Business

MOBILITY EQUIPMENT Development Plan

SERVICES

Contract:
312 Southwick Blvd
Leduc, Alberta
T9E 0E8
https://mobilityequipmentservices.ca/
Table of Contents
1. Executive Summary............................................................................................................................................4
2. Company Summary............................................................................................................................................7
2.1 Introduction....................................................................................................................................................7
2.2 Objective........................................................................................................................................................7
2.3 Mission...........................................................................................................................................................7
2.4 Operational Plan.............................................................................................................................................7
2.4.1 Products.......................................................................................................................................................8
2.4.2 Ideal Customer............................................................................................................................................8
2.4.3 Market Penetration Strategies......................................................................................................................8
2.4.4 Pricing strategy............................................................................................................................................9
2.4.5 High Quality Products Strategy...................................................................................................................9
2.4.6 Leading Technology..................................................................................................................................10
2.4.7 Opening Schedule......................................................................................................................................10
2.4.8 Company Ownership.................................................................................................................................10
2.4.9 Revenue Streams.......................................................................................................................................10
2.5 Expansion Plan.............................................................................................................................................11
2.6 Start-Up Cost................................................................................................................................................11
2.6.1 Summary of Startup Cost..........................................................................................................................13
2.7 Management Team.......................................................................................................................................13
3.0 Market Analysis..............................................................................................................................................14
3.1 Target Market Demographics.......................................................................................................................14
3.2 Types of Liquidation Inventory....................................................................................................................15
3.3 Liquidation Market Analysis........................................................................................................................15
3.3.1 Where Does Liquidation Stock Come From?...........................................................................................16
3.3.2 Large Liquidation Companies...................................................................................................................16
3.3.3 Experienced Liquidation Buyers...............................................................................................................16
3.3.4 Smaller Liquidation Buyers......................................................................................................................17
3.3.5 What’s a shelf pull?..................................................................................................................................17
3.3.6 What is bankrupt stock?............................................................................................................................17
3.3.7 How to buy Liquidation Stock?................................................................................................................18
3.3.8 Why are retailers so desperate to clear these products out?......................................................................18
3.3.9 Techniques to Buy Liquidation Stock.......................................................................................................18
3.4 Trends in the Liquidation Business..............................................................................................................21
3.5 US Retail Sales Forecast to Grow by 3.8% to 4.4%.....................................................................................22
3.6 Resale Market Trends...................................................................................................................................22
3.7 Secondhand Sales Expected to Double.........................................................................................................22
3.8 Traditional Retailers Trying Resale..............................................................................................................23
4. Competitor Analysis.........................................................................................................................................24
4.1 Competitive Landscape................................................................................................................................24
4.2 Liquidation Auctions in Columbus, OH.......................................................................................................24

2
 4.3 Barriers to Entry...........................................................................................................................................25
4.4 Major Direct Competitors.............................................................................................................................25
4.5 Competitive Edges.......................................................................................................................................25
5.0 Sales Strategy..................................................................................................................................................26
5.1 Marketing Initiatives....................................................................................................................................26
5.2 Pricing Strategy............................................................................................................................................27
5.3 Internet Marketing Strategy..........................................................................................................................27
5.4 Print and Electronic Media Marketing..........................................................................................................28
5.5 Mobile Marketing.........................................................................................................................................29
5.6 Marketing Budget.........................................................................................................................................29
6. SWOT Analysis.................................................................................................................................................31
7.0 Financial Plan.................................................................................................................................................32
7.1 Financial Assumptions.................................................................................................................................32
7.2 Revenue Projections.....................................................................................................................................34
7.2.1 Monthly Revenue Projection First Year....................................................................................................34
7.2.2 Five Year Revenue Projections.................................................................................................................35
7.2.3 Revenue Projections by Products..............................................................................................................35
7.3 Five Years Profit & Loss Projections...........................................................................................................36
7.4 Projected Cash Flows...................................................................................................................................39
7.5 Break-Even Analysis....................................................................................................................................40
7.6 Scenario Analysis.........................................................................................................................................41
7.7 Investment Analysis.....................................................................................................................................42
7.8 Loan Amortization Schedule........................................................................................................................43
8. Appendix...........................................................................................................................................................44
8.1 Monthly Profit and Loss Projections............................................................................................................44
8.2 Quarterly Profit and Loss Projection Year 2 & 3..........................................................................................45
8.3 Quarterly Profit and Loss Projection Year 4 & 5..........................................................................................45

3
4
1. Executive Summary
Liquidation Dealz is a resale business located at
3899 Alum Creek Dr, Columbus, OH, 43207.
Having well maintained storefront covering
2,500 sq.ft space which providing variety of
liquidation products to its targeted customers.
Liquidation Dealz sells name brand liquidation
products from big box retailers like Walmart
and Amazon. Liquidation products can be overstock, refurbished, or customer returns.
Liquidation Dealz buy truckloads of merchandise from big box retailers when they go out
of business. We resell liquidated merchandise to our customers at a deep discount of 25%-
Introduction 75% off MSRP. Mr. Bennett holding (100%) share of the Company. Mr. Bennett will
occupy the position of Chief Executive Officer. Liquidation Dealz will beat any retail or
online price. It has a large selection of electronics and appliances, like smart TV's, smart
phones, laptops, tablets, game consoles, air fryers, electric pressure cookers, air purifiers,
and more. Company 25% of Products are Brand-New, 50% are Like-New and 25% are
Used products. It was founded in 2020 by a single member LLC. Its mission is to provide
effective and affordable products to residents of Columbus Ohio at cheapest rate and
enrich the development of the community. Keys to success of Liquidation Dealz are: Fast
reliable service, affordable costs, quality and price are our number one priority.
Liquidation resale business industry is a narrow industry which is expanding surprisingly
because of the high demands. The Products provided in this type of business are Home
Goods, Electronics, Kitchen Housewares, Appliances, and Toys.

• Overstock: These are products with brand new condition. This is when a company like
Walmart has too much of product and they need to get rid of it fast, in order to make
Liquidation more room for new inventory.
Products • Refurbished: These are products like new conditions. This is when a product has been
restored to original condition.
• Customer Returns: These are new and used products. This is when a customer returns
item to store for any reason. Some boxes have never been opened and some items
people use one time then return it.

5
 Strategic
 To sell everything between 25-75% off retail price
 To offer quality products at affordable prices.
 Save customer money
 To sell the product on retail store, company website, Mobile App Auctions, and third-
party websites and apps.
Objective
 To utilize online marketing and advertising tactics to keep the competition at bay
 To earn good reputation in the market.
Financial
 To turn into a profit generating company from first operating year.
 To recoup initial investment within the first year.
 To secure net profit upto 26.62% of gross revenue.
 Affordable price for quality products
 Extensive assortment of general merchandise, a product for everyone
 Knowledge and understanding of liquidation market and customer needs
 Working closely with customers to build relationships and alliances satisfying the high

Keys to Success standards of world-wide consumers

 Work with trusted liquidation wholesalers
 Best use of leading technology
 Develop skilled and self-motivated team
 Use effective and efficient marketing strategy.
Days Timings Description
Friday 10:00 AM to 6:00 PM 8 Hrs
Opening Saturday 10:00 AM to 6:00 PM 8 Hrs
Schedule
Sunday 10:00 AM to 6:00 PM 8 Hrs
Monday 10:00 AM to 6:00 PM 8 Hrs
Total startup funds required are in order of US $68,600. The funds US $30,000 will be
raised and geared from the owner as equity financing and remaining US $38,600 will be
Capital Cost
raised through loan (debt financing).

6
 Description FY-1 FY-2 FY-3 FY-4 FY-5
Gross Revenue $150,000 $241,500 $320,820 $351,702 $392,610
Direct Cost $75,000 $120,750 $160,410 $175,851 $196,305
5 Years
Operational Expenses $26,540 $61,740 $61,740 $61,740 $61,740
Financial
Interest Expenses $2,702 $2,232 $1,729 $1,191 $616
Projections
Sales Taxes $11,250 $18,113 $24,062 $26,378 $29,446
N et Profit $34,508 $38,665 $72,879 $86,542 $104,503

7
2. Company Summary
2.1 Introduction

Mobility Equipment Services is specialized in repairs,

maintenance, and modifications on all mobility
equipment including, but not limited to, walkers, power
scooters and wheelchairs, lifts, etc. Call today and one of
our experts will provide an individualized service that
you can trust. We understand that getting around without your equipment can be a challenge. No need to
plan or stress about bringing it to us. We will come directly to you to service your equipment. No downtime
or waiting  necessary. 

Our service technicians have over 10 years of experience maintaining, installing, and servicing mobility
equipment. We strive to provide the best possible service that other providers cannot compare to.
Our Story
In 2011, Shaileigh was diagnosed with 5Q14.3 Deletion
Syndrome, an extremely rare genetic disorder. Due to her
condition, doctors claimed that she would never walk and
that she would be confined to a wheelchair for the rest of her
life.
With the aid of a kid walk, Shaileigh was able to learn the
fundamentals of walking. Upon entering school, she
upgraded to a Crocodile walker and is now able to walk
independently for short distances.
Although we owe Shaileigh’s success to the aid of her
mobility equipment, it has been a long journey with many
struggles.
We have experienced poor service, resulting in injuries, long wait times for equipment repairs, and periods
of time without access to her equipment due to it being away for service.

8
At Mobility Equipment Services, we understand first hand how important your
equipment is to you and are committed to providing you with the best service possible. No more downtime,
no waiting for your equipment, and a mobility service at your door that you can trust.

Our Family
We are a locally owned, family operated business. At Mobility Equipment Services, family means
everything to us. Whether its our family or yours, we provide everyone with the same level of compassion,
dedication, and care.
Our Background
Mobility Equipment Services is comprised of individuals with educational backgrounds in power
engineering, healthcare, mechanical/ electrical trades, carpentry, fabrication, workplace safety, accounting
and management. 
2.2 Objective

To alleviate the current need for service and installation of different types of equipment on site which is not
offered by other providers.
2.3 Mission

Mobility Equipment Services is dedicated to the highest quality of service delivered with understanding,
empathy and care for those living with mobility concerns.

