services outline.docx - Should CSM Group Offer Safety services 1 Demand ANDREW

services outline.docx - Should CSM Group Offer Safety...

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Should CSM Group Offer Safety services? 1.Demand ANDREW, BAILEY- 1. Is there enough demand in the market for this service or CSM Group 2. Find demand for services 1. look at current market demand 1. Every new business needs to properly train their employees. 2. find if market can support another competitor 1. Yes, because there aren’t any big competitors within 50 miles of Kalamazoo. Therefore, any surrounding areas, like Battle Creek or Portage, will benefit from a Kalamazoo-based company. This way, the company can get to the site quicker and that will be more cost effective for them. ii. Find if competitors are local, regional, national 1. Local competition -Mostly local, but not close enough that they could be on-scene if there is a crisis. 2. regional- Cintas is located in GR, Humantech in Ann Arbor, and Villa Environmental Consultants Inc in Benton Harbor. These are our closest competitors in the region. There are more throughout the state and in northern Indiana that could be competition for our Kalamazoo-based company. 3. Nationwide- National competition comes in handy with the online market. For example, if someone needs to reference a training module that they completed, they can easily access that via Lancaster Safety Consulting Inc.’s website. ii. Find if there is one company that has a bigger market share than others 1. Lancaster Safety Consulting Inc. probably has the biggest market share because of their availability for companies nationwide. ii. Find if there is waiting period for projects from other competition 1. how long
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b.Profitability ENTESAR, CARLY, MAURAIs it profitable?i.What are others charging for this service 1. get a quote from a competitor (United alliance) 1. ½ day $850 2. 1 full day $1200 3. 2 full days $1100 per day 4. 3 full days $1050 per day 5. 4 full days $1000 per day 6. 5 full days $950 per day 2. Find data on cost of capital needed for start up -Safety training for employees- average $500 for training “cost to develop the training would be the most time consuming. it would likely be overhead and the part of the budget for new ventures/marketing. the cost of training would be what the market bears and could be based on actual prep for the training client and time on site. the state of michigan offers a lot of FREE training” - Richard P. Villa, President of Villa Environmental Consultants Inc.
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