Question: The company s name will be CreativeCalligraphyInvitations.com and it will produce customized, hand - made invitations for busy customers at a reasonable rate. Your research
The companys name will be CreativeCalligraphyInvitations.com and it will produce customized, handmade invitations for busy customers at a reasonable rate. Your research indicates the market rate for your product is $ per invitation. Since your business is just starting, you plan on charging around $ per invitation and require a minimum of invitations per order. In the following, as you build your business plan, assume that all orders will come in quantities of invitations, but also consider how your business plan will be affected if orders come in larger amounts.
Several factors will set you apart from standard invitations. First, the client will have a chance to customize the design and message of the invitations via a website. Second, beautiful calligraphy handwriting will be utilized for all parts of the invitations. The invitations will be fully personalized. This means that while the details of an invitation will be the same, the name and address information will be personalized for each recipient. Third, the handwritten invitations will be beautifully decorated with a combination of ribbons, bows, and motifs. Finally, to ensure complete satisfaction, the finished order will be mailed back to the client, who will have a chance to review the final product before simply putting on a stamp and sending the already addressed invitations to the intended recipients. You and your best friend will be making these invitations parttime, in addition to your fulltime jobs. Therefore the hours available to work on the invitations are pm MondayThursday and am pm Saturday. Sunday you have allocated to resting and preparing for the following week. Both of you are computer savvy, but neither has ever built a website and therefore you asked your computer science major friend John to create one based on your specific needs. John lives in Brooklyn, NY but says he would have no problem creating the site from his apartment over a twoweek period and has asked for $ to get everything up and running. John says that he can provide technical assistance afterward to maintain the site for $ a month. Other than the website, you and your friend already own all the capital equipment needed to get started: one highquality laser jet printer, a laptop, highquality ink calligraphy pens, and scissors. The variable costs include the price of printerpen ink $ per ten invitations decorations $ per each highquality card paper $ per ten luxury envelopes $ per ten all other costs $ per invitation and of course your time. The first step involves preparing your workspace. which requires minutes of each persons time. The next step involves Susie booting up her computer, which takes approximately minutes, and logging in to the website, which takes an additional minutes because time is needed to upload all the orders. Once the information is uploaded production can begin. It takes Susie minute in total to access each order, download the clients address, and fill out the return envelope in which the invitations will be sent back to the client for review. In the next step, Susie initializes printing of the cards with the customer selected background; it takes minute for each card to print and dry. After the printing is done, you begin calligraphy writing. The writing time varies based on the customers request, but averages out to approximately minutes per card. The invitation card then has to dry for minutes before your roommate can begin attaching customerspecified decorations ribbons bows, and motifs to the card, a process which takes minutes.After the printing is done, you begin calligraphy writing. The writing time varies based on the customers request, but averages out to approximately minutes per card. The invitation card then has to dry for minutes before your roommate can begin attaching customerspecified decorati ons ribbons bows, and motifs to the card, a process which takes minutes. While the card is drying, you start working on addressing the envelope for that specific recipient. It takes you minutes to locate the appropriate address on the website and to fill out the address information by hand. Finally, it takes minutes for the heavy ink on the envelope to dry. After the personalized card and envelope are completed and the ink is dry, it takes Susie minutes to stuff each card into the matching envelope. Eventually all five invitations are placed in the return envelope, which takes additional minutes. The same process is repeated for all of the invitation orders that are done in one evening. Every morning, while heading to your fulltime job, all the orders completed the day before are mailed back to the clients. The stamp fee is $ per order, and the mailbox is conveniently located on your way to work.
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