2.4 Operational Plan

Mobility Equipment Services is established at 312 Southwick Blvd Leduc, Alberta T9E 0E8 and registered
as Mobility Equipment Services Business. The company is focusing in repairs, maintenance, and
modifications on all mobility equipment including, but not limited to, walkers, power scooters and
wheelchairs, lifts, etc. we provide an individualized service with our experts.
We believe that people do not want to go to the store for repair and maintenance of their equipment we
make a solution for them. Mobility Equipment Services provides them repairing services as well as people
can buy their mobility equipment. The community or people with demographics of seniors and individuals
living with permanent or temporary physical disabilities will be our target market. We are going to open our
mobility equipment store as an expansion of our business. Our business model includes service and retail
sales.
Service: Revenues are generated through labor and mark up on parts installed / provided.
Retail: Revenues are generated through sales of items purchased from manufacturers and wholesalers.

9
Service: Our clients initially book a consultation over the phone, online, or in
person. We assess the needs of the individual and provide them with a quote. If they choose to proceed, we
will attempt to complete the job on site immediately, depending on availability of parts. If necessary, we
will return to site as soon as the parts are available and complete the project.
Retail Sales: We plan to display available products in a showroom and will reorder equipment as needed or
sold directly to customers.

10
2.4.1 Products/Services
Mobility Equipment Services will offer following products/services:
Installation:
Stairlifts
We install all makes and models of stair lifts. Indoor, outdoor, straight or curved stairs; we've got you
covered. 
Ramps
We build and install indoor and outdoor wheelchair ramps. 100% customizable for your comfort and style. 
Walk in Bathtubs & Showers
We do full bathroom renovations from start to finish. Please contact us for a quote.
Wall Grab Bars
Restrooms, hallways, bedrooms, anywhere there's a wall, we can install a grab bar. Available for vertical,
horizontal, or diagonal installation. Manufactured from quality grade stainless steel.
Safety Railings & Handles
Having trouble getting in and out of bed, up and down stairs, or off and on the toilet? 
We can help!
Standing Support Poles
Standing support poles can be used anywhere in your home. The handle rotates 360 degrees, locking into
place every 45 degrees to provide maximum safety and comfort. 

Services & Repair:

Walkers

11
Wheelchairs
Powered Wheelchairs
Scooters
CPAP Machines
Lifts
Custom Modification:
Equipment Add Ons
Do you have existing equipment that could be better equipped for your needs? Reach out to us with your
idea and our service technicians will be happy to help.

Renovations
We do all home renovations tailored to your needs. Whether it’s outfitting an existing washroom for
maximum comfort and safety, building and installing ramps or railings, or any other modifications to make
your life more accessible, we've got you covered. 

2.4.2 Ideal Customer

Following will be the ideal customers of Mobility Equipment Services.

Primary customers: Individuals aged 50+
Secondary customers: Individuals with physical disabilities that require the use of mobility equipment
and/ or supports

2.4.3 Market Penetration Strategies

Mobility Equipment Services will adopt following strategies to make the business run successfully:
•
2.4.4 Pricing strategy

Mobility Equipment Services based our hourly rates on industry standards. What sets us apart from the
competition is that no other company within the industry will service equipment at the client's place of
residence. The competitors charge to pick up the equipment, take it to their shop, fix the equipment and
charge to return the equipment once it is fixed. We have a flat rate mileage fee that is lower than our
competitors and since we service on site, our clients do not have to wait for their equipment to be returned
to them which can take weeks.

12
2.4.5 High Quality Products Strategy

2.4.6 Leading Technology

2.4.7 Opening Schedule

2.4.8 Company Ownership

The company will be owned by Phil Hulmes, and Amanda Emery who are Canadian citizen. The owners of
the company invests US $10,000.00 each and other amount will be raised through debt.

Shareholder Names: Gender Investment Amount Citizenship

1) Phil Hulmes Male $10,000.00 Canadian

2) Amanda Emery Female $10,000.00 Canadian

2.4.9 Revenue Streams

13
2.5 Expansion Plan

In the 1st phase our clients initially book a consultation over the phone, online, or in person. We assess the
needs of the individual and provide them with a quote. Once the desired market penetration and growth
rates achieved, company will move to next phases for expanding the business and catering the markets. In
2nd phase If they choose to proceed, we will attempt to complete the job on site immediately, depending on
availability of parts. If necessary, we will return to site as soon as the parts are available and complete the
project.
In 3rd phase business will be expanded we plan to display available products in a showroom and will
reorder equipment as needed or sold directly to customers. The exact time spam for moving one phase to
other depends on the market scenario, overall performance of the company and willingness of the
stakeholders.

1: Booking of a Consultation

2: Project Completion

3: Opening a showroom

14
2.6 Start-Up Cost

Total funds to be used for investment Total Funds (CAD$)

Funds Required from investors/VC $60,000

Funds will be invested by the owner $20,000

Total Funds Requirement $80,000

Use of Funds Total Funds (CAD$)

Purchasing of Land $0.00

Construction of properties $0.00

Renovation of properties $3,000.00

Salaries of the staff $12,000.00

Purchasing of Current Assets $10,000.00

Purchasing Fixed Assets $25,000.00

Marketing & Promotional Expenses $15,000.00

Startup Operating Expenses $15,000.00

Other

Total $80,000.00

15
2.6.1 Summary of Startup Cost

Startup Cost Amount in USD (%)

Fixed Assets $5,000 7.29%
Operational Expenses $39,600 57.73%
Salary $13,500 19.68%
Current Assets $10,500 15.31%
Total $68,600 100.00%
Capital    
Equity Financing $30,000 43.73%
Loan Financing $38,600 56.27%

2.7 Management Team

Description FY 1 FY 2 FY 3 FY 4 FY 5
Sale Associate 1 (full time)          
Monthly Hours 128 128 128 128 128
Hourly Rate $10 $10 $10 $10 $10
Annual Wage $15,360 $15,360 $15,360 $15,360 $15,360
Sale Associate 1 (part time)          
Monthly Hours 64 64 64 64 64
Hourly Rate $10 $10 $10 $10 $10
Annual Wage $7,680 $7,680 $7,680 $7,680 $7,680
Total Payment $23,040 $23,040 $23,040 $23,040 $23,040

3.0 Market Analysis

3.1 Target Market Demographics

16
The success of any business heavily depends on the market demographics. The
market demographics show how much potential is there to boost the business. Moreover, market
demographics are also critical for long term growth and sustainability of the business.

The target market of Liquidation Dealz is Columbus, Ohio, in the first phase services will be offered in the
Columbus city, however, at later stage business may be extended to other cities and states of USA.
Columbus is the state capital and the most populous city in the U.S. state of Ohio. In 2018, Columbus, OH
had a population of 896k people with a median age of 32.3 and a median household income of $52,971.
Between 2017 and 2018 the population of Columbus, OH grew from 881,901 to 895,877, a 1.58% increase
and its median household income grew from $51,708 to $52,971, a 2.44% increase. The population of
Columbus, OH is 54.3% White Alone, 29% Black or African American Alone, and 6.13% Asian Alone.
N/A% of the people in Columbus, OH speak a non-English language, and 92.4% are U.S. citizens.
Columbus is the second most populous city in the Midwest, after Chicago, Illinois. It is the core city of
the Columbus, OH Metropolitan Statistical Area, which encompasses ten counties with a population of
2,106,541, it is Ohio's second-largest metropolitan area. Columbus is the county seat of Franklin
County. The municipality has also annexed portions of adjoining Delaware and Fairfield counties. Named
for explorer Christopher Columbus, the city was founded in 1812, at the confluence of
the Scioto and Olentangy rivers, and assumed the functions of state capital in 1816.
The city has a diverse economy based on education, government, insurance, banking, defense, aviation,
food, clothes, logistics, steel, energy, medical research, health care, hospitality, retail, and technology. The

metropolitan area is home to the Battelle Memorial Institute, the world's largest private research and
development foundation; Chemical Abstracts Service, the world's largest clearinghouse of chemical
information; NetJets, the world's largest fractional ownership jet aircraft fleet; and Ohio State University,
one of the largest universities in the United States. As of 2018, the city has the headquarters of five

17
corporations in the U.S. Fortune 500 American Electric Power, Cardinal
Health, L Brands, Nationwide, and Big Lots, just out of the top 500.1 Columbus is an excellent location for
business.  The local economy is not dominated by any single industry; and as a result is more stable than
other locations.  The Columbus economy is balanced by a combination of education, technology,
government, research, insurance and health care as major employers in the region. 2

3.2 Types of Mobility Equipment

Mobility aids are devices designed to help people who have problems moving around enjoy greater freedom
and independence. Typically, people who have disabilities or injuries, or older adults who are at increased
risk of falling, choose to use mobility aids. These devices provide several benefits to users, including more
independence, reduced pain, and increased confidence and self-esteem. A range of mobility devices is
available to meet people’s needs from canes and crutches to wheelchairs and stair lifts.

Types of mobility aids

The type of mobility aid required will depend on the mobility issue or injury. The most common types of
mobility aids include:

Canes
Canes are similar to crutches in that they support
the body’s weight and help transmit the load from
the legs to the upper body.
Common types of canes include:

 White canes.
 Quad canes.

1
https://en.wikipedia.org/wiki/Columbus,_Ohio#/media/File:Columbus_Pano_2.jpg
2
https://www.columbus.gov/development/economic-development/Business-Assistance/

18
  Forearm canes.

Crutches
Crutches help to transfer weight from the legs to the upper body. They can be used singly or in pairs.
Crutches help keep a person upright and may be used by those with short-term injuries or permanent
disabilities.
There are many different types of crutches, including:

 Axillary (underarm) crutches.

 Lofstrand (forearm) crutches.
 Platform crutches.

Walkers
Walkers, also known as Zimmer frames, are made up of a metal framework with four legs that provide
stability and support to the user. Basic walkers have a 3-sided frame that surrounds the user. Types of
walkers beyond the basic model include:

 Rollators.
 Knee walkers.
 Walker-cane hybrids.

Wheelchairs
Wheelchairs are used by people who should not
put weight on their lower limbs or who are
unable to walk. They can be more suitable than
walkers for people with severe disabilities or
when travel over greater distances is required.

