ld classprojectfinalreport2012.pdf

8/13/2019 LD ClassProjectFinalReport2012.PDF

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FEASIBILITY AND BUSINESS PLANDENTON EASY:MAKING DENTON EASY TO ENJOY

LEADERSHIP DENTON

DENTON,TEXAS 76201


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TABLE OF CONTENTS

EXECUTIVE SUMMARY..................................................................................................................... 1DESCRIPTION OF PRODUCTS AND SERVICES..................................................................................... 2PRODUCT &SERVICE MARKETPLACE.............................................................................................. 4MARKETING STRATEGY................................................................................................................... 5SALES ANALYSIS............................................................................................................................. 6TECHNOLOGY CONSIDERATIONS...................................................................................................... 7MANAGEMENT STRUCTURE............................................................................................................. 8MILESTONES AND TIMELINE............................................................................................................ 8CAPITAL AND FINANCIAL PLAN....................................................................................................... 9FINDINGS AND RECOMMENDATIONS.............................................................................................. 10APPENDIX 1: BENCHMARKING ANALYSIS..................................................................................... 11APPENDIX 2: STRENGTHS,WEAKNESSES,OPPORTUNITIES AND THREATS (SWOT)ANALYSIS.... 28APPENDIX 3: TARGET AUDIENCE ANALYSIS................................................................................. 30APPENDIX 4: CAPITAL AND FINANCIAL MODELS.......................................................................... 31


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EXECUTIVE SUMMARY

The Leadership Denton Class of 2012 was tasked with preparing a feasibility analysis andbusiness plan to establish a visitors center to better promote Denton to visitors and localresidentsin other words, how to make Denton easy for visitors and residents to enjoy. Theproject sponsor was the Denton Convention and Visitors Bureau (CVB), with oversightprovided by the Leadership Denton Committee. The effort began with a series of meetings withlocal leaders to garner their input, a benchmarking analysis of other visitor centers across thestate to determine what worked well and what did not, and lastly a strengths, weaknesses,opportunities, and threats (SWOT) analysis of Dentons tourism industry from both a regional

and local perspective. Based upon these studies, the team conducted a demographic analysis toidentify what types of locations (e.g. I-35 corridor versus downtown) would provide the bestlocation for a visitor center. This information, combined with the other analyses, formed thebasis for a marketing strategy, recommended retail product mix, sales forecast, managementstructure and implementation plan, and financial plan including capital requirements. One ofthe key issues identified from the start was whether hotel occupancy tax (HOT) funds would beneeded to cover some expenses for the visitors center to be viable. As a result, financials wereanalyzed both with and without the use of HOT funds to supplement revenue.

Key features of the proposed business plan for the visitors center include:

Product and service mix focuses on seven categories of retail items: Denton-themed, Texas-themed, local-themed, books, convenience items, local attraction and event ticket sales, andinformation on local merchants using a flat-rate paid by the businesses.

Maximum retail price is $25, with viable profit margin of 50 percent on most items. Marketing would be tailored to four major groups: people passing through Denton,

university families, local residents, and festival fans. Staffing would consist of one full-time visitor center manager and one part-time volunteer

coordinator to run the store supplemented by community volunteers.

Location must balance ease of access for travelers with being close to areas of interest (i.e.,downtown, universities, shopping, hotels and restaurants).

Minimum of 1,000 square feet of lease space needed to support a viable visitor center. Leasehold improvements estimated to cost $$35 to $40 per square foot. Timeframe from project initiation to doors open is a minimum of ten months.

In summary, the project team concluded that a dedicated visitors center is feasible if the hoteloccupancy tax (HOT) is used to cover salary, leasing, and marketing (approximately $6K permonth). A reduced level of HOT funding could still keep the project viable, but extends thetime to reach break-even. Without the use of HOT funds, the project never reaches a break-even point because the projected sales revenue is insufficient to cover the costs to open the


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3

Merchandise

Categories

Percent of

Inventory

Wholesale

Cost Range

Retail Price

Range

Profit

Margin Types of MerchandiseCommissary &Convenience Items

5% $1-$5 $2-$10 50% Bottle Water

Sodas

Candy BarsDisposable Cameras

ATM

Tickets 0.5% Event DrivenCost

Cost+ 10-25% Denton events: Arts and Jazz; Music/MusicalInstruments; Horse Country; UNT; TWU; Arts,Antiques and Automobiles; Dog Days of Denton;Twilight Tunes; 35 Denton; North Texas State Fair& Rodeo; Thin Line Film Festival; NX35; TejasStorytelling Festival; Redbud Festival; Courthouse

on the Square Museum; Texas Motor Speedway;Holiday Lighting; I heart Denton

Texas events: State Fair; Dallas Cowboys; TexasRangers; Dallas Mavericks

Local MerchantsBrochurePlacement(Hoteliers receivecomplimentarycoverage)

0.5% $0 $250annually

$250 Opportunity to highlight business with rackbrochures or special business section in the store.

The store would provide the following types of services: visitor information, maps, music sampling by local musicianswine tasting, relocation guides, meet an animal, photo opportunities, meet a UNT or TWU athlete, cooking demonstrations by local chefs,and experiential opportunities.


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PRODUCT &SERVICE MARKETPLACE

In order to have the greatest reach, the Visitor Center should target an audience of all ages and comingfrom everywhere including local residents. Given Denton has two universities that hold many eventsand attract both local and tourist audiences, the DVC should connect with each of the universities andtheir different departments to maintain a list of events every year. Some of the standing events aresports activities, student orientation, homecoming, and parent weekends. The CVB already offerstours of downtown and of the horse country which can be marketed to the organizers of the universityevents. Denton also has events that attract locals and outsiders, such as the Denton Arts & JazzFestival, the Denton Community Theatre Playwriting Festival, the 35 Conferrette or equivalent. As

Denton adds more events and promotes them to outside communities then the CVB can tag along withtargeting their activities in conjunction with these events. Examples of target audiences are: adultsaged 50 years and more who have disposable income, Denton residents, university parents, TexasMotor Speedway fans, horse enthusiasts, audiences and participants for sporting events (colleges, highschools, rodeos, and endurance sports), festivals, the North Texas State Fair, and the arts.

In light of the varied audience, the project team concluded the best location for a visitor center wouldbe along the I-35 corridor. This location would be accessible to passers-by as well as residents andvisitors to Denton and the universities. The challenge of finding a location in the corridor is balancingease of access for people traveling through Denton with the need to be close to major hotels, shoppingareas, and main thoroughfares to downtown Denton. Based on the benchmarking analysis, the teamconcluded a 1,000 square foot visitor center would be appropriate for Denton. Lease costs (triple net)along the I-35 corridor range from $9 to $16.25 per square foot. Based on the financial analysis, theteam concluded $15 per square foot was a reasonable price point to use in looking for potentiallocations.

As an example, one possible location that meets the above criteria is a building on the I-35 access roadat Meadows Street. This location is on the north bound service road of I-35 approximately milesouth of the Fort Worth Drive exit that conveniently leads to downtown. Lease cost (triple net) is$14.50 per square foot. There are two suites available, each being 1,028 square feet in size with plentyof parking. In addition, there is a 10 foot by 20 foot pole sign at 30 feet above grade available forlease. The benchmarking analysis revealed a sign along the interstate as a very desirable marketingtool for traffic passing through town. An estimated cost for build out of a facility like this ranged from

$35 to $40 per square foot. For the purposes of the financial analysis, the team used $40,000 to beconservative.

Area residents should be targeted, especially in terms of uniquely Denton merchandise. If we comeup with the equivalent of Keep Austin Weird, locals would be a great market for that merchandise,especially if it is proprietary. Otherwise, the CVB should focus efforts towards marketing (Denton


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information focused on Downtown to include menus for restaurants in the area, detailed maps forpeople walking, and transportation options beyond the immediate area (e.g., pedicabs, DTCA buses,

share-a-ride).

MARKETING STRATEGY

The marketing strategy focuses on four key customer groups. These four groups are characterized as:1) Road Warrior; 2) University Family; 3) Local Residents, 4) Festival Fan.While there will exist overlapping of individuals between these groups, such as a local resident alsobeing a festival fan, the team believed these grouping provided a useful construct on how to best

market to people in or traveling to Denton. The basis for these groupings was the synthesis of threetypes of analysis: Stakeholder Analysis, Strength, Weakness, Opportunities, and Threats (SWOT)Analysis (Appendix 2), and a Target Audience Analysis (Appendix 3). The following discussionfocuses specifically on the unique characteristics of each group and how to best market the visitorcenter to them.

The Road Warrior These veterans of vacations are accustomed to finding great information andmerchandise at visitors centers across the country. As a group, they have the spare time and incometo spend when a compelling opportunity presents itself. Whether travelling in alone or in groups oncharter busses, the Denton Visitors Center will cater to this group by offering a variety of Texas andDenton themed merchandise, priced for impulse shopping. Traditional outdoor media such asbillboards along I-35 and TXDOT signs will help guide this group to the DVC.

The University Family Denton isnt just home to over 50,000 college students. Its also a secondhome to thousands of university families. The DVC can appeal to these families as they visit

Denton by offering UNT and TWU themed clothing and merchandise. It can also offer something thatbook stores dont doa personalized guide to all the great things going on and off campus.Opportunities for reaching this group include advertisements placed inside dormitories, at the A Traintransit center, Facebook advertising targeted at family members of UNT and TWU students, andthrough coupons distributed in new student orientation packages.

The Local What do we have to offer the person that already knows and loves Denton? How about awebsite and a brick and mortar location, both of which have dates, locations, and even tickets for all

the great events happening in Denton? Itll also be the one place to get the official 35 Dentoncompilation of local music. For those who fondly remember concerts past, well have a curatedsection of gig posters from local artists. We plan to reach the community by holding ticket giveawaysthrough local radio station KXT and engaging them through social media.

The Festival Fan Events like Arts and Jazz Fest, Holiday Lighting, and 35 Denton draw huge


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Each of these groups represents an existing market in Denton. Marketing strategy for the DVC is totailor our efforts to each group to increase the stores revenue while promoting Denton.

SALES ANALYSIS

The sales analysis is based on projections from data provide by visitor centers analyzed in thebenchmarking study. This analysis looks a produce and service distribution in Figure X, and salesforecast for by month for the first year of operation in Figure Y. The sales forecast assumes a monthlygrowth of 5 percent. While arguably it could be expected to be more seasonal, the project teamconcluded that with the variety of events going on throughout the year that no single factor would

drive a seasonal spike or dip in sales. For example, San Antonio sees a significant increase in thespring due to spring break (March) tourism and Fiesta (April). Otherwise, sales are relativelyconsistent. Since Denton is not a spring break destination and does not have a single event as big asFiesta, a constant growth rate was used.

Figure 1 Sales Forecast By Product/Service

30%

40%

20%

4% 5% 1% Denton-themed Items

Texas-themed Items

Locally-made Items

Books

Convenience Items

Ticket Commission


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Figure 2 Sales Forecast By Month, Year 1

The project team did consider a market share analysis, but decided it would be problematic to perform

one with much relevance to the Denton area. There are no other visitor centers in the immediate area.While both UNT and TWU offer some products that are similar, the majority of their sales includeitems like school supplies, and university specific items which did not lend itself to good apples-to-apples comparison. In consulting with other visitor centers across the state, they did not have detaileddetail on sales by customer group (e.g. seniors, locals, etc.), but what they almost all said universally isthat items $25 and below sell, items over $25 do not sell. Furthermore, Texas-themed items(specifically cattle, oil, and cowboys) sell better than local items. Thus, the product mix gave higherpercentage of sales to Texas items, and no item over $25 would be placed in the store. One of the key

components to improving sales is to leverage information technology to expand the stores reachbeyond the physical location.

TECHNOLOGY CONSIDERATIONS

A single, comprehensive, easy-to-navigate website, which complements the functions of the VisitorsCenter, will be essential. This site will provide virtual visitors easy access to all things Denton:(annual events, current events, food, movies, music, hotels, retail items, exhibits, tours, history, etc.).Kiosks within the Visitors Center will allow for self-help visitor assistance, and serve as a centraldatabase which Visitors Center staff can use to present information, print directions, and eventdates/times. The foundation for such a website currently exists (e.g.,Discover Denton/Denton Live),but there is a need by the Visitors Center to:

Provide online access to retail products/event tickets.I f i i i i b i

$-

$1,000

$2,000$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10Month 11Month 12
http://www.discoverdenton.com/index.cfmhttp://www.dentonlive.com/http://www.dentonlive.com/http://www.discoverdenton.com/index.cfm


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be needed to provide ongoing maintenance of the stores web presence making the presentation of theproducts appealing to the masses.

MANAGEMENT STRUCTURE

The Visitor Center would work under the direction of the Denton Convention and Visitors Bureau(CVB) and would initially be staffed with one (1) full-time Visitor Center Manager (VCM) and one(1) part-time Volunteer Coordinator.

Figure 3 DVC Management Structure

*Fill position when supported by revenue

The VCM position would require someone with experience as a retail manager to include purchasing,store management, merchandising as well as knowledge of the tourism industry. These skills arebased on findings of the benchmark analysis. The salary range for this position would be between$30,000 and $35,000 including benefits, and is commensurate with other stores studied in thebenchmarking analysis. The VCM would have the following responsibilities:

Organize the store and its staff to include purchasing, and inventory control. Help recruit, train and manage the staff which would primarily be volunteers. Build relationships with area businesses, event coordinators, and UNT and TWU staff. Keep the website updated with upcoming events and advertise merchandise available. Develop Denton merchants to want to advertise at the visitor center for a fee. Build relationships with UNT and TWU to secure interns interested in learning about merchandising

and marketing to develop a merchandise profile and assist in marketing for the DVC.

