Business Proposal - Peter's Doughnuts
Lighthouse Roasters should enter a six-month agreement from April 2007 through September 2007 to supply Peter's Doughnuts with roasted gourmet coffee beans for $3.00 per pound for a minimum order of 300 pounds per month.
Justification: Peter's Doughnuts is currently price sensitive given its current decline in business due to increased competition from Starbucks. In addition, Lighthouse Roasters is facing competition from several suppliers to win the business of Peter's Doughnuts. This company has made it clear that it will not pay more than $3.00 per pound.
Although Lighthouse Roasters normally wholesales its beans for $4.50 a pound, we should forgo our typical pricing to establish a relationship with Peter's Doughnuts and to accommodate the special dynamics of the current business situation.
Because Peter's Doughnuts is a large chain with 76 doughnut shops across 13 states, we do not want to lose this account to one of our competitors. Should the company be successful with our product, we can expect to gain an even larger deal size than this chain's current need for 400 pounds of coffee a month during the colder months
October-March) and 300 pounds during the warmer months (April-September).
You’re 62% through this paper. Sign up to read the full paper.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.