Mobility scooters
Mobility scooters are beneficial for those
without the upper body strength or flexibility to

19
use a manual wheelchair. Many scooter users report a positive impact on their lives
due to their choice of mobility aid.

Safety Modifications
Several home or office modifications can be made to help navigate within a building or in other areas where
there are changes in surface heights. These include:

 Ramps.
 Stair lifts.
 Hand rails.

https://www.medicalnewstoday.com/articles/318463#Types-of-mobility-aids

3.3 Liquidation Market Analysis

3.3.1 Where Does Liquidation Stock Come From?

Retailers and internet sellers across the industry liquidate stock for a number of reasons. There are customer
returns, “shelf pulls” and “warehouse pulls” of products that for different reasons come back into their
warehouse. It’s essentially a “reverse logistics” issue passing products back up the supply chain to
warehouses and distribution centers, instead of down the supply chain into stores. When these products
come back, they need to be accounted for then they need to be resold or liquidated. Retailers like Walmart,
for example, have a tremendous amount of reverse logistics products that come into the Walmart returns
center. These products need to be moved on. Walmart and other large retailers have a system of selling
them by the truckload. They call it a “load” in the industry, which is typically 24 pallets. The peak season
for liquidation stock usually comes in the first quarter of the year January through March. A lot of
Christmas returns are coming back then, such as unwanted gifts and buyer remorse returns. The more

20
liberal return policies that the large retailers have, the more returns that come
back, and the more products that float into secondary markets – the various outlets where clearance stock is
sold.

3.3.2 Large Liquidation Companies

The big liquidation companies buy products in bulk 30 to 40 truckloads and then resell it to smaller
liquidation players. The retailers often agree contracts with the big liquidators. They’ll say, “Hey, you won
the contract to buy all our liquidation product for the next year.” The contract will be at a specific rate, such
as 10 cents on the dollar, meaning that the liquidator will pay 10% of the value for everything that comes
from that retailer. Whether they get 100 truckloads, two truckloads or one truckload, they have to take all
the product that comes in based on their contract. The contracts switch every year, with different players
winning different contracts. That’s the way the larger liquidators buy the product. Other than information
from previous purchases, a lot of the buying is completely blind. Every retailer works the liquidation
business differently. Taking Walmart as an example again, they sell “unmanifested” loads at a cost
anywhere between $5,000 to $10,000. A manifest is a document that tells in detail every single unit that’s
on a pallet or in a truckload, so with an unmanifested load you just do not know what you’re getting. For a
consumer or somebody that’s just trying to break into the liquidation business this is not a smart way to buy
liquidation products, you need to have a lot more detail.
3.3.3 Experienced Liquidation Buyers
Some retailers and online sellers will buy whole truckloads of clearance stock, either direct from retailers or
from large liquidation companies. In this case, the buyer will come in and agree to take a load with a brief
description, then go and pick up the trailer full of product 24 pallets. Some of these buyers have retail
stores, some are online sellers that sell it on eBay or other platforms, some sell on flea markets or garage
sales. There are a lot of different venues to sell these types of product. They’ll document all the units they
have, then go and sell it for a profit. Depending on the load that they get, there can be a lot of profit to be
made. It all depends on the products in the load, and the best channel to sell that load through. Every retailer
out there from Macy’s to Staples to Amazon has products that they need to dispose of, so there’s a huge
variety and volume of liquidation stock. Smaller sellers can get overwhelmed by the sheer volume if they
buy an entire truckload. It’s also a large investment of capital, and a considerable risk. Successful buyers at
this scale have normally gained a lot of experience by buying smaller lots over a number of years.
3.3.4 Smaller Liquidation Buyers
Some of the larger liquidation companies will break down the stock they receive, grade it, categorize it,
group it into lots, and create a detailed manifest so they can sell it on to smaller retailers, online sellers and
other businesses. There’s a lot of labor involved in that process, and these businesses need to add their own
markup, so the price of liquidation stock bought this way is higher. However, the lot sizes are much smaller

21
and there is a detailed manifest listing the exact products included in the lot, along
with their condition or grade. There is much lower capital investment and risk involved in buying this way.
3.3.5 What’s a shelf pull?
Shelf pulls are a major reason for goods going to liquidation. A shelf pull is a product that was on the shelf
in a retail store, but was never sold to a customer. They are typically brand new products that might show
minor wear and tear they’ve often been on the shelf for a while, and might have been moved around several
times. Why didn’t the product sell? It might have been in the wrong section of the store, or they couldn’t
identify what it was, or it could be a seasonal product such as Christmas lights. They’ll pull those off the
shelf, return them to the warehouse, and liquidate the stock. It can be a real profit center if someone is
willing to buy all the Christmas lights and then wait until October or November of the following year to sell
them.
3.3.6 What is bankrupt stock?
When people think of liquidation they often think of bankruptcies. There are some very big players in
bankruptcy auctions, yet most of the goods from failed businesses don’t end up in the liquidation market.
The biggest player in the US is a company by the name of Gordon Brothers. They go to the courts and
acquire the stock of bankrupt companies. When Circuit City filed for Chapter 11 bankruptcy, for example,
their inventory would have gone to a company like Gordon Brothers. The typical methodology for bankrupt
stock is to liquidate it at the store level, rather than through the wholesale liquidation business. They tend to
get a higher rate of return selling it in the retail store, as a “going out of business” sale. Some odds and ends
might hit the liquidation channel, but it’s not usually the most desirable products.
3.3.7 How to buy Liquidation Stock?
So you’re buying goods at a very low price and selling it on at market value. It’s got to be too good to be
true, right? First of all, it’s a lot of work and definitely not easy money. You have to buy the products,
receive the products, process the products. The starting point for price in the industry is MSRP the
Manufacturer’s Suggested Retail Price. Typically, those prices are very high. When people tell you 80%
off, 90% off, 95% off MSRP, it’s an industry standard that everybody uses but it’s not the true value of the
product. The true value of the product is the lowest price that a consumer can find it for sale, not the
suggested retail price. Sellers get their hopes up because they base their calculations on MSRP, and think
75% off means they’re going to quadruple their money. The reality is quite different. There’s a lot of work
in processing, there are a lot of fees if you’re going to sell it online, and there’s a lot of overhead to sell it in
a retail store. There are profits to be made from selling liquidation stock, but it’s most definitely not a get-
rich-quick scheme. It is believed that the right amount of profit to make on liquidated product is 30% to
60%. A lot of buyers in the marketplace don’t want to touch the product unless they can make a 100% to
300% profit on it. That’s very hard to do when you factor in all of the various expenses involved.
3.3.8 Why are retailers so desperate to clear these products out?

22
Big retailers normally only sell new products in their retail stores. Processing
returns and shelf pulls is a difficult and time-consuming process. They just want to write off the problem,
take the loss, and let a liquidator handle all the logistics. That’s way they get it out of their warehouses to
make space for more profitable new products. They don’t have to pay the cost of labor to sort through all
the returns, grade them, and re-categorize them. Even if they did go to all that trouble, only a small fraction
of the stock would be in good enough condition to be sent back to stores and sold as new.
3.3.9 Techniques to Buy Liquidation Stock
1) Get a Resale Certificate: A resale certificate is something that you need in order to
purchase from many liquidation companies. My company, for example, will not do
business with you unless you have one. Some liquidation companies will allow you to
purchase without a resale certificate, but generally you do need to have one. A resale
certificate registers with your state that you are a business, and do not need to pay sales tax
on the products that you buy. Most larger liquidation companies only want to deal with
people with resale certificates, because it says, “Hey, I’m serious about my business, I want
to build my business. I am registered with the state and I intend to buy product at a
wholesale level.” It takes a few days to register, and every state has its own process. Some
people don’t want to register for a resale certificate because they don’t want to pay their
taxes. But if you’re serious about building your business, there’s no way around that one.
2) Analyze the Manifest: If you are a newcomer to the liquidation business, it is
recommended that you only buy manifested product. Manifests really reduce the amount of
risk that you have in purchasing liquidation, because you’re able to see exactly what’s
there. The manifest is extremely important because it allows you to analyze the contents of
the lot that you are thinking about buying. Every manifest has a different structure of how
it’s laid out, and they can be a little difficult to read, but it is very important that you are
able to analyze the pricing in some way. Without the manifest you’re just gambling, you
won’t have a clue of what you’re getting. Maybe the title will say “cosmetics”, but the
contents could be almost anything within that very broad category. Even if you purchase a
manifested lot, you will still have to take a detailed inventory yourself before you sell it, go
through and scan every single barcode to find out exactly what the contents are. Only then
will you know how good the supplier’s manifest really was.
3) Understand Manifest Variance: Secondary markets, the channels through which
clearance stock and other unwanted goods are bought and sold are growing at an estimated
35% per year to over $400 billion annually in the United States. So the market is absolutely
huge. Retailers are getting massive quantities of product filling their returns centers and
they need to clear it out fast. Half the time they don’t even know what they have, and they

23
 liquidate it by the truckload to move it quickly. That’s why
they often only sell unmanifested truckloads. As the stock moves down the chain, some
liquidators take the time to manifest it to list out exactly what’s in the load. You pay a
higher price for manifested loads, because it requires a lot of labor. But even then, they all
state that there’s a variance. Some companies state that their manifest variance is plus or
minus 5%, for example. So even though it’s manifested there’s a margin of error built in,
typically between 2% and 10%. We have a variance in our own business of 3%, and only
very rarely will you find manifests that are 100% accurate. So always read the fine print
before purchasing any liquidation product. If the liquidator claims 97% manifest accuracy
and you found it was only 90% accurate, you should be entitled to 7% of your money back.
4) Know All Your Costs: A lot of our customers miss various costs. They might miscalculate
marketplace fees, or shipping costs, or the cost of processing the inventory. Another one
that happens all the time is that people don’t factor in the “cost of money”. They’ll invest a
lot of their money into a truckload of product, but then it takes them six months to process
and sell it. That’s a very long time to move a trailer-load of product. In that time, they
might lose out on other opportunities, because their funds are tied up in this one truckload.
The time-value of money is probably one of the biggest factors that even experienced
sellers neglect. There are a number of auction driven platforms for liquidated stock, and
these charge a “buyer’s premium”. It’s usually a percentage of the value, between 3% and
5%. A lot of people get very excited in the auction atmosphere, the winning concept
becomes a very big deal for them. They get outbid by $10, then want to get the high bid
back, and gradually the price goes up. After they finally win the auction, they have to pay
the buyer’s premium on top of their winning bid, plus logistics costs. All that can easily get
forgotten in the excitement of the auction. It is recommended that auction buyers decide
their highest bid, allowing for all costs and fees, in advance of the auction and do not go
any higher, no matter what.
5) Consider Quality and Grading: In most cases you cannot rely solely on the manifest to
determine the quality of the contents. Just because a product is on the manifest doesn’t
mean that the box is going to be in a good condition, or the product inside is going to be
brand new. Even with the manifest, it’s very hard to tell the condition of the product that
you have. Many liquidation businesses don’t guarantee quality and will just give you a
generalization of the products’ condition. When they do grade products, there’s a whole
range of classifications that you will see, such as:
 Visible box damage
 New, never opened

