35

Mark it Up: An Intercollegiate Marketing Strategy Competition

Cafe de Cabuyao

School:

Pamantasan ng Cabuyao

Presented by:

Balatico, Kevin A.

Gabutin, Imerene S.

Moralde, Paula Mae

San Pedro, Dianne Jonelle S.

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I. Executive Summary

Laguna, also known as the Resort Capital of the Philippines is not only rich and

famous because of its beautiful lakes and majestic mountains, but what most Filipinos

did not know is that, Laguna is also rich with natural resources and agricultural

products. Barangay Casile, located at the City of Cabuyao in the Province of Laguna,

has a 1.00387 sq mi land which has a rich soil that can make different crops to grow.

The residents of Barangay Casile has a simple way of living, and most of them are

farmers. But due to technological change, the farmers have no choice but to leave

their land and find a new job in order to sustain the needs of their own family.

Fortunately, not all Casileños has given up their land and instead, they came up with

the decision of putting up an organization now known as the Casile-Guinting Upland

Marketing Cooperative (CGUMC). This company produces quality coffee beans, and

makes sure that they are still in line with their mission and vision of establishing a

stable income for their fellow farmers. Over the years, the existing product was not

able to be promoted in different aspects. Because of the big change in the marketing

industry, the coffee growers are having a hard time in making their products be known

by people outside their community. Therefore, the researchers would like to help the

company to identify its market and the possible strategies that can be used to

advertise the product. The main objective of this study is to raise brand awareness

and make the people realize that they must patronize local products instead of the

foreign brands. According to one of the coffee shops located in Laguna, they have

learned that coffee is the second beverage that are being took by an individual next to

water, being the most necessary for the survival of every human being. The main

competitor that the researchers have seen is the kapengbarako of Batangas City.

They were able to establish strong brand identity and most Filipinos have the mentality

that the best coffee can be tasted at Batangas City. The researchers would like to
 35
break this assumption, because they believe that a coffee that is made from the heart

of trusted farmers is way more delicious which makes Cabuyao Coffee different

among other brands. One of the strength of the company is the location of the

plantation that has a good temperature and rich soil which are the most important for

the growth of any crop. However, even if it has a good location, the company lacks in

marketing strategy and promotion. The company limited their product offering in

brewed coffee, and they were not able to expand the choices of the consumers.

Furthermore, the researchers were able to identify its potential market, which are the

students; might be working or non-working students aged 17 to 22 years old. The

products must be introduced first to the Cabuyeños before aiming to introduce the

coffee outside the region. Upon conducting several interviews and observations, the

researchers were able to know that most people were most likely to patronize coffee

brands that offers milky and creamy coffee than plain brewed coffee. The respondents

showed interest in drinking coffee at the early age of thirteen, and were influenced by

their family. The number one reason why they drink coffee is to awake themselves in

order to be productive for an entire day. Considering that the target market are

students, they find drinking coffee very helpful in order for them to finish their

deadlines at school.There are lots of ways to promote a product, but the way of

promotion must be accurate to its target market. Since the researchers already

identified the age segmentation of the potential market, the other interests of these

people must be identified, too. Since these youngsters are fond of parties, the

celebration of a coffee festival would be a thrilling experience for them especially if the

organizers will offer them some activities which matches their interest. Most residents

of Cabuyao has no knowledge about the product and another factor of it is the fact that

it is not visible to the people. The action that the company must execute is the

distribution of their products on another location that will enable the customers to
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reach and be engaged with the product. Another strategy that the researchers would

like to implement is the expansion of product choices for the convenience of the

consumers. Some products like Coffee Candy, ready-to-drink coffee in glass bottles,

coffee mix in sachet, and ice cream as the new product line of the company will give

an opportunity to expand the business, most importantly in promoting their main

product. The researchers are planning to have these products be distributed at the

coffee shops inside and outside of the local community, the city local government and

offices, local university and to direct buyers such as sari-sari stores and convenient

stores. The effective ways to establish communication among the consumers are the

use of social media and the use of new trends in the marketing industry. The

researchers will be proposing an advertisement, in which the content was an original

idea of the researchers. The advertisement was all about a family, who expressed

their love through their family's traditional mixture of coffee. Another media and

communications plan that the researchers would like to offer is the development of the

company's own website and the social media accounts must be updated more often.

