Business Proposal - Peter's Doughnuts
Lighthouse Roasters should enter a six-month agreement from April 2007 through September 2007 to supply Peter's Doughnuts with roasted gourmet coffee beans for $3.00 per pound for a minimum order of 300 pounds per month.
Justification: Peter's Doughnuts is currently price sensitive given its current decline in business due to increased competition from Starbucks. In addition, Lighthouse Roasters is facing competition from several suppliers to win the business of Peter's Doughnuts. This company has made it clear that it will not pay more than $3.00 per pound.
Although Lighthouse Roasters normally wholesales its beans for $4.50 a pound, we should forgo our typical pricing to establish a relationship with Peter's Doughnuts and to accommodate the special dynamics of the current business situation.
Because Peter's Doughnuts is a large chain with 76 doughnut shops across 13 states, we do not want to lose this account to one of our competitors. Should the company be successful with our product, we can expect to gain an even larger deal size than this chain's current need for 400 pounds of coffee a month during the colder months
October-March) and 300 pounds during the warmer months (April-September).
Immediate Profitability: At the reduced wholesale rate of $3.00 per pound, Lighthouse Roasters will still generate a profit of.25 cents per pound from the Peter's Doughnuts account. With the minimum order of 300 pounds per month for six months, this proposal generates a $450 profit for Lighthouse Roasters.
Long-Term Prospects: Lighthouse Roasters should reevaluate its pricing when the six-month contract expires. At this time, Peter's Doughnuts will enter its busier season and may be less price sensitive. Also, we anticipate that our excellent product will increase the overall business of Peter's Doughnuts and that it then be willing to pay higher prices for our proven product and the outstanding service we offer to our valued customers.
These refer to the characteristics of the political and regulatory environment (P), the economic environment (E), the socio-cultural environment and finally, the technological environment. The analysis of the climate in which an organization activates is also known as the PEST analysis. 4.1 Company Product Line Starbucks offers a wide selection of coffee-based beverages, with both caffeine and without caffeine. Aside their coffee beverages, they also offer whole-bean coffees, food items and coffee-related
Krispy Kreme Case Analysis Krispy Kreme Doughnuts Inc. certainly seemed in an excellent position in the doughnut business at this moment, however, both analysts and managers of the company have been wondering whether the high level the stock had reached could actually be sustained by the sale of doughnuts and whether in the future there is a possibility that the company's stock and, subsequently, its value, will be dropping. Indeed, the stock
Validation of Commercial Baking as an Effective Step to Control/Inactivate Salmonella in Baked Products Major findings, analysis and conclusions Description of the baking industry and baking emphasis in the United States. Purpose and structure of importance Description of the problem being addressed and its importance to the practice of applied food safety Process of Consultation Outline how the client (ABA) will be engaged and carefully define the problem Identification of key stakeholders Overview and feedback of findings and
Health Care Reform Federal Deficit The American Health Care Crisis and the Federal Deficit The United States spends more than any other country on medical care. In 2006, U.S. health care spending was $2.1 trillion, or 16% of our gross domestic product. At the same time, more than 45 million Americans lack health insurance and our health outcomes (life expectancy, infant mortality, and mortality amenable to health care) are mediocre compared with
In order to get various information for comparative analysis, several online databases will be explored so that the scientific data and social factors that will be unearthed are factual enough and relevant to the study of obesity among teenagers. The publication year was used from 2000 to present. This is because the researcher can be access to the best data. Also, this period has showed the fast economic development that
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now