MagBox

StrictlyConfidential

Entrepreneurship

ProfDrMiguelMeuleman
ProfDrJanLepoutre

EerdekensJulie
MaaikeJoris
NicolasMacharis
NathalieMonsieur
GeorgesNde
FlorisVandenBroeck

MagBox

StrictlyConfidential

MagBox

StrictlyConfidential

MagBoxExecutivesummary
MagBoxisanewstartupbusiness,activeinFlanderswith
a pilot project in Antwerp, which has the objective to
revivethemarketofmagazines.Thelatterwillberealized
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
convenientandaccessiblechannel.
MagBox vending machines will create an extra sales channel for Belgian magazine
publishers.Moreovertheywillbeabletoobtainahighermarginthroughthatchannel;we
expectanincreaseingrossmarginonthesalesofmagazinesofatleast15%.Thebusiness
modelaimstoofferaservicetothesepublishers.
MagBoxwillbeinchargeoftheownership,thelocationconsulting,theplacementandthe
maintenance of the vending machines. All these activities are noncore activities for the
publisher and the distributor. For this service we charge a fixed fee of 200 per vending
machineandavariablefeeof12%onmagazinesales.Withthispricesetting,MagBoxtries
tomaximizetheprofitforbothparties,takingallpossiblerisksintoconsideration.
MagBox is about to close a deal to form a partnership with a major Belgian publisher.
Hereafter,Magboxmaychoosetocontactotherpublishersinordertoexpandproductrange
andcostcoverage.
Tomeasureuptothenecessaryfinancialresourcesneededtostartupthisnewenterprise
and to limit corresponding liability, MagBox will be incorporated as a CVBA and the
entrepreneurswillinvest120,000ofequity.Theywillmoreoverrequireashortterm1year
loanof50,000withimmediatemonthlypaybackandalongterm3yearloanof100,000
withmonthlyrepaymentsstartingafter12months.
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
3

MagBox

StrictlyConfidential

conservative forecasting and the equity should provide a sufficient cushion against
unexpectedsetbacks.
P&L STATEMENT

sem 1, year 1 sem 2, year 1

year 2

year 3

year 4

year 5

Turnover

70,439

184,202 607,334 907,313

965,014

965,014

Gross m argin

52,289

150,402 584,801 884,780

942,480

942,480

Operating Profit

4,173

62,528 408,214 707,344

764,188

830,855

Profit before tax

964

58,558 403,245 705,656

764,188

830,855

Net Profit

964

39,031 266,142 465,733

504,364

571,031

year 3

year 4

year 5

TREASURY POSITION

sem 1, year 1 sem 2, year 1

Cash Flow from operations

year 2

-25,733

45,994 384,321 719,527

830,855

830,855

Cash Flow

91,058

-54,493 170,734 426,419

371,031

571,031

TREASURY POSITION

91,058

36,566 207,300 633,719 1,004,750 1,575,781

Fig.1:KeyFinancialFigures

MagBox

StrictlyConfidential

Tableofcontent
MagBoxExecutivesummary......................................................................................................3
Tableoffigures...........................................................................................................................7
1. Companydescription..........................................................................................................8
MagBox...................................................................................................................................8
2. Marketanalysisandsegmentation.....................................................................................9
Valuechainandvalueproposition.........................................................................................9
Customerneeds...................................................................................................................10
Marketoverview..................................................................................................................11
Segmentation,Targeting,Positioning..................................................................................12
Positioning............................................................................................................................14
3. Industryanalysis................................................................................................................15
Competitors..........................................................................................................................15
Suppliers...............................................................................................................................15
Newentrants........................................................................................................................15
Substitutes............................................................................................................................16
4. BusinessModel.................................................................................................................17
InitialStage...........................................................................................................................17
Financialinformation...........................................................................................................18
GrowthStage........................................................................................................................22
5. FinancialPlan....................................................................................................................23
Revenuesandcostassumptions..........................................................................................23
Financialstatements............................................................................................................26
6. Marketingmix...................................................................................................................29
Servicesoffered....................................................................................................................29
5