Different designs and packaging were also prepared and will be presented by the

researchers that the company might consider. Lastly, the content of this marketing

plan identified the company's key performance indicators, such as the (1) Customer

Satisfaction and Retention, (2) Customer Engagement, and (3) Lifetime Value of a

Customer. These things which the researchers are suggesting could be the answer to

the needs of the company, and will definitely help the farmers to provide the needs of

the family, and the needs of their consumers.

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II. Organization Objectives

Key Marketing Challenge

- to break existing loyalty to other familiar brands and attract consumers’ attention

Specific objectives of the Plan

- to present Café de Cabuyao to Filipino consumers as the better choice for purchase

- to increase its brand awareness and later on create a stable and loyal followership

III. Situation Review

Company Overview

Cafe de Cabuyao is a coffee product offered by the Casile-Guinting Upland

Marketing Cooperative (CGUMC), a small cooperative located at Brgy. Casile, City of

Cabuyao, Laguna. It was established and registered on October 20, 2011 under

Cooperative Development Authority (CDA.) The total land area planted with coffee is

32.62 hectares. There were two varieties of coffee widely planted in the area, namely:

(1) Robusta and (2) Liberica. The Office of the City of Agriculturalist conducted

monitoring of trees in the area, as of now, there were 31, 638 total of Robusta trees,

bearing and non-bearing and a total of 4, 185 trees of Liberica, bearing and non-

bearing. The upland community of Casile has a long thrived on agriculture and with

the opportunities brought by the Department of Agriculture, Department of Trade and

Industry, Department of Labor and Employment and other agencies in partnership with

the City Government of Cabuyao. As of 2016, it is consisted of 107 members; 69

female and 38 males. Out of these 107 members, 62 are farmers.

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Industry Conditions

Cafe de Cabuyao started year 2011 and started selling coffee products year 2014

and up to the present, the Casile-Guinting Upland Marketing Cooperative (CGUMC)

distributed it in different coffee shops and stores inside and outside the local

community. They also supplied coffee in the City Government Office, in the Local

University and in different coffee shops outside the local community of Cabuyao which

is the Wakeywakey coffee in Sta. Rosa and in Palace in the sky in Tagaytay City.

Every week they are earning Php 17,000 - 20,000 and producing 5-7 tons of coffee

beans in a year. Cafe de Cabuyao is earning every year ranging from Php 816,000 -

960,000; which is their income only in retail and bulk selling and the income for the

coffee shops that they are supplying outside Cabuyao is not included. It is been

running for at least 8 years and as of 2018, their income is only Php 1,400,000 for the

2.28 kg of coffee bean being produced. And in the end of the present year, the income

is expected to boost at least double the income earned in previous year because the

coffee bean produced is almost three times the number of coffee bean produced in

year 2017-2018.

As of February 2019, American NGO says that Philippine coffee industry is in a

good trend because coffee consumption is increasing and skilled farmers are

increasing too. This is despite the milk tea trend in the country. And also this is despite

the problems and issues arising from the different producers of coffee in the country.

According to satista.com the revenue gained in coffee exports and local selling is US$

5, 727 M in instant coffee and US$ 915 M for the roasted coffee which is expected to

grow 6.9% annually. Also with the average revenue per capita US$52.97 in relation to

the total population figures, per person and the average per capita consumption

stands at 1.4 kg in 2019. Cafe de Cabuyao started to widen their reach by supplying

outside the community.

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Customer Perceptions and Behaviors

Coffee drinkers nowadays are not just only for the middle ages and senior citizen

who was very fascinated by the vibes that the coffee gave to their lives, but coffee is

also for the students aged 17-23 years old. The dynamic target consumers brought by

the present generation make the producers of such product comply on the demands of

their consumer. And since this range of age (17-23 years old) are senior high to

college students in the Generation Z, coffee producers like Cafe de Cabuyao should

comply to what is the trend and they should involve themselves and the cooperative

itself to where this added target consumer is up to; social media and internet. On the

generation today, people (mostly the teenagers) spend 142 minutes or almost 6 hours

in social media and engage themselves on what is trending right now.

The researchers conducted a focus group interview consists of 10 individuals who

are moderate to excessive drinkers of coffee in Pamantasanng Cabuyao using the

following research questions:

1. What brand of coffee do you usually drink? (Nescafe, Kopiko, Great Taste, etc.)

2. How many times/cups of coffee do you take per day?

3. At what age did you start drinking coffee?

4. Who influenced you in drinking coffee?

5. Why do you drink coffee?

After gathering the information needed, the results of the first question showed

that people choose such products that offers milky and creamy taste of coffee other

than the original black coffee itself. Out of 10 people, 6 voted for Kopiko, 3 for Nescafe

Original and only one for the Great Taste and the participants are drinking 5-1 times

and cups of coffee per day. Moreover, the age when the respondents started drinking

coffee starts at the range of 13-18 years old. This shows that people are drinking

coffee at their early age and the reasons why they get engaged in such because they
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are influenced by their family members, and the principal reason why they drink coffee

is to awake themselves and to be able to do the things that they should do. Since the

participants that has been interviewed are students, they find coffee very helpful to be

able for them to do their projects and meet their deadlines.

