fees. The change in control will make it much more difficult to achieve additional reforms on card fees. But divided government also means financial industry efforts to repeal or scale back reform retailers have already won – such as the Durbin Amendment requirement for “reasonable and proportional” debit card fees – are likely to fail. Internet Sales Tax Collection – The Main Street Fairness Act, which mandates sales tax collection by all sellers via any channel of sale, will be rewritten to be simpler and win broader support among Republicans. Its language may be combined with other business bills such as the Business Activity Tax Simplification Act to gain final approval. New House and Senate sponsors are being cultivated. Organized Retail Crime – House-passed legislation defining ORC as a federal crime and creating an ORC unit at the Justice Department could win final approval by the Senate during the lame duck. NRF will work with retailers, lawmakers and online marketplaces to building upon that measure and develop more comprehensive legislation during the 112th Congress. Republican House control is expected to help with efforts to fight the multibillion-dollar problem of ORC. Supply Chain – A Republican majority in the House is expected to help ensure a focus on
53
development of a national freight program and strategy – as sought by NRF – as Congress considers a multi-year reauthorization of a highway bill. The key sticking point for both parties will be the funding. While an increase in the gas tax makes the most sense, politically neither party is likely to support it. NRF will oppose any user fees not applied to all users of the system. A Republican majority will also help block efforts to amend federal law to allow local ports to ban independent truck drivers under the guise of environmental and clean truck programs. Republican control should also make it easier to amend a 100 percent scanning requirement for maritime cargo containers included in the 9/11 Act but opposed by the Department of Homeland Security. Finally, the recent terrorist incident involving packages on cargo airlines will lead to a refocus on supply chain security but a Republicans might be more thoughtful on how proposed solutions would affect the supply chain. Privacy – While hearings and legislative proposals on both online and offline privacy issues are expected again in the new session of Congress, the Republican majority in the House likely means the issue will not be a top priority for new House committee chairmen. The Administration is expected to continue to focus on privacy, however, with reports expected from the Federal Trade Commission and Commerce Department and activity from a recently formed interagency subcommittee on Internet issues.
State - Washington
Political Environment
Washington State Democratic Senator Patty Murray has been in office since 1992. She is a
graduate of Washington State University. Despite her long term dedication to Washington State
during this year’s midterm elections she is running opposed by Republican Dino Rossi. Their
publicized battles have been very heated and strongly opinionated. The race is too close to close to
predict who will represent Washington State in the Senate.
Murray’s statement to Washington residents is to create new jobs
across the region, provide support to veterans and their families, protect
Medicare and Social Security, end taxpayer bailouts, and improving
education.42
Rossi’s plan on the other hand is to cut the massive growth in federal
spending and pass a Balanced Budget Amendment, fix the tax code to reward
work, saving, and the investments that create jobs, and replace the health care
bill and reform heath care. 43
There are also a number of initiatives waiting to be passed. Some
which are touched on below include taxes, and insurance.
Washington statutes restrict any action by the legislature to raise taxes unless it is approved
by 2/3 votes of each house, but the legislature has suspended their effect. Initiative 1053 if passed
42
Washington State Voters’ Pamphlet 43
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would restate existing statutory requirements: approval by 2/3 votes of each house, or be approved
by voters. The new or increased fees require the majority legislative approval.44
Currently in Washington the Department of Labor & Industries provides medical benefits to
all employees with illnesses, disabilities, and death from work-related injuries. This law protects
employers from being sued by their employees, with limited exceptions. Their source of income is
provided by insurance premiums paid by the employer and are deducted from the employees pay.
Initiative 1802 concerns industrial insurance and would allow employers to purchase private
industrial insurance. The private insurer would have the same right and responsibilities as the
Department of Labor & Industries. The law would also require that the premium be paid entirely by
the employer. 45
The state has a tax for businesses and occupations that manufacture, and sell goods and
services. The tax is based on gross income of the business, but there are some deductions that can
take place. Another law, currently being voted on is initiative 1098 which would ultimately tax
individuals who earn over $200,000 and married couple who have an income of $400,000 or higher.
It would also, reduce property tax levies, and reduce business and occupation taxes. Any increased
revenues would go toward education and health care.
Other laws waiting for voters approval concern the distribution and selling of “spirits” (hard
liquor); end taxes on candy and water as well as, reduce taxes for certain food processors; authorize
funding to increase energy efficiency in schools; modify the annual calculations to determine if the
state’s debt is within the constitutional limit; and, denying bail for certain criminal offenses.
Economic Environment
Though Washington’s unemployment rate is lower than the national unemployment rate at
8.9% in 2009 according to public charts and records it is higher than it has been since before 1985
44
IBID 45
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http://www.wsdot.wa.gov/planning/wtp/datalibrary/Economy/UnemploymentbyCounty.htm
55
due to economic conditions concerning the recession. However, according to the Washington State
Department of Transportation unemployment is predicted to continue rising until 2012 and then
continue to drop until 2030.46
According to Washington’s economic and revenue publications the recovery of our economy
continues to rise.
Private sector job gains have been offset by public sector job losses, and housing continues to struggle. On the bright side, the software industry is expanding again and aerospace is poised for a resumption of growth next year. Major General Fund-State (GF-S) revenues for the September 11, 2010 – October 10, 2010 collection period were $2.5 million (0.3%) higher than our September forecast. Revenue Act collections continued to show year-over-year growth and came in $1.9 million (0.2%) above the forecast.47
The economic impact of the Fashion and Apparel industry in Washington State for the year
of 2009 was affected by the 1,540 apparel
employers and 3,100 self-employed that
provided 34,500 jobs in Washington
State.48 Gross business revenues among
fashion and apparel companies totaled
over $8.3 billion dollars in 2009. State
impact models suggest the Fashion and
Apparel Industry including apparel design,
textile and apparel manufacturers, apparel
wholesalers, and apparel corporate
headquarters, support a total of 51,700
jobs and $16.4 billion in revenue in
Washington State, including direct,
indirect and induced impacts.49
The chart below compares
Fashion and Apparel Business Revenues
year by year over the last decade based on
retail, wholesale, and manufacturing
income.
46
http://www.wsdot.wa.gov/planning/wtp/datalibrary/Economy/UnemploymentbyCounty.htm 47
http://www.erfc.wa.gov/publications/documents/oct10.pdf 48
http://www.enterpriseseattle.org/ 49
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County - King Political Environment
Dow Constantine has been the King County Executive since November 24, 2009. For seven
years he worked on the King County Council, and has been in office for Washington State for 13
years. According to his bibliography he has been a supporter of environmental protection, public
transit and government reform. He is working to make King County Government more efficient and
performance based. 50
Economic Environment
Unemployment rates for
King county are lower than both
national and state
unemployment rates at 8%. The
map allows us to compare our
county’s statistics with other
counties throughout our state.
According to the King
County website the poverty level
is 9.1% which most likely relates
to the unemployment level.
However, despite
unemployment rates the median
50
http://www.kingcounty.gov/
http://www.wsdot.wa.gov/planning/wtp/datalibrary/Economy/UnemploymentbyCounty.htm
57
household income for King County is $70, 193 (in 2008).51
Helpful news to businesses is that from 2004 to 2009 the percentage change in the number
of new businesses created increased 8%. Between 2002 and 2009 there was 28,287 jobs created
which was a 2.6% increase.
King County has a Benchmark Program that measure the progress in the Countywide
Planning Policies which is run by a council of elected members. The program tracks the conditions
of the environment and communities based on affordable housing, economy, environment, land use,
and transportation. 52
City - Bellevue
Political Environment:
Bellevue’s Government Organization is made up of seven elected officials to form their city
council. The mayor and deputy mayor are both members. Bellevue residents have the ability to
participate through volunteer boards and commissions. The city manager is chief executive of the
city, working under the council. Staff assigned to certain departments include Development services,
Parks and Community Services, Utilities and Transportation, and provide important services to their
residents.53
A news release this October about the new 520 HOV project the city council has been
working on to improve transportation. The SR 520 will make traveling easier and is an economic like
across Lake Washington to the Eastside. They have been working with the Eastside cities, the
Governor, Legislature, business leaders and labor groups throughout the region to accomplish this
project. The project is expected to reduce travel time, improve safety, access and reliability in the
corridor. "This project will put people to work today, and get people to work faster in the future,"
Gov. Gregoire said. "It's a win-win for our economy and our roads, and replacing the vulnerable
floating bridge is essential to our region."54
Economic Environment
According to Bellevue’s 2005 economic summary there were about 125,000 jobs. Many
employees come from other locations outside of Bellevue to work which causes the city to grow
more in population as more workers are relocating to Bellevue. The four major local employment
centers in Bellevue are Downtown, SR-520/Bel-Red., 116th/Bellefield, and Factoria/ Eastgate. These
four locations have grown business wise because of their attractive customer base, business linkages,
51
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http://www.bellevuewa.gov/Default.htm 54
http://www.bellevuewa.gov/520-hov-groundbreaking.htm
58
appropriate zoning, transportation access, and available land. “Local indicators of economic trends in
Bellevue—such as taxable retail sales and Downtown office space vacancy rates, which are available
for more recent periods than are employment figures—provide strong evidence that Bellevue’s
economy is once again growing.”
During the last six years Bellevue processed between 2,200 and 2,800 new business
registrations annually. State registrations show that sole-proprietors are the most common type of
business in Bellevue. Of about 13,000 registered businesses 6,000 of them were sole proprietors in
2004 according to the Department of Revenue for Washington State. Also, local sales tax and
Business and Occupation tax revenues both rose between 2003 and 2004. This increase reflects the
growth in local retail sales and businesses.
According to Bellevue’s economic profile the predicted growth between 2001 and 2022 is
predicted to grow by an additional 10,117 houses, an additional 40,000 jobs, the population will
exceed 137,000 and the number of total jobs will be more than 170,000.55
Sub-City – Downtown Bellevue
Political Environment
The Bellevue Downtown Association was established in 1974 and is a nonprofit
organization that has led the development of the area. The association represents the business sector
in the planning and development of downtown. They speak out on issues that will shape the future
of the community and work together to solve problems and identify opportunities. They work with
businesses and the government to improve the economic development of downtown, and focus on
important issues such as, transportation and travel. The association promotes the downtown area as a
favored place to live, work, and play. They produce community events that downtown is known for
and partner with arts and community organizations. They discuss topics among downtown
stakeholders at member meetings, and offer easy forms of communication.56
Economic Environment
The Government City Council on March 15, 2010 approved a shorter tunnel for the East
Link light rail segment in downtown Bellevue. The purpose is to maximize the quantity of riders,
lessen light rail travel times and avoid congestion on heavy city streets. “Because the council's revised
tunnel preference could cost up to $285 million more than a downtown street-level alternative, city
55
http://www.bellevuewa.gov/economic-profile.htm 56
http://www.bellevuedowntown.org/about/board.html
59
and Sound Transit executives have been working to identify a combination of funding solutions and
cost reductions to close the funding gap identified by Sound Transit.”57
The second largest city center in the state of Washington, Downtown Bellevue has 35,000
employees, nearly 5,000 residents, the region's excellent shopping mall and a growing array of
pedestrian and cultural amenities.
Development of new office buildings, condominium and rental housing, and new formats
for retail and entertainment are all keeping pace with one of the busiest real estate markets in the
United States. 58
57
http://www.bellevuewa.gov/economic-profile.htm 58
http://www.bellevuedowntown.org/downtown/econdev.html
60
Legal/ Regulatory/ Tax/ Licensing Criteria
State – Washington
Sole proprietors do not need to register their business with the state, unlike other business
structures. Licensing and permits are all a business owner does to start their sole
proprietorship.59
Apply for an Employment Identification Number also known as a Federal Tax Identification
Number (SS-4).
o It is used to identify a business entity as well as, be used to most business needs,
such as opening a bank account, applying for business licenses and filing a tax
return.60.
Washington business are required to register for one or more tax-specific identification
numbers, licenses or permits, including income tax withholding, sales and use tax (seller’s
permit), and unemployment insurance tax.
o A business must register if they are required to collect sales tax, gross income is
more than $12,000 a year, the business is required to pay taxes or fees to the
Department of Revenue, if they are a buyer or processor of specialty wood
products.61
o The Master Business Application is a simplified form used to apply for many state
licenses, registrations, and permits, as well as, some city licenses.
o The application must be filed in order to receive a business license or Unified
Business Identifier (UBI) number, get a new city or specialty license, open or change
locations, register or change a trade name, hire employees, and change
unemployment or industrial insurance coverage.62
o Fees for the Master Business Application include a $15 nonrefundable application
fee, $5 for every trade name registered, plus an additional fee for the type of
business.
o By applying for the Master Business Application a business is registered for worker’s
compensation at the Department of Labor and Industries and unemployment
insurance at the Employment Security Department which allows a business to hire
employees.
59
http://www.business.gov/register/incorporation/sole-proprietorship/ 60
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html 61
http://dor.wa.gov/content/doingbusiness/registermybusiness/ 62
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If a business plans to hire employees under the age of 18 they must file a
permit to employ minors.
It is required by law that certain business types including profit corporations file an annual
report and pay a corporate renewal fee each year, even if there was no change in the
company.63
County – King
In order for a business to lawfully advertise and sell goods in King County they must obtain
the appropriate licenses. The license our business needs from the county in order to operate lawfully
is the Closing out a Sales License.
