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It has a good reputation, excellent people, and a steady position in the local market, but has been having difficulty maintaining healthy financials.AMT is a privately-held C corporation owned in majority by its founder and president, Ralph Jones.We will not be able to compete in any effective way with the chains using boxes or products as appliances.
In service and support, we offer a range of walk-in or depot service, maintenance contracts, and on-site guarantees.
We haven't had much success in selling service contracts. (add relevant information) The only way we can hope to differentiate effectively is to brand the vision of the company as a trusted information technology ally to our clients.
We make sure that our clients have what they need in order to run their businesses at peak performance levels, with maximum efficiency and reliability.
AMT is a 10-year-old computer reseller with sales of $7 million per year, declining margins, and market pressure.
Neither owns more than 15%, but both are active participants in management decisions.
AMT has been caught in the vise grip of margin squeezes that have affected computer resellers worldwide.Unfortunately, we cannot sell the products at a higher price simply because we offer services; the market has shown that it will not support that concept.We must also sell the service and charge for it separately.Our margins are declining steadily for our hardware lines. (add relevant information) Our margins are thus being squeezed from 25% from five years ago to closer to 13 to 15% at present.A similar trend shows for our main-line peripherals, with prices for printers and monitors declining steadily.For years, we have supported both Windows and Macintosh technology for CPUs, although we've switched vendors many times for the Windows (and previously DOS) lines.We are also supporting Novell, Banyon, and Microsoft networking, Xbase database software, and Claris application products.This example is provided as part of the instructions and detailed descriptions included in the Components of a Business Plan.By focusing on its strengths, its key customers, and the company's underlying core values, Acme Management Technology will increase sales to more than million in three years, while also improving the gross margin on sales and cash management and working capital.We have one location—a 7,000 square-foot brick & mortar facility located in a suburban shopping center conveniently close to the downtown area. We sell the assurance to small business people that their business will not suffer any information technology disasters or critical downtimes.Along with sales, it includes a training area, service department, offices, and showroom area. AMT serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor.