HOLE 19GOLF RETAIL & SIMULATION
COURTNEY SANDIFORDCHRIS HOFFOS
ABOUT
PRODUCTS
TARGET MARKET
PROMOTIONAL STRATEGY
CAPITAL & FINANCING
FINANCING 2015
BANK DEBT 52% 750,000
EQUITY 700,000
TOTAL
1,450,000
CAPITAL EXPENSES
LAND 150,000
BUILDINGS
1,000,000 LAND DEVELOPMENT & EQUIPMENT
170,000
TOTAL
1,320,000
WHAT CAN WE EXPECT?
REVENUES 2015 2016 2017 2018 2019
Number of Customers/day Equipment 36 45 52 54 57
Number of Customers/day Simulators 8 10 11 12 13
Total Customers/day 44 55 63 66 70
PURCHASE PRICE 2015 2016 2017 2018 2019
Average Equipment Purchase/customer 80.00 82.00 84.05 86.15 88.31
Average Simulator Purchase/customer 28.57 29.29 30.02 30.77 31.54
NET INCOME 82,272 148,295 229,644 268,693 309,222
BREAKEVENBase Case Cust/day 44 55 63 66 70
Breakeven Cust/day 35 37 36 35 35
1 2 3 4 50
1020304050607080
4455 63 66 70
35 37 36 35 35
YearNum
ber o
f Cus
tom
ers
per
day
WHAT SHOULD WE DO?
FEASIBLE
REQUIRED ROI = 20% IRR = 31.4%
QUESTIONS?
Customers/day Average 5 year Profit Net Payback IRR
26
63,953 200,066 5.6%
31
136,835 853,173 20.2%
36
207,625 1,495,826 31.4%
41
277,841 2,135,605 40.8%
46
346,857 2,745,393 49.0%
Avg Equipment Purchase Price/Customer Average 5 year Profit Net Payback IRR
60
78,529 330,688 8.9%
70
144,123 918,483 21.4%
80
207,625 1,495,826 31.4%
90
270,820 2,071,627 39.9%
100
333,281 2,629,111 47.40%
2015 2016 2017 2018 2019
Manager Salary 48,960 50,184 51,439 52,725 54,043
Full time staff (wage rate/hr) $ 18.00 $ 18.45 $ 18.91 $ 19.38 $ 19.87
Part time staff (wage rate/hr) $ 11.00 $ 11.28 $ 11.56 $ 11.85 $ 12.14
Salary and Wage Costs
Manager 97,920 100,368 102,877 105,449 108,085
Full time staff 141,120 144,648 148,264 151,971 155,770
Part time staff 10,543 38,707 62,963 76,539 91,693
Total Salaries and Wages 249,583 283,723 314,104 333,959 355,548
Product Item Average Price
Jackets $175
Shirts $50
Shorts $75
Pants $100
Hats $28
Product Item Average Price
Drivers $277
Woods $183
Irons (Set) $713
Wedges $130
Putters $123
Product Item Average Price
Bags $150
Tees $10
Balls $40
Marketing Costs Year 1 Source
Online Ads 6000 DiscoverWeyburn.com
Radio Ads 9672 Golden West Radio
Billboard Ads 700 Protouch Signs
Door Prize Donations 500 Golf Courses
Website Design 1000 Stealth Interactive
Licensing 1055 SLGA
Store Sign 7000 Stellar Signs
Total 25,927
COGS
Golf Equipment 622,080 797,040 939,511 1,011,149 1,088,249
COGS Food and Drink 17,107 21,919 25,837 27,807 29,927
Total Cost of Goods Sold 639,187 818,959 965,347 1,038,955 1,118,176