Closing out a Sales License
License conditions. Any license issued under the provisions of this title shall authorize the type of sale named in the application, at the place named therein, for a period of not more than thirty consecutive days, Sundays and legal holidays excluded, and shall permit the sale of goods which are set forth in the application and inventory, all of which goods throughout the duration of the sale must be definitely separated by partition or temporary partition from any other goods displayed at, or within the store or place of business, and all advertising, signs or notices referred to or calling attention to the sale must be confined to the display, or displayed goods involved in the sale. License renewal. The director may, upon a verified application therefore renew the license for a period not to exceed thirty days, upon payment of a renewal fee in the amount of two hundred dollars. Such verified application for renewal shall set forth a complete list of goods listed in the original application and remaining unsold, and shall certify that it does not contain any goods not named in such original application. Upon receipt of such application, the director may cause an investigation to be made, and if satisfied of the truth of the statements contained therein, the director shall grant such renewal within fifteen days after such application, which shall be endorsed and signed as provided for in the original license. The director may renew any original license in the manner above provided, not to exceed two times, upon the payment of the sum of two hundred dollars for such renewal; provided, however, that the director may not issue licenses or renewals which will allow the conduct of any sale as provided herein at any one location for more than ninety consecutive days, Sundays and legal holidays excluded, in any one twelve-month period. General rules and regulations. The license as issued pursuant to this chapter shall be valid only for the advertising, representations and sale of the particular goods, wares or merchandise described in the original application therefore, and at the particular time, and particular place stated therein, and by the particular applicant or his executor or administrator, and any renewal, replenishment or substitution of such goods, wares or merchandise, or change of such time or place for such sale, or change of person conducting the sale, is unlawful and shall render such
license void. 64
King County collects property taxes, sales taxes, leasehold excise and real estate excise from
businesses.
63
http://www.sos.wa.gov/corps/Default.aspx 64
http://www.kingcounty.gov/business/licenses/
62
o Leasehold tax is for the use of public property by private or commercial businesses.
The leasehold excise rate is .1284 of the rent paid for the property.65
o The real estate excise tax is on the sale of the real estate and paid by the seller of the
property.
City – Bellevue
Bellevue collects general taxes from businesses, primarily the business and occupation tax, as
well as, a number of special taxes on specific types of business activity such as, utility tax,
gambling tax and admission tax. 66
o The Business and Occupation (B&O) Tax includes gross receipts and square
footage taxes which support general governmental services and the city’s Capital
Investment Program. A number of businesses only report in one of the two
categories.
The gross receipts B&O tax is mostly measured on sales or gross income
for the reported period.
The square footage B&O tax is used to tax businesses that do not generate
revenue in the office itself.
o Sales tax is determined based on location where the customer receives the product
and where the retail is delivered from. Retail sales tax includes the state and local
components of the tax. Sales tax amounts are collected and considered trust funds
and must be sent to the Department of Revenue. Businesses also pay the retail sales
tax on purchases of items for their own use that will not be resold.67
City Business licensing forms for Bellevue includes a City Business License Addendum and a
City License Fee Sheet. 68
o The addendum is used to apply for a city license where the business will be
physically located inside city limits and to apply for licenses with other cities we will
travel to carry out business.
65
http://dor.wa.gov/content/FindTaxesAndRates/ 66
http://www.ci.bellevue.wa.us/bellevue_taxes.htm 67
http://dor.wa.gov/content/FindTaxesAndRates/ 68
https://fortress.wa.gov/dol/mls/wali/guidesheet.asp?intTranId=961661
63
The addendum and the State’s master application can be filled out at one
time. It can be sent together with the fee to the Department of Licensing.
o The City License Fee Sheet just states the type of registration or licensing a business
needs for their location and the fees for that specific city.
In our case, a General Business Registration is required with a $30 payment
for the city of Bellevue.
Bellevue business licenses are valid for the life of the business.
64
http://www.seattlechamber.com/portal/page?_pageid=33,2965&_dad=portal&_schema=PORTAL&p_menu_id=1155
Top 20 Regional Employers Employers Number of Employers
The Boeing Company 64,000
Port of Seattle 11,225
Alaska Air Group Inc. 11,150
Microsoft Corporation 11,000
University of Washington 10,000
Safeway Stores 9,293
VA Puget Sound Health Care System 8,500
Virginia Mason 7,957
Amazon.com Inc. 7,500
AT&T 7,328
Swedish Medical 6,740
Group Health 5,440
Emeritus Corp. 5,000
Westin Hotels & Resorts 5,000
SAFECO 4,550
Labor Ready Inc. 4,000
Albertson's 3,860
Fred Meyer 3,822
Providence 3,590
PACCAR 3,515
Nordstrom 3,364
City of Seattle 3,220
Snohomish County 3,187
King County Government 3,117
COSTCO 3,110
65
Marketing Environment
Social Issues
Education Level
As discussed in the consumer profile we have chosen to locate Andreas in Bellevue,
Washington because over half of the city has a bachelor’s degree or higher, and the median
income is $79,954. We believe education is linked to business success which results in higher
earnings. Though there are exceptions and it is possible for people to make a large income
without a
high level of
education it
doesn’t
happen in a
lot of cases.
The graph
below is
provided by
the Bureau of
Labor Statistics based on 2009’s annual average for people 25 and over who are full time
workers and salary workers. What we can learn from the chart is that employees with a
bachelor’s degree or higher
earn a higher than average
income.
A higher level of
education also results in
lower unemployment rates
as we can tell from the chart.
According to Bellevue’s city
website the unemployment
rate is 5.8% which is low in
comparison to Washington
0
5
10
20
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20
01
20
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20
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20
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Unemployment Rate by Percentage
Bellevue
Washington
66
Marriage Statistics For Bellevue, WA age 15 and up
Never Married
Now Married
Separated
Widowed
Divorced
State’s 8.9% unemployment rate (discussed in Washington State’s economic issues). In a year
by year analysis we can see that since the year 2000 Bellevue’s unemployment rate has
remained lower than Washington State’s unemployment rate.
Therefore, our decision to locate in Bellevue is supported both by education and
income levels, as well as, the local unemployment rate.
Family Size and Structure
Also discussed in the Consumer Profile, our Andreas ideal consumer is a single or
married woman with no kids.
For that reason it is important
to note marital statistics in
Bellevue, Washington. Based
on the chart nearly 60% of
Bellevue’s population is
married; 25% has never been
married; 1% is separated from
their spouse; 10% are divorced; and 5% are widowed.69 Because it is possible for our
Andreas consumer to fall into any of these
categories it is more important to look at
family households since our targeted consumer
doesn’t have children.
The average household size in Bellevue
is 2.4 people and the average family size is
2.9.70 63.4% is the number or family
households in the city and 4.1% of households
are unmarried partners.71 The map on the right
which was provided by www.maps-n-stats.com
and the U.S Government Census Bureau
shows us that of the 52.9% of married couples
69
http://www.city-data.com/city/Bellevue-Washington.html 70
http://www.maps-n-stats.com/us_wa/us_wa_bellevue_i.html 71
http://www.city-data.com/city/Bellevue-Washington.html
67
only 22.2% of them have children. Therefore, 30.7% of all married couples do not have
children, which is where our targeted consumer would fit. She could also fall into the 36.5%
of nonfamily households or 28.3% of people that are living alone.
Birth Rates
Birth rates for Washington State and King County are given in the chart (provided
by the Washington State Department of Health) on the following page. The general birth
rate shown under “All Ages” is the total of live births for every 1,000 women between the
ages of 15 and 44. The rate for specific age is the number of live births between that age
group for every 1,000 women in that age range.
Age Specific Live Birth Rates1 by County of Residence, 2009
County All
Ages 15-19 15-17 18-19 20-24 25-29 30-34 35-39 40-44
State Total 65.9 29.8 13.8 52.7 87.7 111.9 104.4 49.4 11.4
Adams 134.8 120.4 66.5 212.5 213.5 188.6 144.6 81.7 25.1
Asotin 59.0 38.0 10.1 85.0 120.9 109.7 70.7 24.7 *
Benton 74.8 38.4 17.8 74.0 136.1 145.4 100.8 36.3 8.0
Chelan 79.0 43.8 23.2 77.7 148.4 135.6 100.5 49.1 12.0
Clallam 64.4 30.1 10.6 63.9 139.4 134.4 89.5 36.4 5.8
Clark 63.8 28.0 12.0 53.9 93.1 110.8 98.6 43.7 9.0
Columbia 50.7 * * * 100.0 80.5 84.3 * *
Cowlitz 71.1 47.0 15.8 97.8 154.3 118.4 80.9 24.9 6.7
Douglas 76.1 37.8 19.8 69.8 137.4 148.1 113.2 40.8 8.0
Ferry 47.4 * * * 147.7 93.9 53.6 * *
Franklin 117.6 74.4 43.1 125.2 166.8 184.7 175.7 64.0 11.3
Garfield 53.6 * * * 147.1 * 140.0 * *
Grant 100.5 79.3 44.5 138.0 175.5 155.3 118.3 46.1 12.5
Grays Harbor 67.5 35.6 18.3 64.4 148.8 124.3 79.9 32.9 6.6
Island 63.1 24.6 3.3 60.5 126.5 124.9 67.8 31.7 6.5
Jefferson 50.3 25.3 9.9 57.1 110.1 97.7 88.4 31.8 9.4
King 60.7 18.7 8.6 32.3 50.3 81.3 113.0 69.3 17.6
Kitsap 61.6 22.1 6.9 48.5 113.3 126.5 81.0 35.4 7.1
Kittitas 46.0 11.2 7.5 13.3 31.0 117.3 127.3 44.6 9.1
Klickitat 70.5 35.7 19.4 71.8 131.5 125.7 116.6 47.8 8.8
Lewis 76.4 45.0 18.8 90.4 135.5 172.1 102.1 26.6 2.6
Lincoln 56.6 17.1 * 50.0 141.2 146.5 101.8 17.7 *
Mason 78.0 39.6 21.8 73.7 171.7 157.8 107.3 37.0 6.8
Okanogan 85.3 58.3 23.7 122.6 177.7 165.6 101.0 42.3 8.2
Pacific 59.6 23.1 12.5 43.5 179.9 112.2 69.9 30.0 *
Pend Oreille 74.6 49.4 15.2 131.4 192.1 222.7 79.1 25.1 *
Pierce 68.5 32.8 13.1 61.4 108.9 128.0 93.9 38.0 8.5
San Juan 45.4 13.6 * 39.7 73.0 119.0 75.0 38.6 8.8
68
0
20
40
60
80
100
120
18-19 20-24 25-29 30-34 35-39
Nu
mb
er
of
Live
Bir
ths
for
eve
ry 1
00
0
wo
me
n in
th
at a
ge r
ange
Ages of Women
Birthrates in King County
Skagit 70.5 40.8 22.0 70.8 115.3 123.9 106.4 40.7 7.4
Skamania 60.1 42.9 * 102.2 147.2 102.8 82.7 38.0 *
Snohomish 62.9 21.5 9.2 41.5 87.5 116.0 102.5 43.7 11.6
Spokane 64.8 27.9 11.2 48.7 90.9 127.2 100.1 39.7 7.0
Stevens 57.9 31.3 12.6 76.0 134.4 122.3 82.1 37.4 3.8
Thurston 62.9 24.2 11.7 43.3 88.6 133.0 98.1 36.4 7.6
Wahkiakum 50.3 * * * 138.5 * 107.1 * *
Walla Walla 59.5 31.4 15.6 46.5 83.3 121.7 75.9 46.1 7.1
Whatcom 54.5 19.6 13.1 25.2 49.5 114.9 113.7 39.1 9.5
Whitman 36.4 5.5 * 5.7 17.5 103.5 116.8 57.3 11.3
Yakima 97.8 74.4 39.6 131.0 155.3 148.8 125.7 53.4 12.6
* Rate not calculated because number of events was less than 5.
What we can conclude from the chart is that the state total birth rate for all women
of child bearing age is 65.9 for every 1,000 women between 15 and 44. In King County
where Andreas will
be located the
general birth rate is
60.7. We compiled
the information to
build a graph to
visibly show birth
rates between the
ages of our targeted
consumer. What we
can tell is that birth
rates are highest among our 30-34 year old consumers and lowest between our 18 and 19
year old consumers. We can assume from this information that a higher number of our
targeted consumers will be among women with lower birth rates.
Housing/Poverty and Crime Rates
Housing is an important detail to look at because the more money our consumers
pay to own or rent the less disposable income they have to spend at our business. In 2008
the median asking price for for-sale houses and condos was $343,016 and the median rent
69
Crimes by Type
Theft
Burglaries
Auto Theft
Robberies
Assaults
Other
was $1,172. Lower rent payments were around $870 and higher rent payments were $1,470.72
According to the city website there are 1,571 houses and condos per square mile. 39% of
Bellevue pays rent instead of owning.
Compared to the whole state’s 11.4% of people who are below the poverty level
Bellevue’s poverty level is 6.7%. The majority of males living below the poverty level are
between the ages of 12 and 15 years old. The majority of females are 15 years old. Compared
to all women that are living below the poverty level 7% are between 18 and 24 years old;
about 9% are between 25 and 34 years old; and about 4% are between the ages of 35 and 44
years old. In Bellevue 3.5% of residents have an income that is below half of the poverty
level. Of that 3.5% the majority fall between the ages of 18 and 24 years old.
As discussed earlier in the Target Market Bellevue’s crime rates are lower than the
U.S. average. According to the city-data.com crime index the U.S. average is 318.2 and as of
2008 Bellevue’s crime index number is 215.4 per 100,000 people. The crime breakdown for
this year is represented in the chart on the following page. Theft made up the majority of
crimes in 2008 (74%); 15% of crimes were burglaries; 6% were auto thefts; 2% were
robberies; 1% were assaults; and 1% were other crimes.
As of April 2010 there are 20
registered sex offenders living in
Bellevue, WA. The ratio of residents to
sex offenders is 6,178 to 1.73 This
number is a lot smaller than the state
average of residents to sex offenders.
