Yes Please“Just the way you want.!!!!!”

Cost Model

Work Out Criteria

• Cost.• Expenditure.• Stakes.• Returns on Investment.• Profitability.• Loans and liabilities.• Time of repay.

The Major Expenses-An yearly analysis

• Human workers (SALES TEAM) –INR 1,50,000.• The hardware and the material Cost- INR

7,00,000 (Based on current estimated customer size) + Tolerance.

• Tolerance :: INR 50,000 per customer.• Service and other customer oriented Expenses-

INR 1,00,000• Misc expenses- INR 1,00,000.• Total estimated expenses –INR 10,50,000

Expenses at a glance

Expenses

HumanMaterialServicesMisc

Revenue Charged Per Customer

• There are two schemes in which the product can be marketed for the customer ::

– THE PURCHASE SCHEME In this the customer buys the who product and the start-up

only provided the services for a period valid for only one year from the date of sale

– THE MEMBERSHIP SCHEME The product is installed at the customers place all the

hardware software cost are bear 30% by the customer and 70% by the firm. There is an annual charges charged to the customer. However this scheme is costly for the customer.

The Purchase scheme revenue generation

• FULL PAYMENT BY CUSTOMER BY PURCHASE OF PRODUCT- INR 1,50,000 per (5+1+1+1) material setup.

• MONTHLY SERVICES CHARGES :: INR 3,000*12= INR 60,000.

THE REVENUE UNDER FIRST SCHEME

MAETIAL C

HARGES

SERVICES

GAURANTEE ON HARDW

ARE

PROFITABLIT

Y FOR COM

PANY0123456

Scheme 1

FULL PAYMENTQUATERLY PAYMENTHALF YEARLY

MEMBERSHIP SCHEME

• FIRST DOWNPAYMENT- 30% of the product

• SUBSEQUENT PAYMENTS – INR 19,300 PER MONTH.

• SERVICE charge – INR 5,000 per month

• Total revenue- ~INR 3,00,000 (Approx.)

Revenue under scheme 2

Downpayment

Servi

ce ch

arge

MISC

- Gau

rentee+ labour

Net Pro

fitabilit

y01234567

1 yearly2 yearly3yearly

UNIT COST Vs REVENUES

Mate

rial

HUMAN

SERVICES

NET PROFITABLIT

IY

012345

COST(INVESTMENT)Scheme 1Scheme 2

Axis Title

INR

in*

1,00

,000

Profit

• ANNUAL PROFIT PER PRODUCT-

• SCHEME 1 : INR 1,23,000• SCHEME 2 : INR 1,98,000

• Start-up is in profit.,….!!!!!

Business Model Viable?

• Yep, Certainly…!

• ROI (Return on investment):: INR 1,52,000 Per year …

Thank you

• Yes please team welcomes queries and businesses….