Estimating Sales- Part 2

[Ellemeno]

Ok, I have driven around my 8 mile delivery radius. I actually spilled 4 miles into an 2 more ajoining towns that i hadn’t taken into consideration. there are no pizzerias even close to that area. However, this town is past the highway which is a psycological barrier for people around here and the flow of traffic doesn’t direct them to my store. So i don’t expect those 4 miles of people to come to my store to eat or for pick ups or even know i am there but they are eligible for delivery and i will advertise to them. Question- How do i estimate sales to these people who i expect to be delivery only? Should i just leave them out of my business plan but add them to the “bank’s business plan”?

 

[paul7979]

First off, an 8 mile radius is awfully large. You may find you will do better sales with fewer addresses in a smaller area giving faster delivery times. With that said, if you still deliver to these areas, you cannot on your own business plan count on having the market penetration with these addresses as you have with the addresses in your backyard. As far as the business plan you submit to your bank, account for these any way you choose, your loan officer won’t know the difference.

 

[Ellemeno]

i wouldn’t go so far but those last 2 miles include 3 trailer parks

 

[Piper]

Ellemeno:

i wouldn’t go so far but those last 2 miles include 3 trailer parks

That may be some decent business for you… but your drivers will hate it. I don’t want to offend anybody, but TP’s are the absolute worst tippers EVER. If it’s well within your regular range then fine. But, you don’t want to make your drivers make long trips for zero tips.

 

[Ellemeno]

trailer parks usually have bad tippers, i know. but maybe it can provide some motivation for the drivers. like you better hussle or i’ll stick you on trailer park deliveries. PS. these trailer parks have lots of little kids, and little kids have birthdays, and birthday parties, and little kids like pizza for their birthday party.