The number of full time law
enforcement employees including
officers in 2008 increased since 2007
most likely because of the population
growth. As of 2008 there are 272 (182 officers) full time law enforcement employees. There
are 1.49 officers per 1,000 residents. 74
72
http://www.city-data.com/city/Bellevue-Washington.html 73
IBID 74
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Races in Bellevue, WA 2008
Whites
Asian
Hispanic
2+ races
Black
Other
0%
10%
20%
30%
40%
50%
60%
70%
80% Place of Birth
Born in State of Residence
Born in Another State
Foreign Born
Native, Outside of U.S.
Cultural Issues
Ethnicity and Sensitivity Toward Ethnic Mix Bellevue, Washington seem to be a city that is open to ethnic mix and has a greater
understanding of diverse ethnic heritages compared to Washington State. According to
Bellevue’s city website statistics about
race in 2008 were more varied than
other cities. In Bellevue, Whites made
up 64.2% of the population; Asians
made up 24.4%; Hispanics made up
5.6%; two or more races made up
4.1%; Blacks made up 1.6%; and other
races made up .2%.75 The graph
provided gives a visual understanding of race diversity in Bellevue.
Compared to Washington State where 10.4% of the population are foreign born,
Bellevue’s foreign born residents make up 24.4% of the population. 13.6% were born in
Asia, 5.3% were born in
Europe, and 3.1% were
born in Latin America.76
Based on the graphs
provided on Bellevue’s
website we notice that the
older residents are the
likeliness that they were
born in Washington state
decreases and the higher
the chances they were born in another state or another country. We can also tell that 80% of
all Whites were born somewhere in the U.S.; 27% of Blacks are foreign born; 76% of Asians
are foreign born; and 60% of Hispanics are foreign born.
75
IBID 76
IBID
71
Religion
Catholic
Mormon
Lutheran
Other
This information is useful to us because in today’s American society people are more
open to racial diversity. People are more likely to choose a location they are going to feel
comfortable and accepted. In Washington Bellevue is more culturally diverse than other
cities. We can assume based on this information that this city is likely to keep growing and
expanding due to its diversity.
Religious Issues
According to Bellevue’s city website 37.3% of the population is affiliated with a
religious congregation. This number is quite a bit lower when compared to the National
50.2% who are involved in religious parishes. According to statistics 43% attend a Catholic
Church; 6% attend a
Mormon Church; 5% are
Lutheran; and 45% are
involved with other
religions.77
These statistics are
important because it is
helpful when planning for
holiday seasons. We can
focus on what holidays are
important to our consumers and base holiday sales and events around those occasions.
77
IBID
72
Night Life
As discussed earlier in the Consumer Profile we identified our Andreas consumers as
Experiencers, Innovators, and Thinkers. In other words, they are very social people. So, it is
important for our company to keep up with where are consumers are going, what kinds of
entertainment they enjoy, and where they are spending their money. This helps us to identify
our consumer on a more detailed level, as well as, find out who our secondary competitors
are.
If we know where our consumers are spending their money we can get a better idea
of their interests and what they enjoy spending their time doing. Knowing our secondary
competitors helps us find more ways to connect with our consumers. We can find better
ways to advertise and reach them. It also enables us to work with those companies and offer
deals that will help both our business and theirs.
Restaurants:
Andiamo Ristorante Cuisine: Italian Price Range: $18-$25 938 110th Avenue NE (425) 452-9602 www.andiamobellevue.com Barrio Cuisine: Mexican/Southwestern Price Range: $18-$25 10650 NE 4th Street (425) 502-5021 www.barriorestaurant.com John Howie Steak Cuisine: Steakhouse Price Range: $18-$25 The Bravern 11111 NE 8th Street (425) 440-0880 www.johnhowiesteak.com Joey Bellevue Cuisine: American Price Range: $10-$18 Bellevue Place 800 Bellevue Way NE (425) 637-1177 www.joeyrestaurants.com
Las Margaritas Cuisine: Mexican/Southwestern Price Range: $10-$18
Pearl Bar & Dining Cuisine: American Price Range: $18-$25 Lincoln Square 700 Bellevue Way NE (425) 455-0181 www.pearlbellevue.com Purple Café and Wine Bar Cuisine: American Price Range: $18-$25 430 106th Avenue NE (425) 502-6292 www.thepurplecafe.com Seastar Restaurant and Raw Bar Cuisine: Seafood Price Range: $18-$25 205 108th Avenue NE (425) 456-0010 www.seastarrestaurant.com
o Tap House Grill o Cuisine: American o Price Range: $10-$18 o Bellevue Galleria
550 106th Avenue NE o (425) 467-1730 o www.taphousegrill.com
The Melting Pot
o Cuisine: Fondue o Price Range:$18-$25
302 108th Avenue NE o (425) 646-2744 o www.meltingpot.com
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437 108th Avenue NE (425) 455-0535 www.lasmargaritasbellevue.net Maggiano’s Little Italy Price Range: $18-$25 Cuisine: Italian 10455 NE 8th Street (425) 519-6476 www.maggianos.com *Restaurant information provided by: http://bellevuelocaltable.com/
The Arts
Theatre at Meydenbauer Center 11100 NE 6th Street (425) 450-3810 theatreatmeydenbauer.com This state-of-the-art, 410-seat facility is one of the Pacific Northwest’s premier stages for community-based performing arts. Theatre at Meydenbauer is proud to play host to an array of productions by local, regional and national performing arts groups.
Bellevue Arts Museum 515 Bellevue Way NE (425) 519-0770 bellevuearts.org Bellevue Arts Museum is the Pacific Northwest’s center for the exploration of art, craft and design. A leading arts center on the Eastside, BAM celebrates regional, national and international artists working in a broad range of craft media, including ceramics fiber, metal, wood and glass. First Friday of each month admission is free from 11:00 a.m.-8:00 p.m.
Open Satellite 989 Elements Building 989 112th Avenue NE, Suite 102 (425) 454-7355 opensatellite.org A contemporary art gallery displaying large-scale work by national and international artists.
*Information provided by: http://www.bellevuedowntown.org/nightlife
o 520 Bar & Grill
o Cuisine: American
o Price Range $10-$18
Old Bellevue
10146 Main Street
o (425) 450-0520
o www.520barandgrill.com/
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Movie Cinemas
Regal Crossroads 8 Cinemas 1200 156th Ave Ne. Bellevue, WA (800) 326-3264 Ext 401 Lincoln Square Cinemas IMAX 700 Bellevue Way Ne, Bellevue, WA (425) 454-7400 AMC Theatres Loews Factoria 8 Factoria Blvd Se, Bellevue, WA (888) 262-4386 3505 *Cinema information provided by: http://local.yahoo.com/WA/Bellevue/Entertainment+Arts/Movie+Theaters
Nightclubs; Bars; Lounges
Vertigo Lounge & Grill 989 112th Ave Ne Bellevue, WA 98004 (425) 467-6767 Goose Pub N Eatery 12001 Ne 12th St, #90 Bellevue, WA (425) 454-1554 Sideline Sportsbar 3720 Factoria Blvd Se Bellevue, WA (425) 644-2781
The Parlor Billiards & Spirits 700 Bellevue Way NE St 300 (between S 104th Ave & 6th St) Bellevue, WA 98004
Parks and Sports
Bellevue Downtown Park 10201 NE Fourth St.
Amenities: A 20-acre oasis of green in the heart of Bellevue defines this elegant centerpiece of the Bellevue Parks System. A one-half mile promenade, bordered by
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a double row of shade trees, and a stepped canal, brings one to the 240-foot wide waterfall that cascades into a reflecting pond. A ten-acre lawn area invites one to pause for a picnic with Bellevue’s skyline and Mount Rainier in the background. The park’s delightful play area and formal gardens add to family enjoyment and serve as a backdrop for community events.
*Ice Arena: Open Nov. 26, 2010-Jan 9, 2011
Bannerwood Sports Park 1790 Richards Rd.
Amenities: 1 tournament quality baseball stadium (lighted), concessions available, viewing stands, restrooms, handicapped accessible, 12.65 acres.
Bellevue Golf Course 5500 140th Ave. NE. Crossroads Par 3 Golf Course 15801 NE 15th St. 9 Hole Course
Outdoor Tennis Courts
Bovee Park - 1500 108th Ave. NE Cherry Crest Park - 12404 NE 32nd St. Crossroads Park - 16000 NE 10th St. Enatai Park - 10643 SE 25th St. Hidden Valley Sports Park - 1901 112th Ave. NE Highland Park - 14224 NE Bel-Red Rd. Hillaire Park - 15731 NE 6th St. Killarney Glen Park - 12309 SE 23rd Pl. Robinswood Park - 2400 151st Pl. SE Spiritridge Park - 16100 Se 33rd Pl. South Bellevue Community Center - 14509 SE Newport Way
Bellevue Aquatic Center 601 143rd Ave. NE Bellevue, WA 98007-4708 *Information provided by: http://www.bellevuewa.gov
Spas and Salons
Gene Juarez Salons & Spas 550 106th Avenue NE # 105 Bellevue, WA
(425) 455-5511
The Spa & Salon at PRO Sports Club Bellevue 4455 148th Avenue N.E. Bellevue, WA
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(425) 895-6565 Deyss Salon & Spa 989 112th Avenue Northeast Bellevue, WA (425) 709-6900
*Information provided by: maps.google.com
Parades Bellevue Holiday Season Parade Downtown Seattle Fremont Solstice Parade Fremont Ave Seattle, WA
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Technological Advances
With technological advances happening so quickly it has become easier to broaden
our target scope and reach more consumers in other geographical locations in seconds.
Tracking merchandise and counting inventory have become easier for retailers as well. At
Andreas we plan to take advantage of any new and already existing technologies that will
help us to improve our business.
We plan to put together our own personal Andreas Boutique website that will allow
our consumers to shop online. We can offer special promotional deals for our online
customers only which will help bring in more business. The website will allow us to expand
our company and reach consumers in locations that we otherwise
would not be able to. The ability to sell our merchandise online and
ship the products to our consumers gives us the opportunities to reach
people internationally. This market growth provides endless
opportunities for our business to expand significantly over time.
We also plan to become a part of many social networking sites
such as, Facebook and Twitter. This permits us to target
consumers in our area and let them know about events and
sales that are happening at our store. These social
networking sites get millions of visitors everyday so the
number of people we are able to reach is extreme.
Online advertising is also helping businesses to grow
and expand because with all these technological advances we
can now advertise to people that are specifically located around our business. We have the
ability to track which websites our consumers are visiting most and find new ways to reach
them.
We will also use the internet to not only keep up with our consumers, but to keep up
with and get ahead of our competitors. Using sites that are beneficial to businesses such as,
Quantcast we can get ahead of our competitors by tracking our consumers and finding out
what new trends they are following and which industries our consumers are more likely to be
a part of. We can find out which websites people in our specific location are visiting and
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focus our advertising on those websites as well. This information is all beneficial to advance
our understanding of our consumers and be able to provide them with their wants and their
needs before our competitors.
As for our in-store technologies, we plan to track the sale of merchandise through
our point-of-sale registers. We will be able to keep track of our merchandise through our
computers once they are scanned at the point of sale. We still plan on keeping a physical
inventory for a more accurate count of merchandise that will include damaged or missing
inventory.
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Environmental Issues
At Andreas we plan to do our part in the community and be as environmentally
friendly as possible. Also, conserving resources and cutting down on waste saves money
which will help our business. Communication between us and suppliers or other businesses
will be done via email which saves on paper and ink. We plan to recycle as well as use
recycled resources. At the end of the day our computer will be shut down to conserve
energy. Some of our suppliers will be located within the state to save energy on travel. Based
on the LEED Certification program we plan to score between the silver and gold rankings.
LEED Certification In order for the United States Building Council to encourage the construction of
energy and resource-efficient buildings and promote an environmentally friendly
environment they developed a Leadership in Energy and Environmental Design (LEED)
program. LEED measures buildings based on a proven technology and point system that is
adjusted based on building size.
LEED measurements are based on eight categories that are rated on a certain
number of points depending on their importance.
ID—Innovation and Design 11 points Includes such innovative measures as design methods, regional credits, and exemplary performance Innovations that would integrate best practices of everyone on the team.
LL—Location and Linkages 10 points Placement of homes in socially and environmentally responsible ways in relation to the larger community.
SS—Sustainable Sites 22 points Uses the entire property to minimize project’s impact on the site.
WE—Water Efficiency—15 points Water conservation practices, indoor and outdoor, that are built into the home.
EA—Energy and Atmosphere—38 points Optimization of energy efficiency in well insulated, tight building envelope with efficient heating and cooling systems.
MR—Materials and Resources—16 points Reduction of material waste during construction and selection of green products.
IEQ—Indoor Air Quality—21 points Improvement of indoor air quality by reducing air pollution with Energy Star appliances, installation methods and ventilation measures.
AE—Awareness and Education—3 points Create a homeowner’s manual covering the operation and maintenance of the
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green features of the home. TOTAL POINTS—136 78
Based on the 136 point system LEED ratings are Certified, Silver, Gold or Premium
determined on the score number.
Certified – 45 points Silver – 60 points Gold – 75 points Platinum – 90 points
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http://www.blueberrypdx.com/leed-certification.htm
81
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PPLLAANN
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Promotional Plan
Image Statement
Andreas, is a boutique that gives off a very relaxing and comfortable vibe. Our
consumers come into our store and feel at ease
because of our natural, calming environment.
At Andreas we cater to women who have a
relaxed sense of style and personality. The
neutral, earth tone surroundings allow our
customers to slow down and unwind from
their hectic lives.
Our products have the same appeal. In
mostly neutral and darker, rich colors our
merchandise doesn’t overwhelm our consumers. The apparel is appropriate for the
workplace and gives our career-oriented woman the feeling of sophistication. The clothing
we offer provides an image of professionalism and gains them
respect of peers and coworkers.
