Preliminary Marketing Plan

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F. Price Determination
Cost of the shipment of goods
The only major cost Hyatt will incur will be from its receiving costs of its food and beverages. Pricing for products vary, however high and low prices can be found for a number of different food and beverage products. Table 1 shows some of the high and low prices for food and beverages Hyatt would carry. Insurance Costs

Insurance costs have become one of the fastest growing expenses for Hotel owners. Payments for general liability and property insurance have more than doubled since 1999. Costs are feared to go even higher with the impact of natural disasters and the threat of terrorism. Even with its cost raising it still only averages out to around 1.9 percent of all hotel operating expenses. Chart 1 shows the insurance costs per available room for each hotel property type from a report done in 2004. Customs Duties

Indonesia is a difficult country to clear customs. Customs clearances can take from 7 to 10 business days with the proper documentation, duties on the other hand will take about 3 to 4 days to get through customs. Documentation verifying valid work permits can range from two to four weeks after arrival of the shipper in Indonesia. Customs regulations in Indonesia are: * Customer must be in the country for clearance

* Shipments are 100% inspected
* A returning Indonesian citizen must have lived abroad for a minimum of three years and must have been in possession and use of the items for at least two years with continued use of the items while in Indonesia to be allowed duty-free entry * For expatriates, household goods must have been in customer's possession and use for at least one full year, and be for the Customer's continued private use in Indonesia (not for resale) * Only one air and one sea shipment of household goods allowed duty-free * Shipments must arrive within three months of date of issuance of KITAS Card * Shipment boxes need to be marked with the shippers...
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