Strictly Confidential - Vlerick Business Creation …...all vending machines, which will be placed...

MagBox Strictly Confidential

Entrepreneurship

Prof Dr Miguel Meuleman Prof Dr Jan Lepoutre

Eerdekens Julie Maaike Joris

Nicolas Macharis Nathalie Monsieur Georges Nédée

Floris Van den Broeck

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MagBox Executive summary

MagBox is a new start‐up business, active in Flanders with

a pilot project in Antwerp, which has the objective to

revive the market of magazines. The latter will be realized

through a strategic full service solution for magazine

vending machines which will be placed at private and

public locations. MagBox will create the opportunity for

customers to buy their favorite magazine through a

convenient and accessible channel.

MagBox vending machines will create an extra sales channel for Belgian magazine

publishers. Moreover they will be able to obtain a higher margin through that channel; we

expect an increase in gross margin on the sales of magazines of at least 15%. The business

model aims to offer a service to these publishers.

MagBox will be in charge of the ownership, the location consulting, the placement and the

maintenance of the vending machines. All these activities are non‐core activities for the

publisher and the distributor. For this service we charge a fixed fee of €200 per vending

machine and a variable fee of 12% on magazine sales. With this price setting, MagBox tries

to maximize the profit for both parties, taking all possible risks into consideration.

MagBox is about to close a deal to form a partnership with a major Belgian publisher.

Hereafter, Magbox may choose to contact other publishers in order to expand product range

and cost coverage.

To measure up to the necessary financial resources needed to start up this new enterprise

and to limit corresponding liability, MagBox will be incorporated as a CVBA and the

entrepreneurs will invest €120,000 of equity. They will moreover require a short‐term 1 year

loan of €50,000 with immediate monthly payback and a long‐term 3 year loan of €100,000

with monthly repayments starting after 12 months.

A short summary of financials, after implementation of the required loans, can be found

below. Regarding the current economical situation, all these numbers are based on

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conservative forecasting and the equity should provide a sufficient cushion against

unexpected setbacks.

P&L STATEMENT sem 1, year 1 sem 2, year 1 year 2 year 3 year 4 year 5Turnover 70,439 184,202 607,334 907,313 965,014 965,014Gross margin 52,289 150,402 584,801 884,780 942,480 942,480Operating Profit 4,173 62,528 408,214 707,344 764,188 830,855Profit before tax 964 58,558 403,245 705,656 764,188 830,855Net Profit 964 39,031 266,142 465,733 504,364 571,031TREASURY POSITION sem 1, year 1 sem 2, year 1 year 2 year 3 year 4 year 5Cash Flow from operations -25,733 45,994 384,321 719,527 830,855 830,855Cash Flow 91,058 -54,493 170,734 426,419 371,031 571,031TREASURY POSITION 91,058 36,566 207,300 633,719 1,004,750 1,575,781

Fig. 1: Key Financial Figures

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Table of content

MagBox Executive summary ...................................................................................................... 3

Table of figures ........................................................................................................................... 7

1. Company description .......................................................................................................... 8

MagBox ................................................................................................................................... 8

2. Market analysis and segmentation ..................................................................................... 9

Value chain and value proposition ......................................................................................... 9

Customer needs ................................................................................................................... 10

Market overview .................................................................................................................. 11

Segmentation, Targeting, Positioning .................................................................................. 12

Positioning ............................................................................................................................ 14

3. Industry analysis................................................................................................................ 15

Competitors .......................................................................................................................... 15

Suppliers ............................................................................................................................... 15

New entrants ........................................................................................................................ 15

Substitutes ............................................................................................................................ 16

4. Business Model ................................................................................................................. 17

Initial Stage ........................................................................................................................... 17

Financial information ........................................................................................................... 18

Growth Stage ........................................................................................................................ 22

5. Financial Plan .................................................................................................................... 23

Revenues and cost assumptions .......................................................................................... 23

Financial statements ............................................................................................................ 26

6. Marketing mix ................................................................................................................... 29

Services offered .................................................................................................................... 29

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6

Product description and properties ..................................................................................... 30

Price ...................................................................................................................................... 32

Place ..................................................................................................................................... 33

Promotion ............................................................................................................................. 33

7. Human resources .............................................................................................................. 34

Executive Management ........................................................................................................ 34

Board of Directors ................................................................................................................ 34

Strategic partners ................................................................................................................. 34

Ownership structure ............................................................................................................ 34

8. Appendices ........................................................................................................................ 35

1. Business plan questionnaire.......................................................................................... 35

2. Questionnaire results .................................................................................................... 37

3. Conducted interviews ................................................................................................... 39

4. Deal with ING Bank ........................................................................................................ 47

5. Offer ‘Wurlitzer’ ............................................................................................................ 48

6. Variance Analysis ........................................................................................................... 49


Table of figures

Fig. 1: Key Financial Figures ........................................................................................................ 4

Fig. 2: Value Chain MagBox ........................................................................................................ 9

Fig. 3: Overall market sales divided in subscription and single copies .................................... 12

Fig. 4: Sensitivity Analysis ......................................................................................................... 18

Fig. 5: Cumulative investments in vending machines .............................................................. 19

Fig. 6: Expected utilization rate ................................................................................................ 19

Fig. 8: Accumulated profit after taxes ...................................................................................... 20

Fig. 7: Expected Turnover ......................................................................................................... 20

Fig. 9: Treasury Position without financing .............................................................................. 21

Fig. 10: Treasury position including financing .......................................................................... 22

Fig. 11: Turnover ...................................................................................................................... 23

Fig. 12: Direct Variable Costs .................................................................................................... 24

Fig. 13: Cost Structure .............................................................................................................. 26

Fig. 14: Balance sheet projections ............................................................................................ 26

Fig. 15: P&L statement projections .......................................................................................... 27

Fig. 16: Vending Machine ......................................................................................................... 30

F

ig. 17: Magazine prices and their publishers .......................................................................... 32

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1. Company description

MagBox

MagBox is a new start‐up business, active in Flanders with a pilot project in Antwerp, which

has the objective to revive the market of magazines. The latter will be realized through a

strategic full service solution for magazine vending machines which will be placed at private

and public locations. MagBox will create the opportunity for customers to acquire their

favorite magazine through a convenient and accessible channel.

MagBox will be registered as a CVBA (Cooperative Partnership with Limited Liability)

company. All six of us will invest €20,000 in equity (of which €5,000 will be fully wired upon

incorporation) amounting to a total of €120,000 with each acquiring a shareholding of

16.7%. Each of these six, Floris Van den Broeck, Nicolas Macharis, Georges Nédée, Nathalie

Monsieur, Maaike Joris and Julie Eerdekens will be appointed as managers for undefined

terms. The main elements driving the choice is the desire to limit investor liability combined

with the need for some control in shareholding transfer while avoiding the strict limits

imposed in a BVBA.

