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Scenario 1:

A well-patronized 15-system Cyber café based in Nigeria
  • Charges: N100/hr
  • Working Hours: 12 hours (9am to 9pm)
  • Peak time periods for use of each system: 9hrs.
  • Average daily revenue: 9hrs X 15 systems X N100.00 = N13,500
  • 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