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Starting your own Internet Kiosk Business
An Owner/Operator Guide
This document has been produced as a step-by-step guide
on how to establish an Internet Kiosk business using the Net Kiosk e-Box range
of coin-operated public access Internet terminals. It demonstrates to the
reader the process of installing Internet terminals and how it is possible to
quickly build a business with a £100,000 net profit a year.
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Disclaimer
Whilst every effort has been made to ensure that the
content of this document is accurate the author accepts no responsibility for
any errors or omissions. The figures quoted are based on realistic estimates
wherever possible but cannot be guaranteed. We strongly recommend that
professional advice be taken prior to starting any new business.
Copyright 2006 All rights reserved |
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Content
1.0 Understanding the Business
2.0 How it works
3.0 Machine Locations
4.0 Operation
5.0 Finding suitable sites.
6.0 The Business Model
7.0 Profit forecast per unit
8.0 What do I need to do to become a Net Kiosk
e-Box share revenue partner?
9.0 Brochures
Appendix
One Questions and answers
Two Brochures |
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1.00 Understanding the Business
Installing Internet Kiosks on a shared revenue basis is
a simple and straight forward procedure, you do not have to be a computer guru
to run a successful business, it is no more difficult to install an Internet
terminal than it is to connect your home computer to a new broadband link.
This report has been produced to demonstrate the high
levels of incomes that can be generated by installing the Net Kiosk 'e-Box'
range of Internet terminals in suitable locations throughout an exclusive area
within the UK. It demonstrates the start-up costs, the day-to-day operation of
the business and the financial rewards that can be gained.
2.0 How it works
In simple terms you purchase terminals from Site Kiosks
and site them free of charge in suitable locations. The public pay to access
the Internet using either coin or credit card*. The 'typical' charge is
£1 for 10-12 minutes use. (£5-£6 hour) From the terminal the
user can access web-based e-mail, bank accounts, booking agents, on-line shops,
tourist information sites, games sites, chatrooms, in fact almost anything they
would normally have access to on their home PC. (*Merchant
account required)
The revenue taken by the machines remains yours and you
pay an agreed percentage to the site operator (normally in the region of
15%-20%) A unit used 2 hours a day earns approximately £3,650 a year of
which the site owner is paid in the region of £730 leaving £2,920
gross profit per machine each year. Although we cannot guarantee turnover there
are many units within the UK that take substantially higher revenues than
this.
3.0 Machine Locations
The best locations vary from area to area but we have
found that the greatest usage tends to be in areas with high footfall such as:
- Holiday Parks/Camp Sites
- Hotels/Business Centres
- Hostels/Sports Centres
- Military Bases
- Hospital Waiting Rooms
- Café/Bars
- Airports Lounge/Waiting Areas
- Community Centres
This is just a small selection of potentially suitable
locations. |
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4.0 Operation
Internet terminals are inherently extremely reliable and
need very little maintenance. The units have the option of 'remote monitoring'
which allows you to look at the revenue and performance of the machine from any
computer in the world. Using this feature you can view the revenue, usage,
change charge rates, check the performance of the unit, change the homepage and
much more.
Cash can be collected in one of two ways, you can either
physically call on the site and take the cash away or you can pass that duty to
the site owner and you simply invoice on a regular basis against the metered
usage.
The benefits of collecting revenue in cash are many. It
improves cash flow. It is proved better to collect each month and send a cheque
to the site for their share of the usage rather than it is to ask the site to
send you a much larger cheque for your share. It also shows a 'physical
presence' once a month when you make the collection which gives a much higher
perception to the site owner of a quality supplier service.
5.0 Finding suitable sites.
The old adage 'Location, Location, Location' holds true
for successful sighting of Internet terminals. There are many things to
consider:
-
Foot Traffic
- Type of clientele who visit the location
- What are they doing at the location, are they in
a rush or do they have time to spare?
- Would a stand-up Kiosk suite better than a
sit-down desk?
Finding suitable sites for units not normally a
difficult task, after all, you're giving the site owner an essential service
for their customers without any cost to them and they are benefiting
financially. The 'hassle' factor is removed. Finding the RIGHT site is the most
important factor. Mail shots, visits and telephone calls find most sites but if
you do need assistance we do offer a site finding service. Most locations have
an existing broadband link and are happy for you to connect to that. We
generally ask that the site owner provide a suitable telephone link and power
supply within a metre of the unit location. Pick a good spot, one where the
public can see the unit; good signage also helps to sell the service.
A few hints:
-
Many owners only want access for the convenience for their customers and are
not interested in receiving a split of the revenue. They see the Net Kiosks
e-Box solution as taking away the 'pain' they have been living with for some
time by not offering their customers this essential service.
- If
the owner does not have a Broadband link arrange one for him and deduct the
cost from his split of the income.
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Agree in advance the minimum income you expect from the site and make it clear
that if this is not achieved you will re-site the unit elsewhere.