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2. Market analysis and segmentation

Value chain and value proposition

The main players of the Magazines Industry are the following:

‐ Publishers: e.g. Sanoma, Roularta, Think Media Magazines, De Persgroep

‐ Distributors: e.g. AMP

‐ Kiosks: shops selling newspapers, magazines, cigarettes, candy, etc.

‐ End customers: people buying newspapers, magazines, etc.

‐ Location owners: will provide the location for the vending machines to be present

such as schools, hospitals, bakeries, hairdressers, etc.

‐ MagBox: vending machines selling magazines from Sanoma, Roularta, Think Media

and De Persgroep to end customers.

Fig. 2: Value Chain MagBox

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MagBox will sell a full service solution for magazine vending machines to Belgian publishers

(Sanoma, Think Media, Roularta, De Persgroep). AMP will then distribute the magazines to

all vending machines, which will be placed on public and private owned property.

MagBox creates the opportunity for publishers to receive a higher margin on their

magazines, for location owners to provide an extra service to their customers and for end

customers to acquire magazines in a quick and convenient way on non‐saturated locations

and even after opening hours of bookshops.

Unique value proposition: “Serving the right magazines at the right place at any particular

moment”.

Customer needs

An online survey was conducted over a period of ten days and was answered by 101

respondents (46% male and 54% female), of which 66% were students and 27% are currently

working, this to put the results into perspective. When analyzing the output we obtained

following outcomes;

‐ 88% of our respondents are in favor of the business plan idea.

‐ Some respondents gave insightful reasons why they would not like the idea; e.g.

some like the experience of a newspaper shop and like searching a newspaper shop

for interesting magazines, others first like to browse the magazine or have a

subscription, and again others look for free information on the internet.

‐ More than half of our respondents prefer reading their magazine after 6 pm. This

means after opening hours of most kiosk.

‐ Preferred places for the vending machines are: train station (27%), street (18%),

school (16%), hospital (15%), bakery (14%) and work (10%).

‐ Our respondents also mentioned following options; Places where people either have

to wait for some time or where they can pass quickly when they are in a hurry; bus

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stops, car park, airport, beach, night shops, petrol station, small supermarkets, places

where you can easily park your car, sport clubs, public restrooms, doctor, carpooling

parking’s, business park, sandwich bars, metro station. We also found out that a

beauty parlor would be a good location.

‐ The survey showed that preferences for magazines vary a lot, which shows that we

will have to adapt the offerings to the location as the vending machine can only

contain a limited amount of magazines. Humo (11%), Knack (11%), P‐Magazine (10%),

Elle (8%), The Economist (8%), Ché (7%), Trends (6%), Cosmopolitan (6%), Marie

Claire 5%), Feeling (5%) were mentioned most in our survey. This is however not

completely representative as we limited the choices in the survey and mostly

students filled out the survey. We also noticed that a couple of respondents (11)

mentioned that they would like to have newspapers in the machines.

‐ 41% of the respondents would use the machine weekly and 39% would use the

vending machine monthly.

Customers might be interested in buying magazines for the following reasons:

‐ When spending leisure time

‐ During travelling

‐ To acquire information

‐ To gain knowledge concerning subjects of personal interest such as fashion, cars, the

economy, finance, etc.

‐ To occupy themselves during waiting time

Market overview

The industry of magazines is divided into subscriptions and single copies. This division is of

great importance since we can only target the single copy market. MagBox will try to reach

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this group and will also play on impulse buying. For the latter, the right choice of locations is

of great importance.

The overall market sales are declining by 2% but this is covered through regular price

increases, so the decline has no direct influence on turnover.

WEEKLY MAGAZINES Title Paid Distribution Subscriptions Single copies

Dag Allemaal/Expres 431 883 n.a. n.a.

Flair Nl 123 422 9,90% 90,10%

Humo 222 536 40,80% 59,20%

Knack 121 530 88,00% 12,00%

Libelle 214 254 34,00% 66,00%

P‐magazine 57 757 5,50% 94,50%

Story 156 793 13,20% 86,80%

Teve Blad 152 511 28,90% 71,10%

Trends 40 792 83,70% 16,30%

TV‐Familie / Blik 132 531 n.a. n.a.

Total 3 135 210

MONTHLY MAGAZINES Title Paid Distribution Subscriptions Single copies

Ché 22 082 2,00% 98,00%

Feeling 71 757 20,30% 79,70%

Glam*It 27 236 8,00% 82,00%

Goed Gevoel 71 482 n.a. n.a.

Goedele 57 816 14,70% 85,30%

Marie Claire Vlaams 10 998 4,90% 95,10% Total 1 385 565

Source: FeBELMA based on authentication from CIM numbers 2007‐2008 Fig. 3: Overall market sales divided in subscription and single copies

Segmentation, Targeting, Positioning

We decided to segment the market geographically. This means that we divided the market

by considering the location of our potential clients (which will be institutions, as we are

present in the B2B market). For MagBox, the location of the client is essential, since this

factor basically determines:

- The number of potential end‐consumers passing by the vending machine.

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http://www.febelma.be/content/goto.asp?docid=567

















- The demographic, psychographic and behavioral characteristics of these potential

end‐consumers.

- The willingness of these passers‐by to purchase a particular magazine.

- The preferred magazines (sport, leisure, fashion,...) of these potential end‐

consumers.

First we divided the market by region. As a start‐up we choose to take off in one particular

city. This way, we are able to control the entire structure of our business and adapt if

necessary. After that, we split up the market into two main segments;

- Public institutions

- Private institutions

MagBox will target both segments and will try to attract the most interesting players within

those segments.

Public institutions, which make up a very important part of the MagBox’ target group

contain the following main players:

- Hospitals

- Stations

o In Belgium PressShop holds an exclusivity contract in all stations. Because

stations are a very important player in this segment we would like to get to an

agreement with PressShop. This way PressShop will benefit as well, since it

will be able to sell its magazines 24 hours a day.

- Local authorities (street locations)

- Schools

- ...

Private institutions, with following players:

- Night shops

- Sport clubs

- Bakeries

- Hairdressers 13


- Small and bigger companies

- Big doctor practices

- ...

Positioning

MagBox’ positioning is based on functionality and convenience. By focusing on those

positional advantages MagBox is able to differentiate from its main competitors (which are

basically all newspaper shops) and add value for end‐consumers.

MagBox offers its end‐consumers an accessible alternative for a newspaper shop. It offers its

end‐customers a quick and easy accessible way to buy their favorite magazines. This way

MagBox stimulates impulse purchases as well as planned purchases. Once people know

about the nearby MagBoxes, they will consider it as ‘their place to buy’ magazines because

they do not need to consider opening‐hours. This convenience will be of great value to the

end‐consumer and will therefore be MagBox’ main positional advantage.

MagBox’ functionality is another important advantage. Depending on the location of the

vending machines, we offer an adapted range of magazines. These spots basically implicate

which consumers will pass the vending machine and eventually buy a magazine.

Overall, we want to offer a wide assortment of magazines, to reach a broad group of end‐

consumers.

