Gravel Rock Products Business Plan

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Durango Gravel

Products and Services

Durango Gravel Inc. deals exclusively in providing gravel and gravel-related products, including but not limited to the following:

  • 3/4″ ABC
  • 3″ ABC
  • 3/8″ screened and washed rock
  • 1/2″ screened and washed rock
  • 3/4″ screened and washed rock
  • 1-11/2″ screened and washed rock
  • 1″-3″ cobble
  • 4″-6″ cobble
  • Pre-washed sand
  • Fill dirt
  • Topsoil
  • Bedding materials
  • Crusher fines
  • Boulders–various sizes

The company provides consulting and products.  Customers can either provide their own trucks for products, or the company will deliver for a fee.  Our standard average delivery fee is $65.00, with maximum related expenses of $40.00.  The only product costs will be associated with production.  Company trucks delivered 416% of the loads in year 2000.  Trucking was subcontracted to independent trucking companies, including Justin McCarty Trucking and Excavation.

In addition, we plan to provide SX grade asphalt.

3.1 Product and Service Description

Royalty Costs are $2.00/Ton.  Manufacturing Costs are budgeted at $1.15/ton (a high figure).  Starred items have no manufacturing costs.

Asphalt Roads and driveways, $20.90/ton Used by everyone
3″ ABC – 3/4″ ABC Base material for roads, driveways and site fill Used by everyone
3/8″ Screened and Washed Rock (Pea Gravel) Driveway and walkway topping, winter snow maintenance Used by everyone
1/2″ Screened and Washed Rock Asphalt base Used by everyone
3/4″ Screened and Washed Rock Driveways, walkways, pipe bedding, french drains Used by everyone
1-11/2″ Screened and Washed Rock French drains and driveways Used by everyone
1″-3″ Cobble Decoration and fill Used by everyone
4″-6″ Cobble  Decoration and large fill Preferred by landscaping contractors
Pre-Washed Sand* Pipe bedding, fill, horse arenas Used by everyone
Fill Dirt* Used by everyone
Topsoil* Landscaping
Bedding Material*
Boulders* various sizes  Landscaping – wall construction

3.2 Competitive Comparison

Within our niche we have two significant competitors, Oldcastle (Four Corners) and LaFarge, which are both multi-national corporations headquartered outside the United States.  While these are both well-run companies, the local perception is that the money they earn goes directly overseas to their headquarters, as opposed to reinvesting their profits in the local economy.  In addition, many of their policies are set at the corporate level, resulting in less customer-service orientation then is the norm for this region.  A number of general contractors have started to utilize our products because of our ownership and policies. 

There is one other significant competitor, C & J Gravel.  Their reserves are limited, and offer a limited product line.  A number of their major users have started to utilize our products.  We expect more in the next year.

The way we compete is on the fact that we offer a larger selection of products, superior quality, and better customer service in terms of information on our product line.  We compete on our road base products in terms of price and availability, with fast delivery.

3.3 Sales Literature

This year we will be producing a company catalog, which would include asphalt products for targeted customers.

3.4 Fulfillment

We produce almost all of our product line at our site, with effectively no need to outsource any materials.

3.5 Technology

The technology for the production of gravel, gravel-related products and asphalt is well established.  We have developed effective and revolutionary marketing techniques for: convenient and time-saving loading of client trucks, and saving our institutional customers substantial amounts on their trucking expenses.

3.6 Future Products and Services

Our major addition this year will be asphalt, of which there is only one area producer at present.  A number of contractors have expressed interest in using our asphalt. 

Our long-range plan includes the opening of a second pit, in order to compete with producers in the more remote county areas.

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