Will Bury Business Proposal
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Will Bury Business Proposal
Marisa Wachter
University of Phoenix
ECO 561
April 16th, 2012
In this paper we will discuss how to improve Will Bury’s business. We will look at ways to increase revenue; determine the fixed and variable costs for the business; and determine how to maximize profit. We will also address the pricing structure, product differentiation, and how to minimize the costs for the product. In all, we will have complete business proposal that will help Will Bury’s business become very successful.
Company Background Will Bury predicts that very soon, everyone will be reading or listening to everything digitally, including books that are only available in hard copy. He created technology that allows for the printed word to be converted into a file that can be read digitally or listened to with a realistic synthetic voice. He has patented his technology and is currently competing against other companies that offer similar services, such as books on cd. Will is a part of monopolistic competition, which “is characterized by a relatively large number of sellers producing differentiated products.” (McConnell, Brue, & & Flynn, 2009, p. 177).
Currently, Will runs his business out of his garage and still works a full time job. Will has identified that he needs assistance with his business but is unsure of how or where to employee staff, and how to pay them. Will also needs to identify the appropriate price to be selling his product at, in order to run his business efficiently.
Increasing Revenue Currently, Will is charging $10 for older titles whose copyrights have lapse and $15 for titles that have royalty fees. Furthermore, he is selling twice as many new titles as older titles. My idea is for will to lower the fee for the older titles to $8, since there are no royalty fees for him to pay, and increase the price for books that are in high demand, to $16. If Will was to sell 1,000
Will Bury Business Proposal
Marisa Wachter
University of Phoenix
ECO 561
April 16th, 2012
In this paper we will discuss how to improve Will Bury’s business. We will look at ways to increase revenue; determine the fixed and variable costs for the business; and determine how to maximize profit. We will also address the pricing structure, product differentiation, and how to minimize the costs for the product. In all, we will have complete business proposal that will help Will Bury’s business become very successful.
Company Background Will Bury predicts that very soon, everyone will be reading or listening to everything digitally, including books that are only available in hard copy. He created technology that allows for the printed word to be converted into a file that can be read digitally or listened to with a realistic synthetic voice. He has patented his technology and is currently competing against other companies that offer similar services, such as books on cd. Will is a part of monopolistic competition, which “is characterized by a relatively large number of sellers producing differentiated products.” (McConnell, Brue, & & Flynn, 2009, p. 177).
Currently, Will runs his business out of his garage and still works a full time job. Will has identified that he needs assistance with his business but is unsure of how or where to employee staff, and how to pay them. Will also needs to identify the appropriate price to be selling his product at, in order to run his business efficiently.
Increasing Revenue Currently, Will is charging $10 for older titles whose copyrights have lapse and $15 for titles that have royalty fees. Furthermore, he is selling twice as many new titles as older titles. My idea is for will to lower the fee for the older titles to $8, since there are no royalty fees for him to pay, and increase the price for books that are in high demand, to $16. If Will was to sell 1,000
Cited: Benefits of Hiring Interns. (2012). Retrieved April 16th, 2012, from Pacific Luthern University Website: http://www.plu.edu/intern/employers/hidden/Benefits-of-Hiring-Interns.php Fees For Ebay Stores. (2012). Retrieved April 4, 2012, from Ebay Website: http://pages.ebay.com/help/sell/storefees.html McConnell, C., Brue, S., & & Flynn, S. (2009). Economics: Principles, Problems, and Policies. (18th, Ed.) Boston, MA: McGraw-Hill Irwin.