Business Case Example
WHO: Susie’s Wonders
WHAT: Business Case for New Display Cabinets
Currently, Susie’s Wonders is displaying products on tables, refurbished hutches, and furniture. We are adding new product lines in the fall and in order to do this we will need new display cabinets that will include hanging space and enable us to better use the vertical space.
BENEFITS:
We project that the new product lines will increase business by 20% initially, as there are very few apparel options for women 40-60 yrs. old. Our current customers range in age from 25-65 yrs., so this will enhance their shopping options when they are in the store.
Cabinetry will allow us to stock more items and use our vertical space. It is a fresh modern look that will display items nicely.
IMPLEMENTATION:
We will have a social media campaign beginning about a month before the grand opening of the new product lines. We will also communicate directly with our customers and have an opening night event. We will continue to market the new product line with our other products.
RISKS:
Product line is not embraced by customers. We can get feedback and change direction next season. Cabinets will be able to re-set to change with the product lines.
COST:
Appraised costs are 10,000.00, including installation. Based upon sales projections, inventory costs, we expect to pay off in 5 years, depending upon the awarded dollar amount. Bid attached.
TIMELINE:
April Order; July delivery: August installation; New Product September 15.
MEASUREMENT OF SUCCESS:
Sales of the product line will be monitored weekly, so we can adjust new product volumes and arrival dates. Our true measure will be Christmas sales. We would think sales should jump by 15-20% as these items have a much higher price point and there are not many alternatives in Ellensburg.