24
  Open and resealed.
 Scratch and dent.
Liquidation products might be classified in other ways, such as ecommerce returns and
retail returns. There’s a lot of different segments, terminology and acronyms that you could
see and should understand before buying. Even when liquidators do provide a grade, the
accuracy of the grading will vary very widely. If you haven’t used a company before, it is
recommended that you buy the smallest amount possible to test them out. If you can,
inspect the goods in person. Some liquidators have live auctions, so you can look at the
pallets yourself and bid on a specific one that you like.
6) Plan the Logistics: You have to make sure that you factor in the shipping costs when you
purchase a pallet. Shipping costs per pallet run anywhere between $100 and $300 based on
the weight, size and the location within the country. It’s not like shipping a parcel. If you
cannot get a good rate, a lot of liquidation companies can help you move the product. They
all have good relationships with trucking companies. Find out their rates beforehand and
factor it into the cost of the product.
7) Specialize: If you specialize in a specific category, the likelihood of getting a higher return
on investment will be a lot better. Every liquidation company has contracts with different
retailers. For example, one might have a contract with a major pharmacy like Rite Aid or
CVS, so they’ll get loads of products that you see within those stores. Or they might get
Best Buy liquidations, so you’ll see a lot of electronics. By building up your knowledge in
a specific category, you’ll be able to make good decisions more quickly, build relationships
with liquidation companies, and improve your strategy on the marketplaces.
8) Watch Out for Expiration Dates: Clearance products can be in the supply chain for a
long time in warehouses, retail stores, returns centers, liquidators and so on. The likelihood
that they are close or even past their expiration date is much higher than a regular store-
bought product. You might be surprised by the variety of products that have expiration
dates. Food expiration dates are easy to spot, but products like ink toner, baby wipes,
diapers and make-up also have expiration dates. If you carry the inventory for too long,
time can run out on you and then you’re looking at a total loss. If you’re selling online,
they’ll be a lot of customer complaints if you sell a product past its expiration date.
9) Build up slowly: Make sure you don’t spend your full working capital that you have on
hand. Let’s say you have $10,000 in working capital. You should probably invest no more
than $500 in your first liquidation lot, and look at it as an educated gamble a calculated
risk. Do your best to account for all of the costs involved, purchase $500 of liquidation
product, receive it, work it, organize it, and see if you can make a profit. If you can, go

25
 back to the same liquidator and buy a little bit more. Build it
up in a nice slow style, where your risks are all calculated. Don’t jump in quickly and
invest all of your working capital into liquidation stock, because you might get very
disappointed and lose all of your funds. It is also recommended that diversifying your
sources. So you might buy 30% of your inventory via liquidation, and work on finding the
best sources, products and channels to sell that stock. While you build that piece, look into
other segments like online arbitrage, retail arbitrage and standard wholesale. If you
combine all those different segments then you’ll have a very diversified purchasing
platform.

3.4 Trends in the Liquidation Business

The world of liquidation is changing very rapidly. One thing we’re seeing is retailers jumping from
liquidator to try to get a higher recovery rate. As the big retailers squeeze liquidation companies to get a
better return, those companies will also try to get a better price from the small retailers and online sellers
who buy from them. Ecommerce is still a young industry, and online sales are growing in more and more
product categories. Ten years ago, far fewer people were purchasing clothing online than there are today.
You can’t try a shirt on before buying, so what happens if it doesn’t fit? You return it. Things like that are
going to change the nature of the liquidation business over the coming years. The amount of product
coming through is going to grow, and the quality of the product is going to change. We’re in a big
experimental phase right now. Best Buy opened up a website called CowBoom to sell a lot of their
clearance stock directly to consumers, although they have now backtracked and closed the site down. Other
retailers and e-tailers are also starting to resell returned products themselves. Some are trying to liquidate
returns via auction sites. The model is going to change constantly until they figure out the sweet spot.

It’s a multi-part problem that retailers have to look into, and try to maximize their recovery rate in every
segment possible. That might be through retail, liquidation companies, auction sites, warehouse auctions,
outlet stores or other channels. There will be a lot of trial and error until they really figure it out. Even when
they do, the game will change again as consumers’ purchasing habits evolve. It’s a moving target. 3 The
retail and ecommerce landscape has shifted rapidly over the last few years. Companies have competed
fiercely by streamlining their operations in the hopes of enhancing margins and providing the most
consumer friendly shopping experiences possible. Many of the largest and most sophisticated retail and
ecommerce companies are paying increased attention to the tremendous value they’ve left on the table in
their liquidation practices and turning to B-Stock. B-Stock helps the world’s leading manufacturers,

3
https://www.webretailer.com/b/sourcing-products-liquidation/

26
wholesalers, and retailers including nine of the top ten retailers in the US liquidate
billions of dollars of bulk inventory.4

3.5 US Retail Sales Forecast to Grow by 3.8% to 4.4%

Although Sears filed for bankruptcy in 2018, retail giant being bought out and the liquidation prevented.
National Retail Federation’s 2019 forecast predicts that the industry will indeed see growth. The figures,
which are estimated in part by using Commerce Department data from January through November 2018,
forecast growth of between 3.8% and 4.4% in 2019, which would see retail sales of between $3.82 trillion
and $3.84 trillion. These numbers exclude automobiles, gas stations and restaurants. The continued growth
is buoyed by an expected fall in the overall unemployment rate in the US, along with the expectation that
inflation and interest rates will remain low. Online sales are expected to grow by 10-12% this year, which
would represent a total between $751.1 billion and $764.8 billion, which is included in the overall forecast
figures. The level of expected growth is the same as the NRF’s prediction for 2018, but behind the actual
estimated growth rate of 4.6%. It’s believed that total retail sales reached $3.68 trillion by the end of last
year.5

3.6 Resale Market Trends

Dozens of digital startups are fueling ‘recommerce,’ the fastest-growing category in fashion retail, as
traditional merchants are looking at the potential of the pre-owned market. Second hand clothes and
accessories, from $1,000 designer handbags to $11 tank tops, are the fastest growing category in clothing
retail. Resale, an upscale subset of the second hand market is driving the growth. Resale is a more curated,
or merchandised, selection of goods, picked for their ability to retain value after being resold repeatedly.
Resale, previously limited to brick-and-mortar consignment stores, has exploded as online resellers have
taken the category to a new level. Digital marketplaces can post thousands of new items daily, and
consumers can find the clothes and buy them in seconds on their phones. Resale is growing so rapidly that
traditional retailers are eyeing it as a possible savior. The resale customer is no longer somebody else’s
customer, they are everybody’s customer.6
3.7 Secondhand Sales Expected to Double
The $29 billion secondhand apparel market will nearly double to $51 billion by 2023 according to the
ThredUp report, which uses research and data from retail analytics firm GlobalData. Resale currently
accounts for $7 billion of the secondhand clothing market, while traditional secondhand, thrift stores and
donations make up $21 billion, the report states. By 2023, resale is expected to make up close to half of the

4
https://www.spectrumequity.com/news/b-stock-the-transformation-of-the-liquidation-industry
5
https://www.marketingcharts.com/industries/retail-and-e-commerce-107442

6
https://www.uschamber.com/co/good-company/launch-pad/retailers-fuel-resale-trend

27
secondhand market and grow to $23 billion. Secondhand sales are forecast to
outpace fast fashion sales by global giants like H&M, Uniqlo and Zara within the next decade, and reach
$64 billion by 2028, or $20 billion more than the estimated fast fashion sales for that year of $44 billion,
according to ThredUp. The growing shift to online has prompted the grand dame of secondhand, 117-year-
old Goodwill Industries International Inc., to expand its online presence. This year, Goodwill stores in
seven states began a partnership with online marketplace OfferUp. The online resale field is becoming
increasingly crowded, with a growing number of sites vying for sales.
3.8 Traditional Retailers Trying Resale
Traditional retailers and brands are seeing new opportunities in secondhand sales. Neiman Marcus in April
2019 bought a minority stake in Fashionphile, which resells secondhand designer accessories. It plans to
begin letting its customers sell items to Fashionphile in select Neiman Marcus stores beginning this fall.
Luxury brand Mark Cross in July 2019 said it was launching a resale online shop where customers can trade
in or buy pre-owned Mark Cross products. The online resale sites could end up helping brick-and-mortar
resale stores by raising awareness of the resale market, Eileen Potrock, owner of  E Designer Resale in
Cliffside Park, New Jersey, told CO. “When The RealReal first started, the resale stores were a little bit
afraid of it,” Potrock said. But she said it hasn’t significantly affected the number of consigners or buyers
who visit her store, and her sales are trending upward this year. “More and more people are comfortable
with consignment now,” she said, and that’s good for her business. Resale still makes up only a small
portion of the average American’s closet. In 2018, about 6% of clothes were secondhand, according to the
ThredUp report. That is projected to grow to 13% within 10 years and reach one-third by 2033. While
resellers have been reporting dramatic growth, it’s important to remember that business is growing from a
pretty small base, Alex Fitzgerald, manager in the consumer retail practice of A.T. Kearney, a global
strategy and management consulting firm, told CO.7

7
https://www.uschamber.com/co/good-company/launch-pad/retailers-fuel-resale-trend

28
4. Competitor Analysis
4.1 Competitive Landscape

Liquidation industry is highly competitive in USA. Liquidation companies need to maintain a

stalwart reputation to remain competitive. Therefore, products will often undergo rigorous testing
to ensure that they work as well as brand new merchandise, which will not only help boost a
manufacturer’s reputation, but also reduce the number of annual returns. In fact, some liquidators,
who conduct the refurbishing of their merchandise in house, will offer an ironclad, 90-day, no
questions asked money back guarantee in order to ensure that buyers can buy in confidence. Both
big and small businesses will occasionally have trouble moving products via conventional e-
commerce websites or through retail stores. Markets can also be highly competitive, regardless of
the industry or product, and certain brands may opt to replenish via the liquidation of their present
inventory levels. Indeed, many marketers and manufacturers choose liquidation as their first choice
when they determine that their inventory must move as soon as possible.

