Petra Park Kxwu$7$lh $($Canoe$)$ Tours

Here is Jean's revenue plan for the first month in business, with a single canoe:

$\backslash$table$[[$Tour Type,Price,Estimated Number of Tours Per Week$],[$Single guest,$$102,4],[$Single guest with a child under $10,$$$160,4],[$Couple $($two guests$),$$$200,10]]$

Jean plans to start his business with six operational days a week. He expects that the business can run successfully in good weather, for $24$ weeks of the year. He is wondering if it is a good idea to offer a $20\%$ discount for the cooler months and stretch the operational time zone another six weeks. A pros and cons analysis of this idea would be helpful.

After the second canoe is added in the second month, Jean naturally expects to deliver more tours.

However, there will be added costs due to hiring an employee, so he plans to increase his prices:

$\backslash$table$[[$Tour Type,Price,Estimated Number of Tours Per Week$],[$Single guest,$$130,8],[$Single guest with a child under $10,$$$170,6],[$Couple $($two guests$),$$$220,20]]$

Finally, if things are going well, Jean wants to expand again in the third month. He will get a larger canoe built $($which can seat six guests and two rowers$)$ and hire two young men from his community to operate it$,$ two $90-$minute tours a day. His tour offerings would then look like this:

$\backslash$table$[[$Tour Type,Price,Estimated Number of Tours Per Week$],[$Single guest,$$130,9],[$Single guest with a child under $10,$$$170,6],[$Couple $($two guests$),$$$220,21],[$Group tours $($up to six guests$),$$$620,10]]$

Jean is confident his business will succeed quickly and he will enjoy four months of full operations $($along with the two months of growing operations to start$)$ this upcoming year. To help matters along, he is planning to advertise by handing out flyers at Petra Park and some surrounding Vancouver tourist hotspots. As his cousin, Dana, is studying marketing, he has offered to help with this for free for the first two months. Jean is considering hiring her for $$500$ a month beyond the initial months. Without the marketing boost, Jean projects a $10\%$ drop in his sales $($in all months$).$ Regardless, the only marketing cost to start would be $$100$ a month for printing flyers. Jean is wondering if there are other effective but affordable marketing strategies he should be considering.

addition to marketing, Jean expects to incur several other costs. He wants to make sure his dad's and s own time are valued fairly, so he would like to see those costs included in his analysis: