COOL SPRING RANCH Robin Ailsby Grant Immel Ryan Klassen Anne Pinckney INTRODUCTION Located in the scenic Lac Pelletier Valley Cool Spring Ranch currently offers many activities operating a training ground for both horse and rider in the summer months. Goal: Provide a relaxing setting for recreation and accommodation. COOL SPRING RANCH New facility offering; -riding camps for children. -corporate retreat for meetings and group training. New buildings required: – Indoor riding arena, – Cabins, – Eventually corporate headquarters. COOL SPRING RANCH OPERATIONS CABINS Large Cabins Studer Road New Indoor Arena Barn House House Outdoor Arena N Entrance SE 7 - 11 - 14 W of 3 COOL SPRING RANCH Indoor Arena •Goodon Industries •’70X’200 •Steel Poll frame COOL SPRING RANCH Cabins 2 dorm style: – 6 bunk beds each 2 Cabins: – Double bed, 2 hide-a-beds – Kitchenette and bathroom COOL SPRING RANCH Work Plan and Flow of Work Activities – Training – Special Events Horse Sales Auctions Riding camps/Riding clinics/Competitions – Cabin Rental Families Hunters COOL SPRING RANCH Human Resources STAFF Owners/ Operators (David &Cecilia Fiddler): -overall control of the everyday operations -primary duty is working with both the head trainer and camps coordinator -oversee the hiring of employees and the purchase of all materials for the ranch COOL SPRING RANCH STAFF Camps Coordinator (Marcia Fiddler): -scheduling, activity planning, teaching -supervisor for both the cook and maintenance staff Head Trainer (Kristin Fiddler): -planning and scheduling of riding clinics and competitions -working with individual clients and their horses -supervisor of the Assistant Trainer COOL SPRING RANCH STAFF Assistant Trainer: -working with individual clients and their horses -position will be filled during the summer months by a student from Olds College participating in their summer internship program Maintenance Staff Chef COOL SPRING RANCH MARKETING Services Week long overnight riding camps for beginners during the summer months. Day and weekend camps throughout the year (holidays). Year round horse training for both horse and rider. Rental of facilities for horse shows, clinics, sales, etc. Rental of accommodations for tourists and sportsmen. Week long corporate retreats (to be phased in year 5). COOL SPRING RANCH Marketing Strategy Pricing Policy – Dictated by the market – Competitive pricing Selling and Advertising – Getting the name out – Personal promotion COOL SPRING RANCH Advertising Selling an experience Advertising should utilize the following media: -Leisure guides -Local schools -Mail flyers -Internet -Horse magazines -Booths at horse shows / sales / clinics COOL SPRING RANCH Marketing Strategy Sales and Profit Objectives – Aim to be profitable – Continue expansion Channels of Distribution – Broad advertising – Bring customers to Cool Spring Ranch COOL SPRING RANCH Geographical Market Geographical market will include: Saskatoon Regina Moose Jaw Swift Current Medicine Hat Surrounding rural centers Geographical market will expand to: Winnipeg Calgary Edmonton COOL SPRING RANCH Market Segmentation Prospective customers have been segmented into the following groups: – Parents of students (both elementary and high school) – Members of 4-H and other student equestrian clubs – Other members of the horse community – Corporate customers – Sportsmen / outdoor enthusiasts / tourists COOL SPRING RANCH Financial Plan Revenues 2005 2009 Horse Training $63,000 $75,987 Lessons $1,575 $2,289 Camps $39,938 $46,120 Corporate Retreat 0 $18,900 Rental of Facilities $2,053 $5,069 Total $106,566 $148,364 COOL SPRING RANCH Expenses 2005 2009 Equipment $14,972 $16,206 Rental Expenses $67,426 $95,011 Wages $92,578 $100,209 Total $174,976 $211,426 COOL SPRING RANCH Net Income Income Statement 2005 2009 Total Revenues $106,566 $148,364 Total Expenses $174,976 $211,426 Total Net Income ($68,410) ($63,062) COOL SPRING RANCH Break Even Analysis *Based on quantity of sales as compared to capacity. Current Required Horse Training 70% 160% Camps 85% 290% Corporate Retreat 30% 260% COOL SPRING RANCH CONCLUSION Not financially feasible Though the services offered by Cool Spring Ranch are of a high standard, the cost of acquiring the capital assets required as well as the related operating costs do not exceed the potential revenues. Possible alternatives to make this venture profitable may include one or a combination of the following: – Decreasing the number of cabins built from four to two. – Eliminating the building of cabins completely. – Phasing in the corporate retreat immediately. – Eliminating the building of the corporate retreat. – Only building the indoor arena. COOL SPRING RANCH QUESTIONS?