Still, on the proposal, I'll share with you some details on the Pricing Strategy, Sales Assumption, Financials and Break-even Analysis. In hope that this gives a better understanding on how the platform could generate a stream of income in the form of revenue without having to rely heavily on delegations.
As always, you are advised to go through the previous posts on this proposal to have a better understanding of the proposed project. Use the following links to view the previous posts;
- Executive Summary
- Proposal to developing a Review Platform on the Hive-blockchain (A Real Business)
- Proposal to developing a Review Platform on the Hive-blockchain (A Real Business) #2
- Proposal to developing a Review Platform on the Hive-blockchain (A Real Business) #3
Pricing Strategy
RealityHubs must ensure that price and service are perceived to be an excellent value to our customers. Our premium and promotional service will be offered at a reasonable price.
Our premium service pricing would be with a discount which depends on the plan selected as shown in the following table;
| S/N | PLAN | PRICE |
|---|---|---|
| 1 | Monthly | $160 |
| 2 | Quarterly | $460 |
| 3 | Half-annually | $900 |
| 4 | Annually | $1,780 |
Sales Forecast and Assumption
We have highlighted our product and service sales, and we'll provide our expected and peak sale forecast over a one-year projection.
The chart above is a highlight of our annual sales projection, which is 12,000 sales. This is with the assumption that at least 1,000 businesses will subscribe to our service monthly.
In our next chart, we’ll provide our expected sales value over a one-year projection with the assumption that each subscription is $160 as shown in the following table;
Keep in mind that these are only an assumption, and we are expected to be able to sale more than the assumed values. The assumed data is the least we could sell monthly or yearly. We are expected to hit a higher number as we grow.
Financials
According to our estimate, RealityHubs is expected to maintain a healthy financial position in the first year and over the next five to ten years.
We expect to be profitable in the first year of operation with our profit and revenue growth over the years as we establish and increase our user base.
Our primary concern will be to have enough cash at hand to solve urgently and needed obligation. Our projections suggest that our business is able to generate positive cash flow and sufficient cash reserves for any urgency.
This indicates that RealityHubs financial position is expected to remain healthy and steady, as measured by its liquidity.
Break-even Analysis
For our break-even analysis, we assume running costs of approximately $20,000 per month, which include payroll, utilities, insurance, rent, and other fixed expenses. We need a minimum of 500 business subscriptions for a minimum of $80,000 per month to break even, based on our assumptions. Since our least projected sales are 1,000 per month, we are expected to be much higher than the computed break-even point, and we believe that RealityHubs is likely to reach and maintain profitability easily.
Conclusion
This plan/proposal gives comprehensive information on the RealityHubs business model. It also contains some details on how the project could generate profits as well as the critical factors to the project's success. I hope that this plan has given desired and sufficient information about the project. I am open to further discussion about this proposal, and I look forward to discussing it with anyone looking to support the project.
Reach out to me on;
Discord server by sending me a friend request with the username; "knowledges (Smiles' at all)#3295"
Email; [email protected] Ibrahim Onozasi