In the United States alone, the liquidation market is worth nearly 150 billion dollars. Moreover,
many flea markets, auction sites, big-box retailers, and online retailers source their products from
liquidation companies. Interestingly, even within liquidators, many resellers will purchase products
from bigger liquidators and then refurbish, sort, or repair the merchandise in order to increase its
value. Then, they will try and reap large profits by re-selling the products to B2C sellers.

4.2 Liquidation Auctions in Columbus, OH

Columbus is considered as hub of liquidation. In Columbus auction lots available via the largest network of
B2B liquidation marketplaces. Buyers can easily bid on bulk quantities directly from top Inventory From
Columbus, OH retailers, manufacturers, and trade-in companies. Conditions range from new to light use to
salvage. OH auctions available across B-Stock’s network of B2B marketplaces including Essendant
Liquidation Auctions, B-Stock Supply Liquidation Auctions, Lowe's Liquidation Auctions, Amazon EU
Liquidation Auctions (EU), QVC Liquidation Auctions, Unilever Liquidation Auctions, Target Auction
Liquidations, Walmart Liquidation Auctions, Woot Liquidation Auctions, HSN Liquidation
Auctions, Gildan Liquidation Auctions, Home Depot Liquidation Auctions, Hanesbrands
Closeouts, Contemporary Fashion Auctions, JCPenney Liquidation Auctions, Zulily Liquidation
Auctions, DICK'S Sporting Goods Liquidations, Meijer Liquidation Auctions, B-Stock Supply EU
Liquidation Auctions, Best Buy Liquidation Auctions, Sears Kmart Overstock Auctions, GE Appliances
Liquidation Auctions, Amazon Liquidation Auctions (US), Last Chance Discount Shoes &
Apparel, Signature Hardware Liquidation Auctions, Carrier Direct Auctions, Clover Wireless

29
Auctions, Wayfair Liquidation Auctions, Hudson's Bay Liquidation
Auctions, GameStop Wholesale, Wireless Network Marketplace, Lowe's Canada Liquidation, Select
Mobile Auctions, Wayfair EU Liquidation Auctions, Groupon Goods Liquidation Auctions, Superior
Wireless Auctions, Sam's B2B Wholesale Auctions, European Automotive Auctions, RB Health
Liquidation Auctions, Early Upgrade Auctions and Almo Liquidation Auctions.

4.3 Barriers to Entry

Barriers to Entry in Liquidation market is moderate. Any person having adequate financial resources and
understanding of liquidation industry can enter in the market subject to necessary registrations and falling
state licensing requirements. Moreover, liquidation market is both labor and capita intensive at some extent.

4.4 Major Direct Competitors

There are a large number of competitors in the market. Some of the examples of our direct competitors are
presented below:
 MedMobility (https://www.medmobility.ca)
 Ecomedical (https://www.ecomedical.ca)
 Motion (https://www.motioncares.ca/location/edmonton/)

4.5 Competitive Edges

The Liquidation Deals is with following distinctive competitive edges over its competitors:
 Competitive pricing.
 New Inventory weekly bases.
 Name brand merchandise.
 Large base of new and repeat customers.
 Overstock, Refurbished , and Returned products
 Technical Expertise and Yearly trainings.
 One-stop facility.
 25-75% off MSRP
 Beautiful store; great location.
 Liquidation sale on weekends.
 Smartphone and Electronics repair services

30
5.0 Sales Strategy
As with any business, marketing is essential for the success of Mobility Equipment Services. Marketing
does not just happen at the startup phase, but it is a
continuous process even for the most successful businesses.
Mobility Equipment Services business is not different from
other businesses in a sense it requires commitment of best
quality products and services over the long haul with
continuous marketing and promotional campaign for
attracting new customers and retaining the existing one .

5.1 Marketing Initiatives

Mobility Equipment Services will combine a set of international and latest advertising technologies to
effectively market its business. The aim of the marketing strategy is to generate highest level of revenue
using lowest financial resources. One of the key responsibilities of marketing team will be lead generation
for selling the products. The methods will be used for lead generation include targeted sales and customer
referrals. Mobility Equipment Services set a local and latest advertising technologies to effectively market
its business. The aim of the company marketing is to generate the highest level of awareness to the local
community for saving the money through purchasing from Mobility Equipment Services platform. The
basic marketing activities that will be done to sell the products and increase the sale are listed below.
 25-75% Off Retail Price: Mobility Equipment Services will offer 25-75% discount on retail price.
Most of the products will be 50% off. Offering such a big discount will be a big marketing punch
for attracting the customers.
 Special Promotion: Mobility Equipment Services will offer special promotion on different items
and will advertise it on the retail store, website, and on social media.
 Mobility Equipment Services will by the Right Pallet: In Mobility Equipment Services business
buying right pallet is very important for boosting the sale. We will buy right pallet of quality
products.
 Product Bundles: We will create products bundles on slow selling items. This is a great way to sell
products with less demand by bunching them with a high demand product. high demand inventory
items will help to boost the sales of those other products. We will ensure that our produce bundles
would have great sense i.e. products will be related to one another and work well together.

31
  Motivated Sales Staff: We will engage very trained and motivated staff. We will give special
incentives to employees on achieving sales target. It will encourage staff members to act quickly
and work with responsibility.
 Inspection of Goods before Selling: We will do adequate inspection of goods before selling, so
that if there is any fault in the product it could be separated and not to sold any customer. This
strategy will increase the customer base and their trust on Mobility Equipment Services.
 Trained Marketing Team: We will engage highly trained and specialized market sales and
marketing team. We will also intend to work closely with marketing professionals to ensure that it
is on the cutting edge of advertising technology.
 Trade Shows: We will fully participate in the Trade Shows pertaining to retail sale items.
 Timely Customer Support: Effective and timely Customer Support is one of the best marketing
tolls. The management team will go a long way toward providing a timely professional response to
calls, emails, and online queries and other orders.
 Maximum Output from Minimum Resources: Mobility Equipment Services is with potential
opportunities to expand which can be tapped with the right team of marketing personnel. Risk is
only with resources. Our strategy is to have maximum output from highly paid minimum resources.
5.2 Pricing Strategy

Mobility Equipment Services based our hourly rates on industry standards. What sets us apart from the
competition is that no other company within the industry will service equipment at the client's place of
residence. The competitors charge to pick up the equipment, take it to their shop, fix the equipment and
charge to return the equipment once it is fixed. We have a flat rate mileage fee that is lower than our
competitors and since we service on site, our clients do not have to wait for their equipment to be returned
to them which can take weeks.
5.3 Internet Marketing Strategy

Since studies have proved that the most effective marketing channels to market retail store business is
internet. It is important to highlight that the majority of the most effective marketing channels are internet-
based. We will make full use of available internet marketing channels. “Online” or “Internet” marketing is
comparatively cost-effective than the traditional “Local and Print Media” marketing campaigns. The
following is a complete breakdown of the company internet marketing strategy.
 Website Development: Mobility Equipment Services website is at development stage and will be
fully functional very soon. The website will be updated regularly and will be full with information
regarding products. We will set up sale pages on website.

32
 Listing in Online Directories and Magazines: The efforts will be made to
list the name of website in all local and international online directories related to retail sale. Online
directories and magazines playing a critical role of Internet marketing.

 Search Engine Optimization (SEO): Mobility Equipment Services will look into hiring a part
time SEO specialist to work on improving the visibility of the website on all major search engines
such as: Google, Bing, Ask, Yahoo, etc.
 Paid Advertisement (Google AdSense, Facebook, etc.): Organic SEO takes longer time to show
results. It could take from 3 months to as long as 1 year or 2 to be more fruitful. Therefore, along
with traditional search engine techniques, the company may consider paid advertisements to gain a
quick customer base. Initially, this will mean paid advertisements with Google and Facebook to
display company website ads on all major search results and Facebook pages. The paid advertising
campaign will last as the traditional SEO start showing some results.
 Social Media Marketing: Social Media has proven itself as the most cost-effective and efficient
medium to communicate with the
potential clients. Mobility Equipment
Website
Services hopes to make full use of all Developm
ent
popular Social Media channels such as RSS and
SEO
Newsletters
Facebook, Twitter, YouTube, and
Google+, etc. Advertisement will also be
placed on the Social Media sites to
Blog Paid Ads
entice more and more customers. Internet
 YouTube Commercials: Another Marketing
important channel to market the website
effectively to a selected range of target Professiona Social
l Media
audience is through YouTube Networking
commercials. The company may place Listing in
Youtube Online
promo videos on YouTube. This will be Commerci Directori
als es
a cost-effective and customer focused
marketing strategy.
 Professional Networking: Mobility Equipment Services would build a professional network of
industry experts mainly through online efforts such as LinkedIn etc.
 Blog: A dedicated blog to educate website visitors about the important information and latest
happening in the Mobility Equipment industry in the area will be useful.

33
  RSS and Newsletters: Really Simple Syndication (RSS) and Newsletters
will be the main features of the website. This strategy will keep the customers glued to the website.