The Volunteer Coordinator would be responsible for recruiting, training and scheduling volunteers.Ideally, this position would be filled by a volunteer; however, realistically, a paid part-time is includedat an annual cost of $12,000. Volunteers would be recruited with a good knowledge of Dentonshistory, landmarks, and features. They would be trained on what there is to do around Denton and thebusinesses in town.


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The proposed implementation schedule is:

Phase 1: Initiation & Site Selection (Months 1 3) Announce initiative at major event, like a Chamber luncheon, to share proposal with community Establish a sponsor team with representatives from the Chamber of Commerce and City of Denton to

provide oversight.

Establish project management team to develop project management plan, and then execute that planunder the supervision of the Sponsor Team.

Explore site options along I-35 corridor Develop proposal with lease for Chamber board

Phase 2: Location Development (Months 4 8)

Board approve and sign lease Design build out Contract for build out Obtain building permit

Phase 3: Store Development (Month 5 8) Post position for visitor center manager (VCM) Interview candidates Select VCM VCM starts working 6 weeks before build out completion VCM starts planning store merchandise and interior organization VCM begins purchasing merchandise to be available for store opening Recruit volunteers and set up training program

Phase 4: Store Start-up (Months 8-9)

Obtain certificate of occupancy VCM, volunteers and visitor set up store CVB move into administrative space CVB board organize grand opening Soft opening one week before Grand Opening

Phase 5: Grand Opening (Month 10)

CAPITAL AND FINANCIAL PLAN

The Capital and Financial Plan (Appendix 4) looked at the feasibility to establish and operate the


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discussed. Salary and benefits are commensurate with the positions discussed in the ManagementStructure section, and are inflated at 3 percent annually. A comparison of these two options results in a

stark conclusion. Without HOT funding, the Visitor Center requires $175,177 in working capital anddoes not become profitable in three years with an estimated gross loss of $158,055 by month 36. Incomparison, with HOT funding ($5,944 per month) and $90,651 in working capital, the Visitor Centerstarts earning a profit in month 22, and by month 36 has earned a gross profit of $49,485.

FINDINGS AND RECOMMENDATIONS

Marketing:

Product and service mix focuses on seven categories: Denton-theme, Texas-theme, Local-themed,Books, convenience, tickets, and local merchant items.

Maximum price point for products is $25, minimum profit margin of 50 percent. Marketing should be tailored to four major groups: Road Warriors, University Families, Locals, and

Festival Fans.

Organizational:

One full-time visitor center manager and one part-time volunteer coordinator are required to runthe store supplemented by community volunteers from organizations like RSVP.

Location must balance ease of access with being close to areas of interest (downtown, universities,shopping, hotels and restaurants)

Minimum of 1,000 square feet of lease space at $15 per square foot needed to support a viablevisitor center.

Leasehold improvements estimated to cost $40,000. A realistic timeframe from project initiation to doors open is ten months.

Financial:

With HOT funds, break-even point occurs the fourth quarter of the second year of operation. Without HOT funds, the visitor center never breaks-even. Revenue from sales alone cannotsupport the visitor center.

Based on these findings, the project team concluded a dedicated Visitors Center is feasible if the hoteloccupancy tax (HOT) is used to cover salary, leasing, and marketing. A reduced level of HOT

funding could still keep the project viable, but extends the time to reach break-even. The teamrecommends the Chamber of Commerce and City of Denton approve the plan and form a project teamto implement it.


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APPENDIX 1: BENCHMARKING ANALYSIS


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12

Data Arlington BeaumontGrandPrairie Grapevine Huntsville San Antonio Austin Waco

1.Convention andVisitorsBureau

Sam HoustonStatue VisitorCenter

a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson

Sally Schepps JamieMatthews

Bryan Lang, Directorof VIC

CheriWinterrond

SusanMorton

b.Email

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

http://partners.visitsanantonio.com/about

[email protected]

[email protected]

c.Phone

817 265-7721

409 880-3168 972 595-5401

817 410-3185 936 291-9726 (210) 207-6700 512-583-7255 254-750-8610

d.Address

1905 E.RandolMill Rd.

Arlington76011

505 Willow St.Beaumont, TX77701

2170 N.BeltlineRd. GP,

75050

705 MainStreet/CVBhoused separately

7600 Hwy. 75SouthHuntsville,

77340

203 S. St. Mary'sStreet, Suite 200 San

Antonio, TX 78205

317 Alamo Plaza, SA,78205 Open sevendays a week, 9am-5pm.

209 E. 6thStreet Austin,TX

106 TexasRangerTrail, Waco,

TX 76706

2.Environmental

Analysis

Next to SamHoustonNational Forestin the PineyWoods Region
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://partners.visitsanantonio.com/abouthttp://partners.visitsanantonio.com/abouthttp://partners.visitsanantonio.com/aboutmailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://partners.visitsanantonio.com/abouthttp://partners.visitsanantonio.com/aboutmailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

a.

Strengths?

Veryclose toattractions;Ripleys/WaxMuseum,

AirHogsBaseball,Lone StarPark,VerizonTheatre

Many attractionsnearby: Next toVintage Railroad,Grapevine Lake,Gaylord, GreatWolf Lodge,LegoLand, SeaLife Aquarium,Main Street, LocalVineyards andwine tasting,annual festivals,Grapevine Opry

Location of thevisitor center islocated next tothe statue onHwy 45 andcan be seenfrom milesaway. Thestatue has agreat drawwhich givesthem theopportunity togive the visitorsinformation onHuntsville.

Location-across thestreet from the AlamoPassionate staff,Retail, strong brandingreflected in $250Krenovation

Location onSixth Street inheart of arts andentertainmentarea of Austin

Near I-35,next toTexasRangersHall ofFame. NearBaylorUniversity,Dr PepperMuseum,BrazosRiver, infocentersignage onexits

b.Weaknesses?

Not ableto sellRanger,Cowboyand SixFlagssince thatcompeteswith localWalmart

Close toattractions, not soclose tohotelsandattractions

Huntsville doesnot have aconventioncenter or a fullservice hotelable toaccommodateconventions.

No interpreters,shortage of staff, PTemployees to 1000hours/yr

Space--verysmall retailarea


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a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

c.Challenges?

Training oftheVolunteers

Highwaysignage;smallfromTXDOT,billboardstooexpensive.Seasonaltrafficfrombaseball,Lone StarPark andVerizonTheatre.