Not only is our product appropriate for the workplace,
but it can be altered very easily for a night out on the town.
After a hard day’s work our consumer doesn’t want to run
home and spend time picking out a completely different
outfit. She can very easily throw on a cute jacket and be ready
for a night out.
Our consumer can wear our apparel and feel
comfortable and confident in them which is the same feeling
they get when they shop our boutique. There are plenty of
places for our 20 something consumer to shop, the difference between Andreas and another
retailer lies in the quality and style of our merchandise that allows our consumer to be
respected in the workplace and be seen as a fashion forward shopper.
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Marketing Mix Product We carry a wide range of merchandise to fit our customer’s needs (and wants). There are a large variety of styles in every category as well as, many brands to choose from. We don’t want to miss out on selling opportunities because our consumers couldn’t find what they were looking for. Categories:
Tops
o Blouses
Halter
Button-Up
Long Sleeve
Short Sleeve
Sleeveless
o Sweaters
Basic
Cardigans
Feminine
Long Sleeve
Mid Length
Short Sleeve
V-Neck
o Tank Tops
Bottoms
o Pants
Bootcut
Boyfriend
Skinny
Trouser
o Skirts
Pencil
Ruffle
Outerwear
o Jackets
Long Sleeve
Short Sleeve
Three Quarter
o Coats
Casual
Cropped
Mid Length
Waist Length
Cold Weather
Dresses
o Wear to Work
o Little Black Dress
Accessories
o Necklaces
o Bracelets
o Earrings
Shoes
o Flats
o Pumps
o Boots
Brands:
Tops
o Caslon®
o Amber Sun
o Bailey 44
o Hinge®
o Free People
o Nic & Zoe
o Only Mine
Bottoms
o Halogen
o Calvin Klein
o Mac & Jac
o MICHAEL Michael Kors
o Kenneth Cole NY
o DKNY
Outerwear
o Ary K Chain
o Caslon®
o MICHAEL Michael Kors
o Matty M.
Dresses
o Chetta B.
o Adrianna Papell
o Maggy London
o JAX
Accessories
o Lucky Brand
o Spring Street Design
o Cara Accessories
o Juicy Couture
Shoes
o Jessica Simpson
o Steve Madden
o Me Too
o Nine West
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Promo
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Price Our prices are in the medium range. It reflects on our merchandise and our business
because if the prices were too low it wouldn’t fit the sophisticated image of the store and consumers would assume the quality of the product was cheap and if the prices were too high the image wouldn’t appear luxurious enough.
Tops
Our tops range in price from $30 to $90, but most of our merchandise is priced between $50 and $70 because our sales increase in that range and our image is also reflected best in this assortment.
Bottoms
Our bottoms range in price from $50 to $130. Most of our products are carried in the $80 to $100 price range because the image of our store and majority of our sales are imitated in that range.
Outerwear
Our outerwear ranges in price from $80 to $140. The jackets are closer to the $80 range and the coats are closer to $140. The majority of our sales fall between $100 and $120.
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Promo
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Dresses
Our dresses range in price from $60 to $140. The mass volume of our sales and the image of the boutique reflect from $90 to $110 so, the majority of our merchandise falls into that assortment.
Accessories
The majority of our accessories we carry are less expensive than our apparel ranging from $10 to $70. Sales peak in the $30 to $50 range.
Shoes
We have a small assortment of shoes ranging from $30 to $90. The majority of our shoes fall between $50 and $70 because that’s when our sales increase and the quality of the shoes replicate the quality of the apparel.
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Place
In order to save money on shipping charges we buy our merchandise from local
vendors within Washington. This allows us shorter shipping times and faster distribution
from the wholesaler to the consumer. Since our buying is done locally we ship our
merchandise by trucks.
Vendors:
Tik Tik Garment: Tik Tik Garment is a private wholesaler that sells women’s,
misses’, and junior apparel. They are located in Spokane, WA.
Seattle Pacific Industries, Inc.: Seattle Pacific Industries, Inc. is a private
company located in Kent, WA. They sell women’s, children’s, and infant’s
clothing and accessories.
Australia Unlimited: Australia Unlimited is a private company located in
Kent, WA that manufactures women’s non-athletic footwear.
Larsen Inc. of Seattle: Larsen Inc. of Seattle is a private company located in
Woodinville, WA that is a wholesaler in work clothing.
** Vendor information provided by:
http://www.manta.com/mb_43_B0_48/apparel/washington
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Promotion Mix
Advertising Strategy
We plan to reach out and advertise to our consumers using different mediums that
we know our demographic read and pay attention to.
Radio: We will have radio advertisements that play over certain stations broadcasted in
Bellevue, WA to let our consumers know about events and promotions going on in the
store.
o Stations:
KRQI 96.5 FM Alternative Radio
KUBE 93.3 FM Hip Hop Radio
KUOW 94.9 FM College Radio
Internet: Because of Quantcast we have the ability to track which websites our demographic
is visiting most often and which sites allow for advertising which is another way we will
reach out to our consumers. We also plan to have our own social networking sites on
Facebook and Twitter to keep people up to date about what is going on.
o Most popular sites for our demographic that allow advertising:
Yahoo.com
Google.com
Facebook.com
Youtube.com
MSN.com
Live.com
Newspaper and Magazines: We will have advertisements that run in newspapers such as,
Seattle Times, and D-List Magazine.
Direct Marketing Strategy
We are planning a couple ways to directly advertise and promote our business to
consumers. We believe with special offers that are only available to certain customers it gives
them more incentive to come shop at our store.
“VIP” customers: When shoppers spend a certain amount money in our boutique they
will have an opportunity to sign up as a VIP customer. They will be emailed and notified
about special promotions and “invitation only” events that give them first pick on new
merchandise after hours.
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Mail: We will be sending flyers through the mail for promotions that are going on such
as, buy two get one free accessories, or buy one get one half off apparel, etc.
Phone Calls: On our website we will have a “coming soon” page, and people who
become a member will have the opportunity to request a phone call when the
merchandise they are interested in arrives in the store.
Public Relations Strategy
People are more likely to support a business if they are involved and support local
associations and the community. For that reason we plan on becoming a part of the
Downtown Bellevue Association which is a nonprofit membership organization that has led
the evolution of downtown Bellevue to a thriving urban area.
We will be involved in the some of the major community events which in include:
Film screening by the Bellevue Jazz Festival that takes place at the Meydenbauer
Center.
Bellevue’s Magic Season which is a Eastside Holiday Tradition.
Live at Lunch which is Downtown’s summer concert series.
6th Street Fair which is a weekend arts festival.
* Information provided by: www.bellevuedowntown.org.
Personal Selling and Sales Promotions
At Andreas our goal is to have a very strong and personable selling staff. We want
our employees to be able to put themselves in each consumer’s shoes and know what they
want to hear to in order to buy the merchandise. So, following the hiring process, our sales
employees will go through a structured training program were they will learn about each type
of customer and the best strategies to go upon selling to them personally.
VALS training: Our employees will go through training learning about our
consumers based on their VALS characteristics. They will learn how to
approach these women and be able to realize what is important to them. In this
training they will also learn about Maslow’s Hierarchy of Needs which they can
use to identify which level relates to the customer. They will go through
workshops that will allow them to “sell” to each consumer individually.
Following the VALS training our employees will also be trained in pricing. They
will learn that most consumers in the store come in with more money than they
89
are letting on and how to get them to spend a little more than they were
planning on. They will learn about promotional, volume, and prestige pricing
and how to get that promotional price shopper to spend more money on the
volume price items, or how to get the volume price shopper to buy that prestige
priced product.
By the end of our training our sales employees will know how to identify customers,
relate to them, and get them to spend their money.
Internet Strategy
We will be putting together a store website that will feature our merchandise and
promotional deals happening in the store. Our merchandise will be available to purchase
online, as well as merchandise we don’t carry in the store so we can get more consumers to
shop online. This also allows us to grow and broaden our target market so other people who
aren’t located near us can shop and buy our products.
Special promotions will also be available to consumers who shop online. Promotions
such as, free shipping with a minimum purchase, or spend a certain amount and receive a
free piece of jewelry will give our customers incentive to shop online.
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June 2011
o June 1: Begin Project
Start the process of opening Andreas Boutique.
o June 2 – June 12: Hire lawyers
We search for and hire a lawyer for possible liability issues.
o June 5: Talk to future vendors
A meeting with our vendors is scheduled at the beginning of the process to
discuss our plans with and for the business, as well as discuss buying,
shipping, and return policies.
o June 5 – June 25: Hire accountants
Search for and hire an accountant to manage and limit our money spending.
o June 6 – June 26: Find a venue
We have to search for and find where in Bellevue our business will be
located, and where profits will be highest.
o June 25-July 5: Find ad agency
Searching for an ad agency who will reach our consumers and have the
biggest affect on our business.
o June 30: Confirm venue
After deciding the best location we have to confirm the lease of the venue.
July
o July 15 – August 2: Choose type of ad campaign
We have to decide on the best type of ad campaign that will bring in
consumers and drive sales and profits up.
December
o Dec. 1 – Dec. 11: Hire interior designer
During this time we interview and hire an interior designer to do the
decorating of the store.
January
o Jan. 1 – Jan. 20: Create floor plan
We work with the interior designer to decide how we are going to set up
the store and organize the retail.
o Jan. 3 – June 7, 2011: Advertise on social networking sites
We begin our advertisements on social networking sites and contact
residents in Washington, so they are aware of the up-coming business.
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o Jan. 25 – Jan. 30: Choose Paint
Before we begin decorating, we start by choosing paint that is warm,
calming and inviting.
February
o Feb. 1- Feb. 30: Order racks
We order the racks we need at the beginning of February and allow four
weeks for arrival.
o Feb. 5 – Feb. 30: Choose décor
We spend time with the interior designer choosing which décor would best
fit the store.
o Feb. 15 – Mar. 25: Order 1st shipment
We order our first shipment of retail for opening season, so it is ready to
put on the floor before the soft opening.
March
o Mar. 1 – Mar. 20: Order sign
We order the sign for the store so residents know what’s coming.
o Mar. 1 – May 10: Receive shipments
We begin receiving retail that we ordered in the first shipment.
o Mar. 3 – Jun. 8: Advertise grand opening
We start advertising the grand opening on local television, radio, and other
public advertisements.
o Mar. 5 – Apr. 4: Hire sales people
From March to the beginning of April we start interviewing possible
employees for the most qualified sales team.
o Mar. 5 – Mar. 25: Set up
We work with the interior designer to set up the decorations and the racks,
dressing rooms, etc.
o Mar. 15 – Apr. 24: Order 2nd shipment
We order our second shipment of retail for opening season.
April
o Apr. 1 – Apr. 20: Purchase operating materials
We purchase operating materials such as registers, computers, office
supplies, etc.
May
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o May 1 – May 15: Train salespeople
The first two weeks of May we train our sales team.
o May 11 – May 31: Send out special offers
We mail out promotions, and advertise with coupons in the local
newspaper for the grand opening.
June 2012
o Jun. 1: Soft Opening
We open the doors before the grand opening just to see how well the
business does without advertisements.
o Jun. 7: Grand Opening!
First day of business!
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Andreas Grand Opening
Our grand opening is taking place on June 7th, 2012 after a soft opening on July 1st, 2012. Featured:
A number of professional stylists will be present to assist our consumers.
A short runway show will be done during the day to feature our most popular brands and
styles.
Champagne, wine and snacks will be available to our consumers free of charge.
Alternative music will be played on Pandora Radio.
Promotions At the grand opening the first 50 customers will receive a free necklace and a coupon for
15% off of their entire purchase.
Coupons will have been mailed out to our targeted consumers around Bellevue for 10% any
piece of merchandise.
Customers who come into the store will have an opportunity to enter a drawing for a $150
gift certificate to Maggiano’s Little Italy Italian Restaurant. Winner will be drawn and
notified at the end of the day.
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ANDREAS BOUTIQUE
12 Months After Opening - GANTT CHART
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June 2012
o June 1-June 4: Bellevue Jazz Festival
Bellevue’s annual Jazz Festival starts June 1st. We will participate to
promote our business as well as, support the community.
o June 15 – June 20: Form Management Team
We will start interviews to find dependable employees to present the
opportunity for a management position.
o June 20-30: Train Management Team
New managers will go through training to learn how to deal with counting
tills, customer complaints, returns and exchanges, etc.
July
o July 1– July 5: Hire Employees
We will be doing interviews to hire a few more employees for the summer
season.
o July 5 – Sep. 8: Bellevue Live at Lunch
Bellevue’s Live at Lunch community event takes place during these months
and we will be participating.
o July 10-July 20: Train Employees
These ten days our new employees will go through a mandatory training to
learn about the business, how everything works, and the best selling
techniques for our consumers.
o July 15-July 16: Place new orders
We will be working with our vendors to place orders for the upcoming fall
season.
o July 20: Confirm orders
We will be calling to confirm that the orders were place for the correct
amount and sizes.
o July 20-July 24: Trade Show in Los Angeles
We will be taking a trip to LA to the ENK trade show that takes place
during this time to find out about upcoming trends.
o July 25-July 31: Back to School Promotion
We will be having a 15% off apparel back to school promotion for our
college-going consumer.
o July 29-July 31: Bellevue 6th Street Fair
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Bellevue’s 6’th Street Fair takes place, put on by the community and gives
us another chance to get involved.