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3. Industry analysis

Competitors

The market for magazines is already big in Belgium. The major competitors are kiosks in

every municipality, bookshops such as Standaard Boekhandel and Club and the bigger

supermarkets such as Delhaize and Carrefour.

Besides, a lot of magazines such as Humo and P‐Magazine provide a lot of free online

information. Therefore younger people are not that affected or linked anymore to printed

publications.

Specifically at universities we might face competition from organizations, such as 4UCampus,

that offer low price subscriptions to students.

We are considering the competition as quite big however, MagBox will run a totally different

business model and value proposition for magazines compared to the companies mentioned

above.

Suppliers

The critical partners that are necessary to provide magazine vending machines to location

owners are the publishers Sanoma, De Persgroep, Roularta and Think Media Magazine. We

need their alliance and approval to sell their brands in one dispenser. Furthermore we will

include AMP as a partner, a renowned distributor for the newspaper and magazine that

works in close cooperation with the above mentioned publishers.

New entrants

There is a threat of entry from suppliers who have great power. De Persgroep once tried to

enter the market of vending machines. They did not survive for a long time since they had

defaults and a lot of technical problems on their imported machines from Germany and

were not able to manage competition between their clients. Therefore they had to stop the

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business. MagBox, on the other hand, will focus on the non‐core activities of these

publishers and provide a full‐service. In addition MagBox is in an independent company and

thus does not have to take into account the fairness against all other kiosks and magazine

sellers.

Substitutes

We dentified following substitutes for reading magazines: i

Watching television ‐

‐ Reading newspapers

‐ Listening to music (e.g. Ipod)

‐ Reading books

‐ Browsing the internet for information

‐ …

All activities to spend leisure time could be considered as being substitutes (e.g. practicing

sports, meeting with friends, going to a pub, etc). However, MagBox tries to create value

with different properties compared to these substitutes.

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4. Business Model

Initial Stage

In the first stage of the business plan, we will focus on the pilot project we set up in

Antwerp. We will concentrate on the following:

‐ Approach the four main publishers in order to convince them of the business model

and get them signed the contracts to work together with us.

‐ Business development: create excellence in all non‐core activities of publishers and

distributors in order to differentiate from the current magazine vendors.

‐ Create awareness at the most important locations by starting off with 40 vending

machines across Antwerp. Financial figures, which are stated later on in the business

plan, showed that we must immediately invest in a great amount of vending

machines.

‐ Approach opinion leader: e.g. De Client: a famous hairdresser that is present all

across Belgium. They are known by customers for their innovative partnerships and

would therefore be an important location owner to boost awareness and sales.

MagBox will invest in:

‐ Conducting market research and seeking for specific location owner who would be

willing to place a vending machine on their property and take up negotiations with

them. This is a shift away from the current situation in which publishers ask a flat fee

between €200 and €255 every time a new entrant wants to sell their productions.

‐ Continuously managing locations to adapt and expand our offerings to the specific

location needs end to follow up on non‐successful locations.

‐ Potential expansion towards other, possibly imported, magazines.

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Financial information

In order to assess the financial information a financial model has been set‐up. A fully

detailed outcome of this model can be seen in the Excel sheet. The assumptions made in the

model are based on a very conservative situation. This is done in order to avoid

overvaluation and provide for possible unexpected setbacks.

Risk analysis

The most important risk factors in the MagBox business plan are the number of vending

machines, scale of operations, and the utilization rate of the vending machine. Figure 4

shows a sensitivity analysis of the EBITDA per vending machine of MagBox in function of the

number of vending machines and as a percentage of the utilization rate. The analysis

indicates that the scale of the operations needs to be above 40 vending machines to create

sustainable value for the company. The analysis shows us as well that the utilization rate has

a major impact on the EBITDA per vending machine. We assume the utilization rate to follow

an innovators adoptive curve as we will explain later.

Sensitivity analysis EBITDA/vending Utilization rate4199,39 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1

10 ‐6320,84 ‐4953,03 ‐3585,23 ‐2217,42 ‐849,61 518,20 1886,01 3253,81 4621,62 5989,4320 ‐2954,84 ‐1587,03 ‐219,23 1148,58 2516,39 3884,20 5252,01 6619,81 7987,62 9355,4330 ‐1832,84 ‐465,03 902,77 2270,58 3638,39 5006,20 6374,01 7741,81 9109,62 10477,4340 ‐1271,84 95,97 1463,77 2831,58 4199,39 5567,20 6935,01 8302,81 9670,62 11038,4350 ‐935,24 432,57 1800,37 3168,18 4535,99 5903,80 7271,61 8639,41 10007,22 11375,0360 ‐710,84 656,97 2024,77 3392,58 4760,39 6128,20 7496,01 8863,81 10231,62 11599,4370 ‐550,56 817,25 2185,06 3552,87 4920,68 6288,48 7656,29 9024,10 10391,91 11759,7280 ‐430,34 937,47 2305,27 3673,08 5040,89 6408,70 7776,51 9144,31 10512,12 11879,9390 ‐336,84 1030,97 2398,77 3766,58 5134,39 6502,20 7870,01 9237,81 10605,62 11973,43100 ‐262,04 1105,77 2473,57 3841,38 5209,19 6577,00 7944,81 9312,61 10680,42 12048,23110 ‐200,84 1166,97 2534,77 3902,58 5270,39 6638,20 8006,01 9373,81 10741,62 12109,43120 ‐149,84 1217,97 2585,77 3953,58 5321,39 6689,20 8057,01 9424,81 10792,62 12160,43130 ‐106,69 1261,12 2628,93 3996,74 5364,54 6732,35 8100,16 9467,97 10835,78 12203,58140 ‐69,70 1298,11 2665,92 4033,72 5401,53 6769,34 8137,15 9504,96 10872,76 12240,57150 ‐37,64 1330,17 2697,97 4065,78 5433,59 6801,40 8169,21 9537,01 10904,82 12272,63

# vendings

Fig. 4: Sensitivity Analysis

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The first year will be marked with the installation of the machines. We foresee technical

failures upon start‐up regarding the technology of the vending machines. Therefore we

assume a slow implementation speed of the machines towards the beginning. Vending

machines will be ordered in batches

of 10 to reduce costs and will then

be installed over a period of 2

months. One vending machine costs

€5,000, depreciated over 3 years and

we assume to replace them after

that period. The financial model

assumes that there will always be 40

machines operative, starting from

the second half of the first year.

0

100.000

200.000

300.000

400.000

500.000

Mon

th 1

Mon

th 3

Mon

th 5

Mon

th 7

Mon

th 9

Mon

th 11

Quarter5

Quarter7

Quarter9

Quarter11

Quarter13

Quarter15

Quarter17

Quarter19

Cumulative investments in vending machines (€)

Fig. 5: Cumulative investments in vending machines

We expect the turnover to start

picking up after one year. At the

start we assume a machine

utilization rate of 20%. This means at

first only 20% of what the machine

provides will be sold before the next

issue of magazines is entered into

the machine.

