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GPS Locator Financial Analysis

GPS Locator Financial Analysis. A simple GPS locating system to track any piece of equipment has a market price of $112 Our company could purchase and assemble this technology in bulk for approximately $59

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GPS Locator Financial Analysis

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  1. GPS Locator Financial Analysis • A simple GPS locating system to track any piece of equipment has a market price of $112 • Our company could purchase and assemble this technology in bulk for approximately $59 • (2009). Zoomba personal gps locators. Retrieved from http://www.zoombak.com/?gclid=COu5uNnBkJ4CFdx05Qodn2cVog

  2. Chirping Device Financial Analysis • The chirping device with a small remote control, which could be attached to a key chain has a market price of $12.95. • For our company to purchase this in bulk and assemble it would cost approximately $8 per device. • (2009). Autosport catalog key finder. Retrieved from http://www.autosportcatalog.com/index.cfm?fa=p&pid=6261&sc=52214&mr:referralID=28bbe793-d2fc-11de-99f3-000423c27407

  3. Battery Power Financial Analysis • The market value of a CR1220 Lithium Coin battery is $1.50 each. • Assuming our company buys these in bulk of at least 500 batteries at a time the price will be reduced to 50 cents a piece. • (2007). Bfm battery sales. Retrieved from http://store.bfmsales.net/cr1220-ren.html

  4. Cell Phone Sticker Financial Analysis • The market price of the sticker placed on the cell phone is 50 cents a piece. • Our company could purchase the stickers in sheets of 2,000 from a supplier in china for a price of 1 cent per sticker. • Huang, Fred. (2009). Shanghai cube packaging & paper co., ltd.. Retrieved from http://cubepack.manufacturer.globalsources.com/si/6008822062918/pdtl/Sticker/1020308864/Stickers.htm

  5. Market Cost - GPS Locator $112 Chirping Device $12.95 CR1220 Lithium Coin Battery $1.50 Cell Phone Sticker $.50 Total Market Cost: $126.95 Financial Breakdown

  6. Financial Breakdown • Company Cost • GPS Locator $59 • Chirping Device $8 • CR1220 Lithium Coin Battery $.50 • Cell Phone Sticker $.01 • Our Total Cost: $67.51

  7. Profit Margin • It is my suggestion that this company undercuts the market competition by 10% • This would mean marketing our product at a price of $114.25 US dollars • Considering our expenses on each product is $67.51 our profit on each device would be $46.74. • This would yield a 40.9% profit margin on each device.

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