Sales Performance and Projections

Over the past five years the sales growth of Jim’s Bakery has averaged 5 percent in the retail division and over 10 percent growth in the commercial division. Because of its established track record of performance, we are comfortable extending these growth rates and continuing this rate in our future projections. The exception to the 10 percent rate is our BaaS program, which has been regularly growing at over 15 percent annually.

Future sales projections are based on sound strategies and a strong proven business model. The approach to financial management used at Jim’s means our sales projections are well-thought-out in advance. The result has been predictable sales performance that has exceeded projections year after year.

Our sales team is divided between the commercial and retail divisions. In commercial, we use a combination of inside and outside sales; in retail, our sales team are sales clerks working in the store. Our sales team is well trained and focus on customer satisfaction. Our retail sales clerks understand that they are the front line in identifying potential commercial customers and forwarding these contacts over to the commercial division. Commissions for all sales team members are paid on a team basis depending on the person’s seniority and length of service.

The $9.4 million shown in the Sales/Revenue Performance chart is a midyear projection which we are already on track to exceed.

The Jim’s Bakery BaaS program is very “sticky” with a customer retention rate of over 98 percent. Customers sign an annual agreement which is automatically renewed at the end of the contract period. Because of this our sales pro forma uses annualized values (customers do not need to be resigned each year). This allows us to focus our marketing efforts on identifying and signing new customers instead of marketing to our existing customer base. As our BaaS program continues to gain traction, we are seeing an increase in our sales curves. We believe the projections provided here are conservative and, assuming our performance continues as it historically has, we are likely to exceed the projections for year+1 and year+2.