0%

20%

40%

60%

80%

100%

Mon

th 1

Mon

th 3

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th 5

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Mon

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Quarter5

Quarter7

Quarter9

Quarter11

Quarter13

Quarter15

Quarter17

Quarter19

Expected utilization rate (%)

Fig. 6: Expected utilization rate

We assume this rate to first grow progressively until about the 8th quarter to then start

growing digressively (Figure 6). We assume the interest in these machines and specific

locations should provide a high utilization rate. We will also know which magazines to put

where thanks to more market research of each location. To stay conservative the maximum

utilization rate is 83%.

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This calculated utilization will result in the

following expected turnover (Figure 7).

Starting from quarter 9 no growth

assumptions are put in to keep it

conservative. Figure 8 shows the

accumulated profits and losses after taxes

during the first months. Break‐even should

be achievable starting the seventh month. Fig. 7: Expected Turnover

‐20.000

‐10.000

0

10.000

20.000

30.000

40.000

50.000

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Accum

ulated

profit after taxes (€

)

Accumulated profit after taxes

Fig. 8: Accumulated profit after taxes

Figure 9 shows the treasury position without financing. We expect to burn cash to a treasury

position of minus €245,414 in month 9. If the cash burn rate is assumed to be linear, it

should amount to €27,000 per month, more or less. This will be followed by a recovery to

reach a 0 treasury position between quarter 8 and 9. Quarter 12 and 13 are marked by a

bump in cash flows due to re‐investments to replace the initial vending machines after 3

years. 20


21

‐400.000

‐200.000

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

Mon

th 1

Mon

th 2

Mon

th 3

Mon

th 4

Mon

th 5

Mon

th 6

Mon

th 7

Mon

th 8

Mon

th 9

Mon

th 10

Mon

th 11

Mon

th 12

quarter5

quarter6

quarter7

quarter8

quarter9

quarter10

quarter11

quarter12

quarter13

quarter14

quarter15

quarter16

quarter17

quarter18

quarter19

quarter20

Treasury position without financing (€)

Fig. 9: Treasury Position without financing

To measure up to the necessary financial resources to start up this new enterprise, the

entrepreneurs will invest €120,000 of equity and require a short term 1 year loan of €50,000

with immediate monthly payback and a long term 3 year loan of €100,000 with monthly

repayments starting after 12 months. A short summary of financials, after implementation of

the required loans, can be found below. Regarding the current economical situation, all

these numbers are based on conservative forecasting and the equity should provide a

sufficient cushion against unexpected setbacks.


Growth Stage

In the growth stage MagBox should enlarge its portfolio in different directions:

‐ By extending the customer base in one specific city. More sales per vending machine

as well as an increase in the amount of vending machines. We must however take

the competitive environment into account to not overload the market in one area.

‐ By extending towards new cities in Belgium. The online research we conducted

provided us with some new potential locations (e.g. near the beach at the Belgian

cost). This information, combined with potential future insights, might help us to

further expand the horizon of MagBox from the initial test city Antwerp towards

other places in Belgium.

‐ By considering an expansion towards other products that can be sold in the vending

machines, e.g. newspapers and by approaching other publishers to further extend

our offerings, e.g. import magazines from the Netherlands such as Elle from Quote.

‐ Figure 10 shows an expected steady increase in cash flow as from month 12. The

model assumes the installation of 40 vending machines during the first year. The

latter will generate cash that could be used to invest into more market studies in

order to decide where to place more machines and to optimize the locations.

0

500.000

1.000.000

1.500.000

2.000.000

Treasury position including financing (€)

Fig. 10: Treasury position including financing

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5. Financial Plan

Revenues and cost assumptions

Revenues

‐ Fixed fee of € 200 per month and a variable fee of 12% margin on the end sale price

of magazines. Pricing mix and tactics based on sensitivity analysis and pricing

scenario’s are available in the excel file attached. Turnover is expected to start

picking up after month 12.

0

50.000

100.000

150.000

200.000

250.000

300.000

Mon

th 1

Mon

th 2

Mon

th 3

Mon

th 4

Mon

th 5

Mon

th 6

Mon

th 7

Mon

th 8

Mon

th 9

Mon

th 10

Mon

th 11

Mon

th 12

quarter5

quarter6

quarter7

quarter8

quarter9

quarter10

quarter11

quarter12

Turnover

Fig. 11: Turnover

Costs

‐ Variable costs:

o Rent of machine location: € 100 per vending machine per month; these costs

may vary significantly; electricity cost at location will be included as well.

o Maintenance and repair of machines: calculated as 5% of investment cost.

o Vending taxes, permits, etc.: for the pilot project in Antwerp there are no

vending taxes, but we will have to apply for city planning permits in case we

want to place machines in public locations.

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24

0

1.000

2.000

3.000

4.000

5.000

6.000

Direct variable costs

Vending tax/Placement permission license

Maintenance

Rent Vending Location

Fig. 12: Direct Variable Costs

‐ Fixed Costs

o HR

no management remuneration (managers are shareholders: sufficient

incentive; if management has to spend significant amounts, this

decision may be revised)

technician cost: cost of a qualified technician to repair and maintain

the vending machines at € 3,500 per month

o Infrastructure & Operations

Logistic Center: € 250 as a market average for a rather spacious garage

that will be used for both transport parking and depot

Fuel: € 240 per month for about 2,500 km’s (city environment)

Transportation: full option leasing of a van at € 600 per month

Marketing and related overhead: € 1,000 per month as an estimate

marketing and related administrative, managerial and operations costs

Registering cost CVBA at € 1,250 this is a going market estimate


1.000 1.0002.000 2.000

3.000 3.0004.000 4.000 4.000 4.000 4.000 4.000

208 208

417 417

625 625

833 833 833 833 833 833

200 200

400 400

600 600

800 800 800 800 800 800

3.500 3.500

3.500 3.500

3.500 3.500

7.000 7.000 7.000 7.000 7.000 7.000

250 250

250 250

250 250

250 250 250 250 250 250

240 240

240 240

240 240

240 240 240 240 240 240

600 600

600 600

600 600

600 600 600 600 600 600

1.000 1.000

1.000 1.000

1.000 1.000

1.000 1.000 1.000 1.000 1.000 1.000

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Cost structure: fixed and variable (€)

Rent Vending Location Maintenance Vending tax/Placement permission license

Fixed remunerations Logistic center Fuel

Transportation Marketing expenses and related verhead

25


Fig. 13: Cost Structure

Financial statements

BALANCE SHEET sem 1, year 1 sem 2, year 1 year 2 year 3 year 4 year 5

ASSETSTangible fixed assets 133.333 150.000 83.333 16.667 150.000 83.333Stock and work in progress 0 0 0 0 0 0Accounts receivable 48.201 99.928 186.769 241.253 241.253 241.253Cash 91.058 36.566 207.300 633.719 1.004.750 1.575.781Total assets 272.592 286.493 477.402 891.639 1.396.003 1.900.368

