Market conditions and sales projections for the third year Central Plumbing and Heating is in business:

When projecting sales for the third year of business for Dependable Roofing, we decided to make sure that we take in three distinct market conditions for our business. The first is a slow market condition that is typically characterized by a sluggish economy. Second is a good market conditions that reflects a typical average market for the roofing contractor business and finally is the great market conditions that is reflective of a booming economy where business is coming in from everywhere and business owners like James and Carmine and just trying to keep up with all the work that is pouring in.

Sales seasonality - how much will sales fluctuate during the year for Dependable Roofing?

Dependable Roofing is located in Kent county, Michigan. As most folks know, the plumbing business in the Midwest is characterized by a very tough winters that can damage roofs. While emergency roofing work is done anytime, most roofing work is concentrated during the summer months. Thus sales seasonality is certainly anticipated for the firm. It is anticipated that the third quarter of the year will typically bring in approximately 45% of the total annual revenues. We anticipate the winter months of October through April to be the slowest given that roofing work cannot be done when it is very cold outside. These months are when temporary roof repairs and patchwork may be done and combined it is expected that Quarter 1 and 4 will only being in a combined 30% of the annual revues.

Sales projections for the third year for Dependable Roofing?

Thus the firm is projecting that for the third year in a good market condition we will probably be able to get to $315,000 in sales with approximately 670 customer transactions each generating about $470 in revenues. In the event the market for roofing contracting services were to slow down, we are projecting that we will be able to process 503 sales transactions for the third year that will bring in a total of $236,250. Also in the event we have a boom in the local and larger economy and we wind up with a great market condition, we project that Dependable Roofing will be able to take in approximately $378,000 having served its customers with 804 transactions during our third year of operations.

Factoring in new roof installations and replacements into the mix:

When making these projections, James and Carmine have divided up all potential revenues from the larger jobs that require new roof installations and replacement along with the many repair jobs that will done during the year. While the total anticipated revenues are divided by the number of jobs, we come up with $465 per job, but the reality is that the larger roof installations and replacement jobs will typically bring in around $8,000 each.

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