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Stress the benefits; people need to stay in contact. The Internet is now as
much a part of our daily lives as the telephone. The unit clears itself after
each use and removes all of the history files. This means that the next user
can't click back and find previous users bank or e-mail details, it's safe to
use.
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Units are virtually maintenance free, they have no need for technical support
staff. This is especially important in reception or areas where there is no
technical support.
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Select the right type of terminal, a desk unit where people can sit down to use
it has far greater usage in most locations than one they need to stand up to
use. A conventional keyboard is much easier to use than a high security steel
trackball keypad.
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Stand up kiosks are ideal for areas that need high security but they generally
receive lower income and cost more to buy.
6.0 The Business Model
The following chart shows the annual gross income
potential of each unit dependent on price charged and time used.
Annual Income per unit Calculator
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Charge
Rate |
| Daily Use |
£4.00 |
£5.00 |
£6.00 |
| 1 hour |
1,460.00 |
1,825.00 |
2,190.00 |
| 2 hours |
2,920.00 |
3,650.00 |
4,380.00 |
| 3 hours |
4,380.00 |
5,475.00 |
6,570.00 |
| 4 hours |
5,840.00 |
7,300.00 |
8,760.00 |
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It is always difficult to estimate the amount of
monthly income you will receive, this is totally dependent on the site.
However, £5 an hour and 2 hours use a day (12 mins for £1) is a
realistic income expectation.
The following profit / loss on each unit is based on
the following criteria:
- A
realistic income on which to calculate a business plan is 2 hours use a day at
£5 an hour charge rate.
- The
terminal is the 'Interlock' range which sells at £1,795. Depreciated over
36 months this unit is charged at £49.86 per month.
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Commission to site is shown at 20% of revenue.
- VAT
has been excluded from the calculations.
7.0 Profit forecast per unit:
| Profit Per Unit |
Monthly |
Annual |
3 Year Sales |
| 2 Hour a day @ £5 hour |
304 |
3650 |
10950 |
| Less Commission @ 20 % |
61 |
730 |
2190 |
| Net Income |
243 |
2920 |
8760 |
| |
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|
|
| Depreciated Unit (Cost 36 Months) |
50 |
598 |
1795 |
| |
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| PROFIT PER UNIT
|
193 |
2322 |
6965 |
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The following chart demonstrates that less than 44
units can earn profits in excess of £100,000 a year.
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Potential Income based on number of units
installed.
(Net of site share) |
| Units |
Annual Income |
Capital Cost |
| 5 |
11610 |
8975 |
| 10 |
23210 |
17950 |
| 15 |
34815 |
26925 |
| 20 |
46420 |
35900 |
| 25 |
58025 |
44875 |
| 30 |
69630 |
53850 |
| 35 |
81235 |
62825 |
| 40 |
2840 |
71800 |
| 45 |
104445 |
80775 |
| 50 |
116050 |
89750 |
| 55 |
127655 |
98725 |
| 60 |
139260 |
107700 |
| 65 |
150865 |
116675 |
| 70 |
162470 |
125650 |
| 75 |
174075 |
134625 |
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8.0 What do I need to do to become a Net Kiosk e-Box
share revenue partner?
Firstly contact Neill Troward of Net Kiosks to check
the availability of an area near you. Neill can be contacted on 01872 870385 or
07967 759485.
Next, do a bit of market research, call into a couple of
hotels or holiday parks near to you and ask them for their views, would they be
willing to site a terminal in a prominent location in return for a percentage
of the revenue? Don't be too put off if you don't get 100% positive response,
there is a technique to finding the right sites and we can help you achieve
this.
If you then feel confident at this point and you think
that this might be the right direction for you we can arrange a meeting and
help you set up your business plan. Use this to discuss the project with your
accountant or Bank manager.
With this in place we ask that you purchase a minimum of
five units, the cost of this is £8,975 plus VAT. There is nothing else to
pay. We will help you site your first five machines and train you on the
installation procedures whilst we install them for you. This is included in the
price. You will be allocated an area where any relevant enquiries we may
receive will be passed directly to you. You are then up and running and should
start receiving a return in the region of £1,000 per month from your
first 5 machines, ideal if you are planning a part-time start-up. If you are
looking at starting in a larger way we offer special discounts on orders in
excess of 10 units. We then offer on-going support and training and keep you
fully informed with the progress of the sites where units have been
successfully installed and wherever possible the levels of income
received.
If you are considering Internet terminals purely as an
investment opportunity and don't want to get involved on a day to day basis we
can offer a full management and maintenance package for you. This includes
sighting and the running of machines. Generally speaking we will only run this
system for investors who purchase in excess of 25 units.
If you want to discuss any issue in more detail then
please contact: NEILL TROWARD 01872 870385 or 07967 759485 (Mob) or via
the contact
page
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