MoniqueMendez

ProductProposalLetter
February16th,2016
Period2
Dearloanofficer,

Haveyoueverbeenstuckatthelastminutetryingtofindagiftforthatonepersonwhos
justabitmorecomplicatedthanothers?Howaboutsimplyforthatbookworminyourlife?Give
themthegiftthattheywillalwayslovetohaveandwillholddeartotheirheart.Agifttheycan
preserveforalifetimesinceitsmadewithrealflowers!
Myproductisreallymakingflowersintobookmarks!Theprocesstomakemyproductis
formetofirsthavemyfreshflowersalreadypressedbetweenasheetofwaxpaperinsideofa
heavyandthickbook.Ithenstacktwoorthreemoreheavybooksonthealreadyplacedbook
withthepressedflowerinsidejusttomakesureitsgettingallthemoistureout.Onetotwo
flowerswillbepressedlikethisforupto48hours.Afterbeingpressedaccordingly,Iwouldthen
laminatetheflowerswithaniron.ThenameofmybusinessiscalledMosPetalsandId
considermyproductuniqueasitwouldthefirstofitskindevenbeingsoldinstores.
Ialsowantformycustomerstofeelsomewhatwarmandateaseeverytimetheydoopen
upabookandseetheflower.Iwishforthemtoalwaysseetheflowerstillpreservedandfresh.
Mytargetcustomersarebookreadersandtheagesofthesebookreadersvary.Isaythattheages
ofthecustomersmayvaryonlybecauseIplansellingmyitemtoanyoneandeveryone.Ialso
dontseethatmyproductissomethingthatonecanhaveanagelimitonifwantingtobuyit.

Withmyprofitsearned,Iplanonsavingthemawaytowardsmycollegefunds.Iwould
liketosimplysellmyproductatanybookstoreorretailstoressuchasTarget,Barnes&Noble,
etc.Formyproduct,Idontbelievemyproductneedsmuchmarketing.Idrathertakethe
initiativeofjustputtingmyproductinthestoreorsellingbyhand.
Formyproduct,myoptimumpriceis$4.29.Mybreakevenpricesare$1.25and$7.25.I
wasabletodiscoverthisbecauseIlookedatmydatathroughaquadraticregressionmodel.It
showedmemylineofbestfitormyaverage,ifyouwill.Iplanonsellingmyproductat$3.50
andthoughmyoptimumpricewasat$4.29,IstillfeltasifI'dmakethemostmoneybyselling
myproductat$3.50becausemytotalprofitbytheendofmydatacollectionwasat$73.15while
sellingitatthepriceof$4.50gavemeatotalprofitof$74.16.Itwasonlya$1.01differenceand
yetlesspeoplewouldbuymyproductatthepriceof$4.50.
IwasabletoalsofindoutwhatpriceIshouldsellmyproductatbydoingasurveyand
asking50peopletochoosebetweensevenpricestheythinktheydbuymyproductat.Ididnt
haveatargetimageofwhotoaskbecauseIwantedaskeveryone.Therehadonlybeenone
person,though,whorespondednegativelyandsaidtheywouldnotbuymyproductatanyprice
atall.ThatcanaffectmydataandfuturesalesandImwellawareofthat.Onanothernote,49
peoplesaidthattheywouldbuymyatthepriceof$1.50,46peoplesaidthattheywouldbuymy
productat$2.50and35peoplesaidthattheywouldbuymyproductat$3.50.Thesewerethe
mostpopularpricesthatpeoplewouldbuymyproductsatandasthepricesweremorecostlyI
wouldgetlessofaresponse.
Iaimonsellingtheminimalamountoffourbookmarksadayandnolessthanthat.With
30daysinamonthmultiplyingitby4bookmarksaday,thatgivesme120.Ithenmultiplied120

byhowmuchittakestoproducemyproducteachtimewhichis$1.41andthatgivesme
$169.20.Iveestimatedthatmypriceperproductwouldbe$1.41onlybecauseIvedonealotof
onlineresearchcomparingbookmarkpricings.Othercoststhatarentquiteasimportantwould
bethewaxpaperthatIpresstheflowersbetweenwhichis$3.49andtheflowerswhichcostup
to$4.99,butitjustdependsonwhereyouwouldliketobuyyourflowers.Movingon,theprice
of$169.20ismycosttoproducemyproductforjustonemonth.Now,Igobacktothe120
bookmarksthatIwouldhavesoldinamonthandmultiplyitbymyselectedvalue,whichwillbe
$3.50,andIwillmake$420monthly.However,somebodyhastopayforthedamagebeing
done!ThatswhenIdeduct$169.20frommy$420profitandendwith...$250.80afterallofmy
projectedsalesandwiththatasmyrevenueinamonth.
Iwasonlyabletofigureallthisoutbylookingatthequadraticregressionmodel.My
vertex,whichisthehighestpointontheparabola,showedmewhatmyoptimalpricewouldbe
whichwas$4.29.Thebreakevenpointsaretwosolutionslyingonthexinterceptofyour
parabola,showingyouthatsellingateitherofthosecosts,youdonotgainnorloseanyprofit.
Yourrevenueistheincomethatyourbusinessorcompanymakesannually.
Now,Idliketoaskfora$100loan.Whyexactlyjustthismuchyousay?Well,
consideringthat$169.20isthecosttoproducemyproducteachmonth,Idliketoonlyaskfor
$100andIknowwiththehelpofmyparentsandpersonalfunds,wewouldbeabletomakeup
therestoftheneededamount.Iwouldgladlyappreciatetheeffortandtimeifyouwereinvestin
measIdobelieve,veryconfidentlythatIcansellmyitem.

Thankyou,

MoniqueMendez