5.4 Print and Electronic Media Marketing

The most effective marketing channels are taken into consideration while preparing the local and print
media marketing strategies. The company intends to work closely with marketing professionals to ensure
that it is on the cutting edge of advertising technology. It is important to highlight that the majority of the
most effective marketing channels are internet-based. Given this fact, marketing cost of advertising
company will be relatively low compared to the companies leveraging more traditional local and print
media campaigns. However, we will not ignore local and print media marketing at all. If social media
marketing will not show the desire results, print & electronic media marketing may be considered. The
following is a complete breakdown of local and print media marketing strategy.

o Fliers and brochures: Mobility Equipment Services may use fliers and brochures to create the
awareness in the general public. Color fliers with full information regarding product description,
percentage of discount prices will be distributed to the customers.
o Newspapers and Magazines
Campaign: Mobility Equipment Newspaper
s/
Services sale is not a time to cut Magazines

back on advertising expenses. A

full-page color advertisement in
local newspapers will grab Local and
Print
people's attention and draw a TV Adds
Media
Posters
significant amount of foot traffic Marketing

to the store. Company plans to

place some small ads in the
selective newspapers and
magazines. We believe print Fliers
media campaign also has the
potential to deliver the essence of
the company plans benefits to the target customers.

34
 o Posters: Posters may be placed at the business’s hubs and commercial plazas
the printed broachers and leaf let will be distributed within the target markets.
o TV Ads: Mobility Equipment Services may give ads on selected local TV channels and cable
network.

5.5 Mobile Marketing

Mobility Equipment Services may also consider Mobile as part of its marketing campaign. The company
may use the following Mobile Marketing tools:

 SMS Marketing- SMS marketing is one of the most popular forms of mobile marketing. It has
been noticed that marketing done through SMS have fetched more positive and immediate response
as compared to TV ads or advertisement through print medium. This is because the customers get a
clear idea of the product or service directly from the organization to their handset. Mobility
Equipment Services may uses SMS marketing within the city of Columbus.
 SMS coupons marketing- Mobile Coupons is the latest technology which has been popular from
last few years to send location based, discount and offer based text messaging to the potential
customers. Text messaging based mobile coupons has shown great result in instant improve in
sales. The website may also consider using SMS coupons marketing.

5.6 Marketing Budget

Mobility Equipment Services has planned to set a side adequate budget for marketing and advertising
campaign. The company need about USD 68,600 for setting up the business out of that 8.75% will be used
on marketing campaign. In year 1, $8000 will be used for marketing i.e. $600 will be used from start-up and
$2000 from revenue. In retail business marketing is very critical for expanding the business and attracting
the customers. The company will US $6000 on marketing campaign throughout the next five-year projected
period starting from year 2.
Marketing Budget Startup
Year 1 Year 2 Year 3 Year 4 Year 5
(USD) Funding
68,600 $150,000 $241,500 $320,820 $351,702 $392,610
Revenue
Marketing Expenses
8.75% 1.33% 2.48% 1.87% 1.71% 1.53%
(%)
Total Marketing $6,000 $2,000 $6,000 $6,000 $6,000 $6,000
Budget

35
6. SWOT Analysis

Liquidation retail business promises significant growth opportunities if quality products are provided at
affordable prices. The above market research and analysis reveals that there is tremendous growth potential
in the market for liquidation retail business. The market analysis indicates that Liquidation Dealz business
is very secure and profitable investment. To determine a strategic planning that would best benefit to the
Liquidation Dealz, a SWOT Analysis has been done to have an in-depth study on the various aspects of the
business. More importantly, this analysis will serve as the groundwork to back up and steer the marketing
efforts valuable to the business.
INTERNAL
Strengths Weaknesses
 Liquidation Dealz is going to setup its retail store in  New Liquidation retail store will take
Columbus which is hub of the liquidation market and time to survive and penetrate in the
there is tremendous demand of liquidation products. market.
 The owner and founder of the company is very skilled  Heavy marketing and advertising
and has extensive understanding of liquidation industry. expenditures and efforts are required in
 Liquidation Deals will offer between 25-75% off retail the beginning.
price. Most products are 50% off.  Liquidation retail is a capital and lab our
 Liquidation Deals will provide quality products at more intensive business, so heavy investment
than 50% discounted price. is required for setting up the business.
 Liquidation Deals going to sell through four different
sources i.e. Sale on Retail Store, Website Sale, Action
(Mobile App), Third party selling.

36
 EXTERNAL
Opportunities Threats
 Columbus is the state capital and the most populous  Market is already tending towards
city in the U.S. state of Ohio. There are great intense competition and on the other
opportunities for liquidation retail business. side new entrance is always welcome.
 It is believed that the right amount of profit to make on The existing big companies may also
liquidated product is 30% to 60%. similar business model at much lower
 A lot of buyers in the marketplace don’t want to touch prices. If this situation prevails it may
the product unless they can make a 100% to 300% profit lead to the stiffer competition.
on it.  The number of Liquidation retail
 The world of liquidation is changing very rapidly and selling companies are increasing with
creating more and more opportunities. fast pace in Columbus. This increasing
 US Retail Sales Forecast to Grow by 3.8% to 4.4% in trend may decrease the market share
2019 which would see retail sales of between $3.82 of Liquidation Dealz.
trillion and $3.84 trillion, steady growth creating
tremendous business opportunities.
 Online sales are expected to grow by 10-12% this year,
which indicate there is also great opportunity of online
selling.
 The $29 billion secondhand apparel market will nearly
double to $51 billion by 2023
 By 2023, resale is expected to make up close to half of
the secondhand market and grow to $23 billion
 Traditional retailers and brands are seeing new
opportunities in secondhand and liquidation retail sale.

37
7.0 Financial Plan

All information presented up to this point was mainly focused on the company
description, target market, market potential, marketing strategies, and the
management team. In this and subsequent sections, the business plan presents
the results of the company’s financial analysis and projections. Financial
analysis of the Liquidatio Dealz has been done after analyzing the market
analysis, market trends, overall liquidation inventory business scenario,
competitive analysis and marketing strategies.

7.1 Financial Assumptions

The preparation of the financial statements in conformity with US GAAP requires management to make
estimates and assumptions that affect the reported amounts of revenue and expenses and disclosure of contingent
revenue and expenses at the date of the financial statements during the reporting periods. Estimates may include
those pertaining to accruals and going concern assumptions. Actual results could materially differ from those
estimates. Following table presents financial assumption over the next five years projected period:

The table below presents the major assumptions made in the course of this business plan that are important to
highlight. According to tradeeconomics.com annual inflation rate in the US increased to 1.4% in December of
2020, from 1.2 percent in November and slightly higher than market forecasts of 1.3%. In the course of this
business plan we have assumed 1.4% inflation rate. As per the Bank of America Home loan and mortgage rate
vary 2% to 2.65%8. In this business plan 2.65% internet rate has been assumed for calculating the return on
investment. The average business loan interest rate for a small business loan in 2020 ranges from as low as 2%
or 3% to as high as 100% or more. With so many different types of business loans available for borrowers across
a broad credit spectrum, the answer isn’t entirely clear.

Loan type Annual interest rate (AIR)

Traditional bank loan 2% to 13%

SBA loan 7.75% to 10.25%

Online loan 7% to 100%

Merchant cash advance 20% to 250%

Invoice financing 13% to 60%

8
https://www.bankofamerica.com/mortgage/

38
Description FY 1 FY 2 FY 3 FY 4 FY 5
Retail Sale Projection          
Retail Sale transaction per month 100 105 113 125 140
Annual Growth   5% 8% 10% 12%
Annual Transactions 1,200 1,260 1,361 1,497 1,677
Average per transaction value $100 $100 $100 $100 $100
$120,00 $126,00 $136,08 $149,68 $167,65
Annual Gross Retail Sale
0 0 0 8 1
Online Sale Projections          
Online Sale transaction per month 50 53 57 62 70
Annual Growth   5% 8% 10% 12%
Annual Transactions 600 630 680 748 838
Average per transaction value $50 $50 $50 $50 $50
Annual Gross Online Sale $30,000 $31,500 $34,020 $37,422 $41,913
Auction App Sale          
Action App transaction per month   70 76 83 93
Annual Growth     8% 10% 12%
Annual Transactions   840 907 998 1,118
Average per transaction value   $100 $100 $100 $100
$111,76
Annual Gross Auction App Sale   $84,000 $90,720 $99,792
7
Other Sale (Pallet Sales,
Truckload Broker, Exporter)          
Transaction per month     50 54 59
Annual Growth       8% 10%
Annual Transactions     600 648 713
Average per transaction value     $100 $100 $100
Annual Gross Sale     $60,000 $64,800 $71,280
Item-wise Sale          
Electronics Items 33.33% 33.33% 33.33% 33.33% 33.33%
Appliances 16.67% 16.67% 16.67% 16.67% 16.67%
Home Goods 33.33% 33.33% 33.33% 33.33% 33.33%
Toys 16.67% 16.67% 16.67% 16.67% 16.67%
Opening Timings          
Opening days in a week (Friday,
4 days 4 days 4 days 4 days 4 days
Saturday, Sunday, and Monday)
Opening Hours in a day 8 hours 8 hours 8 hours 8 hours 8 hours
Expenses          
Inventory Cost (% of gross sale) 50.00% 50.00% 50.00% 50.00% 50.00%
Gross Profit Margin 50.00% 50.00% 50.00% 50.00% 50.00%
Operational Expenses (% of gross
17.69% 25.57% 19.24% 17.55% 15.73%
revenue)
Sale Tax 7.50% 7.50% 7.50% 7.50% 7.50%
Net Profit Margin 23.01% 16.01% 22.72% 24.61% 26.62%
HR Expenses          
Sale Associate 1 (full time)          

39
 Monthly Hours 128 128 128 128 128
Hourly Rate $10 $10 $10 $10 $10
Annual Wage $15,360 $15,360 $15,360 $15,360 $15,360
Sale Associate 1 (part time)          
Monthly Hours 64 64 64 64 64
Hourly Rate $10 $10 $10 $10 $10
Annual Wage $7,680 $7,680 $7,680 $7,680 $7,680
Economic Assumptions          
Interest Rate 3.00% 3.00% 3.00% 3.00% 3.00%
Business Loan 7.00% 7.00% 7.00% 7.00% 7.00%
Inflation Rate 1.40% 1.40% 1.40% 1.40% 1.40%

7.2 Revenue Projections

7.2.1 Monthly Revenue Projection First Year
Liquidation Dealz will generate revenue from major two sources i.e. Retail Sale and Online Sale. We
are hoping to get $12,500 revenue per month to start. It is projected that during year 1, $150,000
revenue will be generated i.e. $120,000 from retail sale and $30,000 from online sale. The monthly
revenue breakup of year 1 is depicted in the following Table and graph.
Revenue Sources
Description Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Retail Sale $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $120,000
Online Sale $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $30,000
Total Gross Revenue $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $150,000

40
7.2.2 Five Year Revenue Projections
Liquidation Dealz will generate $150,000 revenue during year 1. In year 2, company will also start Action
Selling. It is projected that during Year 2, $241,500 revenue will be generated. Up to year 5, it is projected that
$392,610 revenue will be generated. Following table and graph outline five-year revenue projects.

