peter deckers rhahjni reid grade 12 18 & 16
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Peter Deckers Rhahjni Reid Grade 12 18 & 16. Mission Statement. Opportunity New Age Gaming provides the opportunity for hesitant gamers who would like to fully preview games and systems before committing to a sale. Mission Statement - PowerPoint PPT PresentationTRANSCRIPT
Peter DeckersRhahjni Reid
Grade 1218 & 16
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Mission Statement
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• Opportunity • New Age Gaming provides the opportunity for hesitant
gamers who would like to fully preview games and systems before committing to a sale.
• Mission Statement • Our business will strive to provide our customers with a
chance to be completely satisfied with their purchase with unrestricted access to games and the opportunity to socialize with their peers.
Business Profile• Type of Business • Service• Our business allows customers to preview
a range of systems or games before purchase so that they are fully satisfied with the final product• We believe that our customers will be
pleased knowing they can make informed purchases before actually buying the game
• Legal Structure • Partnership• We selected this because we can split the
start up costs and operating responsibilities
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Qualifications
We both own video game systems
We both have taken a Marketing and Entrepreneurship class
20 years of combined game experience
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Consumer Profile• By Location• Avon, CT and surrounding areas
• By Population• Video Game consumers, ages 15 – 25• Console owners
• By Personality/ Behavior• Gamers, enjoy playing video games• Enjoy playing with friends
• By Income• Gamers with discretionary income
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Competitive Advantage
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New AgeGamingGamefly.com GameStopFactors
GoodQuality of Product//Service
Price
Location
Brand/Reputation
Unique Knowledge
Good Excellent
Good Excellent Excellent
No Late Fees
Buy & Trade Immediate Experience
Online Nationwide Avon, CT
Very Good Very Good Excellent
Marketing Plan
MarketingMix
People• Gamers
ages 15-25
Promotion• Excellent
customer service
• Handing out business cards
Product• Encourag
es socialization
• Informed purchases
•
Place• Avon, CT
and surrounding areas
Price • Affordable
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Marketing Plan
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Purchase Retention
• We will provide excellent service
• Comfortable at home Environment
• Storefront sign/Grand Opening
• Handing out business cards
• Host gaming tournaments
• Social/Gaming Networks
• Provide discounts for long term customers
• Gaming tournaments
• Coupon Rebate
Long Term ( 6 months-1 year)
Current & Short Term (1 month-6 months)
Awareness
Create ads on gaming websites and channels
Give special events and days that are customized for individual type of gamers
Hope to form friendships with customers, and also make it a favorite hangout$300.000 $0.00 $32.00
Monthly cost, by phase:
Awareness Purchase Retention
Cost of Materials/Direct Labor Definition of One Unit 30 Minute Game Experience, Accessory
purchase, Coupon RebateCost of Sales Per Unit
Direct Labor(Labor Cost per Hour)
Time (in hours) to make 1 unit
Direct Labor Cost Per Unit
$12.00 5 minutes or .083hr $1.00$10.00 4240 customers/40
hrs.$0.09
Total Direct Labor Per Unit $1.09Material Description Cost/Total Quantity Cost Per Unit ($)Plastic Bag $500/5000 (25% of the
time)$0.05
Headsets $417/52 (25% of the time)
$2.00
Coupon $10/1000 (25% of the time)
$0.01
Total Material Cost Per Unit $2.06Total Other Variable Costs Per Unit $0.00
Cost of Sales Per Unit $3.15 10
Economics of 1 Unit
Definition of One Unit: 30 Minute Game Experience, Accessory purchase, Coupon RebateSelling Price per Unit (Experience, Headset [email protected], Coupon [email protected])
$26.25
Direct Labor per Unit $1.09
Materials per Unit $2.06
Total COGS per Unit $3.15
Total Other Variable Costs per Unit $0.00
Total Cost of Sales $3.15
Contribution Margin $23.10
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Average Monthly Fixed Costs
Type of Fixed Cost Monthly Cost
Entrepreneurial Stipend $50.00
Insurance ($1M Liability) $150.00
Salaries of Employees $1,080.00
Advertising (Business cards & website) $20.00
Depreciation (Consoles & Accessories) $20.00
Utilities (Internet & Phone, etc.) $100.00
Rent (2300 sq ft. Utilities included): $2,500.00
Total Monthly Fixed Costs $3,920.00
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Time Management Plan
Business , 40
Free time , 59
Work Hours, 24
School Hours, 45
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Business Schedule for a Typical Week (168 hours)
Monthly Sales Projections
0
100
200
300
400
500
600
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Axis
Title
Units Sold
Units sold
14
Total Units
4240
Full Capacity
8640
Break Even Units
92
Projected Yearly Income Statement
Selling Price Per Unit $26.25# of Units Sold 4,240Total Sales $111,300.00
Total COGS $13,356.00Other Variable Costs $0.00
Total Variable Costs $0.00Gross Profit $97,944.00
Yearly Fixed Costs $47,040.00Other Costs/Unforeseen $5,000.00
Total Fixed Costs $52,040.00Profit before Taxes $45,904.00Less Estimated Taxes @25% $11,476.00Net Profit $34,428.00
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Return
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…on Sales
…on Investment 192%Annual Net
ProfitStart-Up Inv.
$34,428.00
$17,900.00= $1.92
31%Annual Net
ProfitTotal Sales
$34,428.00
$111,300.00= $0.31
Item Where I will buy this? Cost of Item
Console Inventory Game Evolution (Ebay.com) $2,540.00
Accessory Inventory Lightinthebox.com $1,800.00 Store Supplies Buystorefixtures.com $800.00Store Furniture Buystorefixtures.com $2,800.00
Televisions Alibaba.com $3900.002 laptops Best Buy Already owned
CASH RESERVE covering 3 months of fixed expenses $4,260.00
Estimated TOTAL START-UP INVESTMENT $16,100.00
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Start-up Investment
Hours Needed150
Total Time Investment$1800
Wage$12x =
Total: $17,900.00
Financing Strategy for Total Start-up Investment
Source Amount Debt Equity Gift
Personal Savings $10,000.00 x
Relatives/Friends $7,900.00 x
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Totals: $17,900.00
Business Responsibility PlanPhilanthropic Strategy Plan
We will donate 5% of our net profits to the Children's Cancer Fund of America foundation
Our consumers will be aware of this by the CCFOA logo which will be included on our business cards
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Business & Educational Goals
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Business
Personal
Shor
t Te
rmLo
ng T
erm
• Pay ourselves a higher wage
• To hire two employees by the end of the first year
• Double sales by the end of the second year
• Being a host for MLG tournaments
• Graduate high school amongst the top of the class
• Attend the college of our choice
• Look to further our education by pursuing a master’s degree
• Pursue a career of our choice
Experience Games!
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Thank you for your consideration of