Financial Plan (Final)

Financial Plan (Final) - MILCS Financial Plan(Final Demand...

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Financial Plan (Final) 06/01/2011 Demand / Revenue Model Demand / Revenue Model Our revenue model has grown from MILCS’s initial focus on GPS for shipping companies. Direct Purchase All SmartGuide can be purchased individually or in bundles with our system suppor. Customers will be able to purchase directly from MILCS sales forces as well as pay immediately. This reduces accounts receivables and increase cash. However, credit payment is also and option for customers. Projected Product / Service Pricing Purchase price of $120 includes: SmartGuide 1G 12 Month Warranty Installation + Basic Support Subscription of $12,000 - $15,000 / year includes: 24x7 service Updates / Upgrades Routine Maintenance Direct Sales MILCS will sell our product through our sales person. MILCS intends to maximize revenue through this channel for at least the next 5 years until 2016. Customer Purchase Options All MILCS products can be purchased either SmartGuide only or as a combined product and system support option. Customers will be able to customize their buying option directly through MILCS representative, by phone, or online through MILCS website. Third Party Supplier Agreements To provide our customers the greatest usability of SmartGuide , we require 3G services. This will help us meet customer requirements more effectively. Because we do not have the resources to develop this services internally, we rely on LG Company that provides 3G services for Navigational devices (For more details check Operation part). MILCS also realizes that we are not expert in producing the GPS, thus we decide to have our main production outsourcing in SunKin Technology Co Ltd, Shenzhen, South China. They will produce the hardware of SmartGuide including fixation, electronic charger and screen, with the packaging as well. Thus, MILCS is planning to establish Third-Party Supplier relationships with: SunKin Technology Co Ltd, Shenzhen SunKin Technology is a manufactory company focus on the electronic production, GPS products and accessories. The company has a strong R&D capabilities and technology on the car navigation production. Most of their productions are exported to Europe, Japan and South Africa. __________________________________________________________________________________________ __1
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This note was uploaded on 11/22/2011 for the course BUS 401 taught by Professor Terrywilson during the Spring '11 term at Solano Community College.

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Financial Plan (Final) - MILCS Financial Plan(Final Demand...

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