Competitor Analysis

Cafe de Cabuyao has existing competitors in the market and there were three

types of competitors; (1) Primary competitor or direct competitors, which are

companies offering the same service or products, targeting the same audience and

serving the same needs. (2) Secondary competitor or indirect competitor which are the

companies offering either high- or low-end version of the service or product being

offered. Lastly, (3) Tertiary competitors which are related to a product or services that

are trending. The primary competitor is the kapengbarakooffered by the Coffee Capital

of the Philippines and other coffee products being offered on different parts of the

country. The secondary competitor is the well-known and well-established instant

coffee in the market. The tertiary competitor is the continuous trend of milk tea in the

country. Such different types of competitors of Cafe de Cabuyao offer products that is

well established and running for years.

The kapengbarakois a Liberica type of coffee that is well known all over the

country for its strong taste. Batangasis the main producer of the kapengbarakoin the

Philippines. It is in the market since 1740 and during that time, Batangas became the

largest exporter of coffee in different countries. But in 1880’s the coffee industry of the

Philippines collapsed due to an infestation and tough competition with different

countries that produces the same product. But presently, kapengbarako is also

produced by the people in Cavite and Davao.

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Instant coffee in the country is the most convenient way to drink a coffee and it is

offered in a sachet with different taste from strong brewed coffee up to the sweet and

creamy coffee. It is offered in sachets, drinking cups and bottles that can be bought in

sari-sari stores and convenient stores. Instant coffee mix is also offered in mass price.

The most strong competitor of the Cafe de Cabuyao is not the businesses that

offers the same product but the continuing trend of Milk Tea in the local community. It

is one of the most powerful, well known and the most successful beverage drink to

enter in the market year 2008, and reaches its peak on 2013 up to the present. It

captivates the taste of the teenagers and one of the most famous drink in social

media. It is offered in different sizes of cup and year 2018, it enters partnership with

different sectors in the market and offered gallons of milk tea and on the present year,

they started to deliver milk teas in different parts of the country.

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SWOT Analysis

STRENGTHS WEAKNESSES

1. It produces bulk of coffee. 1. Lack of Advertising Strategy

2. It is supported by the Local 2. Lack of Marketing Strategy

Government 3. They don’t offer different product

3. Farmers and staff are very aside from the brewed coffee.

hardworking and approachable. 4. The product is not well known in

4. The plantation area, its the community.

temperature and the richness of the

soil.

OPPORTUNITIES THREATS

1. Cafe de Cabuyao supplies for the 1. Competitors (well-known coffee

different coffee shops near their products in the market, instant coffee

plantation area. mix and the milk tea trend)

2. Provides source of income for the 2. Pricing and Selling Strategy used

families living in the plantation area. by its competitors.

3. Packaging (Coffee mix in sachet

and bottled coffee beverages.)

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IV. Strategy

Market Segmentation

Cafe de Cabuyao

Geographic
Segmentation

Costumer
Location

Cabuyao

Demographic
Segmentation

Age Gender Occupation Socioeconomic

Students,
17 to 22 years
All Genders Working Lower Class
old
Students

Psychographic
Segmentation

Personality LIfestyle Attitude

Customer who
Costumers who go
wants to try Experiencer
to school
new things

Behavioral
Segmentation

Readiness to
Loyalty Status
Purchase

Customers
Customers who
wanting a value
value the product
for their money
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Targeting Strategy

The researchers have come up with a targeting strategy wherein they could get the

attention of its target market. By conducting a coffee festival within the City of

Cabuyao to celebrate its agricultural condition, the organizers must provide different

ways and platforms in which the citizens could actively participate and feel the

moment of the celebration. For the artists, having a cafe art competition could be a

good ground to express their creativity through coffee. They will be able to engage

themselves most especially in establishing communication with others. To those

athletes and physically active individuals, having a fun run will certainly promote good

health condition and the fund that could be raised by the CGUMC might be used to

donate and help the people in need. Knowing that this company will not only be

helping its fellow coffee growers but also those who were experiencing poverty,

customers will be encouraged to consume their coffee because they will patronize a

company who cares not only for personal benefit but also for the good of all.Lastly,

conducting a seminar wherein coffee growers will share their knowledge about farming

would somehow help the people not only for the improvement of their livelihood but

also for the sustainability of our resources. It will help the citizens to open their eyes

and raise awareness regarding the recent situation of our environment.