Space limitations,storage in anotherbuilding

Difficult to bringconferences toHuntsville

City council servingtheir constituents,

Have outgrownspace toexpand newrevenue ideas

Lack ofstorage--must seekout itemsthat can bepurchased insmallerquantities.Must becreative withproductplacementandmerchandising

d.Opportunities?

Attractingmorevisitors to

theinformation center

Opportunity to getour

GrandPrairiebrand outto more,eventhosethat are

justpassingthrough

Visitor Centeraway from trainstation

Growth into newfacility, caf servinglocal foods, partnering

with Culinary Instituteof American, Digitalscreens for ads

To develophigh-tech socialmedia

marketing

Find ways tofurtherincrease

revenue andprofitmargins.Continue tolook forcompanieswho will sellcustomproducts insmall


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a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

the DFWarea

quantities

e.Aspirations?Growthgoals?

Wevealreadydoubledin sizeoncealready.

New spacecombining theCVB and VisitorCenter

Gaining a fullservice hoteland conventioncenter

Become front door forcommunity, Createhub and spokesystem-marketsquare, NW San

Antonio

To become amusic venue,and have a caf

Increaseonline sales,sellattractionand eventtickets

3.Financial Info

Not able to shareat time,Supervisor

position is vacant.


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1.Convention andVisitors

Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

a.Whatare theirsources

offunding?(storerevenue, grants,occupancy tax,citybudget)

HOTFunds

Hotel/Motel taxonly, nogeneralfund. GiftShoprevenuesimply

pays foritself.Revenueis used toincreaseinventory.Drive-thruChaseBank

ATM(approx

$500 mo)

Grapevine CVB isfunded byoccuapancy tax

occupancyfunds, storerevenue

Retail is 50%..paysoverhead Hot Fundsother 50% for salaries,etc.

Bureau receives1.1% of HOTand privatefunding fromVisitor centergift shop andtour tickets

Fundedthrough thecity budgetwith somecontingencyfundingbased oninventory

fluctuations

b. CanweobtaincopiesofIncomestatements andbalance

ClosedGift Shopin 2009

Budget provided


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Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

sheetsgoingbackthreeyears?

c.Annualrevenue?

Approx$1 millionHotel tax,

$5,000gift shop,$6,000

ATM fees

2009-2010Annual sales$124,146

2008-2009Annual sales$148,330

$350 to $400 K $830K forVisitor Center in2010

2008 -$13,2122009 -

$26,0382010 -$24,5512011 -$28,670+L12

4.Location

a.

Whereis itlocated?Whythatlocation?

Next totheRangerBallpark

Downtown onone of the MainStreets

BeltlineRoad @Interstate30, in

front ofLone StarPark.Locatedthere forconvenience andbecausetheydonated

On Main St. TheVisitor Center,Train Depot andthe Historical

Museum all sharethe same space.

Service road ofI-45, land wasdonated to theCity for the

statue

Across from theAlamo, heart oftourism districts

On Austin'sfamous 6thStreet

Near I-35,next toTexasRangers

Hall ofFame. NearBaylorUniversity,Dr PepperMuseum,BrazosRiver, infocentersignage on


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Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

the landfor thebldg.

exits

b.Physicalstructure?(storefront,standalone

building,part ofattraction)

Standalone,visitorcenter onthe bottomfloor andCVBoffices on

the topfloor

Stand alonebuilding

Standalonebuilding

Standalone/sharedbuilding

Stand alonebuilding sitsbehind thestatue.

Store front, historicbuilding, Problem ofrenovations-strictstandards

In historicbuilding, storefront

Stand alonebuildingwhichsharesparking withTROF

c.Zoning?

Commercial

Entertainmentdistrict

Commercial Commercial andhistoric district

Commercial


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Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

d.Owningv.renting?

Rent fromthe City

Nicerbuilding,customdesignedand built.

own Building is paidfor. Grounds,statue andbuildingmaintained bythe City ofHuntsville.

On 25 year lease for$1 per year

Renting, $4200per month

City owned

e.Size insquarefeet?

VIC alone

is 500 sqft. Theentirebuilding toapproximately 5,000sq. ft.

5,000 700 sq. ft. House with

centerbreezeway.Visitor Centeron one sideand store onthe other side.

Approx. 500sq. ft.

2600 sq. ft. 1500 SF Gift shop

400 SF

f. Anyotherfunctions,

officesat samelocation?

CVBOffices

Smallconference roomavailable

tocommunity andhotels

museum and traindepot

NO NA TouristInformationCenter-home for

tourismsales andservice

5.How is itorganized---profit/nonprofit,

Non-profit,department of theCVB

Part ofcitygovernmentMarketing

nonprofit/city Part of the City City department Non-profit Part of thecity--revenuegoes to city'sgeneral fund


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Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

part ofcity,type ofentity?Partnerships?

Department

6.Whattypes ofworkers? Paidandvolunteers,salaryranges

Paid andVolunteers

$8.50 to$9.50 plusManager'ssalary

CVB 10employees

plus they utilizevolunteers

2 fulltime, 1

part-timeweekendemployee, 37volunteers

Both paid andvolunteers

1 full time invisitor center

and 1 full timein gift shop. 4part timers thatwork bothvisitor centerand gift shop.Full timers$50,000 ---Parttimers $8.75per hous

Staff all paid. 4 FT, 4PT, plus Director,

Coordinator,Purchaser

Paid andvolunteers (8)

2 FT hourlyemployees

2 PT hourlyemployees1 salaried--also workstoursimsalesWagesbased onCity tiers.Hourlywages startat $10.35


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Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

7.What istheproductmix?Whatproductshave thebestmargins? Mostpopular

?

Texassouvenirs.Unfortunately thebestmarginsare

anythingmade inChina.Mostpopular isanythingwithTexas onit.

They only sell afew toy itemsrelated to thetrain.

Texas themeditems sell thebest or statueitems. Shotglasses, mugs,t-shirts andwind chimessell well.

Only convenience itemis disposablecameras. Productsare 30% generic, 35%San Antonio Flavorand 35% Texas. Allproducts must have52% or higher profit

margin. Products withthe highest marginsand best sellers are:Post Cards, T-shirts,Ball caps, Shotglass,bottled water, Policeand Fire Dept. t-shirts,Oil and Longhornitems. $25 pricepoints....all itemsbelow. Day of theDead popular to

Hispanics.

Gifts, apparel,food, toys,paper. Sodas,water, tourtickets. Seehandout ondistribution

Tees 25% oftotal profitBooks 11%,Jewelry 8%,Dr Pepper

jerky 6.5%,Magnets6%, Mugs

5%,Postcards4%


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Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

8.Whatare thedemographics?Targetaudienc

e?Visitors?