August
o Aug. 1: Start Website
Two months after opening we will start up our website for our online
community.
o Aug. 2: Online Promotion
To promote our online sales we will be starting our website with a 20% off
everything sale.
o Aug. 10: Mail Invitations to VIP Customers
For our customers who signed up for VIP access we will be mailing their
invitations for the special after-hours promotion.
o Aug. 15-Aug. 25: Radio ad for end of Spring Promotion
We will be broadcasting local radio advertisements for markdowns on
spring merchandise.
o Aug. 20: Receive Shipment
We will receive the shipments we placed with our vendors for our fall
merchandise.
o Aug. 25 – Aug. 31: End of Spring Promotion
In order to get merchandise out of the store we will be having a 20% off
spring apparel.
o Aug. 31: Invitation Only VIP Customers
Our after-hours promotion for our VIP customers offers them the chance
to shop our new merchandise before anyone else with a 15% off coupon.
September
o Sep. 1: Employee Meeting
We will be have an employee meeting to discuss what is going well and
what needs to change.
o Sep. 10 – Sep. 11: Place New Orders
We work with our vendors to place new order for the upcoming season.
o Sep. 13 – Sep. 20: Fashion Week New York
We will be attending Fashion Week in New York to search for upcoming
trends.
o Sep.15: Confirm Order
98
Call to confirm that the new order was placed with the correct sizes, style
and color.
o Sep: 15 – Sep. 20: Online Promotion
We will offer a 15% off apparel for our online community.
October
o Oct. 10: Mail Invitations For VIP Customers
Send out our VIP invitations for our next event to let them know its
coming.
o Oct. 15: Receive Shipment
Receive the new shipment for the mid-season.
o Oct. 18: Invitation Only VIP Customer
We have our after-hours event for VIP customer to have the first option to
shop our new merchandise with a 10% off coupon.
November
o Nov. 1 – Nov. 5: Online Promotion
Free shipping and handling.
o Nov. 1 – Nov. 3: Hire Employees
Hire more employees for holiday season.
o Nov. 5 – Nov. 14: Train Employees
These ten days our new employees will go through a mandatory training to
learn about the business, how everything works, and the best selling
techniques for our consumers.
o Nov. 15 - Nov.19: Trade Show in Los Angeles
We will be going to the ENK trade show in Los Angeles to look at
upcoming trends.
o Nov. 20 – Nov. 25: Radio Advertisement for Black Friday Promotion
We will locally broadcast a 15 second ad for our 30% off everything Black
Friday Promotion.
o Nov. 24: Thanksgiving
Closed for the holiday.
o Nov. 25: Black Friday
30% off in store promotion.
o Nov. 25 – Jan. 15: Bellevue Magic Season
Participate in Bellevue’s community Magic Season event.
99
o Nov. 28: Cyber Monday
30% off everything Cyber Monday Promotion.
December
o Dec.1: Receive Shipment
Receive new shipment
o Dec. 15 – Jan. 1: Radio Advertisement for Holiday Sale
We will locally broadcast a 15 second ad for our Holiday promotion.
o Dec. 15 – Jan. 5: Holiday Sale
Holiday sale begins in store and online.
o Dec. 24 – Dec. 25 – Christmas Eve and Christmas
Closed for the holiday.
January 2013
o Jan. 1: New Years
Closed for the holiday.
o Jan. 3: Employee Meeting
Employee meeting to discuss changes for the New Year.
o Jan. 15 – Jan. 20: ENK Trade Show in New York.
We are traveling to New York for the ENK trade show.
February:
o Feb. 2 – Feb. 3: Place New Orders
Work with vendors to place new order for upcoming season.
o Feb 5: Confirm New Order
Call to make sure order was place with the correct sizes, styles and colors.
o Feb. 5 – Feb 10: Online Promotion
15% off apparel for our online community.
o Feb 20 – Feb 23: Shoes and Accessories Promotion
In store 20% off shoes and accessories sale.
March
o March 10: Receive Shipment
Receive new shipment.
o March 10: Mail Invitations for VIP customers
Send out our event invitations to our VIP customers to let them know the
event is coming.
o March 20: Invitation Only VIP customer
100
Our after-hours promotion for our VIP customers offers them the chance
to shop our new merchandise before anyone else with a 15% off coupon.
April
o April 15-April 20: Accessories Promotion
20% off all in store accessories.
May
o May 1: Receive New Shipment
Receive new shipment for upcoming season.
o May 1 – May 7: Hire Employees
Hire new employees for summer season.
o May 10 – May 20: Train Employees
These ten days our new employees will go through a mandatory training to
learn about the business, how everything works, and the best selling
techniques for our consumers.
o May 15: Mail Flyers for One Year Sale
Mail out flyers to our frequent customers for our one year sale.
o May 20-May 21: Place New Orders
Work with vendors to place new orders for the upcoming season.
o May 30: Confirm Order
Call to confirm order was placed with the correct sizes, styles, and colors.
June
o June 1 – 2: One Year Anniversary Promotion
In store and online 20% of everything sale.
101
Reach; Frequency; Advertising Budget
Medium Reach Frequency Size/
Duration
Monthly
Cost
Yearly Cost
Seattle
Times
1,021,900 per
day
Once a Month 2x2 $1,703.70 $20,444.40
D-List
Magazine
Number of Subscribers: Unknown
Followers: 8,874 Facebook
2054 Twitter
Three Months ¼ page $569 $6,828
KNDD 107.7
FM
Three Times per Year
:15 sec. $209 $2,508
Facebook.com
136,832,000 General
Size
CPC cost (.62 per click) Estimation: 5,000 per
month =$3,100
Estimate:
$37,200
Total: $5,581.70
Total: $66,980.40
102
Pricing Plan
Pricing Objectives and Pricing Strategies
Our pricing plan at Andreas is set to achieve sale expectations and customer
satisfaction. The location of our boutique in Downtown Bellevue is sure to bring in foot
traffic, so our pricing plan is built to satisfy our consumers in order for our sales rise each
quarter.
Objective: Increase Volume of Sales
Strategy: Stepped Pricing
Our first objective is to increase the volume of our sales and our approach to attain
this goal is through stepped pricing. We have a wide range of prices. Our merchandise
ranges in price from around $30 to $140. We also offer accessories as low as $10. This allows
different consumers who have a large range of budgets to come in and shop our boutique.
Objective: Match Competitor Prices
Strategy: Promotional Pricing
Our second objective is to match competitor prices. Being in close proximity to
Bellevue Square in Downtown Bellevue there are many competitors in the area. In order for
us to attract consumers and bring them into our shop instead of our competitors we plan to
match our prices with those of our competitors who have similar products. We are hopeful
that our promotional pricing and our promotional events will catch the attention of
consumers and increase our sales.
.
103
Mark-Ups and Mark-Downs
Product
Mark-Up %
Mark-Down %
(1st)
Mark-Down %
(2nd)
Mark-Down %
(3rd)
Tops
300-400
15%
10%
5%
Bottoms
250-300
20%
10%
5%
Outerwear
200-300
20%
10%
5%
Dresses
250-300
15%
10%
5%
Shoes
300-400
20%
10%
5%
Accessories
500-600
20%
10%
5%
Stock Turnover
Stock turnover is important to pay attention to because we don’t want our turnover
to be slow, but we also don’t want it to be too fast. Slow turnover could mean our prices are
too high or we ordered the wrong selection of merchandise and it isn’t selling. Fast turnover
could be a problem because it means prices may be too low and we may not be able to
replace the merchandise as fast as it is selling.
At Andreas we will use a pull strategy in order to get our merchandise to sell. We will
choose the merchandise in stock and advertise the products. Advertisements make people
aware of the merchandise which will pull them into the store to purchase it.
Ratio:
Inventory Turnover Ratio= Total Sales / Average Stock
Predicted Turnover: 4 turns per year
104
Forms of Payment (Vendors)
Vendors:
Tik Tik Garment: Tik Tik Garment is a private wholesaler that sells women’s,
misses’, and junior apparel. They are located in Spokane, WA.
Seattle Pacific Industries, Inc.: Seattle Pacific Industries, Inc. is a private
company located in Kent, WA. They sell women’s, children’s, and infant’s
clothing and accessories.
Australia Unlimited: Australia Unlimited is a private company located in
Kent, WA that manufactures women’s non-athletic footwear.
Larsen Inc. of Seattle: Larsen Inc. of Seattle is a private company located in
Woodinville, WA that is a wholesaler in work clothing.
Payment:
Credit
Check
105
Distribution Plans
Off-Site Sales
Off-site sales allow us to sell more merchandise and increase our profits. It is
important to have these opportunities available to our consumers because if the only way
they can buy is in the store we are severely limiting sales. Off-site sales allow us to not only
sell more merchandise, but also expand our target market. They more people who know
about our business and shop our business they higher our sales are going to be.
At Andreas we plan to reach consumers at a further distance and increase our sales
through our website. Our social networking sites will link directly to our store website and
hopefully gain more visitors. This option for our consumers to shop online is an opportunity
to increase our sales because consumers who may not be able to come to our store directly
can still shop online.
We will also do sales over the phone if consumers call to purchase a piece of
merchandise. If a consumer comes in and finds a piece of merchandise they want but can’t
buy it then for some reason, they can call later and we can find the product they like and
ship it directly to them.
Shipping Price Chart
We will ship our merchandise to these consumers using UPS who distributes
packaging around the world. One of the benefits our customer’s have shopping online or
call purchases is that it is three day shipping which we use through UPS, which is the world’s
largest package delivery company. Choosing UPS is vital to our business because in order for
us to expand and reach consumers worldwide through our website we have to be able to
deliver to them.
106
UPS Shipping (3 Day)
Forms of Payment (Customers)
In store:
Cash
Credit or Debit
o Visa
o MasterCard
o Discover
Online:
Credit or Debit
o Visa
o MasterCard
o Discover
107
AAnnddrreeaass OOPPEERRAATTIIOONNSS PPLLAANN
108
Inventory Control and Management Functions
Planning; Forecasting; Projecting Seasonal Needs; Buying Resources
and Procedures
In order to prepare for each upcoming seasons preparation for the store and new
merchandise needs to be planned out. Store layouts and merchandise concepts must be
planned in advance by the store owner so when the merchandise is ready to be set up it can
be organized in a functional manner. Procedures for planning inventory and management
functions will include: scrutinizing current inventory and clarifying necessary improvements;
utilizing resources to analyze trends and Andreas’s budget; determining which merchandise
to put on display and back stock; and ensuring employees are properly trained to handle
returns and exchanges.
In order to know what will be trending in upcoming seasons forecasting and research
must be done to buy merchandise and prepare the store. The store owner will be taking
monthly trips to Los Angeles and traveling to New York twice a year to attend fashion
shows, trunk shows, and buy events to research and collect information about upcoming
trends what consumers are looking to buy. The store owner will also, with the help of the
sales team, examine how current products are selling, products in need of replenishment,
and which items to markdown. Informing employees of popular items, as well as, new
markdowns with allow them to suggestively sell and upsell to customers.
Daily research will be done from online fashion magazines such as, Elle Magazine;
Bazaar; Vogue; Glamour, etc. Subscriptions to fashion blogs will also help to keep us
informed about what to expect in upcoming seasons. The process the owner will follow
when projecting seasonal needs include: analyzing sales from the previous year to compare
the types of products that sold and did not sell.
Preparing for buy trips with plane tickets, hotel reservations, itineraries, etc. are
crucial to be sure deadlines are met, good deals are taken advantage of and the trip is
organized and as stress free as possible. Setting up spending budgets and planning out the
amount of merchandise that is needed to be purchase on each trip will be helpful so we
don’t overspend, or purchase too little or too much.
109
Trend Analysis
Our techniques to analyze new trends are also ways to not only research upcoming
trends, but to find ways to get ahead of our competitors. Visiting other small boutiques like
La Ree Boutique, Tory Burch, and Christi’s on Main will help us to predict what changes
they will be making for upcoming seasons and merchandise they will be bringing into their
store. Also, by visiting larger businesses like department stores such as, Nordstrom and
Macy’s we can not only see the changes they are making, but gather ideas and inspiration
about what we should do with our boutique regarding displays and promotional events.
We plan to subscribe to a number of fashion magazines, both printed and online; as
well as, fashion blogs and databases. As listed above, magazines such as Elle, Bazaar, Vogue,
Glamour, Women’s Wear Daily, WGSN and InStyle all of which stay up-to-date and
resourceful.
Tracking Stock on Hand and External Control
Our POS system will track our inventory using Windward’s System Five POS
Software. This software is designed to track merchandise using bar code readers that will
eliminate product from our inventory count as it is purchased.
Along with the Windward software we will be performing a weekly hand count of in-
store merchandise to ensure the most precise and accurate count of the merchandise we
have on hand. This will help us to keep track of what we have in store and notice loss
prevention more clearly and when precisely merchandise has disappeared.
To be even more accurate we will be bring in and working with Seattle’s American
Inventory Company who will come in once a year to double check our inventory so we have
a more accurate count. This external service will most likely be performed in August or
September before the fall season hits.
110
Human Resources
Taxes; Legal; and Accounting
Lawyer:
Robert Turner
Phone: (206) 564-3857
Email: [email protected]
Accountant:
Tom Brown
Phone: (206) 492-1837
Email: [email protected]
Bookkeeper:
Janet Smith
Phone: (206) 586-3692
Email: [email protected]
**All records will be kept and help private by the owner of Andreas.
Hiring Process and Qualifications
Interested applicants will be able to pick up applications in store or download them
online. They must apply in store. Applicants will not be able to send us their application
online because we feel direct contact and interaction are crucial in deciding on potential
employees and applying in store allows us to create a first impression.
Applicants who receive a call back will go through a two-step interview process. The
first basic and general interview will be done with an Assistant Manager. The second
interview if the Assistant Manager sees the applicant as a potential employee will be a more
in depth interview with the Store Manager who will ultimately decide if the interviewee is a
good fit to the company.
