Sample Marketing Plan 2.0 Current Market Position

Show how you have established the price of your products and services.
Example
Canterbury Renovations will be involved in the following activities:
• purchase and supply of equipment
• purchase and conversion of raw or partially finished materials
• provision of manufacturing and onsite labour
• provision of subcontract work
The following assumptions are made when preparing quotations:
Direct costs $368,500
Overhead expenses $73,150
Business profit $8350
Total $81,500
+81,500
Annual turnover in the second year $450,000
Therefore, to cover profit overheads, the average mark up on all direct costs, equipment,
materials, labour and subcontractors' costs will be 25%.
Accordingly, quotations will be prepared on the following basis for a typical job of, for
example, $10,000:
Item Direct Cost $ Mark up % Mark up $
Equipment 2,500 15 375
Material 1500 35 525
Labour 2300 30 690
Subcontractors 1700 25 425
Total $8000 (avg.) 25% (approx.) $2000
Hourly labour rates will be calculated as follows:
Costs $
Hourly rate (according to award or $18.00
workplace agreement)
Add on costs (e.g. WorkCover 5%) $0.90
Medical costs $1.00
Superannuation 6% $1.08
Payroll tax
(N/A)
Sick pay allowance $2.00
Annual leave allowance ($18x52/48)-$18 $1.50
Tools allowance $1.00
Total $25.48
Allowance for non-productive time, e.g $2.55
industrial action, maintenance, travelling,
tool maintenance, training, injuries etc,
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