5 Years Revenue Projections Summary

Description FY 1 FY 2 FY 3 FY 4 FY 5
$126,00 $149,68
Retail Sale $120,000 $136,080 $167,651
0 8
Online Sale $30,000 $31,500 $34,020 $37,422 $41,913
Auction App Sale   $84,000 $90,720 $99,792 $111,767
Other Sale (Pallet Sales, Truckload
    $60,000 $64,800 $71,280
Broker, Exporter)
$241,50 $351,70
Total Gross Revenue $150,000 $320,820 $392,610
0 2

7.2.3 Revenue Projections by Products

41
Liquidation Dealz will sell four type of items i.e. Electronic Items, Appliances, Home
Goods, and Toys. Year wise revenue projections by product is presented below:

5 Years Revenue Projections Summary by Products

Description FY 1 FY 2 FY 3 FY 4 FY 5
Electronics Items $50,000 $80,500 $106,940 $117,234 $130,870
Appliances $25,000 $40,250 $53,470 $58,617 $65,435
Home Goods $50,000 $80,500 $106,940 $117,234 $130,870
Toys $25,000 $40,250 $53,470 $58,617 $65,435
Total Gross Revenue $149,999 $241,500 $320,820 $351,702 $392,610

7.3 Five Years Profit & Loss Projections

In computing for the profit and loss, certain assumptions have been taken in the first part of this section.
The gross margin in the total sales projections is assumed 50% i.e. inventory cost (direct cost) is
projected 50%. Employment expense are projected $23,040 per year. Marketing expenses are assumed
$6,000 per year, rent of building is projected $21,600, utilities expenses $6,000, maintenance expenses
$1200, professional services of accountant $2400 and other unforeseen expense are projected $1,500.

The total gross profit of the Liquidation Deals will increase progressively on year and year basis
throughout the next five years as well as gross revenue will increase. The chart below highlights

42
bottom line profits, or percentage of profit on gross income. During 2nd Year,
company gross revenue will increase to $241,500 and net profit $38,665. Up to year 5, company gross
revenue will cross $392,600 and net profit $104,500.

Market analysis, competitive analysis and business model of the company reveals that Liquidation
Deals is with solid business model and we believe target market have enough potential to achieve the
company objectives and targets. As presented in the above graph, revenue and net profit of the
company will increase every year. Up to fifth year of expanding the operation, company will be able to
secure more than $392,000 revenue and $104,000 net profit.

It is pertinent to mention that the expenses of Rent, Utilities Expenses, Maintenance Expenses and
Accounting Services of year 1 will be covered from startup loan/investment. However, from year 2,
these expenses will be paid from revenue.

43
The complete 5 years profit and loss projections are resented in the following table and graph. Monthly
Profit and Loss projection are at Annex Table 8.1 and Quarterly Profit and Loss Projections are at
Annex Table 8.2 & 8.3 respectively.

Profit & Loss Projections FY-1 FY-2 FY-3 FY-4 FY-5

Retail Sale $120,000 $126,000 $136,080 $149,688 $167,651
Online Sale $30,000 $31,500 $34,020 $37,422 $41,913
Auction App Sale $0 $84,000 $90,720 $99,792 $111,767
Other Sale $0 $0 $60,000 $64,800 $71,280
Gross Revenue $150,000 $241,500 $320,820 $351,702 $392,610

Direct Cost (50%) $75,000 $120,750 $160,410 $175,851 $196,305

Operating Income $75,000 $120,750 $160,410 $175,851 $196,305
Gross Margin (%) 50.00% 50.00% 50.00% 50.00% 50.00%
Operational Expenses        
Employment Expenses $23,040 $23,040 $23,040 $23,040 $23,040
Marketing & Promotional Expenses $2,000 $6,000 $6,000 $6,000 $6,000
Rent $0 $21,600 $21,600 $21,600 $21,600
Utilities Expenses $0 $6,000 $6,000 $6,000 $6,000
Maintenance Expenses $0 $1,200 $1,200 $1,200 $1,200
Accounting & Bookkeeping $0 $2,400 $2,400 $2,400 $2,400
Other Expenses $1,500 $1,500 $1,500 $1,500 $1,500
Total Operating Cost $26,540 $61,740 $61,740 $61,740 $61,740
EBITDA $48,460 $59,010 $98,670 $114,111 $134,565
EBIT Margin (%) 32.31% 24.43% 30.76% 32.45% 34.27%
Interest Expenses $2,702 $2,232 $1,729 $1,191 $616
Sales Tax (7.5%) $11,250 $18,113 $24,062 $26,378 $29,446
Net Profit/Loss $34,508 $38,665 $72,879 $86,542 $104,503

Net Profit Margin 23.01% 16.01% 22.72% 24.61% 26.62%

44
7.4 Projected Cash Flows

Liquidation Deals retail business will have sufficient cash coming from sales to meet its operational
requirements. It is remarkable that company will generate sufficient cash every year to meet its
operational expenses and would have good margin of net profit. Five-year projected cash flows of the
company are depicted in the below table and graph:

Pro Forma Cash Flow FY-1 FY-2 FY-3 FY-4 FY-5

Cash from operations $150,000 $241,500 $320,820 $351,702 $392,610
Cash from receivables $0 $0 $0 $0 $0
Operating Cash Flows $150,000 $241,500 $320,820 $351,702 $392,610
Other Cash Inflows          
Equity Investment (Owner) $30,000 $0 $0 $0 $0
Debt Financing (Loan) $38,600 $0 $0 $0  
Sales of Business Assets $0 $0 $0 $0 $0
A/P Increases $0 $0 $0 $0 $0
Total Other Cash Inflows $68,600 $0 $0 $0 $0
Total Cash Inflows $218,600 $241,500 $320,820 $351,702 $392,610
Cash Outflows          
Startup Cost $68,600        
Direct Cost (50%) $75,000 $120,750 $160,410 $175,851 $196,305
Total Operating Cost $26,540 $61,740 $61,740 $61,740 $61,740
Payment of Interest and Taxes $13,952 $20,345 $25,791 $27,569 $30,062
Total Cash Outflows $184,092 $202,835 $247,941 $265,160 $288,107
Net Cash Balance $34,508 $38,665 $72,879 $86,542 $104,503
Consolidated Cash Balance $34,508 $73,173 $146,052 $232,594 $337,098

45
7.5 Break-Even Analysis

Break even sales is the dollar amount of revenue at which a business earns a profit of zero. This sales
amount exactly covers the underlying fixed expenses of a business, plus all of the variable expenses
associated with the sales. It is useful to know the breakeven sales level, so that management has a
baseline for the minimum amount of sales that must be generated in each reporting period to avoid
incurring losses. To calculate break even sales, fixes expenses are divided with contribution margin
percentage i.e. Fixed expenses ÷ Contribution margin percentage = Break even sales.

In year 1, breakeven sale will be around $53,080 i.e. minimum revenue required to meet fixed cost of the
company. Breakeven sale is 35% of gross revenue/ expected sale. As well as company will grow breakeven sale
as percentage to gross revenue will decrease.

Breakeven Sale Year 1 Year 2 Year 3 Year 4 Year 5

Expected Sale $150,000 $241,500 $320,820 $351,702 $392,610
Yearly Beak even Sale $53,080 $123,480 $123,480 $123,480 $123,480
Monthly Breakeven Sale $4,423 $10,290 $10,290 $10,290 $10,290
Breakeven (Percentage or
35% 51% 38% 35% 31%
Gross Revenue)

46
The above table and graph indicate that Liquidation Deals has to generate at least around $53,080 sales to cover
the fixed cost. With respect to expected sale it is 35% in year 1, 51% in year 2, 38% in year 3, 35% in year 4 and
31% in year 5.

7.6 Scenario Analysis

Up to this point in the business plan, we have looked into the profitability of the enterprise by considering the
market trends and assumptions. Profitability would be different, of course, if market trends or assumptions
change. Therefore, it is important when assessing the risk of such
investment to understand the fluctuation or volatility of these financial
results with changing circumstances, scenarios, and assumptions. Moreover,
every business is with risks and opportunities depending on the external
factors and ever changing market scenario and demands. Liquidation Deals
have planned and projected all the things considering average scenario
(expected scenario). In case of expected scenario, company will be able to
earn revenue and net profit as we projected in the previous sections of this plan.

If the factors will move towards in the favors of the company, revenue may increase and company attract more
than expected customers. In case of best scenario, we have projected 50% more revenue and company will be
able to secure more than $487,500 in first financial year and more than $2.77 million revenue up to fifth
financial year. But if the factors move against the company, there are chances of losses. In case of worst
scenario, we have assumed 50% less revenue i.e. company may hardly able to generate revenue $162,500 in year
1 and $925,000 till year 5. It is pertinent to mention that this scenario analysis is only for the Columbus based
retail store. In case company will expand its business and established new stores or tap new online selling
channels, business scenario will be completely different. The table and chart below depict how sale will increase
or decrease over time if market scenario changes.

Description FY-1 FY-2 FY-3 FY-4 FY-5

$225,00 $362,25 $481,23 $527,55 $588,91
Best Scenario (+50%) 0 0 0 3 5
$150,00 $241,50 $320,82 $351,70 $392,61
Expected Scenario 0 0 0 2 0
Worst Scenario (- $75,000 $120,75 $160,41 $175,85 $196,30

47
 50%) 0 0 1 5

7.7 Investment Analysis

As presented above in the business plan, it is obvious that the Tactica new plan is very attractive and profitable.
We will be able to generate adequate real cash flow after paying the expenses. Net Present Value (NPV) is the
difference between the present value of cash inflows and the present value of cash outflows.  NPV is used in
capital budgeting to analyze the profitability of a projected investment or project. At 8% interest rate NPV value
in 5 years is $729437. Internal Rate of Return (IRR) on investment in five years is 39.13% which shows project
is attractive and profitable. IRR is a discount rate that makes the net present value (NPV) of all cash flows from a
particular project equal to zero. The project payback period is 1.3 year. Payback period in capital budgeting
refers to the period of time required to recoup the funds invested, or to reach the break-even point. The ROI has
been calculated in the above table.

