Madison House to on 12:10AM, 12 March 2013

2014 MH Apple Company
Annual Report 
In This Issue
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What's going on at Madison House?

Please click on the above for schedule


~by Mark Holtzinger

 Director of Business Development Kershaw Companies, MH Advisory Council Volunteer

   "This past November our tight group of entrepreneurs gathered to discuss the Christmas selling season. The team met most Thursday's of November and December, after meal time. Our Junior Achievement inspired curriculum took us through an income statement, marketing tools and production skills. The kids learned revenue is not profit, but where there is revenue, profit can be found. 


  The Business Plan for this year was similar to the past three years. Purchase apples in bulk boxes and repackage them into gift boxes and mailing boxes. The gift boxes were sold and distributed locally, while the mailing boxes were mailed across the USA. Our goal was $5000 in revenue and $2000.00 in profit. The kids needed to earn $2000 to pay for the Spring Break biology camp in Oregon, OMSI, at the Oregon Museum of Science and Industry. I provided an unsecured loan to the kids for our inputs [apples, gift boxes and shipping costs] with the understanding that they must repay me. The kids were going to be doing yard work, at my home, if this effort failed. Everyone knows we have very large dogs that live in the yard.

In addition to the kids of the company we had other staff; Gane' Bourgeois was our Director of HR and Logistics and Buzz Rowe was our VP of Marketing and targeted sales. 

Our weekly evening meetings included review of sales techniques. Most of our face to face selling was at churches. The kids practiced by introducing themselves to the class at the start of every meeting. Eye contact, clear, concise voice, smiles and sincerity was paramount. They had to know the Four P's of marketing. 1) Product knowledge. 2) Pricing of our different SKU's. 3) Promotional activities, like sampling, WOM - Word Of Mouth. 4) Place or distribution of product, from carrying it out to grandpa's car in the church parking lot to sending it to Aunt Martha in North Dakota. 

We also reviewed financial statements, specifically the income statement. Revenue vs Profit was a difficult concept, but everyone eventually got it. A new concept this year was a "giving back" provision of our business plan. Any successful business should give back to the community in which they operate. The kids decided 10% of our profits would be given back to the community. In this case, the venues that allowed us to sell our goods.


  Gane arranged the selling opportunities at churches, while Buzz took kids to visit businesses directly. On the weekends of December, Sunday's were spent at churches. This year Yakima Covenant and Grace of Christ Presbyterian were our venues. Downtown Rotary allowed us an opportunity to sell on the Thursday before the Christmas Party. These institutions will be receiving a check from the profits earned this year.

So what were the profits? We had our best selling season of our existence. With a goal of $5000 in revenue, we generated almost $5500. Our income goal was $2000, we cleared well over $3000.00, and this is after our "giving back" provision is deducted.  

The kids observed more revenue, hence more profit, but the biggest factor in our big profit was cost containment. We benefited from less expensive apples, we leveraged Kershaw's buying power and got less expensive gift boxes and discounted shipping rates. 

Thank you Kershaw Family


Domex Superfresh Growers!


  Another revelation the kids had was during our weekly meeting, just before the last selling Sunday. We had already purchased all our inputs for the season. As we reviewed our deposits to date and all expenses we could see we were in the money

[profit]. Then we added up our inventory. With a little prodding the kids figured out that since that inventory was already paid for, all the cash from the sale of the existing inventory would be cash in our pocket. The kids looked at me like ... "you have been telling us all season revenue does not equal profit" .... :)  These kids are the next leaders of the world .


  Look for us next November. A few customers shared in a fun new apple variety introduced this year, Autumn Glory. Next year it will be one of our product offerings. 


Thank you for your love and support! We look forward to seeing you next year...



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