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Pyramid Engineering

Strategy and Implementation Summary

Pyramid will utilize its existing contacts with architects, governmental agencies, commercial developers and local school districts to increase word-of-mouth about our business. We have a standard brochure on our expertise and specialties which will be sent to architectural firms recommended to us by our current contacts.

Our marketing to architects and developers focuses on our thorough engineering expertise across the full range of skills necessary for any project. Examples of previous work and recommendations from former employers are available for the asking. Our individual reputations as reliable, skilled, knowledgeable resources, combined with our range of expertise as a team, will appeal strongly to those looking for subcontractors.

Pyramid has focused on the western and central Pennsylvania area initially. We are licensed to practice in most states in the eastern United States, and will continue to expand into these areas.

5.1 Competitive Edge

Pyramid Engineering, P.C. has the following competitive edges:

  • State-of-the-art modeling, design, engineering, analysis and drafting capabilities.
  • Quality control and assurance program.
  • Experienced, knowledgeable owners/engineers, with a thorough understanding of building codes and the target market.

For established engineering and architectural firms who require mechanical, electrical, plumbing, and fire protection engineering and consulting services, Pyramid offers a competitive and economical option. Projects may be delegated to Pyramid directly or arrangements can be made to supplement and assist their own in-house staff.

Most engineering work is billed on an hourly basis to predetermined levels dictated by project schedule milestones. We have assigned a rate of $75/hour for basic engineering/consulting services and $40/hour for drafting services. These are conservative values for the engineering market. We have used conservative unit rates to remain more competitive.

5.2 Marketing Strategy

We will be using the internet and personal contacts in our sales promotion.  These, together with a well targeted direct mail and e-mail campaign, will make all the major players in the marketplace aware of our presence.

We will focus our limited advertising budgets to promote community sponsored events. We will also offer technical services at discount rates to non-profit organizations.

5.3 Sales Strategy

Sales in our business is client service. It is repeat business. One doesn’t sell an engineering  project, one develops a proposal that works for the client.

We must always be aware of the big-company consulting phenomenon of the split between selling the job and fulfilling the job, which leads to client dissatisfaction. The job should be developed, scoped, sold, and fulfilled by the same people. Our clients should never buy a job from one partner and have it delivered by anybody other than that same partner.

We need to avoid the temptation to drop fees to gain jobs. When a potential client questions the cost of a project, we explain the benefits. If the budget is for less money, then we must offer less service. Billing rates are not negotiated.

5.3.1 Sales Forecast

The following table and chart give a run-down on forecasted sales. In the last four months we have achieved sales of roughly $29,000 per month. We expect sales to remain at a relatively constant level for the next year.

Direct unit costs for the year consist solely of labor; these can be found in the Personnel Plan. Labor rates have been set at 70% of unit revenues, which yields a 30% gross margin.   In the next year, we plan to increase gross margin to 35% as a result of providing a more efficient service to our clients.

Our unit rate for basic engineering/consulting service has been set at $75/hour. This is a conservative assumption based on published salary guideline levels for engineering professionals. Our unit rate for CAD services is $40/hour 

Architectural engineering business plan, strategy and implementation summary chart image

Architectural engineering business plan, strategy and implementation summary chart image

Sales Forecast
2004 2005 2006
Educational $199,992 $250,000 $238,304
Health Care / Senior Facilities $75,000 $75,000 $99,188
Commercial $30,000 $30,000 $39,675
Government $30,000 $30,000 $39,675
Program Management $4,980 $5,727 $6,586
Contractor / design Build $4,980 $5,229 $5,490
Consulting Income $4,800 $4,800 $4,800
Total Sales $349,752 $400,756 $433,718
Direct Cost of Sales 2004 2005 2006
See Personnel Table $0 $0 $0
Other $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

5.4 Milestones

The accompanying table lists important milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. Early milestones concern planning for the next three years, followed by further development of marketing and sales literature. We have also included ongoing meetings and reviews to confirm that our planned sales and expenses are matching our actual results.

Architectural engineering business plan, strategy and implementation summary chart image

Milestone Start Date End Date Budget Manager Department
Business Plan 10/15/2003 1/15/2004 $0 Lavoie Administration
Secure line of credit 10/15/2003 1/15/2004 $0 Haugh Administration
Accounting Plan 10/1/2003 2/1/2004 $0 Haugh/Lavoie Administration
Professional Licensing Plan 1/1/2004 2/1/2004 $0 Solaeczyk Engineering
Press Release 10/1/2003 2/1/2004 $0 Haugh Marketing
Networking Plan 10/1/2003 2/1/2004 $0 All Marketing
Engineering proposal guides 10/1/2003 3/1/2004 $0 Heasley Marketing
Client Presentations Plan 10/1/2003 3/1/2004 $0 Solarczyk Marketing
Write / Update Mailer 1/1/2004 3/15/2004 $0 Lavoie Marketing
Review / Revise Brochure 10/1/2003 3/15/2004 $0 Lavoie Marketing
Client Contact Plan 10/1/2003 3/15/2004 $0 Heasley Marketing
Advertising Campagn Plan 10/1/2003 3/15/2004 $0 Heasley Marketing
Contract Guideline / Samples 1/1/2004 3/15/2004 $0 Solarczyk Department
Initiate Direct Mailer Plan 1/1/2004 3/31/2004 $0 Lavoie Marketing
Weekly Sales meetings 1/1/2004 12/31/2004 $0 All Marketing
Internet up and running 10/1/2003 12/31/2004 $0 Haugh Marketing
Regular check DGS & other sites 1/1/2004 12/31/2004 $0 Solarczyk Marketing
Weekly check PitCon Listings 1/1/2004 12/31/2004 $0 Haugh Marketing
Totals $0