EQUITY AND LIABILITIESShare Capital 120.000 120.000 120.000 120.000 120.000 120.000Accumulated P/L -1.126 37.905 304.047 769.780 1.274.144 1.778.509Debts payable after 1 year 76.111 51.496 0 0 0 0Debts payable within 1 year 73.889 71.515 51.496 0 0 0Accounts payable 3.718 5.577 1.859 1.859 1.859 1.859Negative treasury 0 0 0 0 0 0Total equity and liabilities 272.592 286.493 477.402 891.639 1.396.003 1.900.368

Fig. 14: Balance sheet projections

26


P&L STATEMENT sem 1, year 1 sem 2, year 1 year 2 year 3 year 4 year 5Vending Machine fixed fee 24.000 48.000 32.000 32.000 32.000 32.000Vending Machine variable fee 46.439 136.202 575.334 875.313 933.014 933.014Turnover 70.439 184.202 607.334 907.313 965.014 965.014

- Direct , variable costs 18.150 33.800 22.533 22.533 22.533 22.533

Gross margin 52.289 150.402 584.801 884.780 942.480 942.480

Human Resources 21.000 42.000 84.840 85.688 86.545 86.545Infrastructure and operational costs 10.450 12.540 25.080 25.080 25.080 25.080- Depreciation 16.667 33.333 66.667 66.667 66.667 0

Operating Profit 4.173 62.528 408.214 707.344 764.188 830.855

Financial charges -3.208 -3.970 -4.969 -1.689 0 0Exceptional costs 0 0 0 0 0 0

Profit before tax 964 58.558 403.245 705.656 764.188 830.855

Tax 0 19.527 137.103 239.923 259.824 259.824Net Profit 964 39.031 266.142 465.733 504.364 571.031 Fig. 15: P&L statement projections

27


28

TREASURY POSITION sem 1, year 1 sem 2, year 1 year 2 year 3 year 4 year 5Operational result 2.083 62.528 408.214 707.344 764.188 764.188+ Depreciations 16.667 33.333 66.667 66.667 66.667 66.667- Change in net working capital need -44.483 -49.868 -90.560 -54.484 0 0

Cash Flow from operations -25.733 45.994 384.321 719.527 830.855 830.855- Reimbursements 0 -26.989 -71.515 -51.496 0 0- Interest -3.208 -3.970 -4.969 -1.689 0 0- Investments -150.000 -50.000 0 0 -200.000 0- Taxes 0 -19.527 -137.103 -239.923 -259.824 -259.824+ Share capital 120.000 0 0 0 0 0+ Debt 150.000 0 0 0 0 0

Cash Flow 91.058 -54.493 170.734 426.419 371.031 571.031TREASURY POSITION 91.058 36.566 207.300 633.719 1.004.750 1.575.781 Fig. 16: Treasury position projections


6. Marketing mix

Services offered

MagBox wants to sell a service to publishers that will contain following elements:

MagBox vending machines will create an extra sales channel for Belgian magazine

publishers. Moreover they will be able to obtain a higher margin through that channel; we

expect an increase in gross margin on the sales of magazines of at least 15%. The business

model aims to offer a service to these publishers.

MagBox will be in charge of the ownership, the location consulting, the placement and the

maintenance of the vending machines. All these activities are non‐core activities for the

publisher and the distributor. For this service we charge a fixed fee of € 200 per vending

machine and a variable fee of 12% on magazine sales. With this price setting, MagBox tries

to maximize the profit for both parties, taking into consideration the possible risks.

Publishers:

Our service will first of all contain market research, this means that we will look for possible

and profitable locations where the vending machines can be placed. Secondly, we will

approach these ‘location owners’ (e.g. hairdressers, hospitals, school, etc.) and carry on

negotiations with them. We will also take up the maintenance of all the vending machines.

When a machine breaks down, we will be contacted and we will be considerate of technical

problems and maintenance. Furthermore, we will conduct location management, this means

that we will follow up reactions from locations owners and end customers. This will create

the possibility to adapt the offered magazines to the location of the vending machines. We

will also identify successful and non‐successful locations to see if locations of vending

machines should be reconsidered.

Location owners:

We would like to offer public and private institutions the possibility to offer an extra service

to their customers and visitors.

29


End consumer:

We would like to offer our customers fast and easy access to their favorite magazines on

accessible locations.

Product description and properties

Vending Machine

Fig. 17: Vending Machine

The vending machines are available in white aluminum or traffic red. We opt for these two

colors since red will attract attention of passers‐by on the streets. White on the other hand, 30


will have a more high‐end look and will be more attractive for the private locations such as

hairdressers.

The main features of the machine are:

‐ Illuminated showcase for 8 different magazines with a capacity of 40 pieces per

magazine.

‐ Two different payment procedures: coins or bank notes with an integrated return

button for motor driven coin return.

‐ Easy exchange of prices.

‐ Stainless steel control panel.

‐ Programmable microprocessor control unit with data storage and test programs.

‐ Quick and easy conversion of compartments to different paper sizes.

‐ Product delivery by needle drive.

‐ Dimensions:

o Height: 183 cm

o Width: 87 cm

o Depth: 87 cm

o Weigth: 318 – 334 kg

‐ Power supply:

o 230 Volts

o Extra low voltage supply for internal functions

The machines will be filled with eight different magazines depending on the region or

location and the preference of our customer. At first we will provide an assortment of 17

different magazines as you can derive from figure 18. Nevertheless it might be possible to

enlarge the variety to imported magazines such as Elle and Marie Claire as we believe that

for example hairdressers would like to have these ones.

31


Price

The price MagBox charges to the publishers is based on a fixed fee per vending machine plus

a variable fee based on a percentage of sales. Since the prices of the different magazines are

fixed, our aim is to increase the profits of publishers by providing with a new sales channel

by which they can generate a higher gross margin on the sales of magazines. By delivering

these services to the publishers MagBox will take a risk because the company will have to

invest in vending machines and operations. The price setting of MagBox takes both

principles into account. Since solely focusing on a variable fee would increase the risk for

MagBox significantly.

The trade‐off between the two possible actions for MagBox, being a fixed or a variable fee,

were tackled by doing a variability analysis for MagBox and the publishers. By combining

these analyses, plus adding a risk factor to the different revenue models, the price MagBox

will charge to the publishers, in order to maximize the value for both parties, is a fixed

monthly fee of €200 per vending machine and variable fee of 12% on the sales. The details of

the price setting calculations can be found in Appendix 5.

The prices charged to the end‐customer, being the buyer of the magazine are fixed (see

figure 18).

