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AMT is a 10-year-old computer reseller with sales of million per year, declining margins, and market pressure.It has a good reputation, excellent people, and a steady position in the local market, but has been having difficulty maintaining healthy financials.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 need to offer a real alliance that feels personal.
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.
Of course, one of our first tasks will be to change the messaging of our literature to make sure we are selling the company, rather than the product.
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.
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.
We make sure that our clients have what they need to run their businesses at peak performance levels, with maximum efficiency and reliability.
A similar trend shows for our main-line peripherals, with prices for printers and monitors declining steadily.
We are also starting to see that same trend with software...(add relevant information) To hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipping from the warehouse in Dayton.
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.
This business plan leads the way by renewing our vision and strategic focus of adding value to our target market segments—the small business and high-end home office users in our local market.