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Tablature Tattoo

Strategy and Implementation Summary

Tablature Tattoo seeks to follow a strategy of appealing to both new tattoo customers and tattoo collectors by creating an environment and products/services desirable to both groups. Through this strategy, the business intends to convert local customers who may only seek one tattoo initially to become repeat customers. The business will do this by:

  • Offering competitively-priced introductory tattoos to encourage “tattoo newbies”
  • Retaining high-quality artists to retain tattoo collectors
  • Offering a wide range of custom designs in different styles to broaden appeal
  • Selling additional products with designs by the tattoo artists to build an additional revenue stream

Competitive Edge

Tablature Tattoo will create a competitive edge through the cultivation and retention of its most valuable assets – its artists. Jake Hunt will be tied to the business as an owner and the second artist will be well rewarded for his or her work through open-ended shares in revenues generated through his or her designed products and commissions on tattoos. By not having to worry about overhead, rent, establishing a brand, purchasing basic supplies, or other business concerns, this will be a perfect situation for a tattoo artist who wants to focus on his or her art, establish job security and establish a client base with limited risk.

Marketing Strategy

The marketing strategy of the business involves marketing to a wide range of potential customers in the Greenwood area. The following tactics will be used prior to launch:

  • Print 1,000 flyers advertising the grand opening of the business to post in the area of the shop, at local establishments and hand out at events and on the street in the preceding week.
  • Create a basic website with contact information and directions, the prices for services, pages with galleries of art of the two artists, and images of products for sale in the shop and prices
  • List the website on search engines, local business databases, tattoo shop databases and the Yellow Pages
  • The principals and additional artist handing out business cards and wearing Tablature Tattoo shirts to promote the opening
  • Running ads in the local papers about the grand opening
  • The artists calling their rolodexes of previous clients (collectors) to tell them about the new business and encourage them to come back

The grand opening, a five-day event, will consist of a promotion giving introductory tattoos at 25% off ($45).

Ongoing marketing work will include:

  • Continuing to hand out business cards
  • Printing flyers periodically promoting discounts and new products and posting them in the area
  • Maintaining the website with new products and art

Sales Strategy

Sales will be encouraged through word-of-mouth. Clients will be given a few business cards to hand out to friends when they talk about their new tattoo and client information will be retained. The artists will also remind customers about products featuring their designs which are being offered and can give these products for discounts or free to collectors who return for a number of tattoos.

Beyond in-store sales efforts, the artists will promote their work at parties, events, and while on the street, by wearing Tablature Tattoo shirts often and handing out business cards to people they meet.

Ensuring health and customer satisfaction will also be a sales strategy. Each customer will be called by the receptionist after a week to check in on how the tattoo is healing and to thank them again.

Sales Forecast

The cost of sales for the services offered is 8% for shop-minimum tattoos, 7% for basic tattoos, and 6% for full sessions, as ink and supplies becomes less of a cost as the longer sessions involve more preliminary design work and less “ink per hour.” Resale items are projected at 40% cost of sales on average. Cost of sales will also include a pamphlet on tattoo care given to each customer. This pamphlet will be purchased from an industry provider.

Resale items are not expected to sell until after tattoo business begins, as buyers will be those who have had tattoos from the artists and appreciate their designs. Full sessions will grow faster than other areas as the artists gain reputation in the community for more elaborate work.

The sales forecast represents an amount of work that is reasonable for two full-time artists, while allowing time for them to work on flash art, create designs for other resale items, and manage and market the business.

Tattoo parlor business plan, strategy and implementation summary chart image

Tattoo parlor business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Shop-Minimum Tattoos 558 756 794
Basic Tattoos (~1 hour) 492 655 688
Full Sessions (2-6 hours) 387 539 577
Resale Items (Posters, T-shirts, etc.) 184 340 357
Total Unit Sales 1,621 2,290 2,416
Unit Prices Year 1 Year 2 Year 3
Shop-Minimum Tattoos $60.00 $63.00 $66.15
Basic Tattoos (~1 hour) $100.00 $105.00 $110.25
Full Sessions (2-6 hours) $300.00 $315.00 $330.75
Resale Items (Posters, T-shirts, etc.) $20.00 $21.00 $22.05
Sales
Shop-Minimum Tattoos $33,480 $47,628 $52,510
Basic Tattoos (~1 hour) $49,200 $68,796 $75,848
Full Sessions (2-6 hours) $116,100 $169,873 $190,853
Resale Items (Posters, T-shirts, etc.) $3,681 $7,137 $7,868
Total Sales $202,461 $293,434 $327,078
Direct Unit Costs Year 1 Year 2 Year 3
Shop-Minimum Tattoos $4.80 $5.04 $5.29
Basic Tattoos (~1 hour) $7.00 $7.35 $7.72
Full Sessions (2-6 hours) $18.00 $18.90 $19.85
Resale Items (Posters, T-shirts, etc.) $8.00 $8.40 $8.82
Direct Cost of Sales
Shop-Minimum Tattoos $2,678 $3,810 $4,201
Basic Tattoos (~1 hour) $3,444 $4,816 $5,309
Full Sessions (2-6 hours) $6,966 $10,192 $11,451
Resale Items (Posters, T-shirts, etc.) $1,472 $2,855 $3,147
Subtotal Direct Cost of Sales $14,561 $21,673 $24,109

Milestones

The milestones table details the marketing activities described in the marketing strategy summary. These activities are undertaken with a high focus on using low-cost or free marketing methods to promote the launch of the business. Julie Hunt will manage all marketing activities and Jake Hunt will promote the business directly by contacting clients, networking, and posting/handing out flyers and business cards.

Tattoo parlor business plan, strategy and implementation summary chart image

Milestones
Milestone Start Date End Date Budget Manager Department
Print Flyers 2/1/2010 2/15/2010 $500 Julie Marketing
Create Ads 2/1/2010 2/15/2010 $0 Julie Marketing
Create Website 2/1/2010 2/28/2010 $0 Julie Marketing
Print Business Cards 2/1/2010 2/15/2010 $500 Julie Marketing
List Website 3/1/2010 3/15/2010 $1,000 Julie Marketing
Run Ads 3/1/2010 3/15/2010 $500 Julie Marketing
Post Flyers 3/1/2010 3/15/2010 $0 Jake Sales
Heavy Pre-Opening Promotion (Calls and Networking) 3/15/2010 3/21/2010 $0 Jake Sales
Grand Opening 3/22/2010 3/26/2010 $0 Jake & Julie Marketing
Regular Operations Begin 3/29/2010 3/29/2010 $0 Julie Operations
Totals $2,500