MagBox

StrictlyConfidential

Productdescriptionandproperties.....................................................................................30
Price......................................................................................................................................32
Place.....................................................................................................................................33
Promotion.............................................................................................................................33
7. Humanresources..............................................................................................................34
ExecutiveManagement........................................................................................................34
BoardofDirectors................................................................................................................34
Strategicpartners.................................................................................................................34
Ownershipstructure............................................................................................................34
8. Appendices........................................................................................................................35
1. Businessplanquestionnaire..........................................................................................35
2. Questionnaireresults....................................................................................................37
3. Conductedinterviews...................................................................................................39
4. DealwithINGBank........................................................................................................47
5. OfferWurlitzer............................................................................................................48
6. VarianceAnalysis...........................................................................................................49

MagBox

StrictlyConfidential

Tableoffigures
Fig.1:KeyFinancialFigures........................................................................................................4
Fig.2:ValueChainMagBox........................................................................................................9
Fig.3:Overallmarketsalesdividedinsubscriptionandsinglecopies....................................12
Fig.4:SensitivityAnalysis.........................................................................................................18
Fig.5:Cumulativeinvestmentsinvendingmachines..............................................................19
Fig.6:Expectedutilizationrate................................................................................................19
Fig.8:Accumulatedprofitaftertaxes......................................................................................20
Fig.7:ExpectedTurnover.........................................................................................................20
Fig.9:TreasuryPositionwithoutfinancing..............................................................................21
Fig.10:Treasurypositionincludingfinancing..........................................................................22
Fig.11:Turnover......................................................................................................................23
Fig.12:DirectVariableCosts....................................................................................................24
Fig.13:CostStructure..............................................................................................................26
Fig.14:Balancesheetprojections............................................................................................26
Fig.15:P&Lstatementprojections..........................................................................................27
Fig.16:VendingMachine.........................................................................................................30
Fig.17:Magazinepricesandtheirpublishers..........................................................................32

MagBox

StrictlyConfidential

1. Companydescription
MagBox
MagBoxisanewstartupbusiness,activeinFlanderswithapilotprojectinAntwerp,which
has the objective to revive the market of magazines. The latter will be realized through a
strategicfullservicesolutionformagazinevendingmachineswhichwillbeplacedatprivate
and public locations. MagBox will create the opportunity for customers to acquire their
favoritemagazinethroughaconvenientandaccessiblechannel.
MagBox will be registered as a CVBA (Cooperative Partnership with Limited Liability)
company.Allsixofuswillinvest20,000inequity(ofwhich5,000willbefullywiredupon
incorporation) amounting to a total of 120,000 with each acquiring a shareholding of
16.7%.Eachofthesesix,FlorisVandenBroeck,NicolasMacharis,GeorgesNde,Nathalie
Monsieur, Maaike Joris and Julie Eerdekens will be appointed as managers for undefined
terms.Themainelementsdrivingthechoiceisthedesiretolimitinvestorliabilitycombined
with the need for some control in shareholding transfer while avoiding the strict limits
imposedinaBVBA.

MagBox

StrictlyConfidential

2. Marketanalysisandsegmentation
Valuechainandvalueproposition
ThemainplayersoftheMagazinesIndustryarethefollowing:

Publishers:e.g.Sanoma,Roularta,ThinkMediaMagazines,DePersgroep

Distributors:e.g.AMP

Kiosks:shopssellingnewspapers,magazines,cigarettes,candy,etc.

Endcustomers:peoplebuyingnewspapers,magazines,etc.

Locationowners:willprovidethelocationforthevendingmachinestobepresent
suchasschools,hospitals,bakeries,hairdressers,etc.

MagBox:vendingmachinessellingmagazinesfromSanoma,Roularta,ThinkMedia
andDePersgroeptoendcustomers.

