PC & Cell Phones  Store
           We are a newly opened cell phone and a PC store. Our products are predominantly cell phones and personal computers and we have tried to bring in great store performance indicators to attract customers. Being a new store our marketing and swelling efforts has been to deliver best products and best prices.		The products we are offering are cellphones or pc. We’re a brand new store with similar goals to other pc and cell phone stores now days but unlike our competitors, we believe that we offer a better option and treat our customers like home, for example, when it comes to buying a good gaming PC or normal PC, the first thing a customer asks himself is how much does it cost? Well, that is where we jump in and feel like we can pick out the best pc parts from different websites and compare the prices in front of them to provide them the best possible parts, while maintaining their budget and the best thing is we do offer discounts on assembling the PC or give them the option to build themselves, if they do happen to have that experience. We believe that every customer that comes in our store must leave satisfied so we do ask them some questions after we are done helping them with either PC’s or cellphone so that way we can always strive to be better than our competitors because we want to be the best and make good relationship with every customer that enters our store. We are an outward looking organization completely focused on customer centric approach to our selling and sales philosophy and hence we believe that our customer would return to us. Our personal selling philosophy is high levels of inter personal focused communication.
         As for our competitors, we believe our biggest competitors are Best Buy and Microcenter that are more established and have the resources available to continue to succeed in their business because these same competitors are offering the same exact thing but they become so full of themselves that they increase the prices and tend to not always work within their customers budget so the experience is usually awful for them. We try to differentiate our prices very subtly by altering our maintenance schedule with customers and instead look at giving them best offers in whatever range we operate in. We believe that differentiated prices always lead to better customer base.
When it comes to cellphones we can’t really work that much with our customers and give them crazy discounts but we do try to work with them so  if they happen to like a cellphone they really want we see what we can do and help them get what they want and also jail break the cellphones with minimum fees and for cellphones we mostly do have set prices but we are willing to offer some form of a discount unlike our competitors that have set prices for everything so I guess you can say we do bargaining somewhat for now because we haven’t fully established our store.  Being a new store we have initiated bargain prices for all products that we sell initially and also   have the early bird offers.
We are also willing to ship or go to our customer house to deliver, which is something that our competitors don’t provide for their customers so we believe we differentiate ourselves from them. As for the market opportunities, I believe that in our modern world people  just simply can’t communicate without a cellphone on daily basis and as for PC’s people need PC’s to do all kinds of different work and to store data so I don’t think there’s ever going to be a shortage of these two products demand and they will always be used in our daily life style and since there’s a lot of demand of these products we do happen to offer good products within our customer budget prices and provide them with warranty of some sort so if there is some sort of a problem we can  help them out because these things aren’t cheap and some people have to save a lot of money to get these products sometimes so we want to make sure that they are satisfied. Our biggest strengths when it comes to doing these type of businesses are that we tend to work around our customer budget because most other small businesses or big you can say offer a fixed prices for everything and want their customers to spend  more basically and that’s where we jump in and ask them to take a step backwards and think about how they are being treated and how exactly they are spending their money because we believe that it’s okay if we have to take a little loss here and there but we always want to maintain our reputation and offer them quality products while maintaining some sort of profit for us so we can continue to do what we do better than our competitors. Another strength of ours would be that we tend to advertise as much as possible whether it’s on websites or flyers and everything you can possibly think of because without that our business would never even begin because the reason our competitors are usually as big as they are today are because of the advertisements that they run all over the internet and in real life so we would want to compete with them in that department.  As for our weaknesses, I would say that managing money is our biggest issue because sometimes finding the right parts are very tough sometimes because not every part is usually on sale and it becomes really tough on us to find them exactly what they want, while maintaining their budget. Our biggest weakness is fear; we believe that for being brand new into this business, if we make even a slight mistake we would be in danger of risking our business and possibly not succeeding. 
 The opportunities in this market are huge and expanding all the time.  Continual improvement in product base including great delivery terms will definitely be a sustainable market practice and we hope to build our business model around this.
Understanding the customer needs and trying to make prices of products tailor made to suit the needs of the customer without much pomp but an elegant style of functioning will be our greatest strength around which we will build our product base.

Robert Pandel							
							
Exhibit 2							
							
Year One Income Statement for Used Compact Disc Store							
							
				Year One			Assumptions:
Sales				 $520,000.00 			Sales are equal to 1250 CDs sold each week on average for $8/ea
Cost of Sales				 $286,000.00 			Cost of sales equals 1250 CDs sold at a purchsed average cost of $4.40/ea
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Gross Margin-$				 $234,000.00 	   Manpower Costs:		The store is open from 10am to 10pm, Monday through Saturday and Noon to 6pm on Sunday
            -%				45%			The store is operated with one employee. An employee arrives one hour before opening to 
							prepare the store for opening. An employee spends an hours closing and cleaning up the store.
Selling Expenses:							When shifts change a one hour handoff occurs between employees. That totals 98 hours weekly.
Manager				 $32,000.00 			The manager works 40 hours; the 58 remaining hours are coverd by part time employees at $10/hour.
Part time employees				 $30,160.00 			 
Advertising				 $30,000.00 	    Advertising Cost:		The advertising costs reflect $22000 for radio advertising. This was primarily on 3 stations reflecting different 
				 ------- 			genres of music. 50% to "alternative rock", 40% to "heavy metal",10% to R&B.
Total Selling Expenses				 $92,160.00 			Cable TV and Spanish speaking TV accounted for $3000. Print ads in local magazines like the Reader,etc
							accounted for the remaining $5,000.
Administrative Expenses:							
Rent				 $24,000.00 	    Lease cost		The lease was a 3 year lease with 2 three year options. The first 3 years was at $2,000/mo. Escalators in the options
Utilities				 $7,200.00 			were at 50% of the annual CPI. The lease was for 1300 sqft, plus a basement for storage at 3182 N. Clark, Chicago, IL
Legal/Accounting				 $1,000.00 	    Utility Cost:		Utilities included electricity9 (lights and air conditioining) , gas (heat), phone. This was pre internet.
				 ------- 	    Legal/Acct Cost:		This included incorporation as an S Corp and tax return.
Total Administrative Expenses				 $32,200.00 			
				 ------- 			
Total Selling and Administrative Expense				 $124,360.00 			
				 ------- 			
Profit Before Taxes				 $109,640.00 			
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