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Direct Cost of Sales in Virtual Service Industry -
24-05-2005, 08:32 PM
I've been searching for half an hour for an explanation of WHAT I should consider my "Direct Cost of Sales" in my business plan, and I did read the last post by nychole as well but I'm still in a spot here. The local Business Centre hasn't helped me figure this out at all either. I need help.
Our business is purely virtual service. We aren't getting into hosting until 2006-2007 fiscal year. Until then my first year is screaming red angry X's at me in Business Plan Premier because I can't for the life of me figure out what our Direct Cost of Sales is.
Our service is purely virtual and there's no production or maintenance costs like there would be if we dealt in intranet/networking or hosting. We don't incur anything on a contract. Commercial space has to be paid regardless of the job. So do salaries, and no one is on commission. We do not need service personnel as both my husband and I are Microsoft and MAC certified technicians. We don't pay for our web hosting or bandwidth because of our affiliation with a hosting company we'll be funnelling clients to for web hosting (we funnel, we get hosting for life). We maintain our own site and backend. Software upgrades are fixed 3 year costs that are negligable anyways because my step-father is an Account Executive for Insight and can get me all my commercial licensing for pennies on the dollar. A friend who owns a printing business in town is going to be doing all my sales literature printing for free as a trade for a sales/inventory management system I wrote them last winter.
I'm at a loss! WHAT can you guys think of that could be my Direct Cost Of Sales? Any help would be greatly appreciated.
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