Distribution Costs Distribution costs are costs that a business has in order to get their product or service into the hands of their intended customers. ModernJET holds a simple distribution cost of only requiring gas to get to our customers. We will be open a total of 63 hours a week, with travel time taken into overnight account. Each of our three locations: Miami, Tampa, and Cape Coral; equates to a total of 563.6 miles round trip. The F650 truck that we plan to use, has a 30 gallon tank with 12 miles per gallon. This totals to us needing to fill up our truck with gas about two times in full. Tampa has an average gas price of $2.40 and Miami has an average gas price of $2.36. We will also need to fill up the gas tank in Cape Coral which …show more content…
By September, ModernJET expects to hit 100% washing capacity which will bring us in at a projected by year end. Since ModernJET does not have any cost of goods, we will be putting that profit back into the business by building a second machine to help grow our business, which drops profit down to $487,205.56. This will affect how our sales do in year three. We project to see the same patterns as in our first year, with a slow increase as we introduce our second machine, and possible more locations. By year end, we project net income is …show more content…
Repayment plans As a new business, it is safe to assume that ModernJET will be given the $81,623.53 loan at an interest rate of 7.25%. With this rate, we will be able and willing to pay a monthly payment of $745.11. Over a 15 year period, the company will pay total interest of $52,496.43. Therefore, the total amount of payments will equal $134,119.96. 4. Plan to repay borrowed funds or provide return on investment equity funds. With the profit ModernJET is expected to make, the two investors who invested in the startup will be paid on a monthly basis. This allows the company to repay the investors while still making a profit. X. Key Metrics Maintaining an organized system for tracking key metrics is imperative for any successful business. ModernJET will measure essential components to the business such as Customer Acquisition Costs, Lifetime Values, and Viral Coefficient. ModernJET’s Customer Acquisition Costs must continue to be a low cost when observed. With the delegated customer segment, anything more than what’s currently decided would be deemed as unreasonable. In the case of our company, bigger risk will not always mean bigger