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Milestone 5 Draft of Financial, Pricing & Funding Plans

Milestone 5 Draft of Financial, Pricing & Funding Plans . Adam Parmer, Daniel Wendt, Fred Behnke, Peter Warren. Pricing Model. Cost-plus pricing - costs of running business plus operating expenses adding a percentage to the final cost.

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Milestone 5 Draft of Financial, Pricing & Funding Plans

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  1. Milestone 5Draft of Financial, Pricing & Funding Plans Adam Parmer, Daniel Wendt, Fred Behnke, Peter Warren

  2. Pricing Model • Cost-plus pricing- costs of running business plus operating expenses adding a percentage to the final cost. • Cost of food, truck, insurance, fuel, payroll, permits and licenses • Percentage added according to market price of produce, price of fuel, other variables

  3. Competitive Alternative Pricing Considerations • What are the competitive alternative prices you considered from “organic” chain fast casual restaurants?

  4. Competitive Alternative Pricing Considerations • What are the competitive alternative prices you considered from chain organic fast food trucks?

  5. Value Differentiation vs. Competing Products • Value Differentiation • Sourced by local farms • Fresh organic ingredients • Quick but quality food preparation • Education about healthy eating in packaging and truck info graphics • Seasonal specials and creative menu options

  6. How competitor prices impact our pricing • Entrée Prices and Menu Options • Gives benchmark, but don’t have to compete with lowest if value differentiation is high • Variability of options gives weight to pricing • Local farm pricing • Able to see costs of raw products to food trucks • Location/Cost of Living • Dictates prices and market

  7. Price Model Considerations • Mark-up pricing • Penetration pricing • Skimming pricing • Follow-the-leader pricing • Variable pricing • Dynamic pricing • Price lining

  8. Breakeven Analysis • Relationship of Cost and Revenue • Breakeven point = September 2013

  9. Approach • Our approach to fundraising centralizes around maintaining control of the company by seeking alternative methods of obtaining funds without giving up part of the company.

  10. Fundraising • $40,000 initial cost • $30,000 owner contribution (7,500 each) • $5,000 through incentive based crowd sourcing (Any excess needed would be attained through loans)

  11. Use • The initial funds will be used for: • Purchasing the truck • Outfitting the truck with equipment • Restyling exterior • Renting a prep-kitchen • Purchasing inventory/ingredients • Allowing for employment of staff

  12. Nature of Raise • We will seek to consistently fund ourselves through the use of debt financing methods.

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