Cupcakes &
Wedding Cakes
Vanilla Cake with
Lemon Icing
Chocolate Cake with
Peppermint Icing
Chocolate Cake with
Peanut Butter Icing
Vanilla Cake with
Vanilla Icing
Critical Factor
Sales!
Sales!
Sales!
University Heights Square
138 – 1820 McOrmond Drive
Why University
Heights Square?
• Surrounded by 7 neighborhoods with a combined population of
45,000+ (Source: City of Saskatoon)
• The surrounding neighborhoods have an average household income
of $85,704 (Source: City of Saskatoon)
• Next to 2 high traffic streets; Attridge Drive and McOrmond Drive
Street
2009 (estimated)
2014 (projected)
McOrmond Drive
183 vehicles/hr
1117 vehicles/hr
Attridge Drive
738 vehicles/hr
1073 vehicles/hr
(Source: Stantec Consulting Ltd)
Direct Competition
The Cupcake Corner
The Cupcake Conspiracy
$3.00/ Cupcake
$2.50/ Cupcake
Indirect Competitors
Safeway
Starbucks
$ 1.50/ Cupcake
$1.95/ Mini Cupcake
Profit Margin
Price: $700
Cost: $104.58
Profit Margin: 85%
Price: $3.00
Cost: $0.27
Profit Margin:
91%
Expected Revenues
2012
2013
2014
2015
2016
Number of Customers/Day
30
36
40
42
42
Numbers of Days/Year
350
350
350
350
350
Average Purchase/Customer
$18.00
$18.45
$18.91
$19.38
$19.87
Total Sales
$189,000
$232,470
$262,110
$282,096
$294,93
1
2012
2013
2014
2015
2016
25%
20%
10%
5%
5%
Customer Growth
Marketing
2012
2013
2014
2015
2016
Radio
$12,090
$12,090
$9,067
$6,045
$3,022
Newspaper
$4,567
$4,567
$3,425
$2,283
$1,141
Website
$950
$200
$200
$200
$200
Print Ads
$2,000
$2,000
$1,500
$1,000
$1,000
Signage
$3,000
$3,000
$3,000
$3,000
$3,000
Yellow Pages
$240
$240
$240
$240
$240
Total
$22,847
$22,09
7
$17,432
$12,76
8
$8,603
Breakeven Analysis
50
40
30
36
31
31
30
40
42
42
29
28
27
20
10
0
1
2
3
4
5
Base Case
Breakeven
Return on Investment
NPV: $82,891
Required Rate
of Return: 25%
Thank You
Questions?