Fig.2:ValueChainMagBox

MagBox

StrictlyConfidential

MagBoxwillsellafullservicesolutionformagazinevendingmachinestoBelgianpublishers
(Sanoma,ThinkMedia,Roularta,DePersgroep).AMPwillthendistributethemagazinesto
allvendingmachines,whichwillbeplacedonpublicandprivateownedproperty.
MagBox creates the opportunity for publishers to receive a higher margin on their
magazines,for location owners to provide an extra serviceto their customers and for end
customerstoacquiremagazinesinaquickandconvenientwayonnonsaturatedlocations
andevenafteropeninghoursofbookshops.
Unique value proposition: Serving the right magazines at the right place at any particular
moment.

Customerneeds
An online survey was conducted over a period of ten days and was answered by 101
respondents(46%maleand54%female),ofwhich66%werestudentsand27%arecurrently
working, this to put the results into perspective. When analyzing the output we obtained
followingoutcomes;

88%ofourrespondentsareinfavorofthebusinessplanidea.

Some respondents gave insightful reasons why they would not like the idea; e.g.
someliketheexperienceofanewspapershopandlikesearchinganewspapershop
for interesting magazines, others first like to browse the magazine or have a
subscription,andagainotherslookforfreeinformationontheinternet.

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

Preferred places for the vending machines are: train station (27%), street (18%),
school(16%),hospital(15%),bakery(14%)andwork(10%).

Ourrespondentsalsomentionedfollowingoptions;Placeswherepeopleeitherhave
towaitforsometimeorwheretheycanpassquicklywhentheyareinahurry;bus
10

MagBox

StrictlyConfidential

stops,carpark,airport,beach,nightshops,petrolstation,smallsupermarkets,places
whereyoucaneasilyparkyourcar,sportclubs,publicrestrooms,doctor,carpooling
parkings, business park, sandwich bars, metro station. We also found out that a
beautyparlorwouldbeagoodlocation.

Thesurveyshowedthatpreferencesformagazinesvaryalot,whichshowsthatwe
will have to adapt the offerings to the location as the vending machine can only
containalimitedamountofmagazines.Humo(11%),Knack(11%),PMagazine(10%),
Elle (8%), The Economist (8%), Ch (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)
mentionedthattheywouldliketohavenewspapersinthemachines.

41% of the respondents would use the machine weekly and 39% would use the
vendingmachinemonthly.

Customersmightbeinterestedinbuyingmagazinesforthefollowingreasons:

Whenspendingleisuretime

Duringtravelling

Toacquireinformation

Togainknowledgeconcerningsubjectsofpersonalinterestsuchasfashion,cars,the
economy,finance,etc.

Tooccupythemselvesduringwaitingtime

Marketoverview
Theindustryofmagazinesisdividedintosubscriptionsandsinglecopies.Thisdivisionisof
greatimportancesincewecanonlytargetthesinglecopymarket.MagBoxwilltrytoreach
11

MagBox

StrictlyConfidential

thisgroupandwillalsoplayonimpulsebuying.Forthelatter,therightchoiceoflocationsis
ofgreatimportance.
The overall market sales are declining by 2% but this is covered through regular price
increases,sothedeclinehasnodirectinfluenceonturnover.
WEEKLYMAGAZINES
Title

Paid Distribution

DagAllemaal/Expres
FlairNl
Humo
Knack
Libelle
Pmagazine
Story
TeveBlad
Trends
TVFamilie/Blik

431 883

Subscriptions

n.a.

Single copies
n.a.

123 422

9,90%

90,10%

222 536

40,80%

59,20%

121 530

88,00%

12,00%

214 254

34,00%

66,00%

57 757

5,50%

94,50%

156 793

13,20%

86,80%

152 511

28,90%

71,10%

40 792

83,70%

16,30%

132 531

Total

n.a.

n.a.

3 135 210

MONTHLYMAGAZINES
Title

Paid Distribution

Ch
Feeling
Glam*It
GoedGevoel
Goedele
MarieClaireVlaams
Total

Subscriptions

Single copies

22 082

2,00%

98,00%

71 757

20,30%

79,70%

27 236

8,00%

82,00%

71 482

n.a.

n.a.

