Walter Gonzales
Carla Gallardo
3-26-15
Marketing
TechTronics Electronics Store
The TechTronics Electronics Store is a retail electronics store that sells anything from mp3 players to the newest technology like drones. This company is a partnership between Walter Gonzales and Carla Gallardo, so therefore we have a fifty percent split between all revenues and expenses. Our main goal is to establish an electronics superstore that not only delivers the top of the line products and technology, but also delivers the best sales experience to customers and not to mention the most technological and updated store. Our Business plan is based on receiving a $500,000 dollar loan from the bank and 10 years to pay it back with 8% interest to start our business and handle all business expenses. Some of the business expenses that we may need to handle are first setting the location for our store, in which we will receive the continuous amount of traffic that we require to continuously have the opportunity to make sales. Our location will be in the American Dream Miami Mall because it will be the largest mall in the United States and not only will it be new, but also it will be a focal point for tourism and continuous traffic. We would sign a contract with the mall for 5 years and the option to extend the contract 3 more years after the 4th year. Monthly payments of the location would be $ 35,000 dollars a month and with a deposit of first and last month, which would bring the total up to $70,000 dollars from the start. Next we would have to calculate the expenses of constructing a modern and technological electronic store from the backrooms to the shelves. The whole construction, highered hands, materials and furniture for the store would cost $40,000 dollars. Our store would require merchandise from all different kinds of branches of technology phones, tablets, computers, drones, speakers, projectors, televisions, accessories and many different more. Most of the expenses of an electronic store are establishing connections with providers and wholesalers to buy the products we need and keep them in rotation, to receive more or to buy the newest items. This will roughly be around $250,000 to get us started. The hunt for great salesman is the most important part before opening our partnership. In order to benefit our employees and ourselves the most, we would instill a commission-based business. In order to cover our losses we would instill a 24% profit margin on each item and depending on the price of the item the percentage goes down, in order to maintain the best prices possible. There would be 8 salesmen in our store and they would earn 30% above anything they earn above our 24% and 2 stock boys working in different shifts getting paid weekly. And lastly utilities would be the last of our expenses, which includes Internet, printer, ink, electricity, water, phone, etc would cost $ 3,000 initially and $1,200 continuously.
To ensure our business runs as smooth as ever we would provide sales daily, that would also benefit our salesmen and have a “don’t let a customer walk” mentality to finish a sale. Our sales policy would be a no refund, exchange only within 30 days and must have all original packaging to be credible. This policy allows us and the salesmen to protect ourselves from customers who love using the product for a couple of days and then returning it or from an unreasonably low price way beyond that of a brand’s or official retailer. The benefit of salesmen working off commission is they can overprice a certain item, work a sale with a customer and then close that sale, giving us, the owners of the company a larger margin of profit and the possibility of other items they were not looking for to begin with to have been sold in the process. The negative side of a commission based store is customers complaining about products that have been sold too high and that may have been found elsewhere at a cheaper price and the time taken away