Positioning Strategy

Considering that Casile is located at the highlands of Cabuyao, it is inconvenient for

the people to visit their store. It would be hard for them to try and be involved if the

company is out of reach. With this scenario, the researchers would like to propose that

the coffee products from Café de Cabuyao be seen by the public by placing them in

local supermarkets. The students will find it convenient if it visible and easy to visit.

The researchers were thinking if it is possible that the products will be placed and

seen at the heart of Cabuyao City, which is known as cabuyaobayan. Different

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establishments can be seen around this location which will be beneficial for the

company once they got the support from them. There are also local coffee shops that

were located there, and the researchers have seen it as a great opportunity to get

more partners who are willing to get supplies from the company. Putting up small stalls

will not be as hard as most people would think especially that Café de Cabuyao has

the support from the city government. This step could make a big impact and good

improvement for the company. Since the researchers have a new product offering

which could help in promoting the products while placing them on sari sari stores and

allowing the products to get engaged with the people, the success of this company will

be possible even in a short span of time. One of the company’s strength is its ability to

produce coffee in bulk and have it distributed on some of its partners, and so

therefore, the company is capable of placing its products to a more visible and

reachable

V. Tactical Plan

Product Offering

The company has been in operation since 2011, but after several years, they were not

able to expand the options of its consumers. They were only limited in selling packed

coffee as their main product. Therefore, the researchers would like to offer some of

their idea in which the company could do and offer their consumers in order to provide

them more choices that will enable the company to cater the needs of its market and

the members of the organization. Since the original product being offered by the

company is the coffee itself, which was cultivated and harvested by the coffee

growers, the expansion of customer choices will not invalidate the recent product but

will certainly develop brand awareness as people patronize a specific product under

this company. First is the Coffee Candy, wherein the researchers thought of it as the
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most effective way in reaching people and let them experience the Cabuyao coffee.

Second is the the ready-to-drink coffee in glass bottles. The researchers will also be

promoting environment friendliness and so therefore, they will not be using any forms

of plastic unless they will be able to find suppliers who offers bio-plastics, or those type

of plastic that is eco-friendly and is not harmful to anybody especially to our

environment. Third is the ready mix coffee in a sachet or tetra pack, which could

trigger the urge of people to try the product since having a product in a small

packaging will not tolerate fear on the consumers’ minds thinking that they can try and

evaluate the product without the need of buying the 250-gram pack which the

company are currently selling. Lastly, the researchers have thought of making a new

product line, which is an ice cream with different fruit flavors. Considering that most

Filipinos are fond of eating sorbetes or ice cream, people would enjoy the taste of

Cabuyao coffee as they respond on their cravings of having an ice cream. Having

different products will not automatically get a bulk of consumers, but could be a good

start in making a step of reaching other people and getting more customers.

Coffee
Candy

Ready-to-
Cafe de drink Coffee
Cabuyao
Coffee Mix
in sachet

Coffee Ice
Cream
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Pricing Approach

The pricing strategy is set to reach a diverse market brand. The prices will be set

below the current market trend, and through that, it will appeal to the new market and

bring customers into the store.There will be low-cost items for school age students,

and there will be additional presentation packaging that can be purchased for those

who would like to give candy as a gift. A 10% discount coupon will be offered to entice

even more first time customers

Distribution Plan
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Communications/ Media Plan

*The researchers will be presenting their own advertisement, showing the real story

behind the Cafe de Cabuyao.

Packaging:

Coffee Candy Ready-to-drink Coffee in glass

bottles

Coffee Ice Cream Instant Coffee

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VI. Timeline & Budget

Coffee Candy Ready-to-

drink Coffee,Coffee in
Sachet
1st Year
Packaging 2,000
Labor 3,500
Equipment 3,000
Raw Materials 1,500

Ice Cream
Packaging 15,000
2nd Year
Labor 20,000
Equipment 35,000
Raw Materials 30,000

Cafe & Stalls

Packaging 20,000
rd
3 Year Labor 150,000
Equipment 80,000
Furniture 150,000
Raw Materials 100,000

VII. Measurement and Evaluation

Key Performance Indicators

1. Customer Satisfaction and Retention - it is very important to make your customers

get satisfied with the products and services that a business offers. Café de Cabuyao

focuses on this key performance indicator because it retains old customers and make

possible consumers in the future.