PUBLISHERS MAGAZINES PRICES Sanoma Humo 2.40 Flair 2.10 Goedele 4.20 Glam*it 3.25 Story 1.90 Libelle 2.15 TEVE‐blad 0.95 Feeling 3.90 Think Media Magazines P‐magazine 2.20 Ché 4.95 De Persgroep Dag Allemaal/Expres 2.00 TV Familie/Blik 1.50 Goed Gevoel 3.90 Roularta Knack 4.00 Trends 7.00

Fig. 18: Magazine prices and their publishers

32


Place

First MagBox will address the most important publishers, being Sanoma, Think Media

Magazines, De Persgroep and Roularta in order to convince them of our business model.

MagBox will operate as a full‐service company, this also includes the market research of the

most relevant locations. From our survey and the information we received from publishers

we can conclude that customers would like to have their magazines available at any time

and space. Antwerp however is yet a quite saturated market and therefore we would focus

more on private locations. This can be low‐end as well as high‐end.

Promotion

The vending machines for magazines will be promoted via the following channels:

‐ Direct contact with partners (publishers and distributor being AMP).

‐ A brochure in order to provide additional information about the concept to our

partners.

‐ A company website to report to the location owners.

‐ Face‐to‐face visits with the intention of convincing location owners to place the

vending machines and to take advantage of our full‐service concept.

‐ A telephone line for location owners to call in case of stock‐outs, change of

assortment, maintenance and defects, etc.

‐ Participation at a specialist fair such as ‘De Boekenbeurs’.

33


7. Human resources

Executive Management

CEO Floris Van den Broeck

KULeuven Master Commercial Engineering

Vlerick Master Financial Management

CFO Nicolas Macharis University of Ghent Master Commercial Engineering


COO Georges Nédée KULeuven Master Civil Engineering (Major Electronics)


VP Locations Nathalie Monsieur University of Antwerp Master in Applied Economics

Vlerick Master in Marketing Management

VP Marketing Maaike Joris Artesis Hogeschool Anterwpen Master in Product Development Vlerick Master in Marketing Management

VP Sales Julie Eerdekens University of Antwerp Master in Applied Economics

Vlerick Master in Marketing Management

Board of Directors

The company board will include the Executive Management and Strategic Partners that are

interested.

Strategic partners

‐ Sanoma is a leading Belgian Publisher with a broad range of magazines. MagBox has

established preliminary contacts that will be developed into a full partnership

‐ AMP is the main distributor in the Flemish magazine market. With the support of

publishing partners, MagBox will establish a strategic relationship.

‐ Würlitzer is a German producer of automated vending machines. MagBox will

partner up with this company to secure long‐term supply of vending machines.

Ownership structure

MagBox will be owned by its Executive Management. Each of these six will initially hold 16.7

% (or 1/6th) of the shares. The MagBox shareholders are open to external investors.

34


8. Appendices

1. Business plan questionnaire

1. Gender - Male - Female

2. Age - ...

3. What matches best for you? - Student - Working - Other

4. When do you like to read your favorite magazine? - 6am – 9am - 9am – 11am - 11am – 2pm - 2pm – 6pm - 6pm – midnight

5. Imagine magazines and newspapers would be available 24/7 through vending machines deployed in public spaces. Example: You are in a train station early in the morning before opening hours and you would be able to buy your favorite magazine/newspaper. This would also come in handy when there is a long queue in front of the shop. Would you be interested in this concept?

- Yes - No

6. If no, why not? - ...

7. If you think this is an interesting concept, where would you like to see these vending machine? (more than one answer is possible)

- School - Work - Street - Train station - Bakery - Hospital

8. Other suggestions of locations? - ...

9. In which magazines would you be interested? (more than one answer is possible) - Humo

35


- Knack - Dag Allemaal - Story - Elle - Feeling - Cosmopolitan - Joepie - GQ - Sport weekend - Blik - Autowereld - Geo - Goed gevoel - Goedele - Newsweek - The Economist - Trends - P‐Magazine - Ché - Marie Claire

10. Other suggestions? - ...

11. How frequently would you make use of such a vending machine? - Daily - Weekly - Monthly - Less than monthly

36


2. Questionnaire results

37


38


3. Conducted interviews

3.1 Nora Peeters (Sanoma)

(Interview conducted over the month of January via telephone and e‐mail)

Market trends:

The amount of magazines sold declines every year by 2%. The sales however do not decline

since there are regular price increases and added products (such as DVDs, CDs,…) that higher

the turnover. Two reasons for this decline are the extensive attachments of newspapers

during the weekend and the trend of declining youth that read magazines. Everything they

want to know is available online for free.

Imported magazines:

Mrs. Nora Peeters recommended not to put these in the vending machine. A sales figure of 5

to 10 pieces would not be profitable relatively to other magazines such as Feeling, Vitaya,

Goedele, Goed Gevoel,…..

Imported Magazine Belgian sales per year (excl. Subscription)Cosmopolitan 6,974Fancy 6,286

Conditions of delivery:

If you want to distribute their magazines, they will first do a market research in order to

decide if they want to provide you with their brands. The reason for this is the high cost

publishers have concerning retour, delivery,…. The cost of this study equals 251.4€. We

negotiated that we do not have to pay for each vending machine. Instead we will pay the

fixed amount only ones.

Publishers are not allowed to make agreements on this, this would be a cartel and is illegal.

However if f.e. De Persgroep decides to deliver and Sanoma not, they may return to their

decision because if Dag Allemaal is available, Sanoma also wants to be there with their

Humo.

Categories of shops:

Sanoma segments their customers into three categories based on yearly turnover

concerning their magazines: 39


40

A = Best ones, turnover > €30,000

B = Turnover €20,000‐ €30,000

C = Turnover <€20,000

The number of magazines you get from each brand is however determined by the publisher

and thus the category a client is in. Unsold magazines can be returned. They do have a

target: max. of 10% return for weekly magazines and max. 50% of return for monthly

magazines.

Margins and prices of their magazines:

Sanoma applies two different margins depending on the client:

‐ Kiosks: 25% commission on sales ‐ Supermarkets and book stores: 20% commission on sales

Figure: Price changes on their most important Dutch magazines


3.2 Peter Bouckaert (De Persgroep)

(Interview via telephone 19th of January 9.30)

De Persgroep already tried the idea of vending machines, they stopped this however for two

reasons;

‐ Machines bought in Germany that happened to have a lot of technical problems.

(People who still have vending machines, built it themselves.)

‐ Those machines were filled by storekeepers. It was hard to find a location and you

create competition. If you are a publisher you should be able to offer these vending

machines to all your clients and not just by one. This would create disparity between

shop keepers.

Conditions for delivery:

If you want to distribute their magazines, they will first do a market research in order to

decide if they want to provide you with their brands. The cost of this study equals 220€. We

negotiated that we do not have to pay for each vending machine. Instead we will pay the

fixed amount only ones.

If you get the right to deliver there are two possible options:

1. ‘met recht van retour’: You are able to return all unsold magazines in order to limit

your risk, here fore you could get 15% margin on the selling price. This margin can be

higher if you give them exclusivity.

2. ‘zonder recht van retour’: You are not able to return the unsold magazines.

