Sales Strategy
1. We need to sell the company as well as the product. Just as Starbucks became synonymous with great coffee drinks, Rutabaga Sweets will come to be known as a gathering place with spectacular desserts.
2. We have to sell not only an amazing "show" as the desserts are created, but also an above and beyond service team who are knowledgeable and friendly. People will always feel welcome and at home at Rutabaga Sweets.
The Yearly Total Sales chart summarizes our ambitious sales forecast.
Sales Forecast
Our Sales Forecast shows modest estimates for the first year of operations beginning in May of 2003. After establishing Rutabaga Sweets as 'the' place for sweets and celebrations, we project aggressive sales increases for the following years. In the second year of operation we estimate sales increase of 30% and of 50% in the third year for desserts, POP and carry-out. We are planning a 10% increase in Weekly Lesson fees each of the two following years while keeping costs constant.
Our cost of sales is based on an average food cost of 20% for dine in desserts and 15% for point of purchase items, carry-out and weekly lessons. We project a consistent food cost percentage of these amounts for the following two years. Keeping food costs low while sales increase is vital to the profitability of Rutabaga Sweets.