Zara Fast Fashion

1
Zara Fast Fashion

• Business Plan
• Kevin Leslie, Eric Troftgruben, Aaron Tumy

2
Costs

• Cost of Building 800,000 to 1.5 million
• Size Showroom Storage 15,000 sq. ft.
• Buying Mortgage 4.8 interest for 30 years
• Monthly payment 7869.98
• Total amount paid 2,833,192.91

3
Operation Costs

• Energy use
• Space Heating- 26
• Cooling- 18
• Lighting- 18
• 15,000 x 1.21 18,150
• 15,000 x .14 2,100
• Total- 20,250 annually

4
Staffing

• LLC with multiple members - 200,000 (3)
• Management Team divided between design, finance,
  retail, marketing - 80,000 (12)
• Front line supervisors and floor employees -
  20,000-40,000 (8)
• Annual payroll will be in the millions of dollars

5
Benefits

• Act as incentives
• Retirement plans, paid vacation, health insurance
• Are costly expenditures

6
Product Pricing

• High class at an affordable price
• Tiered levels of spending ranging from low to
  middle to high cost for each line of clothing.
• Prices modeled off of Zaras Website

7
Price Comparisons

• Zaras product lines
• Womens Shirts 35.00- 79.00
• Womens Skirts 39.00- 89.00
• Dresses 29.00- 99.00
• Womens Overcoat 89.00- 99.00

• GAPs prices
• Womens Shirts 39.00- 44.00
• Womens Skirts 44.00- 59.00
• Dresses 49.00- 69.00
• Womens Overcoat 98.00

8
Profits in the Future?

• No initial profits in the first year
• Building customer base
• Regaining start-up costs
• Future growth
• New markets
• Long term capital budgeting