Scenario 1:
A well-patronized 15-system Cyber café based in Nigeria
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Charges: N100/hr
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Working Hours: 12 hours
(9am to 9pm)
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Peak time periods for use of each system: 9hrs.
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Average daily revenue: 9hrs X 15 systems X N100.00 = N13,500
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Add printing, scanning and other services, a 15-system Café averagely makes N15,000
per day. The browsing time paid for is used either directly or indirectly by
the customers.
However, we shall present the computation of added direct revenue to the café
owner as well as indirect revenue.
Direct Revenue is the regular usage of paid-for time in browsing as computed
above.
Indirect Revenue 1
Extra N100,000 per annum
Immediately a client logs in, the client workstations would advertise the
SMS-sending capabilities of this billing software. For each SMS sent, the
system deducts N10(or whatever you set) from the time balance of the customer’s
time. Each of these SMS are purchased in bulk by the Café owner or manager at
the cost of about N8 each and loaded into the server for any SMS requests by a
customer on a client system.
Nigeria usage research reveals a 2 SMS per system per hour average. Average SMS
to be sent per day in a 15 system café therefore would be:
15 systems X 9hrs X 2 = 270 SMS.
At a profit margin of N2, there is an average extra revenue of N270 X 2 X
26 days X 12 months = N168,480 per
annum
Indirect Revenue 2
Opportunity Cost
By
choosing
to browse with N80 and send 2 SMS messages, the customer has used his power of
choice to save the café owner N20’s worth of time from his paid for N100.
Its
value aggregates as follows:
Normal billing for 1 hour (i.e. 60 minutes) = N100
This means that 2 SMS (N20 deducted) saves the café owner 12 minutes per hour
per system.
This suggests that in a single day, the café has gained back resalable time to
the tune of 12 minutes X 9hours X 10 systems = 960 minutes (16 hrs)
Thus @ N100/hr, the Café has generated an extra N1,600 daily revenue.
The higher the volume of the SMS sent, the greater your indirect profit and the
greater your resalable time reclaimed.
These figures translate to substantial revenue for your café, the more the
number of systems on your network. (Recall that you are paying SurfStation
nothing extra for each new system you introduce onto your network).
At the present rate, we should be seeing 3 SMS/system patronage levels within
the first 6months of 2005. This is not even accounting for the increased
customer patronage that would accrue to each café across the board.
Yet Additional Revenue
Becoming an Approved Reseller of SurfStation 9.0s and
www.smsblues.com
makes accrue to you steady revenue. The margins are inviting and the job
openings limitless.
Corporate Image
How many Cyber Cafés can claim ability to satisfy this yawning need of
customers to create a most convenient bridge between the internet and the
globally blossoming GSM culture?
Nigeria has 9.7 million Internet users at the
close of 2004 and about 5 million mobile lines. We foresee in a few
months customers asking first when peeping into a Cyber Café:
“Are
you guys on SurfStation?”
Convenience is key
The assuredness that whenever you are on the web, you can read a mail, locate a
piece of information, happen upon a site and immediately circulate the
information to any you desire to is unequaled. This is a level of Email2SMS but
much more potent. The target market for SMS messaging is the global
SMS-compatible GSM population. Delivery performance: 99.98% with
prioritization. Delivery rates: 2-5 seconds standard gateway delivery speed,
occasionally slowed down only by intra-network delays.
We asks you to have a share in the pie.
Godwin Omomowo
MD
gdo@idevworks.com