Indulge
Indulge
By:
Kally Schlemko
Jenn Schmidt&
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Cupcakes & Wedding
Cakes
Vanilla Cake with Lemon Icing
Chocolate Cake with Peppermint Icing
Chocolate Cake with Peanut Butter Icing
Vanilla Cake with Vanilla Icing
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Critical Factor
Sales!
Sales!
Sales!
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138 – 1820 McOrmond Drive
University Heights Square
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Why University Heights Square?
• Surrounded by 7 neighborhoods with a combined population of 45,000+ (Source: City of Saskatoon)
• The surrounding neighborhoods have an average household income of $85,704 (Source: City of Saskatoon)
• Next to 2 high traffic streets; Attridge Drive and McOrmond DriveStreet 2009 (estimated) 2014 (projected)
McOrmond Drive 183 vehicles/hr 1117 vehicles/hr
Attridge Drive 738 vehicles/hr 1073 vehicles/hr
(Source: Stantec Consulting Ltd)
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Direct CompetitionThe Cupcake
CornerThe Cupcake Conspiracy
$3.00/ Cupcake $2.50/ Cupcake
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Indirect Competitors
Safeway
Starbucks
$ 1.50/ Cupcake $1.95/ Mini Cupcake
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Profit Margin
Price: $3.00Cost: $0.27
Profit Margin: 91%
Price: $700Cost: $104.58Profit Margin:
85%
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Customer Growth
Expected Revenues
2012 2013 2014 2015 2016
Number of Customers/Day
30 36 40 42 42
Numbers of Days/Year 350 350 350 350 350
Average Purchase/Customer
$18.00 $18.45 $18.91 $19.38 $19.87
Total Sales $189,000
$232,470 $262,110 $282,09
6$294,93
1
2012 2013 2014 2015 2016
25% 20% 10% 5% 5%
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Marketing
2012 2013 2014 2015 2016
Radio $12,090
$12,090 $9,067 $6,045 $3,022
Newspaper $4,567 $4,567 $3,425 $2,283 $1,141
Website $950 $200 $200 $200 $200
Print Ads $2,000 $2,000 $1,500 $1,000 $1,000
Signage $3,000 $3,000 $3,000 $3,000 $3,000
Yellow Pages $240 $240 $240 $240 $240
Total $22,847
$22,097
$17,432
$12,768
$8,603
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Breakeven Analysis
1 2 3 4 505
1015202530354045
30
3640 42 42
31 31 29 28 27Base CaseBreakeven
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Return on Investment
NPV: $82,891
Required Rate of Return: 25%
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