48
 Investment Analysis For 5 years
Revenue Cash Flow
Operating Taxes & Cumulative Cash
Years Investment Direct Cost Operating Cost Real Cash Flow
Income Interest Flow (Real)
- $68,600 ($68,600) ($68,600)
1 $150,000 $75,000 $26,540 $13,952 $34,508 ($34,092)

2 $241,500 $120,750 $61,740 $20,345 $38,665 $4,573

3 $320,820 $160,410 $61,740 $25,791 $72,879 $77,452

4 $351,702 $175,851 $61,740 $27,569 $86,542 $163,994

5 $392,610 $196,305 $61,740 $30,062 $104,503 $268,498

Total $337,098 $268,498

Net Present Value (NPV) $184,528

Internal Rate of Return (IRR) on Invesmtmnet 68%
Pay Back Period of the Project 0.12 year(s)

7.8 Loan Amortization Schedule

The funds from Bank are required in order of $68,600 that will be amortized in the following five years. During
first year we will not pay except interest. The loan repayment will be started from year 2. The loan will be
amortized with amount $94,414 (including interest) each year as per the following schedule
Loan Payment Schedule

Year Principal Annual Payment Interest Payment Debt Repayment Closing Balance

Year 1 $38,600 $9,414 $2,702 $6,712 $31,888

Year 2 $31,888 $9,414 $2,232 $7,182 $24,706

Year 3 $24,706 $9,414 $1,729 $7,685 $17,021

Year 4 $17,021 $9,414 $1,191 $8,223 $8,798

Year 5 $8,798 $9,414 $616 $8,798 $0

Total $47,071 $8,471 $38,600

49
8. Appendix
The following information is presented in this plan to illustrate financial details, projections, general assumptions, and
expected results. As in any business plan, success is solely dependent on the business execution and the circumstances
that surround its operations. The objective of these projections is therefore to aid the entrepreneur on understanding the
business model, along with the feasibility of such business development in current market conditions and with the
underlying assumptions considered only as part of this study.
8.1 Monthly Profit and Loss Projections
Description Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Totao Year 1
Retail Sale $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $120,000
Online Sale $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $30,000
Auction App Sale $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Sale $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Revenue $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $150,000

Direct Cost (50%) $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $75,000

Operating Income $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $75,000
Gross Margin (%) 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
Operatioanl Expenses
Employment Expenses $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $1,920 $23,040
Marketing & Promotional Expenses
$167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $2,000
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Maintenance Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accoutning & Bookkeeping $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Expenses $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500
Total Operating Cost $2,212 $2,212 $2,212 $2,212 $2,212 $2,212 $2,212 $2,212 $2,212 $2,212 $2,212 $2,212 $26,540
EBITDA $4,038 $4,038 $4,038 $4,038 $4,038 $4,038 $4,038 $4,038 $4,038 $4,038 $4,038 $4,038 $48,460
EBIT Margin (%) 32.31% 32.31% 32.31% 32.31% 32.31% 32.31% 32.31% 32.31% 32.31% 32.31% 32.31% 32.31% 32.31%
Interest Expenses $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $225 $2,702
Sales Tax (7.5%) $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $938 $11,250
N et Profit/ Loss $2,876 $2,876 $2,876 $2,876 $2,876 $2,876 $2,876 $2,876 $2,876 $2,876 $2,876 $2,876 $34,508
N et Profit Margin 23.01% 23.01% 23.01% 23.01% 23.01% 23.01% 23.01% 23.01% 23.01% 23.01% 23.01% 23.01% 23.01%

50
 8.2 Quarterly Profit and Loss Projection Year 2 & 3
Description Q1 Q2 Q3 Q4 Year 2 Q1 Q2 Q3 Q4 Year 3
Retail Sale $31,500 $31,500 $31,500 $31,500 $126,000 $34,020 $34,020 $34,020 $34,020 $136,080
Online Sale $7,875 $7,875 $7,875 $7,875 $31,500 $8,505 $8,505 $8,505 $8,505 $34,020 8
Auction App Sale $21,000 $21,000 $21,000 $21,000 $84,000 $22,680 $22,680 $22,680 $22,680 $90,720
Description
Other Sale
Q1
$0
Q2
$0
Q3
$0
Q4
$0
Year 4
$0
Q1
$15,000
Q2
$15,000
Q3
$15,000
Q4
$15,000
Year 5
$60,000
.
Retail Sale $37,422 $37,422 $37,422 $37,422 $149,688 $41,913 $41,913 $41,913 $41,913 $167,651
Gross Revenue
Online Sale
60,375
$9,356
60,375
$9,356
60,375
$9,356
60,375
$9,356
$241,500
$37,422
$80,205
$10,478
$80,205
$10,478
$80,205
$10,478
$80,205
$10,478
$320,820
$41,913 3
Direct Cost (50%) $30,188 $30,188 $30,188 $30,188 $120,750 $40,103 $40,103 $40,103 $40,103 $160,410
Auction App Sale $24,948 $24,948 $24,948 $24,948 $99,792 $27,942 $27,942 $27,942 $27,942 $111,767
Operating
Other SaleIncome $30,188
$16,200 $30,188
$16,200 $30,188
$16,200 $30,188
$16,200 $120,750
$64,800 $40,103
$17,820 $40,103
$17,820 $40,103
$17,820 $40,103
$17,820 $160,410
$71,280
Gross Margin
Gross Revenue(%) 50%
$87,926 50%
$87,926 50%
$87,926 50%
$87,926 50%
$351,702 50%
$98,153 50%
$98,153 50%
$98,153 50%
$98,153 50%
$392,610
Operatioanl Expenses
Direct Cost (50%) $43,963 $43,963 $43,963 $43,963 $175,851 $49,076 $49,076 $49,076 $49,076 $196,305
Employment Expenses $5,760 $5,760 $5,760 $5,760 $23,040 $5,760 $5,760 $5,760 $5,760 $23,040
Operating Income
Marketing & Promotional Expenses$43,963
$1,500 $43,963
$1,500 $43,963
$1,500 $43,963
$1,500 $175,851
$6,000 $49,076
$1,500 $49,076
$1,500 $49,076
$1,500 $49,076
$1,500 $196,305
$6,000
Gross Margin (%)
Rent 50%
$0 50%
$0 50%
$0 50%
$0 50%
$0 50%
$5,400 50%
$5,400 50%
$5,400 50%
$5,400 50%
$21,600
Operatioanl
Utilities Expenses
Expenses $1,500 $1,500 $1,500 $1,500 $6,000 $1,500 $1,500 $1,500 $1,500 $6,000
Employment
Maintenance Expenses
Expenses $5,760
$300 $5,760
$300 $5,760
$300 $5,760
$300 $23,040
$1,200 $5,760
$300 $5,760
$300 $5,760
$300 $5,760
$300 $23,040
$1,200
Marketing &&Bookkeeping
Accoutning Promotional Expenses
$1,500
$600 $1,500
$600 $1,500
$600 $1,500
$600 $6,000
$2,400 $1,500
$600 $1,500
$600 $1,500
$600 $1,500
$600 $6,000
$2,400
RentExpenses
Other $5,400
$375 $5,400
$375 $5,400
$375 $5,400
$375 $21,600
$1,500 $5,400
$375 $5,400
$375 $5,400
$375 $5,400
$375 $21,600
$1,500
Utilities
Total Expenses
Operating Cost $1,500
$10,035 $1,500
$10,035 $1,500
$10,035 $1,500
$10,035 $6,000
$40,140 $1,500
$15,435 $1,500
$15,435 $1,500
$15,435 $1,500
$15,435 $6,000
$61,740
Maintenance Expenses $300 $300 $300 $300 $1,200 $300 $300 $300 $300 $1,200
EBITDA $20,153 $20,153 $20,153 $20,153 $80,610 $24,668 $24,668 $24,668 $24,668 $98,670
Accoutning & Bookkeeping $600 $600 $600 $600 $2,400 $600 $600 $600 $600 $2,400
EBIT Margin
Other (%)
Expenses 33.38%
$375 33.38%
$375 33.38%
$375 33.38%
$375 33.38%
$1,500 30.76%
$375 30.76%
$375 30.76%
$375 30.76%
$375 30.76%
$1,500
Interest
Total Expenses
Operating Cost $558
$15,435 $558
$15,435 $558
$15,435 $558
$15,435 $2,232
$61,740 $432
$15,435 $432
$15,435 $432
$15,435 $432
$15,435 $1,729
$61,740
Sales Tax (7.5%)
EBITDA $4,528
$28,528 $4,528
$28,528 $4,528
$28,528 $4,528
$28,528 $18,113
$114,111 $6,015
$33,641 $6,015
$33,641 $6,015
$33,641 $6,015
$33,641 $24,062
$134,565
N et Profit/
EBIT Loss (%)
Margin $15,066
32.45% $15,066
32.45% $15,066
32.45% $15,066
32.45% $60,265
32.45% $18,220
34.27% $18,220
34.27% $18,220
34.27% $18,220
34.27% $72,879
34.27%
N etInterest Expenses
Profit Margin $298
24.95% $298
24.95% $298
24.95% $298
24.95% $1,191
24.95% $154
22.72% $154
22.72% $154
22.72% $154
22.72% $616
22.72%
Sales Tax (7.5%) $6,594 $6,594 $6,594 $6,594 $26,378 $7,361 $7,361 $7,361 $7,361 $29,446
N et Profit/ Loss $21,635 $21,635 $21,635 $21,635 $86,542 $26,126 $26,126 $26,126 $26,126 $104,503
N et Profit Margin 24.61% 24.61% 24.61% 24.61% 24.61% 26.62% 26.62% 26.62% 26.62% 26.62%

Quarterly Profit and Loss Projection Year 4 & 5

51
52