Visitors-mainlyfamilies

Population115,570

Gift shopvisitorsare 90%women,40-70years old.50%visitors,

50% localshoppers

convention trafficand locals fromsurrounding towns

60 miles northof Houston and180 milessouth ofDenton. Dailythere arevisitorstraveling

between thetwo cities.

Out of towners, Usestraffic counters toidentify peaks duringday

Visitors, IH-35 trafficDemographics: GreaterWaco 4.5%,Texas 55%,US 37.5%,Foreign 3%


25/43

23



Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

Maps andrelocationinfo

Provide links toonline specialevents inBeaumont

Maps,visitorguides,restaurant guides,directions, cityrelocation

guides,racingforms,souvenirs.

Maps and canproduce tickets forLegoLand, Sealifeand train.

Localbrochures,maps,restaurantguides,brochures fromaround thestate. They

offer guidedtours throughHistoricalHuntsville.

Trip planning servicesand assistanceThe San AntonioVisitor InformationCenter offers a widevariety of services andpersonal assistance tomake your vacation

experience amemorable one whileyoure in San Antonio.While visiting theVisitor Center takeadvantage of thefollowing services andproducts.MapsFree, user friendly,downtown, San

Antonio metro area,

Mission Trail, andRiver Walk accessmaps.Guides andBrochuresheavilymarketedThe Visitor InformationCenter carries close to200 brochures fromSan Antonios majorpoints of interest andthe Texas Hill Country,

such as theme parks,museums, familyactivities, culturalevents, tourinformation restaurant

Maps, coupons,attractioninformation,directions,souvenirs,relocationinformation

Maps,coupons,attractioninformation,directions,souvenirs,relocationinformation


26/43

24



Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

10.Whatare thebigeventsthrough

out theyear?

Six Flags,Rangers,Cowboys

LamarUniversityFootball, SouthTexas StateFair, BeaumontJazz and BluesFest

Grapefest andMain Street Days

General SamHouston FolkFestival,Walker CountyFair andRodeo,Huntsville forthe

Holiday/Winterin the park andHuntville MusicFestival

Fiesta in April, SpringBreak, Christmas

SXSW, ACLFest, Fun FunFun Fest, RotRally, PecanStreet Festival

Spring breakis busiesttime fo year.MemorialDat throughLabor Dayconsistentlybusy

11.Whatare themajorattractions in thearea?Whatare thebusiesttimes ofyear,day?

Same Crockett Streetentertainmentcenter locatedin downtownarea. Town iswithin drivingdistance toLouisiana

Casinos, closeto beaches andthe Port ofBeaumont.

Lone StarPark,VerizonTheatre,

AirHogsBaseball,LouisTussaud

s Palaceof Wax &RipleysBelieve Itor Not!,TradersVillage.Busiestfrom Maythrough

SeaLife,LegoLand,Gaylord, GreatWolf

Sam HoustonMemorialMuseum, SamHouston burialsite, TexasPrisonMuseum,Hearts

VeteransMilitaryMuseum,Wynne Home

Art Center,HuntsvilleState Park.

Capitol, LadyBird Lake, ZilkerPark

Next door toTexasRanger Hallof Fame andMuseum.Within 2miles of theDr Pepper

Museum,TexasSports Hallof Fame,MaybornMuseumComplex,CameronPark Zoo,

Armstrong


27/43

25



Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

September

BrowningLibrary,HistoricHomes,CameronPark

12.What

are thelinkagesto majoruniversities?

UTA LamarUniversity iswithin 10minutes ofdowntown.Enrollment,15K

Planetarium atUTA

Arlington,anycollegesporting

events,theatre atSMU

None Sam HoustonStateUniversity

None yet. Looking tobuilding on athleticprogram at UTSA(held first footballgame at Alamodomesay day I was there).Working with UTSA to

do intercept study.

Sell UTmemorabilia, nolicenserelationship

Located justoff theBaylorUniversityCampus.Not directlylinked to

them but dotrade printedinformation.Baylor hasits owncenter andsells Baylorspecificsouvenirs attheir book


28/43

26



Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

store

13.Whatare theconnections toother

types oftransportation?

Trolley Trolley serviceoffered in theCrockett Streetarea. MunicipalTransit, Majortransportation

Amtrak,

SoutheastTexasRegional

Airport.

No publictransportationhere

City offers 4shuttle bussesthat take thetourist to and fromthe hotels, to MainStreet, GrapvineMills Mall and

DFW Airport

Houston'sIntercontinental

Airport is 45minutes

Via (local bus service),Double decker buses-working well, trolley

Bus and trainsystem

None


29/43

27



Bureau


a.Point ofContact

PeteHutchins

ElizabethEddins

RandySisson



CheriWinterrond

SusanMorton

14.What dothey callit? Anycatch

phrases? Anypaidmediaplacementadvertising?

ArlingtonTrolleyusedaroundtown only

Beaumont is"Texas with aLittleSomethingExtra"

TeriJacksonTouristInformationCenter,namedafter past

CityCouncilwomanthat wasinstrumental ingettingthisbuildingbuilt.

Grapevine, Texas"Where Dallas &Fort Worth Meet"

HuntsvilleWhere a WarmWelcome

Awaits (SamQuote)

Brand: Deep in theHeart. Have to payroyalty to use, usesBrand: Deep in theHeart. Have to payroyalty to useUses quadrilfoiloneverything from

signage to t-shirtsquadrilfoil-oneverything fromsignage to

Austin VisitorInformationCenter--"LiveMusic Capital ofthe World"

WacoTouristInformationCenter andGift Shop.No paidadvertisingin the past;

however,trying toinsert awater billflier to boostlocal holidayshoppingthis year

15.Take

photosinsideand out


30/43

APPENDIX 2: STRENGTHS,WEAKNESSES,OPPORTUNITIES AND THREATS (SWOT)

ANALYSIS

The SWOT analysis is used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, andThreats involved in a project or in a business venture. It involves specifying the objective of thebusiness venture or project and identifying the internal and external factors that are favorable andunfavorable to achieve that objective. For Denton Easy, the SWOT was conducted at a regional leveland at a project level. Furthermore, we examined the two primary alternatives.

Regional: The following SWOT analysis is relative to the area/region in which the Visitor Bureau /

Store will operate. These attributes will define Strengths, Weaknesses, Opportunities and Threatsfrom the immediate and surrounding areas.

