Role: It’s March 2001 Jim Graham, president of Try in London – a recycling company.
Jim took over family business in 1999.
Decision: whether to sell products through a fundraising initiative (Grow Green
Program). This involved approaching organizations taking part IN fundraising activities
to determine if they would be interested in selling Try’s gardening products THROUGH a
fundraising activity. If contracted, Try would be the seller.
Goal: increase sales and exposure in the community; decide if program is suitable, and if
yes, which organization to partner with
P: growing popularity in environmental movement
P: Family has roots in recycling
P: Try is an established business, operating since 1991 (now 2001)
P: Jim has experience, has numerous relationships and connections in the local area.
2. Considering the market trends, corporate capabilities and potential customers, is the
time right for a venture like the Grow Green Program?
Approximately 90% of Londoners already participate in the city’s recycling programs:
little room to grow more awareness for recycling itself, but since there is tremendous
support for recycling, people may want to be aware of products made from recycled
3. Calculate the contribution margin rate for each product for Try. Calculate the
contribution margin rate for each product for the participating organizations.
CMR = (SP-VC)/VC:
retail Wholesale var expected %
price * cost CMR units sold
compost 18 13 11 7/11=.63 12%
mulch 12.5 10 4 8.5/4=2.125 8%
two-way topsoil 19 12 8.5 1.235 51%
tri-mix topsoil 22 17