Peter:
'Well, with all the additional costs of starting a new operation there and being new to the market, if we don't make a loss on each product we sell, then nobody will buy them.'
Ray:
'So, correct me if I'm wrong, but do you mean we will make a large loss for the first 3 years?'
Peter:
'It's not exactly what I meant. It won't be a large loss, we've calculated it at about $150,000 over the 3 years. By the fourth year, we'll be making a profit as we sell more units. Does that make everything clear?'
Ray:
'More or less.'
Hans:
'Peter, I'm sorry, could you go over that again?'
Peter:
'No problem Hans, we've calculated that the loss at about $150,000 over the 3 years. By the fourth year, we'll be making a profit as we sell more units.'
Jennifer:
'Sorry, I must have misunderstood what you said, do you mean that there isn't a market for our products in the US at the moment? And that we are going to be losing money until we can create a market there?'
Peter:
'No, I meant that the market is there. We just need to do what we did in Turkey and we'll be certain of making a profit by the fourth year.'
Jennifer:
'I don't like the sound of this. What exactly do you mean by what we did in Turkey?'
Peter:
'By using the same business strategy we used when we entered the Turkish market. We made a small loss at the beginning on each product sold due to the set up costs, like marketing, advertising, building etc... In a nutshell, It'll take 3 years to build up a market for our products and then we make money.'