Strengths

* Western Heritage* Horse Country* Universities* Apogee Stadium

* Sporting Events* Festivals and Fairs* Independent Music Scene* Lower Cost of Living* A-Train (Commuter Transit)

Weaknesses

* No Visitor Information Center* No Convention Center* Weak Name Recognition* Non-User Friendly Website

* Outdated Mall / Limited Shopping* Few Publicly Accessible Golf Courses* I35 Traffic / Poor Road Conditions* Lack of Public Transportation (Taxis /Busses)* Climate* Air Quality

Opportunities* Visitor Information Center* Convention Center* Revamp Website* Razor Ranch* Mall Remodel* Billboards* Downtown Parking

* In-town Shuttles* A-Train

Threats* DFW Cities

- Uptown Dallas- Roanoke- Grapevine- Arlington- Cowboys Stadium- Rangers Ball Park

* Winstar* Surrounding Malls / Shopping Centers* Surrounding Hotels / Meeting Spaces* Doctors / Medical Personnel live outsidethe city


31/43

Project : The following chart illustrates the SWOT analysis as it relates more to the subject project.These attributes will be narrowed down to capture more project specific Strengths, Weaknesses,Opportunities and Threats.

Strengths

* Ability to direct flow oftraffic/visitors* Advertising opportunities* Promotion, Incentive and Discountsto local business and attractions

* Strong support from local businesses* Uniqueness

Weaknesses

* Competition with local stores selling similarmerchandise* No direct attraction or draw to the store* Limited parking* Navigation on local roads

* Sourcing quality merchandise* Capital expenditures* Managing daily expenses versus generatedrevenue* Funding restrictions

Opportunities* Participation with other localbusinesses

* Provide advertising for area storesand attractions* Ability to offer services beyondretail merchandise* Support from local organizations

- Main Street Association- Industrial Street Guild- Denton Chamber

* Growth opportunities for multiplelocations or kiosks

Threats* Outside competition other visitor/touristsattractions

* Other vendors selling more specific, namerecognition merchandise* Apathy or lack of interest from localsupporters* Ability to obtain similar information ormerchandise from other outlets

- Media- Internet / Websites


32/43

APPENDIX 3: TARGET AUDIENCE ANALYSIS

Target Audience Most Relevant LocationAdults 50+ years old I-35

Denton Residents I-35 and Downtown (depends on where theyare coming from)

University parents I-35

Texas Motor Speedway fans I-35

Horse enthusiasts I-35 and Downtown

A-Train riders Downtown

Sporting events (UNT, high school,triathlons, cycling, rodeos)

I-35

Families with disposable income I-35

Festivals I-35 and Downtown

North Texas State Fair I-35

Arts (GDAC, DCT, UNT, TWU, etc.) I-35 and Downtown


33/43

APPENDIX 4: CAPITAL AND FINANCIAL MODELS


34/43

ALL FIGURES ROUNDED TO NEAREST DOLLAR

Mo nth 1 Mo nth 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Mont h 9 Month 10 Month 11 Month 12 TOTA L

% of Total

Revenue

REVENUE 5.00% 5.00% 5.00% 5.00% 5.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

Retail: Denton Themed 1,500 1,575 1,654 1,736 1,823 1,914 1,991 2,071 2,153 2,240 2,329 2,422 23,409 29.21%Retail: Texas Themed 2,000 2,100 2,205 2,315 2,431 2,553 2,655 2,761 2,871 2,986 3,106 3,230 31,212 38.95%

Retail: Locally Made 1,000 1,050 1,103 1,158 1,216 1,276 1,327 1,380 1,436 1,493 1,553 1,615 15,606 19.47%

Retail: Books 200 210 221 232 243 255 265 276 287 299 311 323 3,121 3.89%

Retail: Commissary / Convenience 250 263 276 289 304 319 332 345 359 373 388 404 3,902 4.87%

Rack Brochure Placement 208 208 208 208 208 208 208 208 208 208 208 208 2,500 3.12%

Ticket Commission 25 26 28 29 30 32 33 35 36 37 39 40 390 0.49%

TOTAL REVENUE 5,183 5,432 5,693 5,968 6,255 6,558 6,812 7,076 7,351 7,636 7,933 8,242 80,140 100.00%

COST OF GOODS SOLD

Retail: Denton Themed 750 788 827 868 912 957 995 1,035 1,077 1,120 1,165 1,211 11,705 14.61%

Retail: Texas Themed 1,000 1,050 1,103 1,158 1,216 1,276 1,327 1,380 1,436 1,493 1,553 1,615 15,606 19.47%

Retail: Locally Made 750 788 827 868 912 957 995 1,035 1,077 1,120 1,165 1,211 11,705 14.61%

Retail: Books 100 105 110 116 122 128 133 138 144 149 155 161 1,561 1.95%

Retail: Commissary / Convenience 125 131 138 145 152 160 166 173 179 187 194 202 1,951 2.43%TOTAL COST OF GOODS 2,725 2,861 3,004 3,155 3,312 3,478 3,617 3,762 3,912 4,069 4,231 4,401 42,527 53.07%

EXPENSES

Advertising, Sales, and Promotions 875 875 875 875 875 875 875 875 875 875 875 875 10,500 13.10%

Education and Training 42 42 42 42 167 0.21%

Information Technology 47 47 47 47 47 47 47 47 47 47 47 47 563 0.70%

Insurance: General Liability 208 208 208 208 208 208 208 208 208 208 208 208 2,500 3.12%

Leasehold Improvements 40,000 40,000 49.91%

Miscellaneous 100 100 100 100 100 100 100 100 100 100 100 100 1,200 1.50%

Office Supplies 29 29 29 29 29 29 29 29 29 29 29 29 348 0.43%

Postage and Delivery 17 17 17 17 17 17 17 17 17 17 17 17 200 0.25%

Professional Fees 189 189 189 189 189 189 189 189 189 189 189 189 2,274 2.84%

Triple Net (NNN) 263 263 263 263 263 263 263 263 263 263 263 263 3,150 3.93%

Rent Expense 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 18.72%

Repair & Maintenance 60 60 60 60 240 0.30%

Salaries and Benefits 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000 52.41%

Salaries and Benefits: Taxes 319 319 319 319 319 319 319 319 319 319 319 319 3,822 4.77%

Subscriptions and Dues 250 250 500 0.62%

Travel & Entertainment 200 200 200 200 800 1.00%

Utilities 500 500 500 500 500 500 500 500 500 500 500 500 6,000 7.49%

TOTAL EXPENSES 47,788 7,296 7,357 7,538 7,296 7,357 7,788 7,296 7,357 7,538 7,296 7,357 129,264 161.30%


35/43

GROSS PROFIT -45,330 -4,726 -4,668 -4,725 -4,353 -4,277 -4,593 -3,982 -3,918 -3,970 -3,594 -3,515 -91,651 -1

GROSS PROFIT LIFE TO DATE -45,330 -50,055 -54,723 -59,448 -63,801 -68,078 -72,671 -76,653 -80,571 -84,542 -88,136 -91,651