Location:

He believes, Antwerp is a saturated market. He also mentioned that Presshop (Relais) have

exclusivity rights for the stations and Brussels Airports. Therefore he recommends to focus

some more on private locations such as universities, hospitals, hairdressers,….

41


3.3 Jan Mey (Krantenautomaat (NL))

(Information given by email on 19‐01‐2010)

As from April they will launch the concept of newspaper vending machines in the

Netherlands. We subtracted the most important information from his email;

Market situation:

The print run of publishers in the Netherlands consists of 70% of subscriptions. In the future

this will however be in danger because of several factors. E.g. new customers look for

different resources when looking for information and this information is often for free

(internet).

Target group:

The most potential target group for the future are people when traveling from home to work

and vice versa. They do not want to commit to a subscription but they do however want to

read newspapers (look at the success of free newspapers distributed in Metro stations). 60%

of this group is younger then 35 years old and they have a rather high education. A market

share of 5% would be enough to counter the loss in subscriptions. The vending machines can

be filled with newspapers before opening hours of kiosks and attract early travelers.

Research in Germany showed that before 8 o’clock in the morning 75% of sales take place.

Locations:

When focusing on home‐work travelers, ideal locations would be train stations, metro

stations, etc. Big offices and hospitals are also interesting. We are actually looking for places

where people have to wait/stay for a while.

Permits:

The acquisition of permits from the government to be present in public places will be a very

difficult process. Permits to be present in railway stations, metro stations, hospitals, etc. are

most of the time less difficult to acquire.

42


43

Estimated sales:

Their target is a minimum of 20 newspapers a day for popular titels. Those newspapers for a

special target group and with a higher price have an estimation of 10 newspapers a day.

Prices/margins and other related financial information:

Prices will be in between prices for subscriptions and kiosks. Customers will be able to buy a

card which will be some sort of a subscription.

Recover the cost of the vending machines: when buying or leasing the machines investments

will be recovered in 3 years when on average 12 newspapers are sold a day, at an average

price of €1.

Financing: Investments will be financed by the bank based on buy/lease agreements with the

publishers. For the first part of the project, credit guarantee is offered by the

‘Stimulatiefonds voor de pers’.

Distribution:

The vending machines will be filled once a day. Morning newspapers will be filled before 6

am in the morning. Evening newpapers will be filled at around 4 pm. This will be done by the

distribution organization of the publishers. We estimate that a minimum of 10 locations

must be visited in one and a half hour.


3.4 Johan Verrue (Professor at Hogeschool Gent)

(Interview conducted on 19/01/2010 Korenlei 22, 9000 Gent)

Students at the Hogeschool Gent (2nd Bachelor) created a business plan concerning vending

machines for newspapers. They found out however, that this concept would not be profitable

(mainly because of the small margins). Their business plan was based on selling a ‘concept’

(creating an overview of the most important processes).

He suggested us to do the market research ourselves (e.g. use of Google Maps and look for the

‘empty’ spots) and to define the target groups. This way we could offer consultancy services for

Sanoma, Roularta, de Persgroep, etc. Secondly he suggested us to focus on the search for

potential clients (e.g. Universities), to create contacts and relationships. Furthermore, he

suggested to work as a ‘contact person’ ; e.g. if the machine breaks down, the clients contacts

us and we arrange reparations.

Some attention points we could derive from this interview:

‐ Contact Sovoreg ( sociale voorziening Hogeschool Gent). They were interested in

his concept! t

‐ What can make you as a company unique?

‐ How to make it difficult for competition?

‐ Comparison Coca Cola/ Cigarettes/ Magazines

‐ Exploitation business

‐ Port Ghent/ Antwerp? But we must take other elements into account!

‐ Sanoma: ask for their Market Research

44


3.5 Filip Hebb (owner of Kiosk ‘Bredakrant’ in Antwerp‐Merksem)

(Interview via e‐mail conducted on Tuesday 19th of January 2010)

“Momenteel zijn er slechts 2 grote verdelers van tijdschriften op de markt namelijk AMP en

Imapress.

Er vindt een jaarlijkse herziening plaats bij AMP van het zakencijfer van elke dagbladhandelaar

(als starter wordt er een schatting gemaakt). Starters beginnen ook aan andere voorwaarden,

deze regeling werd genomen door de uitgevers die de wildgroei in de sector wouden

afremmen. Als starter krijg je 5% minder korting op alles wat geleverd wordt door AMP. Dit

zakencijfer wordt gedeeld door 12 en hiervan wordt er wekelijks een voorschot op dat

maandcijfer afgehouden van de leveringen gedurende die maand. Concreet, je bent een klant

van €10,000/maand dan betaal je als dagbladhandelaar wekelijks een voorschot van 2,500. Op

het einde van de maand krijg je uw credit en debet en wordt op het 1ste van de maand het

saldo verrekend van de voorbije maand.

Met andere woorden ik betaal de 8, 15, 22 en de 28ste een voorschot van de geleverde, in dit

geval van de maand januari, eind februari krijg ik mijn overzicht met de daarop betaalde

voorschotten, en vermeerdering of vermindering van januari, de 1ste maart betaal ik of trek ik

terug, op deze manier heeft AMP zeker zijn centen van wat ze leverden en voldoende tijd om

alles te verrekenen qua aanvoer en retour, sommige collega’s opteren voor 3 voorschotten en

1 grotere afrekening, deze moeten een waarborg betalen van 1 maand gemiddelde omzet, in

vorm van bankwaarborg, ook kan er genegotieerd worden omtrent deze regelingen, de grotere klanten hebben bv. de mogelijkheid om 1 x te betalen, 30dagen na het geleverde, warenhuizen,

ketens e.d., de zelfstandige uitbaters ontkomen niet aan de monopolie positie wat AMP in feite

heeft.”

45


3.6 Mr. De Vos (De Vos Dagbladen)

(Interview via telephone 12th of January 15h10)

Mr. De Vos operates about 15 machines in Bruges and nearby villages. Through these vending

machines he sells bread and newspapers. He owns a newspaper shop and tour that is

responsible for about 3000 newspaper subscriptions.

The margin he receives from newspaper publisher on the end sale price is 25%. He indicated

that similar margins are maintained on magazine sale.

His average income a month from sales is about 40 euro’s per machine which more or less

covers his other expenses (electricity, location rent& tax) related to the machine operation.

The vending machines are filled every morning by the guys responsible. One of his main issues

is the fact that he needs the newspapers from the publisher before 04 am.

He moreover does not believe that the concept of vending through machines will be successful

as long as publishers rip off small newspaper stores and press representatives. For magazines

he saw more potential, the higher income should be able to more easily cover fixed costs while

suffering from less logistic complications.

