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We have one location—a 7,000 square-foot brick & mortar facility located in a suburban shopping center conveniently close to the downtown area. We sell the assurance to small business people that their business will not suffer any information technology disasters or critical downtimes.
Unfortunately, we cannot sell the products at a higher price simply because we offer services; the market has shown that it will not support that concept.
We must also sell the service and charge for it separately.
We are also starting to see that same trend with software...(add relevant information) To hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipping from the warehouse in Dayton.
We need to continue to make sure our volume gives us negotiating strength.
Although the chart titled "Past Financial Performance" shows that we've had healthy growth in sales, it also indicates declining gross margin and declining profits.
The more detailed numbers in Table 2.2 include other indicators of some concern: As can be seen in the chart, the gross margin percentage has been declining steadily, and nventory turnover is getting steadily worse as well.
We make sure that our clients have what they need in order to run their businesses at peak performance levels, with maximum efficiency and reliability.
AMT is a 10-year-old computer reseller with sales of million per year, declining margins, and market pressure.
This business plan leads the way by renewing our vision and strategic focus of adding value to our target market segments—the small business and high-end home office users in our local market.
It also provides a step-by-step plan for improving our sales, gross margin, and profitability.