Qty of Items Avg. Price Ttl Price $ % of Sales # Items Sold

Retail: Denton Themed 100 15 1,500 30.00% 1,561

Retail: Texas Themed 133 15 2,000 40.00% 2,081

Retail: Locally Made 67 15 1,000 20.00% 1,040

Retail: Books 33 6 200 4.00% 520

Retail: Commissary / Convenience 100 3 250 5.00% 1,561

Rack Brochure Placement 0 250 0 10

Ticket Commission 10 3 25 0.50% 156

5,000

Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 TOTAL

% of Total

Revenue

REVENUE 3% 3% 3% 3% 3% 3% 2% 2% 2% 2% 2% 2%

Retail: Denton Themed 2,495 2,570 2,647 2,726 2,808 2,892 2,950 3,009 3,069 3,131 3,193 3,257 34,749 29.45%

Retail: Texas Themed 3,327 3,427 3,529 3,635 3,744 3,857 3,934 4,012 4,093 4,174 4,258 4,343 46,333 39.26%Retail: Locally Made 1,663 1,713 1,765 1,818 1,872 1,928 1,967 2,006 2,046 2,087 2,129 2,172 23,166 19.63%

Retail: Books 333 343 353 364 374 386 393 401 409 417 426 434 4,633 3.93%




TOTAL REVENUE 8,504 8,753 9,008 9,272 9,543 9,822 10,014 10,210 10,410 10,613 10,821 11,033 118,002 100.00%

COST OF GOODS SOLD

Retail: Denton Themed

1,248 1,285 1,323 1,363 1,404 1,446 1,475 1,505 1,535 1,565 1,597 1,629 17,375 14.72%

FIRST MONTH RETAIL SALES FORECAST


36/43

Retail: Texas Themed

1,663 1,713 1,765 1,818 1,872 1,928 1,967 2,006 2,046 2,087 2,129 2,172 23,166 19.63%

Retail: Locally Made

1,248 1,285 1,323 1,363 1,404 1,446 1,475 1,505 1,535 1,565 1,597 1,629 17,375 14.72%

Retail: Books166 171 176 182 187 193 197 201 205 209 213 217 2,317 1.96%

Retail: Commissary / Convenience

208 214 221 227 234 241 246 251 256 261 266 271 2,896 2.45%

TOTAL COST OF GOODS 4,533 4,669 4,809 4,953 5,102 5,255 5,360 5,467 5,576 5,688 5,801 5,917 63,128 53.50%

EXPENSES


Education and Training 61 61 61 61 246 0.21%Information Technology 69 69 69 69 69 69 69 69 69 69 69 69 830 0.70%


Leasehold Improvements 0 0.00%

Miscellaneous 100 100 100 100 100 100 100 100 100 100 100 100 1,200 1.02%

Office Supplies 43 43 43 43 43 43 43 43 43 43 43 43 512 0.43%



Triple Net (NNN) 263 263 263 263 263 263 263 263 263 263 263 263 3,150 2.67%

Rent Expense 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 12.71%



Salaries and Benefits: Taxes 328 328 328 328 328 328 328 328 328 328 328 328 3,937 3.34%Subscriptions and Dues 250 250 500 0.42%


Utilities 500 500 500 500 500 500 500 500 500 500 500 500 6,000 5.08%

TOTAL EXPENSES 8,056 7,544 7,633 7,806 7,544 7,633 8,056 7,544 7,633 7,806 7,544 7,633 92,431 78.33%

GROSS PROFIT(4,084) (3,460) (3,433) (3,487) (3,103) (3,065) (3,401) (2,801) (2,799) (2,880) (2,525) (2,518) (37,557)

-31.83%

GROSS PROFIT LIFE TO DATE

(95,735) (99,195) (102,628) (106,115) (109,218) (112,283) (115,684) (118,485) (121,285) (124,165) (126,690) (129,207)

# Items Sold


2317


3089


37/43


1544

Retail: Books772


2317

Rack Brochure Placement

11

Ticket Commission

232


% of Total

Revenue

REVENUE 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%




Retail: Books 439 443 447 452 456 461 466 470 475 480 485 489 5,563 3.93%


Rack Brochure Placement 252 252 252 252 252 252 252 252 252 252 252 252 3,025 2.14%Ticket Commission 55 55 56 56 57 58 58 59 59 60 61 61 695 0.49%

TOTAL REVENUE 11,164 11,273 11,383 11,494 11,607 11,720 11,835 11,951 12,068 12,186 12,305 12,426 141,410 100.00%

COST OF GOODS SOLD

Retail: Denton Themed $1,645 $1,661 $1,678 $1,695 $1,712 $1,729 $1,746 $1,764 $1,781 $1,799 $1,817 $1,835 $20,862 14.75%

Retail: Texas Themed $2,193 $2,215 $2,237 $2,260 $2,282 $2,305 $2,328 $2,351 $2,375 $2,399 $2,423 $2,447 $27,816 19.67%

Retail: Locally Made $1,645 $1,661 $1,678 $1,695 $1,712 $1,729 $1,746 $1,764 $1,781 $1,799 $1,817 $1,835 $20,862 14.75%

Retai l: Books $219 $222 $224 $226 $228 $231 $233 $235 $237 $240 $242 $245 $2,782 1.97%

Retail: Commissary / Convenience $274 $277 $280 $282 $285 $288 $291 $294 $297 $300 $303 $306 $3,477 2.46%

TOTAL COST OF GOODS $5,977 $6,036 $6,097 $6,158 $6,219 $6,282 $6,344 $6,408 $6,472 $6,537 $6,602 $6,668 $75,799 53.60%

EXPENSES


Education and Training 74 74 74 74 294 0.21%Information Technology 83 83 83 83 83 83 83 83 83 83 83 83 994 0.70%



Miscellaneous 100 100 100 100 100 100 100 100 100 100 100 100 1,200 0.85%

Office Supplies 51 51 51 51 51 51 51 51 51 51 51 51 613 0.43%



Triple Net (NNN) 263 263 263 263 263 263 263 263 263 263 263 263 3,150 2.23%

Rent Expense 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 10.61%



38/43





Utilities 500 500 500 500 500 500 500 500 500 500 500 500 6,000 7.92%

TOTAL EXPENSES $8,268 $7,745 $7,851 $8,018 $7,745 $7,851 $8,268 $7,745 $7,851 $8,018 $7,745 $7,851 $94,954 73.61%

GROSS PROFIT $(3,081) $(2,508) $(2,565) $(2,682) $(2,357) $(2,412) $(2,778) $(2,202) $(2,255) $(2,369) $(2,041) $(2,093) $(29,343) -20.75%

GROSS PROFIT LIFE TO DATE $(132,289) $(134,797) $(137,361) $(140,043) $(142,401) $(144,813) $(147,590) $(149,792) $(152,047) $(154,416) $(156,457) $(158,550)


