Our margins are declining steadily for our hardware lines. (add relevant information) Our margins are thus being squeezed from 25% from five years ago to closer to 13 to 15% at present.A similar trend shows for our main-line peripherals, with prices for printers and monitors declining steadily.
This example is provided as part of the instructions and detailed descriptions included in the Components of a Business Plan.
By focusing on its strengths, its key customers, and the company's underlying core values, Acme Management Technology will increase sales to more than $10 million in three years, while also improving the gross margin on sales and cash management and working capital.
We make sure that our clients have what they need to run their businesses at peak performance levels, with maximum efficiency and reliability.
Since many of our information applications are mission-critical, we give our clients the confidence that we'll be there when they need us.
AMT is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect.
Smart business people who aren't computer hobbyists need to find quality vendors of reliable hardware, software, service, and support and they need to use these quality vendors as they use their other professional service suppliers—as trusted allies. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor.Neither owns more than 15%, but both are active participants in management decisions.AMT has been caught in the vise grip of margin squeezes that have affected computer resellers worldwide.We make sure that our clients have what they need in order to run their businesses at peak performance levels, with maximum efficiency and reliability.AMT is a 10-year-old computer reseller with sales of million per year, declining margins, and market pressure.For years, we have supported both Windows and Macintosh technology for CPUs, although we've switched vendors many times for the Windows (and previously DOS) lines.We are also supporting Novell, Banyon, and Microsoft networking, Xbase database software, and Claris application products.Although the chart titled "Past Financial Performance" shows that we've had healthy growth in sales, it also indicates declining gross margin and declining profits.The more detailed numbers in Table 2.2 include other indicators of some concern: As can be seen in the chart, the gross margin percentage has been declining steadily, and nventory turnover is getting steadily worse as well.We will not be able to compete in any effective way with the chains using boxes or products as appliances.We need to offer a real alliance that feels personal.