2. Customer Engagement - making your product be known by your target market is

also important, because if no one knows about your product, how would a company

develop an improvement on their business? It is essential that the company knows

who their target market are, and the market should know who they are buying from.
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3. Lifetime Value of a Customer - every business must value their customers, making

sure that they cater the wants and needs of an individual. taking good care of the

customers and letting them feel that they are worthy would ensure their loyalty for a

lifetime

Benchmarks of Success

Competitive advantage

Uniqueness of Café de Cabuyao makes it better from the other coffee brands and

drinks. From the packaging up to its vision, the product assured nothing but success in

the coffee industry. The packaging of each coffee product shows a classy design

used with different colour tones of coffee as well as the chosen font. Also, a bell

curved in a sophisticated way represents the bell of Cabuyao which is known as a

symbol of the city. Café de Cabuyao wants the consumers to remember the beauty of

the old times through its design. Aside from the design, the business aims to produce

products that are not harmful to the environment by not using plastic as much as

possible. It includes the zero usage of straws and promos such as having a discount

for consumers who are able to re-use their own bottle for refill. Thus, critical research

for choosing the appropriate packaging was made with a careful consideration for the

production cost.

The original tagline of Café de Cabuyao is that it is not just a cup of coffee. Upon

doing the research, the group found out that the tagline has a deeper meaning.

Compared to the other brands or drinks, Café de Cabuyao chief aim is to help their

farmers. It created a livelihood for the farmers without being far from their home. The

product also helps Cabuyao to be known more. Café de Cabuyao will be the signature

drink of the Cabuyao. It is the pride of the city. Because it is made of natural ground

coffee, the taste is mouth-watering. It is perfect for coffee lovers. It may have a great
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wholesome taste of a coffee but the price is very affordable. People do not need to

spend hundreds of pesos for great coffee. Café de Cabuyao is not just affordable but

also accessible for it will be available on the stores near your house. Consumers can

get Café de Cabuyao without travelling far and spending too much money. The

product can prove that it is not about the brand, it is about the coffee itself.
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APPENDIX A

FIXED OPERATING EXPENSES

Café de Cabuyao's Candy Shoppe

Fixed Operating Expenses

Fixed Operating Expenses Monthly Year One Ye ar Two Y e a r Three

Percent Change 3.00% 3.00%

Expenses
Advertising ₱ 10,400 124,800 128,544 132,392
Car and Truck Expenses - - - -
Commissions and Fees - - - -
Contract Labor - - - -
Credit Card and Bank Charges 10, 400 124,800 128,544 132,392
Customer Discounts and Refund - - - -
Dues and Subscriptions - - - -
Entertainment - - - -
Insurance (Liability and Property 2,184 2,608 26,988 27,820
Internet 2,600 31,200 32,136 33,124
Legal and Professional Fees - - - -
Office Expenses 52,000 62,400 64,272 66,196
Postage and Delivery 52,000 62,400 64,272 66,196
Rent (on business property) 81,900 982,800 1,012,284 1,042,652
Rent of Vehicles and Equipment - - - -
Repairs and Maintenance 52,000 62,400 64,272 66,196
Supplies 26,000 312,000 321,360 330,980
Telephone and Communications 52,000 62,400 64,272 66,196
Travel - - - -
Utilities 13,000 156,000 160,680 165,516
Total Expenses 334,048 1,983,808 2,067,624 2,129,660

Other Expenses
Depreciation 7,200 87,360 87,360 87,360
Interest
Commercial Loan - - - -
Commercial Mortgage - - - -
Line of Credit - - - -
Total Other Expenses 7,200 87,360 87,360 87,360

Total Fixed Operating Expenses 344,291 1,984,255 2,068,071 2,130,107

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APPENDIX B

SALARIES & WAGES

Café de Cabuyao's Candy Shoppe
Salaries and Wages

Salaries and Related Expenses # Assumptions Monthly Year One Year Two Year Three

Percent Change 3.00% 3.00%

Salaries and Wages

Owner's Compensation 1 ₱ 1 2 ,000 144,000 148,320 152,770
Salaries - - - -
Wages
Full-Time Employees 0 - - - -
Estimated Hours Per Week -
Estimated Rate Per Hour
Part-Time Employees 1 7,000 84,000 86,520 89,116
Estimated Hours Per Week 15.00
Estimated Rate Per Hour 350.00
Independent Contractors - - - -
Total Salaries and Wages 2 19,000 228,000 234,840 241,886

