1 / 12

Milestone 5 Draft of Financial, Pricing & Funding Plans

Milestone 5 Draft of Financial, Pricing & Funding Plans . Adam Parmer, Daniel Wendt, Fred Behnke, Peter Warren. Pricing Model. Cost-plus pricing - costs of running business plus operating expenses adding a percentage to the final cost.

portia
Download Presentation

Milestone 5 Draft of Financial, Pricing & Funding Plans

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Milestone 5Draft of Financial, Pricing & Funding Plans Adam Parmer, Daniel Wendt, Fred Behnke, Peter Warren

  2. Pricing Model • Cost-plus pricing- costs of running business plus operating expenses adding a percentage to the final cost. • Cost of food, truck, insurance, fuel, payroll, permits and licenses • Percentage added according to market price of produce, price of fuel, other variables

  3. Competitive Alternative Pricing Considerations • What are the competitive alternative prices you considered from “organic” chain fast casual restaurants?

  4. Competitive Alternative Pricing Considerations • What are the competitive alternative prices you considered from chain organic fast food trucks?

  5. Value Differentiation vs. Competing Products • Value Differentiation • Sourced by local farms • Fresh organic ingredients • Quick but quality food preparation • Education about healthy eating in packaging and truck info graphics • Seasonal specials and creative menu options

  6. How competitor prices impact our pricing • Entrée Prices and Menu Options • Gives benchmark, but don’t have to compete with lowest if value differentiation is high • Variability of options gives weight to pricing • Local farm pricing • Able to see costs of raw products to food trucks • Location/Cost of Living • Dictates prices and market

  7. Price Model Considerations • Mark-up pricing • Penetration pricing • Skimming pricing • Follow-the-leader pricing • Variable pricing • Dynamic pricing • Price lining

  8. Breakeven Analysis • Relationship of Cost and Revenue • Breakeven point = September 2013

  9. Approach • Our approach to fundraising centralizes around maintaining control of the company by seeking alternative methods of obtaining funds without giving up part of the company.

  10. Fundraising • $40,000 initial cost • $30,000 owner contribution (7,500 each) • $5,000 through incentive based crowd sourcing (Any excess needed would be attained through loans)

  11. Use • The initial funds will be used for: • Purchasing the truck • Outfitting the truck with equipment • Restyling exterior • Renting a prep-kitchen • Purchasing inventory/ingredients • Allowing for employment of staff

  12. Nature of Raise • We will seek to consistently fund ourselves through the use of debt financing methods.

More Related