The Boulder Stop uses a strategy of total market service.
Our main strategy is to develop The Boulder Stop experience as part of the sport climbing activity. We don't intend to be just a store, but rather a sport climbing cultural center for regulars and visitors to Smith Rock.
Underneath this strategy, our first tactic emphasizes the needs of the Hard-core climber. We assume that participation of the Hard-core set will generate interest for others.
The Boulder Stop gives Smith Rock visitors the highest quality climbing gear, good coffee, and a place to meet, in a convenient locale.
Our location is a very important competitive edge. It will be difficult for our competitors to match our location.
The other competitive edge in development is our reputation and involvement with the community. The Boulder Stop is part of the Smith Rock experience, like the [Omitted] photography store used to be, in Yosemite Valley. That is why we are developing a community of employees who are sport climbing, and our sport climbing events, bulletin board, etc. This advantage is important to us because our prices are slightly higher than other cafes and other gear stores in Oregon.
Our marketing strategy will focus on three segments. Those three segments are described in the following subtopics.
The Boulder Stop will implement a strong sales promotion strategy. Advertising will be secondary.
The customers will buy our products directly from the store, in the store. We will also generate sales through our website and its secure server and we will ship all ordered products from the store. All telephone orders will be taken at the store through either our single (800) line or the local number. Mail orders will be processed at the main office in Bend and shipped from the store. All debits and credits, order transactions, charge backs, and price discounts will be accounted for on the SBT Accounting system at the Bend office.
For climbers who need a place to stop for gear and coffee near Smith Rock, The Boulder Stop offers high quality climbing gear, gourmet espresso drinks, and a comfortable place to meet and talk. Unlike our competitors, our store is near the park and offers exactly what most climbers and tourists need.
We will encourage impulse buying, therefore it is important that we maintain a flexible pricing strategy.
We will promote to the Weekend warriors by hosting fun events like the "Fun Summer Climb '98". Our part-time sales clerks, also trained in the ways of promotional tactics, will call businesses within the Bend area and establish additional sponsors for these events. They will close the sale immediately if possible, enter the closure into the [Omitted] software accounting system, and provide post sales follow-up.
For in store sales, our strategy will be to maintain as much on-site point-of-purchase literature as is physically possible. Our part-timers will be responsible for informing customers of the products and creating the best fit between customer and product. Our salespeople will understand that selling is about filling a need, not pressuring the customer to buy. 70-80% of returns will be sent back to the distributor or vendor.
The following table and chart give a run down on forecasted sales. We expect sales to increase at a rate of 1-2% per month for each product in the first few months.
November through January may be slow months for The Boulder Stop. However, if we get our name out our target market we might benefit from holiday gift purchases of hardware and garments. For February through March, we expect 1% monthly sales growth becoming 2% growth as we reach the second summer. In 1999 and 2000, we expect solid 20-25% sales growth as The Boulder Stop becomes well-known in Central Oregon. 1999 and 2000 costs will decrease 4-7% due to lower agency and efficiency costs.
Note: For company purchases, the per-unit price of inventory purchases includes cost of shipping.
Sales programs will include sales awards for highest sales and customer service awards for those employees who best exemplify The Boulder Stop's commitment to customers. The owner will award these valuable employees yearly with a $200-300 vacation to the Sunriver Resort in Bend.
The milestone table shows purchasing, sales, and marketing goals. The owner will conduct straight rebuys while touching base with the Espresso Harvest. We have paid a deposit of $700 (06/28/97) to establish a 30-day grace period on all purchases from Espresso Harvest. There is no franchise fee and Espresso Harvest will donate advertising, consulting, and literature, provided that all 40% of sales from Espresso Harvest mugs, cups, and T-shirts go directly to Espresso Harvest, Inc.