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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.It also provides a step-by-step plan for improving our sales, gross margin, and profitability.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.
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.
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.
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.
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 are also under pressure to improve our understanding of the direct-connect Internet and related communications.
Finally, although we have a good command of desktop publishing, we are concerned about improving integrated fax, copier, printer, and voicemail technology into the computer system.