Wednesday, April 27, 2016
In this section of the simulation I learned about getting money for the beginning of a business. This ended up being a lot of math and involved getting the best lone. I had to calculate how much money I would lose before I would start making a profit and I could not go over or else the interest would be too much to pay for. This led me to add cost of inventory and rent as the main costs with others such as paying employees and got a little less the $50,000. So I got a $50,000 lone and that lasted long enough for me to start gaining a profit.
Monday, April 25, 2016
Wednesday, April 13, 2016
Inventory control was vital to not wasting money in my business. The over stocking of items lead to lots of my inventory wasted due to it being perishable. This made me have to check how long items lasted and how often they were bought. This lead me to have mass stocks of things that lasted a long time and small stocks of things that did not last long. This helped m profit a lot raising by a few thousand within 2 weeks showing it was very important.
Monday, April 11, 2016
Social media seemed like a good way for startup since it is a very cheap way to get out to a lot of people. I would primary stick with Twitter since it it help me focus on one outlet and since there are a lot people on it and can reach a lot of people. The main goal of a social media page I feel would be to interact with customers and answer any questions. The secondary goal would be to get my businesses image and the interacting with customers should help that since it would show I want to talk with my customers.
Monday, April 4, 2016
This section showed me how effective different types of promotion are and how overusing them can backfire on me. When going through the 2 sims I found that billboard advertising are very effective to get customers. Also newspapers were very good at their jobs to help gain a profit. When going to the email I had lots of problems of money loss. This took lots of time and had lots of money loss and gained me next to nothing. Emailing seemed not worth the time since there are a lot of more effective ways to promote.
When I was learning about pricing I learned many tactics when pricing such as loss leaders, making a product cheap to attract customers. I was able to make lots of profit messing with the prices of many items. I ended up putting the global margin (margin for everything) to 30% and set milk to 35% since it was a best seller. This helped me make profit within a few weeks messing with the margins, the difference cost of an item and the price of it, to attract customers and still make a profit.
Location was a very difficult section that was all about how important location was. I learned how to take in account location and rent price to make a good choice. After many tries I got a successful business right outside the downtown area for cheaper real estate and lots of customers. This worked after waiting a few weeks for a profit. This was very important and was great way to make or loose money.
The product section was an interesting section since I never really thought of how much time and effort was put towards what items were for sale. I was told that there are items that are perishable and will become bad if left out too long. I learned that the time of year makes a huge difference to what goes on the shelves since there are different sports seasons. I used the time of year to put out the right items and make a good amount of profit. This led me to make a great amount of profit from a failing business.
The Market Research section showed me how to use surveys effectively to gain as much profit as possible. In the simulation I gave out surveys to find out who was doing the shopping and what radio stations where being listen. When I ask people who was shopping I also asked their age to get a good demographic of my potential customers. After the shoppers survey I took a survey on what radio stations where being listen to and had the fill out there age. After that I took the ages of customers and matched them with radio stations. I used that information to put my $1,000 into the correct radio stations. I ended up going from no profit to making $10,000 a week.