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The Finances 

Revenue Model

  • S.I.M Online uses the loss leader revenue model to entice the target market.

  • One Month Trial: provides awareness of software.

  • Paid 6 Month Trial: Allows customers to customise the software to their school’s needs.

  • Packs 1,2, and 3: Each provide a different level of complexity and bonus features.

Pricing Strategy

To properly price S.I.M Online, considerations needed to be taken:

  • The price of competitors

  • Ensure prices are cheap but reflect the quality accurately.

  • The start-up-costs and the ongoing cost-of-production

  • Adequate profit to allow expansion.

These considerations contributed to the finalised prices.

price per package.png
business start-up costs.png

Forecasting

Cash-Flow-Statement

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Profit Margins

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Break-even Analysis

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Forecasting Summary

  • 80% conversion rate to packs/paid trials guarantees future profit and covers the costs created by the one-month free trial.

  • Financial struggles will occur in August and July

  • S.I.M Online will break-even after 8 basic free trials are sold.

  • $50,000 profit anticipated in the first year

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