# Items Sold


2782


3709

Retail: Books1854


927


2782

Ticket Commission

12

278


39/43


40/43

GROSS PROFIT -39,622 1,012 1,221 982 1,385 1,417 1,114 1,756 1,776 1,737 2,144 2,179 -22,899 0

GROSS PROFIT LIFE TO DATE -39,622 -38,610 -37,390 -36,407 -35,023 -33,605 -32,491 -30,735 -28,959 -27,222 -25,079 -22,899

Qty of Items Avg. Price Ttl Price $ % of Sales # Items Sold

Retail: Denton Themed 100 15 1,500 30.00% 1,561

Retail: Texas Themed 133 15 2,000 40.00% 2,081

Retail: Locally Made 67 15 1,000 20.00% 1,040

Retail: Books 33 6 200 4.00% 520

Retail: Commissary / Convenience 100 3 250 5.00% 1,561

Rack Brochure Placement 0 250 0 10

Ticket Commission 10 3 25 0.50% 156

5,000


% of Total

Revenue

REVENUE 3% 3% 3% 3% 3% 3% 2% 2% 2% 2% 2% 2%

HOT Revenues 4,934 4,934 4,934 4,934 4,934 4,934 4,934 4,934 4,934 4,934 4,934 4,934 59,212 33.41%

Retail: Denton Themed 2,495 2,570 2,647 2,726 2,808 2,892 2,950 3,009 3,069 3,131 3,193 3,257 34,749 19.61%Retail: Texas Themed 3,327 3,427 3,529 3,635 3,744 3,857 3,934 4,012 4,093 4,174 4,258 4,343 46,333 26.14%


Retail: Books 333 343 353 364 374 386 393 401 409 417 426 434 4,633 2.61%




TOTAL REVENUE 13,439 13,687 13,943 14,206 14,477 14,757 14,949 15,144 15,344 15,547 15,755 15,967 177,214 100.00%

COST OF GOODS SOLD

FIRST MONTH RETAIL SALES FORECAST


41/43


1,248 1,285 1,323 1,363 1,404 1,446 1,475 1,505 1,535 1,565 1,597 1,629 17,375 9.80%


1,663 1,713 1,765 1,818 1,872 1,928 1,967 2,006 2,046 2,087 2,129 2,172 23,166 13.07%


1,248 1,285 1,323 1,363 1,404 1,446 1,475 1,505 1,535 1,565 1,597 1,629 17,375 9.80%

Retail: Books166 171 176 182 187 193 197 201 205 209 213 217 2,317 1.31%


208 214 221 227 234 241 246 251 256 261 266 271 2,896 1.63%

TOTAL COST OF GOODS4,533 4,669 4,809 4,953 5,102 5,255 5,360 5,467 5,576 5,688 5,801 5,917 63,128 35.62%

EXPENSES



Information Technology 104 104 104 104 104 104 104 104 104 104 104 104 1,246 0.70%



Miscellaneous 100 100 100 100 100 100 100 100 100 100 100 100 1,200 0.68%

Office Supplies 64 64 64 64 64 64 64 64 64 64 64 64 769 0.43%



Triple Net (NNN) 263 263 263 263 263 263 263 263 263 263 263 263 3,150 1.78%

Rent Expense 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 8.46%Repair & Maintenance 133 133 133 133 532 0.30%





Utilities 500 500 500 500 500 500 500 500 500 500 500 500 6,000 3.39%

TOTAL EXPENSES 7,171 6,629 6,762 6,921 6,629 6,762 7,171 6,629 6,762 6,921 6,629 6,762 81,748 46.13%

GROSS PROFIT1,735 2,389 2,372 2,332 2,747 2,740 2,418 3,048 3,006 2,939 3,325 3,288 32,338

18.25%

GROSS PROFIT LIFE TO DATE

(21,165) (18,775) (16,403) (14,071) (11,324) (8,584) (6,166) (3,118) (112) 2,826 6,151 9,439

# Items Sold


2317


42/43


3089


1544

Retail: Books772


2317


11

Ticket Commission

232


% of Total

Revenue

REVENUE 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%

HOT Revenue 5,019 5,019 5,019 5,019 5,019 5,019 5,019 5,019 5,019 5,019 5,019 5,019 60,223 29.87%




Retail: Books 439 443 447 452 456 461 466 470 475 480 485 489 5,563 2.76%




TOTAL REVENUE 16,182 16,291 16,402 16,513 16,625 16,739 16,853 16,969 17,086 17,204 17,324 17,444 201,634 100.00%

COST OF GOODS SOLD

Retail: Denton Themed $1,645 $1,661 $1,678 $1,695 $1,712 $1,729 $1,746 $1,764 $1,781 $1,799 $1,817 $1,835 $20,862 10.35%

Retail: Texas Themed $2,193 $2,215 $2,237 $2,260 $2,282 $2,305 $2,328 $2,351 $2,375 $2,399 $2,423 $2,447 $27,816 13.80%

Retail: Locally Made $1,645 $1,661 $1,678 $1,695 $1,712 $1,729 $1,746 $1,764 $1,781 $1,799 $1,817 $1,835 $20,862 10.35%

Retai l: Books $219 $222 $224 $226 $228 $231 $233 $235 $237 $240 $242 $245 $2,782 1.38%

Retail: Commissary / Convenience $274 $277 $280 $282 $285 $288 $291 $294 $297 $300 $303 $306 $3,477 1.72%TOTAL COST OF GOODS $5,977 $6,036 $6,097 $6,158 $6,219 $6,282 $6,344 $6,408 $6,472 $6,537 $6,602 $6,668 $75,799 37.59%

EXPENSES



Information Technology 118 118 118 118 118 118 118 118 118 118 118 118 1,418 0.70%



Miscellaneous 100 100 100 100 100 100 100 100 100 100 100 100 1,200 0.60%

Office Supplies 73 73 73 73 73 73 73 73 73 73 73 73 875 0.43%



43/43


Triple Net (NNN) 263 263 263 263 263 263 263 263 263 263 263 263 3,150 1.56%

Rent Expense 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000 7.44%






Utilities 500 500 500 500 500 500 500 500 500 500 500 500 6,000 7.92%

TOTAL EXPENSES $7,354 $6,799 $6,950 $7,104 $6,799 $6,950 $7,354 $6,799 $6,950 $7,104 $6,799 $6,950 $83,915 49.35%

GROSS PROFIT $2,851 $ 3,456 $ 3,354 $ 3,251 $ 3,607 $ 3,507 $ 3,155 $ 3,762 $ 3,664 $ 3,564 $ 3,923 $ 3,826 $41,920 20.79%

GROSS PROFIT LIFE TO DATE $12,290 $15,746 $19,100 $22,351 $25,958 $29,465 $32,620 $36,382 $40,046 $43,610 $47,532 $51,358


# Items Sold


2782


3709

Retail: Books1854


927


2782

Ticket Commission

12

278

ld classprojectfinalreport2012.pdf

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