9 Cost and pricing strategy 9.1 Variable costs The most common variable costs will of course be electricity, water, telephone costs, internet costs and the orders of the products at our supplier. The amount of products we purchase at our supplier will depend on how much people will buy our products. After a few months we’ll see what products we’ll have to purchase more often and what products that are less popular.
9.2 Fixed costs The biggest fixed cost will be the rental price of the commercial property. That will be €550 a month. Next to this cost, we also have to pay our salaries to ourselves, which we would like around €1500,00 net a month for each of us. These are our only fixed costs.
10 Financial forecast Realistic
Pessimistic
Average amount of purchase per customer
€ 66,99
€ 50,00
Average amount of customers a month
In the store: 160 customers Online: 290 customers Total: 450 customers
In the store: 70 customers Online: 150 customers Total: 220 customers
Total annual revenues
In the store: € 128 620,80 Online: € 233 125,20 Total: € 361 746,00
in the store: € 42 000,00 online: € 90 000,00 total: € 132 000,00
If we look at the average of all our prices, we get a price of €66,99. Most customers will only buy one thing so that price will be average per customer. We’ll have around 160 customers a month in our store in Bruges and another 290 online at our webshop. That will be 450 customers a month in total. So every year we’ll have around 5400 customers and earn €361 746,00. €128 620,80 will be from the store and €233 125,20 at the webshop. But if we look with a negative view at it, we’ll sell an average of €50,00 per customer, as they maybe only will buy the cheaper products. The total amount of customers would be 220 (70 in the store and 150 online). That will give us a total annual revenue of €132 000,00 (€42 000,00 in the store and €90 000,00 online).
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