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Planes, Boats & Planograms

Planes, Boats & Planograms. Howard Bergman. The Power of the Customer. There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. Sam Walton. Planes. Fixed - $46,050 Jets Airport facilities

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Planes, Boats & Planograms

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  1. Planes, Boats & Planograms Howard Bergman

  2. The Power of the Customer There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. Sam Walton

  3. Planes

  4. Fixed - $46,050 Jets Airport facilities Customer service Mechanics Pilots Flight attendants Baggage handlers Variable - $12,000 Fuel Food Cost of a Flight$58,050

  5. $460/seat 11 rows@ $2760/row = $30,360 $500/seat 5 rows @ $3,000/row = $15,000 $800/seat 4 rows @ $3,200/row = $12,800 $320/seat 10 rows @$1,980/row = $19,800 Total Cost = $58,050 Variable Cost = $12,000 Total Revenue = $77,960 Ave Cost/passenger (172) = $337 Loss/Profit = $19,910 Total Cost = $58,050 Variable Cost = $12,000 Total Revenue = $27,800 Ave Cost/passenger (46) = $1261 Loss/Profit = $30,250 Total Cost = $58,050 Variable Cost = $12,000 Total Revenue = $58,160 Ave Cost/passenger (112) = $518 Loss/Profit = $110 Total Cost = $58,050 Variable Cost = $12,000 Total Revenue = $12,800 Ave Cost/passenger (16) = $3628 Loss/Profit = $45,250

  6. $300/seat 15 rows @ $1,800/row = $27,000 Total Cost = $48,000 Variable Cost = $12,000 Total Revenue = $27,000 Ave Cost/passenger (90) = $555 Loss/Profit = $21,000 Low Cost Airlines

  7. $460/seat 6 rows@ $2760/row = $16,560 $500/seat 5 rows @ $3,000/row = $15,000 $800/seat 4 rows @ $3,200/row = $12,800 Total Cost = $58,050 Variable Cost = $12,000 Total Revenue = $44,360 Ave Cost/passenger (82) = $708 Loss/Profit = $13,690 $175/seat 15 rows @$1050/row = $15,750 Total Cost = $58,050 Variable Cost = $12,000 Total Revenue = $60,110 Ave Cost/passenger (172) = $337 Loss/Profit = $2,060

  8. BOATS

  9. $20 $20 $20 $20 = Our engines Cost = $80 Price = $100 Total Profit = $100 $20

  10. $15 $15 $15 $15 = Our engines Cost = $80 Price = $95 Total Profit = $75 $15 $15 Total Profit = $90

  11. PLANOGRAMS

  12. What does a Retailer Need? Maximize Economic Profit Increase Margins Increase Turns Increase other sources of income Decrease cost of capital employed Decrease cost of operations

  13. Clothing Yard Pharmacy Houseware Food Store Layout

  14. Planogram Assortment: What to carry Placement: Where to put it Promotion: How to display it Pricing: What retail price Supply: How much, how often

  15. Assortment:Variety vs Duplication Are these items worth keeping? • How many items ? • How many sizes ? • Will the consumer switch to another brand ?

  16. $2.00 $3.00 $2.20 -$2.00 = $0.20 $3.15 - $3.00 = $0.15 $0.15 X 100/month = $15.00/month $0.20 X 50 month = $10.00/month $25.00/month

  17. $0.15 X 150/month = $22.50/month $0.20 X 25 month = $5.00/month $27.50/month

  18. What does a Retailer Need? Maximize Economic Profit Increase Margins Increase Turns Increase other sources of income Decrease cost of capital employed Decrease cost of operations

  19. Clothing Yard Pharmacy Houseware Food

  20. The Power of the Customer There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. Sam Walton

  21. The End Thank You

  22. $3628 $1261 $800 $518 $350 $500 $460 $337 16 46 112 172

  23. 11:00 pm 8:00 pm 6:00 am 7 am 2 Full Flights Profit = $42,000 6:00 pm 7:00 pm Las Vegas MPLS 2 Additional Flights 1/2 full Variable Cost = $24,000 Revenue = $44,360 Loss/Profit = $20,300 Total Profit = $62,300 11:00 am 8:00 am

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