Payroll Taxes and Benefits

Social Security 6.20% 1,178 14,136 14,560 14,997
Medicare 1.45% 276 3,306 3,405 3,507
Employee Pension Programs 0.00% - - - -
Worker's Compensation 0.00% - - - -
Employee Health Insurance 0.00% - - - -
Other Employee Benefit Programs 0.00% - - - -
Total Payroll Taxes and Benefits 1,454 17,442 17,965 18,504

Total Salaries and Related Expenses 20,454 245,442 252,805 260,390

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APPENDIX C

PROJECTED BALANCE SHEET – FIRST THREE YEARS

Café de Cabuyao's Candy Shoppe

Projected Balance Sheet - First Three Years

End of Year One End of Year Two End of Year Three

Assets
Current Assets
Cash 4,141 2,938 21,422
Accounts Receivable - - -
Inventory 63,525 109,525 157,525
Prepaid Expenses 9,475 9,475 9,475
Other Current - - -
Total Current Assets 77,141 121,938 188,422

Fixed Assets
Leasehold Improvements 16,200 16,200 16,200
Equipment 11,800 11,800 11,800
Furniture and Fixtures 6,000 6,000 6,000
Other Fixed Assets - - -
Total Fixed Assets 34,000 34,000 34,000

Less: Accumulated Depreciation 1,680 3,360 5,040

Total Assets 109,461 152,577 217,382

Liabilities and Owner's Equity

Liabilities
Total Liabilities - - -

Owner's Equity
Common Stock 60,000 60,000 60,000
Retained Earnings 49,461 104,578 169,382
Dividends Dispersed - 12,000 12,000
Total Owner's Equity 109,461 152,578 217,382

Total Liabilities and Owner's Equity 109,461 152,577 217,382

 PROJECTED INCOME STATEMENT – FIRST THREE YEARS
Café de Cabuyao's Candy Shoppe
Projected Income Statement - First Three Years

Year One % Year Two % Year Three %

Income
Candy Sales 139,577 149,347 164,282
Teaching Classes 23,100 24,255 26,195
- - -
- - -
Total Income 162,677 100.00% 173,602 100.00% 190,477 100.00%

Cost of Sales
Candy Sales 36,750 39,323 43,255
Teaching Classes 3,960 4,158 4,491
# - - -
- - -
Total Cost of Sales 40,710 25.03% 43,481 25.05% 47,745 25.07%

Gross Margin 121,967 74.97% 130,121 74.95% 142,732 74.93%

Salaries and Wages

Owner's Compensation 18,000 18,540 19,096
Salaries - - -
Full-Time Employees - - -
Part-Time Employees 7,800 8,034 8,275
Independent Contractors - - -
Payroll Taxes and Benefits 1,974 2,033 2,094
Total Salary and Wages 27,774 17.07% 28,607 16.48% 29,465 15.47%

Fixed Business Expenses

Advertising 2,400 2,472 2,546
Car and Truck Expenses - - -
Commissions and Fees - - -
Contract Labor - - -
Credit Card and Bank Charges 2,400 2,472 2,546
Customer Discounts and Refunds - - -

Dues and Subscriptions - - -

Entertainment - - -
Insurance (Liability and Property) 504 519 535
Internet 600 618 637
Legal and Professional Fees - - -
Office Expenses 1,200 1,236 1,273
Postage and Delivery 1,200 1,236 1,273
Rent (on business property) 18,900 19,467 20,051
Rent of Vehicles and Equipment - - -
Repairs and Maintenance 1,200 1,236 1,273
Supplies 6,000 6,180 6,365
Telephone and Communications 1,200 1,236 1,273
Travel - - -
Utilities 3,000
3,090 3,183
Total Fixed Business Expenses 38,604 23.73% 39,762 22.90% 40,955 21.50%

Other Expenses
Amortized Start-up Expenses - - -
Depreciation 1,680 1,680 1,680
Interest
Commercial Loan - - -
Commercial Mortgage- - -
Line of Credit - -
Taxes 4,447 4,956 5,827
Total Other Expenses 6,127 3.77% 6,636 3.82% 7,507 3.94%

Net Income 49,461 30.40% 55,116 31.75% 64,804 34.02%