Applicants who are applying for an entry-level position, such as a sales associate
need not have previous retail experience; however customer service experience in another
business is a plus. We will offer paid training to all employees.
111
Those who are applying for a higher position such as Assistant Manager must have
one year experience as an assistant manager at a previous company. Applicants for Assistant
Manager positions will go through a two step interview process as well. The first interview
will be the general interview with two of the boutiques current Assistant Mangers followed
by a more in-depth interview with the Store Manager We will promote and train employees
within the company who show integrity and dependability to management positions.
Training Plan and Procedures
New employees will go through training workshops taught by the Store Manager and
Assistant Managers. In these workshops they will be given information not only about our
products, the business and basic customer service, but about our customers and the best
ways to sell to each of them. They will learn about different types of consumers and the
different VALS as well as how to classify each consumer into each VALS category. They will
also be taught Maslow’s Hierarchy and be able to incorporate it into their selling strategies.
They will learn about consumer buying behavior and about what motivated different
consumers to buy. New employees will also learn about loss prevention and taught what to
do and how to act in case of theft. These workshops will most likely take two or three days
for about five hours each day.
Once they have completed their workshops new employees will advance to on the
job training where they will shadow another employee for a day or two so, they will have the
opportunity to ask questions and feel completely comfortable on the selling floor. Once they
have shown they have the ability and knowledge to interact with customers and offer them
information they will start working regular shifts.
Dismissal Procedures and Criteria
At Andreas we will have a three strike policy. Before being hired employees will be
asked to sign an agreement stating that we reserve the right to terminate their position when
we feel necessary. Failure to comply with our requirements more than three times will lead to
their dismissal; however, in extreme cases such as theft, harassment, or distasteful public
behavior in the presence of customers will lead to immediate termination. Employees will be
documented for any of the following reasons: Tardiness arriving to work or returning from a
112
break, failure to comply with authoritative direction, taking advantage of in store systems
such as, the internet, and the telephone, treating customer with less than quality service, etc.
Other employees who wish to discontinue working for Andreas will be asked to turn
in a two week written notice. Failure to do so will eliminate their chances for rehire.
Benefits and Qualification Criteria
Assistant Managers and Sales Associates who have worked at Andreas for one year
minimum and are currently working full time will have the opportunity to receive medical
and dental coverage. After two years they will receive one week paid vacation per year. Sick
days will remain unpaid. All employees will receive an hourly wage plus commission. Hourly
wages will vary depending on job title and performance and will be kept private between
each employee and the employer.
At Andreas we feel the need to contribute to higher education; therefore, we will hire
one or two internships per quarter who are earning their degree in Business, Management,
Marketing, Advertising and Journalism. Interns will be unpaid, but for school credit. They
will work a minimum of ten hours per week performing duties such as maintaining and
updating blogs and social networking sites, assisting in visual merchandising, management
duties, and receive an opportunity to assist in a buying trip (paid by Andreas) depending on
their performance.
113
Facilities Maintenance
Janitorial Opening and Closing Procedures
Each night at closing the staff on duty is required to replace merchandise from the
fitting rooms to their original location on the selling floor. Making sure merchandise is
organized and detailed for the next day. Nightly reports of the whole day will be run by
Assistant Managers and kept on file in the office. The cash register will be counted and
money will be stored in the safe by the manager on duty. The break room, bathroom, and
office will all be picked up and organized for the following day. Outdoor signs will be
brought inside and lights will be dimmed. The Manager will set the store alarm and all
employees will leave together.
Every morning the employees responsible to open will make sure the business is up
to standards and ready for customers. The floor will be swept; fixtures and tables will be
dusted. Any merchandise that appears misplaced will be put where it belongs. They will
make sure fitting rooms are completely empty and clean. Managers will be preparing cash
drawers with the appropriate amount and filling out daily forms to keep track of who is on
the schedule at what time and scheduling approximate times for breaks.
Our external janitorial service team from NOBLE Janitorial Service in Seattle,
Washington will come to the store once a week after closing to clean the bathrooms, polish
the floors, and wash windows, etc. Once every two months we will rent a buffer to shine the
hardwood flooring.
Once a month a member of the IT team that we use will stop in before opening to
check on our computers and our website to make sure they are running smoothly; as well as,
do any updates or fix any problems we might be having with the system.
Security
All employees will be trained for internal product security. They learn about the
security tags on the individual pieces of merchandise; as well as, the alarm systems that the
product tags activate that will be placed at the front of the store.
Since, a manager will always be present only managers will be trained to know about
our internal store alarm. They will be the only people to know the code and how to operate
it. Our alarm system will be installed by Front Point Security.
114
Customer Service
Complaints All customer complaints will be reported to the manager on duty who will document
the complaint with the name of the customer, the incident, and the employees and the
manager present at the time. The complaint and paperwork will be forwarded to the store
manager who will take note of the incident and file the document for future reference.
Return Policy
At Andreas we have a fixed return policy for customers to avoid confusion and frustration:
Any return must be made within thirty days of the original purchase.
Damaged items that have clearly been worn or used will not be accepted.
The customer must have the receipt and the tags for the merchandise they wish to return.
No returns will be accepted on custom orders or sale items.
Returns on merchandise purchased with a gift card can only receive store credit.
*This return policy remains the same for both in-store and online shoppers.
Our return policy will be printed at the bottom of their receipt along with the boutique’s
phone number so that they may call with any questions.
Referrals
Customers who refer paying customers to our boutique will be rewarded with a gift
card that will allow them 15% off their next total purchase. By granting these rewards we are
taking care of our customers who are taking care of us. Once other people find out about
the 15% reward they may start referring their friends and family as well bringing in more and
more consumers which will help our business grow.
Our business to business referral will benefit employees at other businesses, like the
companies we have reciprocal links with on our website. By referring their customers to
shop our store and vice versa we offer a 10% discount to their employees. Proof of
employment is necessary in order to receive the discount.
115
After Sale Problems
After sale problems such as damages to the merchandise (i.e. broken zippers, missing
buttons, ripped or torn, stains, etc.) that went unnoticed before the time of the sale will be
refunded in full. Though once the merchandise has left the store any return or exchange
must follow our return policy.
116
AAnnddrreeaass
FFIINNAANNCCIIAALL PPLLAANN
117
An
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$
570
$
525
$
585
$
6,8
55
$
CO
G A
ccess
ori
es
@10%
220
$
250
$
260
$
290
$
300
$
340
$
320
$
350
$
320
$
280
$
300
$
340
$
3,5
70
$
To
tal
Vari
ab
le E
xp
en
ses
2,9
90
$
3,1
05
$
3,7
10$
3,6
35
$
3,9
50
$
4,5
70
$
4,4
00
$
4,7
30
$
4,0
90
$
3,2
50
$
3,9
05
$
3,9
65
$
46,3
00
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Vari
ab
le E
xp
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ses
Perc
en
t14
%15
%16
%16
%16
%17
%17
%16
%15
%13
%14
%14
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%
Gro
ss P
rofi
t R
eta
il17
,710
$
17,9
95
$
20,0
90
$
19,3
65
$
20,3
50
$
22,6
30
$
22,1
00
$
25,1
70
$
23,7
10$
21,
050
$
24,0
95
$
24,9
35
$
259,2
00
$
Gro
ss M
arg
in R
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il86%
85%
84%
84%
84%
83%
83%
84%
85%
87%
86%
86%
85%
Gro
ss P
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l 20,5
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17,9
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$
20,5
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$
20,3
65
$
20,3
50
$
22,6
30
$
22,1
00
$
25,1
70
$
23,7
10$
21,
050
$
24,0
95
$
24,9
35
$
263,5
00
$
Fix
ed
Ex
pen
ses
Inven
tory
Pu
rch
ase
3,1
67
$
3,7
84
$
3,7
08
$
4,0
29
$
4,6
61
$
4,4
88
$
4,8
25
$
4,1
72
$
3,3
15
$
3,9
83
$
4,0
44
$
3,4
84
$
47,6
60
$
Ren
t4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
50,4
00
$
Uti
liti
es,
Ph
on
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an
d I
nte
rnet
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$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
2,5
00
$
Su
pp
ly P
urc
hase
s100
$
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$
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$
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200
$
Eq
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t P
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s &
Rep
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$
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-
$
200
$
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$
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-$
-
$
200
$
-
$
700
$
Tax
es
& L
icen
sin
g150
$
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$
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$
197
$
-
$
-
$
224
$
-
$
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$
253
$
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$
-$
823
$
Leg
al
an
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g150
$
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$
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$
100
$
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$
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$
150
$
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$
