Business Logic Plan

[Fikri Aulia]

William,

Oh i see, thanks Wil. And sorry for the spam.

[Cardriverx]

Originally posted by xd2:
Does anyone know about the assessment of competition we have to do? Do we have to assess the other teams or assess the industry as a whole?

I took it as assess the industry and assume there aren't other formula SAE specific teams.

[xd2]

Okay, thanks.

Also, for the cost, we have to establish a selling price. How much should the selling price be scaled compared to the actual cost of the car?

[JulianH]

At least for FS 2012, it was the price calculated in the Cost Report.

[Cardriverx]

That's for you to decide, but you have to use the curve of selling price vs. units sold per year that they give you and justify why you picked a certain point.

Originally posted by xd2:
Okay, thanks.

Also, for the cost, we have to establish a selling price. How much should the selling price be scaled compared to the actual cost of the car?

[xd2]

Originally posted by Cardriverx:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by xd2:
Does anyone know about the assessment of competition we have to do? Do we have to assess the other teams or assess the industry as a whole?

I took it as assess the industry and assume there aren't other formula SAE specific teams. </div></BLOCKQUOTE>
What industry/class is our "business" competing in? I couldn't find anything with similar specs/price to what we would be selling.

[Cardriverx]

It is a hard question to answer. I just assumed that we would compete with other small cars that would have enough steering to navigate a autocross course. Examples are a Arial Atom, Lotus 7/Caterham, Lotus elise/exige.

Issue is these all come in much more than the FSAE car selling price is (thanks to the mandated price vs cars sold curve we have to follow). But thats what ive done so far.

Originally posted by xd2:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Cardriverx:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by xd2:
Does anyone know about the assessment of competition we have to do? Do we have to assess the other teams or assess the industry as a whole?

I took it as assess the industry and assume there aren't other formula SAE specific teams. </div></BLOCKQUOTE>
What industry/class is our "business" competing in? I couldn't find anything with similar specs/price to what we would be selling. </div></BLOCKQUOTE>

[DSR]

As soon as we find the cost of our car, then for profit maximization we can find a unique point on the curve that will decide the selling price as well as quantity sold per year. Can't we use this point as our selling price and target market ???

[Jackie L]

Originally posted by Cardriverx:
It is a hard question to answer. I just assumed that we would compete with other small cars that would have enough steering to navigate a autocross course. Examples are a Arial Atom, Lotus 7/Caterham, Lotus elise/exige.

Issue is these all come in much more than the FSAE car selling price is (thanks to the mandated price vs cars sold curve we have to follow). But thats what ive done so far.



<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by xd2:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Cardriverx:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by xd2:
Does anyone know about the assessment of competition we have to do? Do we have to assess the other teams or assess the industry as a whole?

I took it as assess the industry and assume there aren't other formula SAE specific teams. </div></BLOCKQUOTE>
What industry/class is our "business" competing in? I couldn't find anything with similar specs/price to what we would be selling. </div></BLOCKQUOTE> </div></BLOCKQUOTE>

I think it's best to go with the Presentation event's definition of the competition. After all, this is how FSAE wants us to correlate Presentation, Cost, and design. That market is the amateur, weekend autocross enthusiast. Consider what other vehicles someone would consider when looking to compete in Solo or something like that. You're not necessarily marketing an FSAE car.

[FSTT]

1) As I understand, cost from cost report would apply only if the sales volume is 1000, as the cost report gives the cost assuming we produce 1000 cars per year. Which cost should we use if we produce and sell 20 cars per year?

2) For target annual profit, did you take into account other costs as well? Overheads? In that case target profit does not equal total revenue minus total production cost, right?