The following appeared in a memo from the new vice president of Sartorian, a company that manufactures men's clothing."Five years ago, at a time when we had difficulties in obtaining reliable supplies of high quality wool fabric, we discontinued producti

The new vice president of Sartorain Company suggests the renewal of the production line of alpaca over coat after five years in the above memo. The author thinks that there would be a high revenue in producing such coats. This conclusion is based on the premise that the demands are still like the past. Further, he/she claims that the costumers will even pay more money willingly, as costumers are paying more for the other kinds of clothing. To ensure the potential profit of such a company expects in producing alpaca overcoats, there are several evidences seriously needed to be counted in.

First, after a five-year gap, the author tends to believe that the market is waiting for the alpaca overcoats. Evidences are needed to ensure that the demands are not changed. There might have been a vogue for the alpaca overcoats that it seems now as an old fashion and people do not buy it anymore. People might shift to buy the other modern coats than those emblematic of the past. We also need evidences that the other competitive modern coats did not substitute the alpaca coats.

Furthermore, during these five years, it is needed to have a good evidence that there are “pent-up” costumers. Although the rival companies are not producing such coats anymore, it is possible that people are buying such coats from companies which import clothing to the country. The imports might be cheaper than producing them, and that might be why the other companies do not make such coats anymore. Moreover, as the high quality wool is going to be used, the price would be significantly higher. People’s taste might have changed during the time to cheaper expenditures. They might prefer buying a fake alpaca coat and keep their money for the “cooler” stuffs as cell phones or other things in the hot market of technology.

Thirdly, comparing to other clothing people readily pay for them more than what they paid in the past, the author believes that the alpaca coats would sell at the higher prices. A crucial evidence is needed to let us know that the higher prices are not caused by the inflation, or imposing higher costs of productions. It is possible that after half of a decade, the workers’ wage is increased, the taxes and energy cost, the maintenance cost of the machines also might be increased. In such cases, there would be no significant profit. Assuming that alpaca coats will sell, as the price for making such coats might be higher than the past, the overall income might not be justifiable weighing against the overall outcome of the company.

In sum, the new vice president of Sartoraia Company needs to collect the vital evidences to support the proposition he or she made for the renewal of the alpaca coats production. The whole proposition is depended on providing the mentioned evidences without which the possible pitfalls render the statement untenable.