Also, Pentagon Play has recently created its online shop where ready made equipment is on sale. This has diversified its customers from being schools and nursery to anyone who would like to improve their free space, garden etc.

The below items are on sale in the online shop and their price varies between £2,700 and £4,200. Therefore, the revenue from a larger project can cost tens of thousands of pounds. As the projects are tailor made, serving specific needs and good causes, the profit margin should be relatively high as it should be based on idea cost rather than material cost only. Also, the playground installation cannot be repeated again for the same customer and same income in the next few years, the revenue from projects should be sufficient to cover the quieter periods and keep the business going.

Although the products installed have 5-10 years of warranty, Pentagon Play can invest on providing cleaning and hygiene (especially after Covid 19) services that can be provided on a regular basis and on a Service Contracts Fees. That is the income will be received monthly for this service. 

PentagonPlay. (n.d) About us. [online] Available at: https://www.pentagonplay.co.uk/the-process [Accessed on 26/03/21].

Fixed cost includes employee salaries which is expected to be significantly high due to the creativity talent and expertise of people. Also, warehouse and office rents and utilities are cost that occur regardless of the operations volume.

Variable cost includes cost of material and equipment, delivery, and installation cost. These cost increase and decrease with the level of sales and operations.

 Also, we need to include administration cost of running the business, sales and marketing cost to promote the business, advertising cost to increase awareness.

If we take the above example of Nursery Pack, as the selling price is £2,700, the expected total cost should be no more than that in order to break-even and not make loss. If we expect a profit margin of 30%, then the cost should be no more than £1,890.

References
Macgill, A. (2021) The Business Model Canvas [online] Available from https://www.ashtonmcgill.com/business-model-canvas-series-introducing-revenue-streams-cost-structure/ [Accessed 6 April 2021]

 

The design style limits the amount of “fun” the children may have. The lack of equipment within the playgrounds also hinders the amount of movement the children may have on their break time. Children who have no interest in sport do not have the opportunity to ensure that they have the required amount of exercise due to the lack of equipment and resources within the playground. There is an understanding when these “monotonical” styles were designed, to increase simplicity for the children and to avoid any potential dangers and injuries, however the styles do not consider the child’s imaginative play in mind, which then can possibly tamper a  child’s development. `

 

Their main focus to tackle the problem at hand is to create innovative and inspiring playground for young children in schools, while taking into consideration the clients budgets and potential needs (pentagon play, n.d.). Pentagon play offer the whole package making sure all their clients needs are considered and implemented. They start with consultations with each client including a visit to the school in order to gain a better understanding of the area which they are working with. This then follows through with the product development while working with teachers, EYFS leaders and SENCOs to gain the most valuable information regarding the children and their development through play as well as keeping the setting in mind  (pentagon play, n.d.) . Finally Pentagon play then goes through with the construction and installation of the playgrounds.

 

Pentagon play considers all aspects of the process, from the design to the sourcing of materials and also the construction itself . Due to the whole process being done in house within the company it reduces any chance of stress for the client as they do not have to worry about any factors or speaking with any third party companies. It ensures that they are given a stress free process and finish with the best possible product for their schools.

Pentagon Play. (n.d.). About Us. [online] Available at: https://www.pentagonplay.co.uk/about-us [Accessed 20 Mar. 2021].