LAW assignment on: A justification as to why there is a need for a concierge service
Our service is a concierge service for the elderly people. The concierge service will provide support to senior citizens in daily household chores and activities. These will include delivery of prepared meal or grocery; shuttle services for those who don’t own a vehicle or are unable to drive for themselves; maid services such as house cleaning and laundry pick-up and delivery; medication pick-up and delivery.
There is strong need for this kind of concierge service. The percentage of population above 60 years is rising sharply. These senior citizens usually live away from their working children and manage on their own (Gavrilov L.A., Heuveline P, 2003). Management of daily chores and activities becomes the biggest challenge of their lives as they grow older (Weil, David N.,1997).
The market research that we conducted has generated a very positive response. The respondents in this survey were elderly citizens. 95 % of the respondents said that they are extremely likely to use the services of the concierge service.
The concierge service will especially cater to the unique needs of elderly and senior citizens. Various aspects of the service will be designed according to their situation and conveniences.
The service will create invaluable value for elderly customers. The staff of the service will be trained so that they can deal with the customers in a manner which is full of warmth, care and sensibility.
Customers can avail of our concierge service by choosing any, some or all of the following services: i) grocery delivery service, ii) prepared meal delivery iii) daily shuttle service iv) maid service v) laundry pickup and delivery service vi) medication pickup and delivery service.
They can avail of the services by paying a fixed monthly fee. This way the services will be more affordable and hence will deliver greater value to them.
| 9. Estimate of Revenues and Expenses for the first year | |
| Revenues: | |
| No of households which are likely to become our customers by the end of first year |
1000 |
| price of grocery deliver service per household |
25 |
| Revenues from grocery delivery service |
25000 |
| price of prepared meal delivery service |
25 |
| Revenues from prepared meal delivery service |
25000 |
| price of daily shuttle service |
20 |
| Revenues from daily shuttle service |
20000 |
| price of maid service |
40 |
| Revenues from maid service |
40000 |
| price of laundry pickup service |
30 |
| Revenues from laundry/ pickup service |
30000 |
| price of medication pickup/service |
30 |
| Revenues |
30000 |
| Total Revenues |
170000 |
| Expenditures: | |
| Cost of grocery service per household |
20 |
| Total cost of grocery service |
20000 |
| cost of prepared meal service per household |
20 |
| Total cost of prepared meal service |
20000 |
| cost of daily shuttle service |
15 |
| total cost of daily shuttle service |
15000 |
| cost of maid service per household |
35 |
| Total cost of maid service |
35000 |
| cost of laundry pickup service per household |
25 |
| Total cost of laundry pickup service |
25000 |
| cost of medical pickup service |
25 |
| total cost of medical pickup service |
25000 |
| Total expenditures: |
140000 |
| Operating profit in the first year |
30000 |
The price for each service has been set by adding a 5 % markup over the costs of providing that service. It is estimated that by the end of first year we are likely to have at least 1000 customers enrolled for our services. This is a very conservative estimate and actual figures are likely to be higher. The costing for every service has been done on absorption costing basis and includes both variable costs and fixed costs. The costs for various services have been estimated after keeping in account the cost of human resources and other resources required for service delivery
Total price of a service has been calculated as: Price of providing that service to one household * Total number of households
Total cost of a service has been calculated as: Cost of providing the service to one household * Total number of households.
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