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$
150
$
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$
-$
550
$
Mark
eti
ng
an
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dvert
isin
g1,0
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$
1,0
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$
1,0
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$
500
$
500
$
500
$
500
$
500
$
500
$
500
$
500
$
500
$
7,5
00
$
Payro
ll1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
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$
1,5
00
$
2,0
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$
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$
19,0
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$
Payro
ll T
ax
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195
$
195
$
195
$
195
$
195
$
195
$
195
$
195
$
195
$
195
$
260
$
260
$
2,4
70
$
Ow
ner'
s D
raw
-$
-
$
-
$
-
$
-
$
-
$
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$
500
$
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$
800
$
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$
3,8
00
$
Cap
ital
Rese
rve D
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$
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$
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$
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500
$
500
$
500
$
900
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$
7,3
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an
Paym
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$
1,2
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$
1,2
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$
1,2
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$
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$
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$
13,7
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Mis
cell
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us
Ex
pen
ses
-$
-
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-
$
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$
-$
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$
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$
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To
tal
Fix
ed
Ex
pen
ses
11,9
62
$
11,8
79
$
11,8
53
$
11,9
46
$
12,8
06
$
12,8
83
$
13,5
18$
13,4
17$
12,7
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12,0
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$
14
,204
$
17
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$
15
6,7
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$
Pro
fit
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ss)
8,5
48
$
6,1
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8,7
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7,5
44
$
9,7
47
$
8,5
82
$
11
,753
$
11,0
00
$
8,9
94
$
9,8
91
$
7,4
66
$
106,7
97
$
Cash
flo
w P
att
ern
Beg
inn
ing
Cash
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$
9,2
98
$
15,4
14
$
24,1
51
$
32,5
70
$
40,1
14
$
49,8
61
$
58,4
43
$
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$
81,1
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$
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$
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$
En
din
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9,2
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$
58,4
43
$
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$
100,0
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$
107,5
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Bre
ak
Even
An
aly
sis
13,9
82
$
13,9
29
$
14,0
42
$
14,1
88
$
15,2
92
$
15,4
85
$
16,2
09
$
15,9
38
$
14,9
02
$
13,9
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16
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$
20,2
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$
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4,6
37
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An
dre
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Bo
uti
qu
eP
roje
cte
d I
nco
me S
tate
men
tB
est
Cas
eV
aria
nce
=1.2
Jan
Feb
Mar
Ap
rM
ay
Jun
Jul
Au
gS
ep
Oct
No
vD
ec
Year
to D
ate
INC
OM
E:
Sale
s
To
ps
5,1
60
$
6,0
00
$
7,8
00
$
6,2
40
$
7,2
00
$
9,3
60
$
9,6
00
$
10,2
00
$
8,4
00
$
6,6
00
$
9,8
40
$
8,4
00
$
94,8
00
$
Dre
sses
3,6
00
$
3,0
00
$
3,8
40
$
4,8
00
$
5,0
40
$
5,7
60
$
5,2
80
$
4,8
00
$
4,0
80
$
2,4
00
$
3,3
60
$
3,8
40
$
49,8
00
$
Bo
tto
ms
4,4
40
$
4,6
80
$
5,0
40
$
4,6
80
$
4,8
00
$
5,0
40
$
4,6
80
$
5,4
00
$
5,1
60
$
4,8
00
$
4,4
40
$
5,0
40
$
58,2
00
$
Sh
oes
3,3
60
$
3,6
00
$
4,0
80
$
4,2
00
$
4,8
00
$
5,0
40
$
4,8
00
$
6,2
40
$
5,2
80
$
4,5
60
$
4,2
00
$
4,6
80
$
54,8
40
$
Ou
terw
ear
5,6
40
$
5,0
40
$
4,6
80
$
4,2
00
$
3,7
20
$
3,3
60
$
3,6
00
$
5,0
40
$
6,6
00
$
7,4
40
$
8,1
60
$
8,6
40
$
66,1
20
$
Access
ori
es
2,6
40
$
3,0
00
$
3,1
20
$
3,4
80
$
3,6
00
$
4,0
80
$
3,8
40
$
4,2
00
$
3,8
40
$
3,3
60
$
3,6
00
$
4,0
80
$
42,8
40
$
To
tal
Sale
s24,8
40
$
25,3
20
$
28,5
60
$
27,6
00
$
29,1
60
$
32,6
40
$
31,
800
$
35,8
80
$
33,3
60
$
29,1
60
$
33,6
00
$
34,6
80
$
366,6
00
$
Ow
ners
Co
ntr
ibu
tio
n-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-$
-$
-$
Cap
ital
Rese
rve W
ith
dra
wals
3,0
00
$
-
$
500
$
1,0
00
$
-
$
-
$
-
$
-
$
-
$
-
$
-$
-$
4,5
00
$
Mis
cell
an
eo
us
-$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-$
-$
-$
TO
TA
L I
NC
OM
E:
27,8
40
$
25,3
20
$
29,0
60
$
28,6
00
$
29,1
60
$
32,6
40
$
31,
800
$
35,8
80
$
33,3
60
$
29,1
60
$
33,6
00
$
34,6
80
$
371,
100
$
Vari
ab
le E
xp
en
ses C
OG
To
ps
@20%
1,0
32
$
1,2
00
$
1,5
60
$
1,2
48
$
1,4
40
$
1,8
72
$
1,9
20
$
2,0
40
$
1,6
80
$
1,3
20
$
1,9
68
$
1,6
80
$
18,9
60
$
CO
G D
ress
es@
25%
900
$
750
$
960
$
1,2
00
$
1,2
60
$
1,4
40
$
1,3
20
$
1,2
00
$
1,0
20
$
600
$
840
$
960
$
12,4
50
$
CO
G B
ott
om
s @
20%
888
$
936
$
1,0
08
$
936
$
960
$
1,0
08
$
936
$
1,0
80
$
1,0
32
$
960
$
888
$
1,0
08
$
11,6
40
$
CO
G S
ho
es
@15%
504
$
540
$
612
$
630
$
720
$
756
$
720
$
936
$
792
$
684
$
630
$
702
$
8,2
26
$
CO
G A
ccess
ori
es
@10%
264
$
300
$
312
$
348
$
360
$
408
$
384
$
420
$
384
$
336
$
360
$
408
$
4,2
84
$
To
tal
Vari
ab
le E
xp
en
ses
3,5
88
$
3,7
26
$
4,4
52
$
4,3
62
$
4,7
40
$
5,4
84
$
5,2
80
$
5,6
76
$
4,9
08
$
3,9
00
$
4,6
86
$
4,7
58
$
55,5
60
$
Vari
ab
le E
xp
en
ses
Perc
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t14
%15
%16
%16
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Gro
ss P
rofi
t R
eta
il21,
252
$
21,
594
$
24,1
08
$
23,2
38
$
24,4
20
$
27,1
56
$
26,5
20
$
30,2
04
$
28,4
52
$
25,2
60
$
28,9
14$
29,9
22
$
311
,040
$
Gro
ss M
arg
in R
eta
il86%
85%
84%
84%
84%
83%
83%
84%
85%
87%
86%
86%
85%
Gro
ss P
rofi
t T
ota
l 24,2
52
$
21,
594
$
24,6
08
$
24,2
38
$
24,4
20
$
27,1
56
$
26,5
20
$
30,2
04
$
28,4
52
$
25,2
60
$
28,9
14$
29,9
22
$
315
,540
$
Fix
ed
Ex
pen
ses
Inven
tory
Pu
rch
ase
3,8
01
$
4,5
41
$
4,4
49
$
4,8
35
$
5,5
94
$
5,3
86
$
5,7
90
$
5,0
06
$
3,9
78
$
4,7
80
$
4,8
53
$
4,1
81
$
57,1
92
$
Ren
t4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
50,4
00
$
Uti
liti
es,
Ph
on
e,
an
d I
nte
rnet
300
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
2,5
00
$
Su
pp
ly P
urc
hase
s100
$
-
$
-
$
25
$
-$
-
$
25
$
-$
-
$
25
$
-$
25
$
200
$
Eq
uip
men
t P
urc
hase
s &
Rep
air
s200
$
-
$
50
$
-$
-
$
200
$
-
$
50
$
-$
-
$
200
$
-
$
700
$
Tax
es
& L
icen
sin
g150
$
-
$
-
$
236
$
-
$
-
$
268
$
-
$
-
$
303
$
-
$
-$
957
$
Leg
al
an
d A
cco
un
tin
g150
$
-
$
-
$
100
$
-
$
-
$
150
$
-
$
-
$
150
$
-
$
-$
550
$
Mark
eti
ng
an
d A
dvert
isin
g1,0
00
$
1,2
00
$
1,2
00
$
750
$
500
$
500
$
500
$
1,0
00
$
1,0
00
$
1,2
00
$
1,2
00
$
1,0
00
$
11,0
50
$
Payro
ll1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,8
00
$
1,8
00
$
2,0
00
$
2,0
00
$
1,5
00
$
1,5
00
$
2,0
00
$
2,0
00
$
20,6
00
$
Payro
ll T
ax
es
195
$
195
$
195
$
195
$
234
$
234
$
260
$
260
$
195
$
195
$
260
$
260
$
2,6
78
$
Ow
ner'
s D
raw
-$
-
$
1,0
00
$
-
$
-
$
-
$
500
$
1,5
00
$
200
$
-
$
800
$
2,0
00
$
6,0
00
$
Cap
ital
Rese
rve D
ep
osi
t-
$
-
$
-
$
-
$
500
$
500
$
500
$
1,0
00
$
1,5
00
$
-
$
1,0
00
$
2,0
00
$
7,0
00
$
Lo
an
Paym
en
t1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
1,5
00
$
18,0
00
$
Mis
cell
an
eo
us
Ex
pen
ses
-$
-
$
-
$
-
$
50
$
-$
-
$
-
$
-
$
50
$
-$
-$
100
$
To
tal
Fix
ed
Ex
pen
ses
13,0
96
$
13,3
36
$
14,2
94
$
13,5
41
$
14,5
78
$
14,5
20
$
15,8
93
$
16,7
16$
14,2
73
$
14,1
03
$
16
,213
$
17
,366
$
17
7,9
27
$
Pro
fit
(lo
ss)
11,1
56
$
8,2
58
$
10
,314
$
10,6
97
$
9,8
42
$
12
,636
$
10,6
27
$
13,4
88
$
14,1
79
$
11,1
57
$
12
,701
$
12
,556
$
13
7,6
13$
Cash
flo
w P
att
ern
Beg
inn
ing
Cash
750
$
11,9
06
$
20,1
64
$
30,4
78
$
41,1
75
$
51,0
18
$
63,6
54
$
74,2
81
$
87,7
69
$
101,9
48
$
113,1
05
$
125,8
06
$
En
din
g C
ash
11,9
06
$
20,1
64
$
30,4
78
$
41,1
75
$
51,0
18
$
63,6
54
$
74,2
81
$
87,7
69
$
101,9
48
$
113,1
05
$
125,8
06
$
138,3
63
$
Bre
ak
Even
An
aly
sis
15,3
06
$
15,6
37
$
16,9
34
$
16,0
83
$
17,4
07
$
17,4
52
$
19,0
57
$
19,8
57
$
16,7
35
$
16,2
80
$
18
,841
$
20,1
27
$
209,7
17$
119
An
dre
as
Bo
uti
qu
eP
roje
cte
d I
nco
me S
tate
men
tW
ors
t C
ase
Var
iance
=0.8
Jan
Feb
Mar
Ap
rM
ay
Jun
Jul
Au
gS
ep
Oct
No
vD
ec
Year
to D
ate
INC
OM
E:
Sale
s
To
ps
3,4
40
$
4,0
00
$
5,2
00
$
4,1
60
$
4,8
00
$
6,2
40
$
6,4
00
$
6,8
00
$
5,6
00
$
4,4
00
$
6,5
60
$
5,6
00
$
63,2
00
$
Dre
sses
2,4
00
$
2,0
00
$
2,5
60
$
3,2
00
$
3,3
60
$
3,8
40
$
3,5
20
$
3,2
00
$
2,7
20
$
1,6
00
$
2,2
40
$
2,5
60
$
33,2
00
$
Bo
tto
ms
2,9
60
$
3,1
20
$
3,3
60
$
3,1
20
$
3,2
00
$
3,3
60
$
3,1
20
$
3,6
00
$
3,4
40
$
3,2
00
$
2,9
60
$
3,3
60
$
38,8
00
$
Sh
oes
2,2
40
$
2,4
00
$
2,7
20
$
2,8
00
$
3,2
00
$
3,3
60
$
3,2
00
$
4,1
60
$
3,5
20
$
3,0
40
$
2,8
00
$
3,1
20
$
36,5
60
$
Ou
terw
ear
3,7
60
$
3,3
60
$
3,1
20
$
2,8
00
$
2,4
80
$
2,2
40
$
2,4
00
$
3,3
60
$
4,4
00
$
4,9
60
$
5,4
40
$
5,7
60
$
44,0
80
$
Access
ori
es
1,7
60
$
2,0
00
$
2,0
80
$
2,3
20
$
2,4
00
$
2,7
20
$
2,5
60
$
2,8
00
$
2,5
60
$
2,2
40
$
2,4
00
$
2,7
20
$
28,5
60
$
To
tal
Sale
s16
,560
$
16,8
80
$
19,0
40
$
18,4
00
$
19,4
40
$
21,
760
$
21,
200
$
23,9
20
$
22,2
40
$
19,4
40
$
22,4
00
$
23,1
20
$
244,4
00
$
Ow
ners
Co
ntr
ibu
tio
n-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-$
-$
-$
Cap
ital
Rese
rve W
ith
dra
wals
2,0
00
$
-
$
500
$
1,0
00
$
-
$
-
$
500
$
-
$
500
$
-
$
1,5
00
$
-$
6,0
00
$
Mis
cell
an
eo
us
-$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-$
-$
-$
TO
TA
L I
NC
OM
E:
18,5
60
$
16,8
80
$
19,5
40
$
19,4
00
$
19,4
40
$
21,
760
$
21,
700
$
23,9
20
$
22,7
40
$
19,4
40
$
23,9
00
$
23,1
20
$
250,4
00
$
Vari
ab
le E
xp
en
ses C
OG
To
ps
@20%
688
$
800
$
1,0
40
$
832
$
960
$
1,2
48
$
1,2
80
$
1,3
60
$
1,1
20
$
880
$
1,3
12
$
1,1
20
$
12,6
40
$
CO
G D
ress
es@
25%
600
$
500
$
640
$
800
$
840
$
960
$
880
$
800
$
680
$
400
$
560
$
640
$
8,3
00
$
CO
G B
ott
om
s @
20%
592
$
624
$
672
$
624
$
640
$
672
$
624
$
720
$
688
$
640
$
592
$
672
$
7,7
60
$
CO
G S
ho
es
@15%
336
$
360
$
408
$
420
$
480
$
504
$
480
$
624
$
528
$
456
$
420
$
468
$
5,4
84
$
CO
G A
ccess
ori
es
@10%
176
$
200
$
208
$
232
$
240
$
272
$
256
$
280
$
256
$
224
$
240
$
272
$
2,8
56
$
To
tal
Vari
ab
le E
xp
en
ses
2,3
92
$
2,4
84
$
2,9
68
$
2,9
08
$
3,1
60
$
3,6
56
$
3,5
20
$
3,7
84
$
3,2
72
$
2,6
00
$
3,1
24
$
3,1
72
$
37,0
40
$
Vari
ab
le E
xp
en
ses
Perc
en
t14
%15
%16
%16
%16
%17
%17
%16
%15
%13
%14
%14
%15
%
Gro
ss P
rofi
t R
eta
il14
,168
$
14,3
96
$
16,0
72
$
15,4
92
$
16,2
80
$
18,1
04
$
17,6
80
$
20,1
36
$
18,9
68
$
16,8
40
$
19
,276
$
19
,948
$
207,3
60
$
Gro
ss M
arg
in R
eta
il86%
85%
84%
84%
84%
83%
83%
84%
85%
87%
86%
86%
85%
Gro
ss P
rofi
t T
ota
l 16
,168
$
14,3
96
$
16,5
72
$
16,4
92
$
16,2
80
$
18,1
04
$
18,1
80
$
20,1
36
$
19,4
68
$
16,8
40
$
20,7
76
$
19
,948
$
213
,360
$
Fix
ed
Ex
pen
ses
Inven
tory
Pu
rch
ase
2,5
34
$
3,0
27
$
2,9
66
$
3,2
23
$
3,7
29
$
3,5
90
$
3,8
60
$
3,3
37
$
2,6
52
$
3,1
86
$
3,2
35
$
2,7
87
$
38,1
28
$
Ren
t4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
4,2
00
$
50,4
00
$
Uti
liti
es,
Ph
on
e,
an
d I
nte
rnet
300
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
200
$
2,5
00
$
Su
pp
ly P
urc
hase
s100
$
-
$
-
$
25
$
-$
-
$
25
$
-$
-
$
25
$
-$
25
$
200
$
Eq
uip
men
t P
urc
hase
s &
Rep
air
s200
$
-
$
50
$
-$
-
$
200
$
-
$
50
$
-$
-
$
200
$
-
$
700
$
Tax
es
& L
icen
sin
g150
$
-
$
-
$
157
$
-
$
-
$
179
$
-
$
-
$
202
$
-
$
-$
688
$
Leg
al
an
d A
cco
un
tin
g150
$
-
$
-
$
100
$
-
$
-
$
150
$
-
$
-
$
150
$
-
$
-$
550
$
Mark
eti
ng
an
d A
dvert
isin
g1,0
00
$
1,0
00
$
1,0
00
$
750
$
500
$
500
$
500
$
500
$
1,0
00
$
1,0
00
$
1,0
00
$
1,0
00
$
9,7
50
$
Payro
ll350
$
350
$
350
$
350
$
500
$
500
$
500
$
1,0
00
$
1,0
00
$
750
$
1,0
00
$
1,5
00
$
8,1
50
$
Payro
ll T
ax
es
46
$
46
$
46
$
46
$
65
$
65
$
65
$
130
$
130
$
98
$
130
$
195
$
1,0
60
$
Ow
ner'
s D
raw
-$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-$
-$
-$
Cap
ital
Rese
rve D
ep
osi
t-
$
-
$
-
$
-
$
500
$
500
$
500
$
1,0
00
$
1,5
00
$
-
$
1,0
00
$
2,0
00
$
7,0
00
$
Lo
an
Paym
en
t1,2
00
$
1,2
00
$
1,2
00
$
1,2
00
$
1,2
00
$
1,2
00
$
1,2
00
$
1,2
00
$
1,2
00
$
1,2
00
$
1,2
00
$
1,2
00
$
14,4
00
$
Mis
cell
an
eo
us
Ex
pen
ses
-$
-
$
-
$
-
$
50
$
-$
-
$
-
$
-
$
50
$
-$
-$
100
$
To
tal
Fix
ed
Ex
pen
ses
10,2
29
$
10,0
23
$
10,0
12$
10,2
51
$
10,9
44
$
10,9
55
$
11,3
78
$
11,6
17$
11
,882
$
11,0
61
$
12
,165
$
13
,107
$
13
3,6
26
$
Pro
fit
(lo
ss)
5,9
39
$
4,3
73
$
6,5
60
$
6,2
41
$
5,3
36
$
7,1
49
$
6,8
02
$
8,5
19$
7,5
86
$
5,7
79
$
8,6
11$
6,8
41
$
79,7
34
$
Cash
flo
w P
att
ern
Beg
inn
ing
Cash
750
$
6,6
89
$
11,0
62
$
17,6
22
$
23,8
63
$
29,1
99
$
36,3
48
$
43,1
49
$
51,6
68
$
59,2
54
$
65,0
33
$
73,6
43
$
En
din
g C
ash
6,6
89
$
11,0
62
$
17,6
22
$
23,8
63
$
29,1
99
$
36,3
48
$
43,1
49
$
51,6
68
$
59,2
54
$
65,0
33
$
73,6
43
$
80,4
84
$
Bre
ak
Even
An
aly
sis
11,9
56
$
11,7
52
$
11,8
61
$
12
,175
$
13,0
68
$
13,1
68
$
13,6
44
$
13,8
01
$
13,9
32
$
12,7
69
$
14
,137
$
15
,191
$
15
7,4
54
$
120
A
nd
reas
Bo
uti
qu
eO
pen
ing
In
ven
tory
Dep
art
men
tIt
em
Desc
rip
tio
nO
n H
an
dO
n O
rder
To
tal
Sto
ck
Co
st $
Reta
il $
MU
%T
ota
l C
ost
To
tal
Pri
ce
To
ps
Blo
use
s75
55
130
18.0
0$
90.0
0$
80%
2,3
40.0
0$
11,7
00.0
0$
Knit
105
70
175
14.0
0$
70.0
0$
80%
2,4
50.0
0$
12,2
50.0
0$
Cam
iso
les
120
90
210
6.0
0$
30.0
0$
80%
1,2
60.0
0$
6,3
00.0
0$
Butt
on D
ow
n90
65
155
16.0
0$
80.0
0$
80%
2,4
80.0
0$
12,4
00.0
0$
Dep
artm
ent
To
tal
390
280
670
8,5
30.0
0$
42,6
50.0
0$
Dre
sses
Busi
nes
s30
20
50
30.0
0$
120.0
0$
75%
1,5
00.0
0$
6,0
00.0
0$
Knit
20
10
30
20.0
0$
80.0
0$
75%
600.0
0$
2,4
00.0
0$
Sem
i F
orm
al25
12
37
35.0
0$
140.0
0$
75%
1,2
95.0
0$
5,1
80.0
0$
Cas
ual
20
10
30
15.0
0$
60.0
0$
75%
450.0
0$
1,8
00.0
0$
Dep
artm
ent
To
tal
95
52
147
3,8
45.0
0$
15,3
80.0
0$
Bo
tto
ms
Skir
ts70
30
100
15.0
0$
75.0
0$
80%
1,5
00.0
0$
7,5
00.0
0$
Tro
use
rs80
55
135
24.0
0$
120.0
0$
80%
3,2
40.0
0$
16,2
00.0
0$
Den
im90
60
150
26.0
0$
130.0
0$
80%
3,9
00.0
0$
19,5
00.0
0$
Leg
gin
gs
60
40
100
10.0
0$
50.0
0$
80%
1,0
00.0
0$
5,0
00.0
0$
Dep
artm
ent
To
tal
300
185
485
9,6
40.0
0$
48,2
00.0
0$
Sh
oes
Pum
ps
90
40
130
9.7
5$
65.0
0$
85%
1,2
67.5
0$
8,4
50.0
0$
Bo
ots
70
25
95
13.5
0$
90.0
0$
85%
1,2
82.5
0$
8,5
50.0
0$
Fla
ts80
35
115
4.5
0$
30.0
0$
85%
517.5
0$
3,4
50.0
0$
Dep
artm
ent
To
tal
240
100
340
3,0
67.5
0$
20,4
50.0
0$
Access
ori
es
Nec
kla
ces
60
30
90
7.0
0$
70.0
0$
90%
630.0
0$
6,3
00.0
0$
Rin
gs
30
15
45
3.0
0$
30.0
0$
90%
135.0
0$
1,3
50.0
0$
Ear
rings
50
30
80
1.5
0$
15.0
0$
90%
120.0
0$
1,2
00.0
0$
Bra
cele
ts60
35
95
5.0
0$
50.0
0$
90%
475.0
0$
4,7
50.0
0$
Dep
artm
ent
To
tal
200
110
310
1,3
60.0
0$
13,6
00.0
0$
To
tal In
ven
tory
12
25
727
1952
26,4
42.5
0$
14
0,2
80.0
0$
121
An
dre
as
Bo
uti
qu
eC
losi
ng
In
ven
tory
Dep
art
men
tIt
em
Desc
rip
tio
nO
n H
an
dO
n O
rder
To
tal
Sto
ck
Co
st $
Reta
il $
MU
%T
ota
l C
ost
To
tal
Pri
ce
To
ps
Blo
use
s77
56
133
18.0
0$
90.0
0$
80%
2,3
98.5
0$
11,9
92.5
0$
Knit
108
72
179
14.0
0$
70.0
0$
80%
2,5
11.2
5$
12,5
56.2
5$
Cam
iso
les
123
92
215
6.0
0$
30.0
0$
80%
1,2
91.5
0$
6,4
57.5
0$
Butt
on D
ow
n92
67
159
16.0
0$
80.0
0$
80%
2,5
42.0
0$
12,7
10.0
0$
Dep
artm
ent
To
tal
400
287
687
8,7
43.2
5$
43,7
16.2
5$
Dre
sses
Busi
nes
s31
21
51
30.0
0$
120.0
0$
75%
1,5
37.5
0$
6,1
50.0
0$
Knit
21
10
31
20.0
0$
80.0
0$
75%
615.0
0$
2,4
60.0
0$
Sem
i F
orm
al26
12
38
35.0
0$
140.0
0$
75%
1,3
27.3
8$
5,3
09.5
0$
Cas
ual
21
10
31
15.0
0$
60.0
0$
75%
461.2
5$
1,8
45.0
0$
Dep
artm
ent
To
tal
97
53
151
3,9
41.1
3$
15,7
64.5
0$
Bo
tto
ms
Skir
ts72
31
103
15.0
0$
75.0
0$
80%
1,5
37.5
0$
7,6
87.5
0$
Tro
use
rs82
56
138
24.0
0$
120.0
0$
80%
3,3
21.0
0$
16,6
05.0
0$
Den
im92
62
154
26.0
0$
130.0
0$
80%
3,9
97.5
0$
19,9
87.5
0$
Leg
gin
gs
62
41
103
10.0
0$
50.0
0$
80%
1,0
25.0
0$
5,1
25.0
0$
Dep
artm
ent
To
tal
308
190
497
9,8
81.0
0$
49,4
05.0
0$
Sh
oes
Pum
ps
92
41
133
9.7
5$
65.0
0$
85%
1,2
99.1
9$
8,6
61.2
5$
Bo
ots
72
26
97
13.5
0$
90.0
0$
85%
1,3
14.5
6$
8,7
63.7
5$
Fla
ts82
36
118
4.5
0$
30.0
0$
85%
530.4
4$
3,5
36.2
5$
Dep
artm
ent
To
tal
246
103
349
3,1
44.1
9$
20,9
61.2
5$
Access
ori
es
Nec
kla
ces
62
31
92
7.0
0$
70.0
0$
90%
645.7
5$
6,4
57.5
0$
Rin
gs
31
15
46
3.0
0$
30.0
0$
90%
138.3
8$
1,3
83.7
5$
Ear
rings
51
31
82
1.5
0$
15.0
0$
90%
123.0
0$
1,2
30.0
0$
Bra
cele
ts62
36
97
5.0
0$
50.0
0$
90%
486.8
8$
4,8
68.7
5$
Dep
artm
ent
To
tal
205
113
318
1,3
94.0
0$
13,9
40.0
0$
To
tal In
ven
tory
12
56
745
2001
27,1
03.5
6$
14
3,7
87.0
0$
122
An
dre
as
Bo
uti
qu
eO
pen
ing
Bala
nce S
heet
Ass
ets
Lia
bil
itie
s
Cu
rren
t A
ssets
Cu
rren
t L
iab
ilit
ies
Cas
h750
Acc
ounts
Pay
able
-
Cap
ital
Res
erve
15,0
00
Tax
es P
ayab
le-
Inven
tory
(re
tail
)T
ota
l C
urr
en
t L
iab
ilit
ies
-$
Top
s42,6
50
Dre
sses
15,3
80
Lo
ng
Term
Lia
bil
itie
s
Bot
tom
s48,2
00
Busi
nes
s L
oan
50,0
00
Sho
es20,4
50
Acc
esso
ries
13,6
00
To
tal
Lo
ng
Term
Lia
bil
itie
s50,0
00
$
To
tal
Inven
tory
140,2
80
Acc
ounts
Rec
eivab
le-
T
ota
l L
iab
ilit
ies
50,0
00
$
Sup
plie
s300
Pre
pai
d D
epo
sit
1,5
00
O
wn
er'
s E
qu
ity
121,
580
$
To
tal
Cu
rren
t A
ssets
157,8
30
$
Lia
bil
itie
s +
Eq
uit
y17
1,580
$
Fix
ed
Ass
ets
Co
mp
ute
r Sys
tem
3,0
00
Furn
ishin
gs
2,5
00
Sto
re F
ixtu
res
5,0
00
Exte
rio
r Sig
ns
& L
ighting
2,0
00
Inte
rio
r L
ighting
1,2
00
Veh
icle
-
To
ols
50
To
tal
Fix
ed
Ass
ets
13,7
50
$
Go
od
Will
-$
To
tal
Ass
ets
171,
580
$
123
Andreas BoutiqueStart Up Budget
Total Required
for Operation
Financed by
Owner
Remaining to be
Financed
Inventory
Tops 8,530 2,500 6,030
Dresses 3,845 2,000 1,845
Bottoms 9,640 3,000 6,640
Shoes 3,068 1,500 1,568
Accessories 1,360 1,000 360
Total Inventory 26,443 10,000 16,443
Equipment & Supplies
Computer System 3,000 2,000 1,000
Furnishings 2,500 2,000 500
Store Fixtures 5,000 2,000 3,000
Exterior Signs & Lighting 2,000 1,500 500
Interior Lighting 1,200 1,200 -
Vehicle - - -
Tools 50 50 -
Office Equipment & Supplies 300 100 200
Miscellaneous - - -
Total Equipment and Supplies 14,050 8,850 5,200
Marketing Expenses
Research & Surveys 800 800 -
Promotional Production 1,000 1,000 -
Advertising Placement 4,000 2,000 2,000
Give-Aways 200 200 -
Personal Contact 200 100 100
Total Marketing Expenses 6,200 4,100 2,100
Operating Expenses
Working Capital Reserves 15,750 5,000 10,750
Legal & Accounting 900 700 200
Contract Negotiating 200 200 -
Taxes, Licenses, & Permits 300 200 100
Deposits, Rent, & Utilities 4,200 2,000 2,200
Miscellaneous 150 150 -
Total Operating Expenses 21,500 8,250 13,250
Real Estate Buildout Expenses
Carpentry, Finishing 4,000 2,000 2,000
Electrical Work 2,000 1,000 1,000
Building Materials 800 800 -
Unexpected Expenses 500 - 500
Total Buildout Expenses 7,300 3,800 3,500
Miscellaneous Expenses
Start Up Budget SummaryBudget Totals 75,493 35,000 40,493
Percent Financed by Owner 46%
Percent Remaining to be Financed 54% Safety Margin 15%
$46,566Additional Funding Required:
124
A
nd
reas
Bo
uti
qu
eC
losi
ng
Bala
nce S
heet
Ass
ets
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bil
itie
s
Cu
rren
t A
ssets
Cu
rren
t L
iab
ilit
ies
Cas
h107,5
47
A
cco
unts
Pay
able
-
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ital
Res
erve
18,0
00
Tax
es P
ayab
le-
Inven
tory
(re
tail
)T
ota
l C
urr
en
t L
iab
ilit
ies
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s43,7
16
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sses
15,7
65
Lo
ng
Term
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bil
itie
s
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tom
s49,4
05
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nes
s L
oan
36,3
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es20,9
61
Acc
esso
ries
13,9
40
To
tal
Lo
ng
Term
Lia
bil
itie
s36,3
00
$
To
tal
Inven
tory
143,7
87
Acc
ounts
Rec
eivab
le-
T
ota
l L
iab
ilit
ies
36,3
00
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1,5
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wn
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qu
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348,5
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$
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tal
Cu
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t A
ssets
271,
134
$
Lia
bil
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Eq
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84
$
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Co
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ute
r Sys
tem
3,0
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5,0
00
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rio
r Sig
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ighting
2,0
00
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rio
r L
ighting
1,2
00
Veh
icle
-
To
ols
50
To
tal
Fix
ed
Ass
ets
13,7
50
$
Go
od
Will
100,0
00
$
To
tal
Ass
ets
384,8
84
$
125
A
nd
reas
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uti
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losi
ng
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heet
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ase
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=1.2
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A
cco
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Pay
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17,5
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00
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tal
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tory
172,5
44
Acc
ounts
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330,2
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sses
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127
128
129
AAnnddrreeaass
AAPPPPEENNDDIICCEESS
130
AAPPPPEENNDDIICCEESS
AA
131
132
AAPPPPEENNDDIICCEESS
BB
133
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