milestone 5 draft of financial, pricing & funding plans

Milestone 5Draft 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. Cost of food, truck, insurance, fuel, payroll,

permits and licensesPercentage added according to market

price of produce, price of fuel, other variables

Competitive Alternative Pricing Considerations

What are the competitive alternative prices you considered from “organic” chain fast casual restaurants? Average

PriceEntrees Sides Shakes/

SmoothiesPanera $7.05 $4.79 $3.99

Chipotle $6.45 $2.55 ---

Elevation Burger

$4.50 $2.15 $3.89

Competitive Alternative Pricing Considerations

What are the competitive alternative prices you considered from chain organic fast food trucks?

Average Price

Entrees Sides Shakes/Smoothies

Cinnamon Snail

$8.25 $4.79 ---

Green Truck $8.45 $4.05 ---

BON ME $6 $2 ---

Green Pirate Juice

--- --- $6

Value Differentiation vs. Competing Products

Value DifferentiationSourced by local farmsFresh organic ingredientsQuick but quality food preparation Education about healthy eating in packaging and truck info graphicsSeasonal specials and creative menu options

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

Price Model Considerations

Mark-up pricing

Penetration pricing

Skimming pricing

Follow-the-leader pricing

Variable pricing

Dynamic pricingPrice lining

Breakeven Analysis

Relationship of Cost and Revenue

Breakeven point = September 2013

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.

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)

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

Nature of Raise

We will seek to consistently fund ourselves through the use of debt financing methods.