Marketing Maple Syrup

sirop d'erable H. Terms of Sale The terms of sale tend to be negotiated when you have a sale, which in this case means when you have a wholesaler or business partner. There are a few different options with respect to this. Freight on Board affects the price, because FOB Seller means that the buyer will pay for the product to be delivered to the seller's location; FOB Buyer means that the seller is going to ship the product.

FAS is "free alongside ship," which means that the seller's obligation is to get the goods to the ship (WCS, 2014). C&F means cost and freight, while CIF means "cost, insurance, freight." With these, the cost of the goods and freight are included in the price or the goods of goods, insurance and freight. While obviously this is subject to negotiation, we are planning to ship to Europe, then distribute to wholesalers.

So the cost is going to be FOB Buyer, and we will take care of getting the product to the wholesaler's warehouse. This allows us to have control over costs, and handle our own shipping to Europe. Either way, you price according to the service that is being provided. I. Methods of Payment There are a few different methods of payment. The first is cash in advance, which is not necessarily normal when doing business with large companies in developed countries.

These are good for a first time dealing however, should we not want to expose ourselves to too much risk, dealing with a new customer Open accounts are more normal, where some sort of trade credit. This is probably what we will use after establishing the business relationship. We are not going to use consignment sales, relying on someone else's marketing skills for us to make money.

So at present we want to build a relationship, starting with a cash sale and then extending credit once we have a reliable business relationship and a better understanding of European trade laws. Pro Forma Marketing Budget Selling Expense 10,000 Advertising Exp 20,000 Distribution Exp 40,000 Total 70,000 Pro Forma Income Statement Year 2 Year 3 Year 4 Year 5 Revenue 500,000 750000 1 1250000 1400000 Product Cost 250,000 375000 500000 625000 700000 Gross Profit 250,000 375,000 500,000 625,000 700,000 Marketing Exp 70,000 105000 136500 170625 196218.8 Administrative Exp 40000 60000 78000 97500 112125 Fixed Costs 80000 80000 90000 100000 100000 Total Expenses 190,000 245,000 304,500 368,125 408,344 Net Profit 60,000 130,000 195,500 256,875 291,656 III. Resource Requirements This plan requires some resources. First, there will need to be staffing requirements.

They will all be part-time, conducing this part of the business in addition to.