Unfortunately, we cannot sell the products at a higher price simply because we offer services; the market has shown that it will not support that concept.
We must also sell the service and charge for it separately.
We make sure that our clients have what they need in order to run their businesses at peak performance levels, with maximum efficiency and reliability.
AMT is a 10-year-old computer reseller with sales of $7 million per year, declining margins, and market pressure.
This business plan leads the way by renewing our vision and strategic focus of adding value to our target market segments—the small business and high-end home office users in our local market.
It also provides a step-by-step plan for improving our sales, gross margin, and profitability.AMT is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect.Smart business people who aren't computer hobbyists need to find quality vendors of reliable hardware, software, service, and support and they need to use these quality vendors as they use their other professional service suppliers—as trusted allies. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor.We have one location—a 7,000 square-foot brick & mortar facility located in a suburban shopping center conveniently close to the downtown area. We sell the assurance to small business people that their business will not suffer any information technology disasters or critical downtimes.Along with sales, it includes a training area, service department, offices, and showroom area. AMT serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor.For years, we have supported both Windows and Macintosh technology for CPUs, although we've switched vendors many times for the Windows (and previously DOS) lines.We are also supporting Novell, Banyon, and Microsoft networking, Xbase database software, and Claris application products.Our margins are declining steadily for our hardware lines. (add relevant information) Our margins are thus being squeezed from 25% from five years ago to closer to 13 to 15% at present.A similar trend shows for our main-line peripherals, with prices for printers and monitors declining steadily.This example is provided as part of the instructions and detailed descriptions included in the Components of a Business Plan.By focusing on its strengths, its key customers, and the company's underlying core values, Acme Management Technology will increase sales to more than million in three years, while also improving the gross margin on sales and cash management and working capital.