The revenue numbers you see below are the result of the power of multiple high frequency revenue streams in the same service/process. In the 3 scenarios represented below, there’s a low/conservative calculation, a moderate/realistic projection and an optimistic/viral scenario.
Results are achieved by modifying 5 variables: initial banner hardware markup, banner installation labor, banner printing markup, advertising revenue, and annual banner change frequency.
Re: the initial year’s 5000 units/sets (in Scenario 2); those can be manufactured in 2-1/2 weeks easily, with no new or exotic/expensive equipment or tooling, which also speaks to our ability to ‘manufacture on demand’ which eliminates inventory costs.
In this first scenario, below, I went with a $40 installation labor charge, $40 banner markup, $10 average ad revenue per banner and 6 banner changes per year which I’d argue should be spec’d as the minimum number of banner changes in an annual contract. Also backed down the initial year’s production and the growth progression to 10k/50k/250k. 6 banner changes per year is a pretty typical frequency for municipalities and almost anyone with a banner ‘program’. If they insist they only want to change them 4 times/yr or less, they’re probably not our core customer base. (but they still might ‘come around’ down the road…) In this first projection I also ZEROED OUT the hardware sale price….which shows you the results if you give away, or “eat” the hardware cost in order to eliminate startup friction.
In the next scenario we started the progression at 5,000 units in the first year then 20k/100k/500k and we make them pay for the hardware. Then bump up the margins for printing, installation, and advertising; ea. by $10, and assuming a blend of 6 changes per yr, and monthly change customers (which would actually be 9, but I put 8 in the spreadsheet). Pushing $7MM in Year 1. Not bad….
In the final scenario, this goes Viral/Global and Malls, Fast Food stores, and Big Box Retail kick in bumping up the average banner change frequency to monthly (12/yr) and we bump up the progression to 10k/50k/200k/750k and leave everything else the same as the scenario above.
Have your smelling salts handy…..
Email me (sales@ezbannerz.com) if you want a copy of the spreadsheet to ‘play with’. Maybe see what FY 2030 revenue looks like??