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Anywhere Remodeling

Strategy and Implementation Summary

Anywhere Remodeling, Inc. will change its focus to differentiate their services from fly-by-night contractors, improve its sales and customer service functions and increase the amount of work received from past clients and referrals. The marketing challenge is to improve the company’s image, allowing estimators to price work more profitably, reduce or eliminate the amount of work competitively bid for, and to raise the perceived value the client gains by hiring Anywhere Remodeling.

5.1 Sales Strategy

1. Anywhere Remodeling needs to sell the company, not the price.

2. Anywhere has to sell its quality and service. The actual remodeling is like the razor, and the support, service, design and hand holding are the razor blades. We need to serve our customers with what they really need.

The Yearly Total Sales chart summarizes an ambitious sales forecast. Anywhere expects sales to increase significantly from $750,000 last year.

5.1.1 Sales Forecast

The important elements of the sales forecast are shown in the Total Sales by Month in Year 1 chart. Total sales will increase substantially over the next several years.

Residential remodeling business plan, strategy and implementation summary chart image

Residential remodeling business plan, strategy and implementation summary chart image

Sales Forecast
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Commercial $131,791 $145,000 $165,000 $170,000 $180,000
Residential $1,188,614 $1,350,000 $1,500,000 $1,650,000 $1,800,000
Other $7,998 $1,903 $1,998 $2,098 $2,202
Total Sales $1,328,403 $1,496,903 $1,666,998 $1,822,098 $1,982,202
Direct Cost of Sales FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Materials $225,828 $254,473 $283,390 $309,757 $336,974
Sub Contractor Costs $464,941 $523,916 $583,449 $637,734 $693,771
Permits & Licensing $3,385 $3,554 $3,732 $3,919 $4,115
Sales Costs w/commision $8,369 $9,730 $10,835 $11,844 $12,884
Warranties $5,067 $4,752 $4,989 $5,239 $5,501
Trash $6,365 $6,683 $7,017 $7,368 $7,736
Other $1,930 $2,027 $2,128 $2,234 $2,346
Subtotal Direct Cost of Sales $715,885 $805,135 $895,541 $978,094 $1,063,327

5.2 Marketing Strategy

The marketing strategy is the core of the main strategy:

  1. Emphasize quality and service.
  2. Build a relationship business–treat the customers like members of the family.
  3. Take care of the customers for the rest of their life.

5.3 Competitive Edge

Anywhere Remodeling, Inc.’s competitive edge is its reputation in the community. Over the past five years, Anywhere has won a number of awards for quality and design, both nationally and locally. Its satisfied customer base continues to expand and spread the word.

5.4 Milestones

The following table lists important program milestones, with dates and persons in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. The most important programs are the sales and marketing programs listed in detail in the previous topics.

Milestone Start Date End Date Budget Manager Department
Business Plan 10/1/2008 10/1/2008 $500 Bob Hammer Owner
Community Involvement Program 2/15/2008 2/15/2008 $5,000 Bob Hammer Owner
Sales Brochure 3/1/2008 3/1/2008 $1,800 David Designer Sales
Refinance Short Term Debt 3/1/2008 3/1/2008 $0 Bob Hammer Owner
New Computer System 7/15/2008 7/15/2008 $8,000 Bill Sales Administration
Thank You Cards 1/15/2008 1/15/2008 $250 David Designer Sales
Pardon the Dust (door hangers) 1/15/2008 1/15/2008 $200 David Designer Sales
New Automatic Nail Guns (2) 1/1/2008 1/1/2008 $3,200 Steve Field Production
How to Pick a Contractor Seminars 6/1/2008 6/1/2008 $1,000 Bob Hammer Sales
Totals $19,950