Projected Finances
Value proposition
The cost of each item to be produced would be as follows:
-$0.09 per card (21 cards= 1.98)
-$1.88 per player miniature
-$0.07 per cardboard hp counter (basically cardboard card)
-$0.15 per glass bead hp token
-$0.33 per paper mat/ rule book
-$2.79 per varying cardboard box
-$0.94 per die ( 6 variety of die= 5.64)
-12.84 in total production and labor for a single unit
https://www.thegamecrafter.com/publish/pricing
production cost x 10% of cost (contingency) = cost of product
12.84 x 1.29 = 14.13
Competitive advantage
Uniqueness of a game developed by players and the unique properties of the game itself, being part tcg (trading card game) and part board game/ collectible miniature game, this in which the competitors do not have. This being to sell the product at it's current amount.
Marketing strategy
-The usage of common advertisements and the development of the story of the game, being developed by the players. This in hoping to gain traction to a unique idea of developing a story by the people who purchase this game.
-cost of Method
-National pay per click advertising: 5 cents to 3 dollars per click for redirection to product website
-National search engine optimization:$4,000 to create website, free of charge to be put onto the internet
-Web content marketing campaign: $6,000 to produce and free of charge to be put into the internet
total:$412,000 for advertising alone
Distribution patterns
The strategy of our company will be using, in order maximize sales, is to attempt to not increase the pricing of our product throughout its run and also to attempt to sell this product as low as possible.
Pricing strategy
-Starter set($14.99):
-21 cards total
-1 miniature
-1 hp counter
-1 bead token
-1 paper playmat/ rule book
- 6 die
-1 box
Sales strategy
We plan to keep the price of this product at its current standing for the duration of its run and will not be altering its price in the near future in hopes to sell this product for as low as possible and for profiting for the company.
Revenue streams
-first year profit:$36,000
-second year profit:$114,423
-third year: $115,909
-fourth year: $125,966
-fifth year:$138,662
Assumptions
We can assume the profits for the first year of sales will be $43,000 the reasoning for this is as follows:
-The cost of the product at its base form is $14.13, this will be rounded $14.99, profit made being $.86
-The sales predicted for the first year will be generally 50,000 units sold.
-The total cost for that amount of units for the first year will be $749,500 and the profit being $43,000
-The total cost of advertising will be $7,000
-The total cost of everything will be $756,500
Break-even analysis
After the first year we will accumulate exactly $42,000 of profit as well as enough funds to produce the same amount of units for the first year again (50,000 units), this means we will have already gained profit after the first year of sales, therefore breaking even.
Projected profit and loss
-during the first year of sales, the cost for starting the mostly costly utilities such as advertising, in total will cost the company around $7,000 for the first year’s profits which will make that years gains a measly $36,000, but the next year’s profits, because of the initial costs are now out of the way, will now be $114,423. Each year a project assumption of a raise of 10% of the sales will be accustomed and a regular base of advertising of around $1,000 a year from the company’s profits
Projected cash flow
-first year profit:$36,000
-second year profit:$114,423
-third year: $115,909
-fourth year: $125,966
-fifth year:$138,662
Projected balance sheet
Assets:
Long-term assets:
-Facility $0
-Utilities $0
-Subtotal: $0
Product:
-21 card $1.98
-player miniature $1.88
-cardboard hp counter $0.07
-glass bead hp token $0.15
- paper mat/ rule book $0.33
-varying cardboard box $2.79
-6 variety of die $5.64
-Sub-total of production and labor: $12.84
-Sub-total of production plus increase: $14.99
-50,000 units $749,500
-Sub-total $749,500
Advertising assets:
-Pay per click $1,000
-Search engine optimization $0
-Web content $6,000
-Sub-total: $7,000
Total cost: $756,500
7.6 Business ratios
-1st year
-Increase of sales: %0
-Units: 50,000
-Cost for production of units: $749,500
-Advertising costs: $7,000
-Total costs: $756,500
-1st year’s profits: $36,000
-2nd year
-Increase of sales %10
-Units: 55,000
-Cost for production of units: $824,450
-Advertising costs: $1,000
-Total costs: $825,450
-2nd year’s profits: $114,423
-3rd year
-Increase of sales: %10
-Units: 60,500
-Cost for production of units: $906,459
-Advertising costs: $1,000
-Total costs: $907,459
-3rd year’s profits: $115,909
The cost of each item to be produced would be as follows:
-$0.09 per card (21 cards= 1.98)
-$1.88 per player miniature
-$0.07 per cardboard hp counter (basically cardboard card)
-$0.15 per glass bead hp token
-$0.33 per paper mat/ rule book
-$2.79 per varying cardboard box
-$0.94 per die ( 6 variety of die= 5.64)
-12.84 in total production and labor for a single unit
https://www.thegamecrafter.com/publish/pricing
production cost x 10% of cost (contingency) = cost of product
12.84 x 1.29 = 14.13
Competitive advantage
Uniqueness of a game developed by players and the unique properties of the game itself, being part tcg (trading card game) and part board game/ collectible miniature game, this in which the competitors do not have. This being to sell the product at it's current amount.
