Cost-Benefit Analysis for Divers X
Costs
Category
Details
Cost in First Year
Lease
Store lease in Miami Beach for 750 sq ft at $30 per sq ft
$22,500
Leasehold Improvements
Store renovations and setup
$30,000
Inventory
Initial stock of diving gear (goggles, wetsuits, etc.)
$150,000
Marketing & Advertising
Launch and ongoing advertising (social media, local promotions)
$40,000
Staffing
Salaries and benefits for initial team (sales staff, managers)
$200,000
Technology & Equipment
POS systems, website development, security systems
$25,000
Training & Miscellaneous
Staff training, ongoing costs, and unforeseen expenses
$15,000
Total Costs
$482,500
Benefits
Benefit
Benefit Within 12 Months
Revenue from Goggles
10,000 units x $169 = $1,690,000
Revenue from Additional Gear (wetsuits, etc.)
Estimated $500,000
Increased Brand Recognition
Brand establishment and loyal customer base = $50,000
Premium Pricing on Custom Gear
Estimated additional $150,000
Total Benefits
$2,390,000
make the income higher than the expenses