46


4. Deal with ING Bank

Georges en Nathalie, Ik heb het business plan even snel doorlopen en in mijn ogen zit het concept goed in elkaar. Ik mis echter wel wat info over het gebruik van de gevraagde bankfinancieringen...Waarvoor gaan deze leningen specifiek gebruikt worden?? Ik neem aan dat de lening op 3 jaar bedoeld is voor de aankoop van de eerste 40 vending machines? In dit geval zou ik aanraden deze machines te leasen op 4 jaar. Leasing is immers een asset‐based financiering waardoor het risico van de bank beperkt wordt en voor jullie heel wat flexibiliteit inhoudt. Een leasing kan zowel off‐ als on balance genomen, in het eerste geval worden de financiele lasten rechtstreeks in de resultatenrekening geboekt waardoor de solvabiliteit van de onderneming niet wordt aangetast. De 50.000 is bedoeld als werkkapitaal? In dit geval zou ik voorstellen om een straight loan (of ING Opticash) van € 50.000 toe te kennen. Deze wordt toegekend tot nader bericht. Het feit dat de zaakvoerders een eigen inspanning leveren van € 120.000 bevestigd het vertouwen van de zaakvoerders en staat mooi in verhouding met de gevraagde bankfinanciering. In principe verwacht de bank een minimum eigen inspanning van 20%. Wat betreft de zekerheden stel ik voor om een 1e rangsinschrijving te nemen op het handelsfonds van de onderneming tbv. € 50.000 igv de vending machines geleased worden. Worden de machines gefinancierd met een klassieke financiering, dan stel ik voor om naast de 1e rangsinschrijving op het handelsfonds tbv. € 50.000, een bijkomende inschrijving/lastgeving op het handelsfonds te nemen tbv. € 100.000. Maw positief advies voor de gevraagde financieringen. Als jullie nog vragen hebben, aarzel dan niet om mij morgen op het werk even te bellen. 0499/86.04.53. groeten!!

Contact with Guus De Boer from ING Bank ([email protected])

E‐mail on Sunday January 24the.

47

mailto:[email protected]


48

5. Offer ‘Wurlitzer’

PRICE LIST N14

Newspaper Vending Machines Confidential Distributors' Export Net Price ListEffective June 23, 2008 ‐ Cancels all previous lists

Magazine Vendor MV6 ND MV8 ND Prepared for coin changer e.g. NRI G46

Standard colour Red (RAL 3020) or white‐aluminium (RAL 9006)

From 10 ‐ 20 units* 5.400,00 € 6.680,00 €

From 21 ‐ 50 units 4.650,00 € 5.980,00 €

More than 50 units 4.250,00 € 5.605,00 € * price for samples upon request

Optional:

NRI G 46 MDB 394,00 €

Special colour MV6 ND / MV8 ND for less than 12 units 140,00 €

Bill acceptor NV9 MDB* 441,00 €

Receipt‐ printer** 370,00 €

Illuminated top** 326,00 €

Security coin insertion** 97,00 € **only for MV6/MV8

All prices are ex works

This list is subject to change without notice

All orders are subject to the price, terms and conditions prevailing at time of shipment

Deutsche Wurlitzer GmbH Wurlitzerstr.6 D‐32609 Huellhorst

Telephone: 0049‐(0)5744‐941‐0 Fax: 0049‐(0)5744‐941‐220

http://www.deutsche‐wurlitzer.de Email: contact@deutsche‐wurlitzer.de


6. Variance Analysis

The variance analysis shows the combined maximized profit for MagBox and the publishing companies, taking into account the risks.

The ideal price combination is a fixed fee €200 and a variable fee of 12% on sales of the magazines.

fixed fee50,00€ 100,00€ 150,00€ 200,00€ 250,00€ 300,00€ 350,00€ 400,00€ 450,00€ 500,00€

1% ‐12146073,24 ‐10097988,25 ‐7927816,63 ‐5777288,678 ‐3766534,684 ‐1994084,938 ‐536869,7289 549780,6528 1232135,917 1498065,7742% ‐9905892,348 ‐7957067,939 ‐5936246,862 ‐3974900,849 ‐2182901,628 ‐648520,9298 561569,5156 1402297,978 1850192,728 1903382,0353% ‐7821619,678 ‐5976927,988 ‐4107081,498 ‐2333293,378 ‐755176,7985 549255,0715 1523589,061 2133012,001 2364310,721 2225872,0514% ‐5893255,236 ‐4157568,397 ‐2440320,538 ‐852466,2672 516639,8039 1599243,066 2349188,908 2741922,722 2774489,896 2465535,8215% ‐4120799,021 ‐2498989,165 ‐935963,98 467580,4848 1632548,179 2501443,053 3038369,057 3229030,14 3080730,253 2622373,3456% ‐2504251,033 ‐1001190,292 405988,1744 1626846,878 2592548,327 3255855,034 3591129,506 3594334,256 3283031,792 2696384,6247% ‐1043611,271 335828,2213 1585535,926 2625332,911 3396640,249 3862479,007 4007470,258 3837835,069 3381394,512 2687569,6578% 261120,2627 1512066,376 2602679,274 3463038,586 4044823,943 4321314,974 4287391,31 3959532,58 3375818,415 2595928,4459% 1409943,57 2527524,171 3457418,218 4139963,901 4537099,41 4632362,934 4430892,663 3959426,789 3266303,5 2421460,98610% 2402858,65 3382201,607 4149752,76 4656108,857 4873466,65 4795622,887 4437974,318 3837517,695 3052849,766 2164167,28311% 3239865,502 4076098,684 4679682,898 5011473,454 5053925,662 4811094,833 4308636,275 3593805,299 2735457,215 1824047,33312% 3920964,128 4609215,402 5047208,634 5206057,692 5078476,448 4678778,772 4042878,532 3228289,6 2314125,846 1401101,13813% 4446154,527 4981551,761 5252329,966 5239861,571 4947119,007 4398674,704 3640701,091 2740970,599 1788855,658 895328,697514% 4815436,699 5193107,76 5295046,894 5112885,09 4659853,339 3970782,629 3102103,951 2131848,296 1159646,652 306730,011115% 5028810,643 5243883,401 5175359,42 4825128,251 4216679,443 3395102,547 2427087,113 1400922,69 426498,8288 ‐364694,920816% 5086276,361 5133878,682 4893267,542 4376591,052 3617597,321 2671634,459 1615650,576 548193,7818 ‐410587,8129 ‐1118946,09817% 4987833,851 4863093,604 4448771,262 3767273,494 2862606,971 1800378,363 667794,3397 ‐426338,4288 ‐1351613,273 ‐1956023,52218% 4733483,114 4431528,167 3841870,578 2997175,577 1951708,394 781334,2606 ‐416481,5948 ‐1522673,942 ‐2396577,55 ‐2875927,1919% 4323224,151 3839182,37 3072565,49 2066297,3 884901,5908 ‐385497,8487 ‐1637177,228 ‐2740812,757 ‐3545480,646 ‐3878657,10520% 3757056,96 3086056,215 2140856 974638,665 ‐337813,44 ‐1700117,965 ‐2994292,56 ‐4080754,875 ‐4798322,56 ‐4964213,265

% on sales

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Strictly Confidential - Vlerick Business Creation …...all vending machines, which will be placed...

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