Marketing strategy
-The usage of common advertisements and the development of the story of the game, being developed by the players. This in hoping to gain traction to a unique idea of developing a story by the people who purchase this game.
-cost of Method
-National pay per click advertising: 5 cents to 3 dollars per click for redirection to product website
-National search engine optimization:$4,000 to create website, free of charge to be put onto the internet
-Web content marketing campaign: $6,000 to produce and free of charge to be put into the internet
total:$412,000 for advertising alone
Distribution patterns
- The process of distribution patterns will be provided by the producer or service provider, or using indirect channels with distributors (stores).
The strategy of our company will be using, in order maximize sales, is to attempt to not increase the pricing of our product throughout its run and also to attempt to sell this product as low as possible.
Pricing strategy
-Starter set($14.99):
-21 cards total
-1 miniature
-1 hp counter
-1 bead token
-1 paper playmat/ rule book
- 6 die
-1 box
Sales strategy
We plan to keep the price of this product at its current standing for the duration of its run and will not be altering its price in the near future in hopes to sell this product for as low as possible and for profiting for the company.
Revenue streams
- We currently do not have income but we will be supported by our distributors and service providers, once we have income we will make improvements to our product and fund TAC Games to create new games.
- This company predicts that the general average for the consumption and buying of this product will generally be 50,000 units sold per year with a generous 10% increase in sales per year, this is based on the generalization of the average of what boardgame/ cardgame sales are per year plus the accompanying increase in sales per year.
-first year profit:$36,000
-second year profit:$114,423
-third year: $115,909
-fourth year: $125,966
-fifth year:$138,662
Assumptions
We can assume the profits for the first year of sales will be $43,000 the reasoning for this is as follows:
-The cost of the product at its base form is $14.13, this will be rounded $14.99, profit made being $.86
-The sales predicted for the first year will be generally 50,000 units sold.
-The total cost for that amount of units for the first year will be $749,500 and the profit being $43,000
-The total cost of advertising will be $7,000
-The total cost of everything will be $756,500
Break-even analysis
After the first year we will accumulate exactly $42,000 of profit as well as enough funds to produce the same amount of units for the first year again (50,000 units), this means we will have already gained profit after the first year of sales, therefore breaking even.
Projected profit and loss
-during the first year of sales, the cost for starting the mostly costly utilities such as advertising, in total will cost the company around $7,000 for the first year’s profits which will make that years gains a measly $36,000, but the next year’s profits, because of the initial costs are now out of the way, will now be $114,423. Each year a project assumption of a raise of 10% of the sales will be accustomed and a regular base of advertising of around $1,000 a year from the company’s profits
Projected cash flow
-first year profit:$36,000
-second year profit:$114,423
-third year: $115,909
-fourth year: $125,966
-fifth year:$138,662
Projected balance sheet
Assets:
Long-term assets:
-Facility $0
-Utilities $0
-Subtotal: $0
Product:
-21 card $1.98
-player miniature $1.88
-cardboard hp counter $0.07
-glass bead hp token $0.15
- paper mat/ rule book $0.33
-varying cardboard box $2.79
-6 variety of die $5.64
-Sub-total of production and labor: $12.84
-Sub-total of production plus increase: $14.99
-50,000 units $749,500
-Sub-total $749,500
Advertising assets:
-Pay per click $1,000
-Search engine optimization $0
-Web content $6,000
-Sub-total: $7,000
Total cost: $756,500
7.6 Business ratios
-1st year
-Increase of sales: %0
-Units: 50,000
-Cost for production of units: $749,500
-Advertising costs: $7,000
-Total costs: $756,500
-1st year’s profits: $36,000
-2nd year
-Increase of sales %10
-Units: 55,000
-Cost for production of units: $824,450
-Advertising costs: $1,000
-Total costs: $825,450
-2nd year’s profits: $114,423
-3rd year
-Increase of sales: %10
-Units: 60,500
-Cost for production of units: $906,459
-Advertising costs: $1,000
-Total costs: $907,459
-3rd year’s profits: $115,909