57 816

14,70%

85,30%

10 998

4,90%

95,10%

1 385 565

Source:FeBELMAbasedonauthenticationfromCIMnumbers20072008

Fig.3:Overallmarketsalesdividedinsubscriptionandsinglecopies

Segmentation,Targeting,Positioning
Wedecidedtosegmentthemarketgeographically.Thismeansthatwedividedthemarket
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
factorbasicallydetermines:
-

Thenumberofpotentialendconsumerspassingbythevendingmachine.
12

MagBox
-

StrictlyConfidential

The demographic, psychographic and behavioral characteristics of these potential

endconsumers.

Thewillingnessofthesepassersbytopurchaseaparticularmagazine.

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

consumers.

Firstwedividedthemarketbyregion.Asastartupwechoosetotakeoffinoneparticular
city. This way, we are able to control the entire structure of our business and adapt if
necessary.Afterthat,wesplitupthemarketintotwomainsegments;
-

Publicinstitutions

Privateinstitutions

MagBoxwilltargetbothsegmentsandwilltrytoattractthemostinterestingplayerswithin
thosesegments.
Public institutions, which make up a very important part of the MagBox target group
containthefollowingmainplayers:
-

Hospitals

Stations
o In Belgium PressShop holds an exclusivity contract in all stations. Because
stationsareaveryimportantplayerinthissegmentwewouldliketogettoan
agreement with PressShop. This way PressShop will benefit as well, since it
willbeabletosellitsmagazines24hoursaday.

Localauthorities(streetlocations)

Schools

...

Privateinstitutions,withfollowingplayers:
-

Nightshops

Sportclubs

Bakeries

Hairdressers
13

MagBox

Smallandbiggercompanies

Bigdoctorpractices

...

StrictlyConfidential

Positioning
MagBox positioning is based on functionality and convenience. By focusing on those
positionaladvantagesMagBoxisabletodifferentiatefromitsmaincompetitors(whichare
basicallyallnewspapershops)andaddvalueforendconsumers.
MagBoxoffersitsendconsumersanaccessiblealternativeforanewspapershop.Itoffersits
endcustomers 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
aboutthenearbyMagBoxes,theywillconsideritastheirplacetobuymagazinesbecause
theydonotneedtoconsideropeninghours.Thisconveniencewillbeofgreatvaluetothe
endconsumerandwillthereforebeMagBoxmainpositionaladvantage.
MagBox functionality is another important advantage. Depending on the location of the
vendingmachines,weofferanadaptedrangeofmagazines.Thesespotsbasicallyimplicate
whichconsumerswillpassthevendingmachineandeventuallybuyamagazine.
Overall,wewanttoofferawideassortmentofmagazines,toreachabroadgroupofend
consumers.

14

MagBox

StrictlyConfidential

3. Industryanalysis
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
supermarketssuchasDelhaizeandCarrefour.
Besides, a lot of magazines such as Humo and PMagazine provide a lot of free online
information. Thereforeyounger people are not that affected or linked anymore to printed
publications.
Specificallyatuniversitieswemightfacecompetitionfromorganizations,suchas4UCampus,
thatofferlowpricesubscriptionstostudents.
Weareconsideringthecompetitionasquitebighowever,MagBoxwillrunatotallydifferent
businessmodelandvaluepropositionformagazinescomparedtothecompaniesmentioned
above.

Suppliers
The critical partners that are necessary to provide magazine vending machines to location
ownersarethepublishersSanoma,DePersgroep,RoulartaandThinkMediaMagazine.We
needtheirallianceandapprovaltoselltheirbrandsinonedispenser.Furthermorewewill
include AMP as a partner, a renowned distributor for the newspaper and magazine that
worksinclosecooperationwiththeabovementionedpublishers.

Newentrants
Thereisathreatofentryfromsupplierswhohavegreatpower.DePersgroeponcetriedto
enterthemarketofvendingmachines.Theydidnotsurviveforalongtimesincetheyhad
defaults and a lot of technical problems on their imported machines from Germany and
werenotabletomanagecompetitionbetweentheirclients.Thereforetheyhadtostopthe
15

MagBox

StrictlyConfidential

business. MagBox, on the other hand, will focus on the noncore activities of these
publishersandprovideafullservice.InadditionMagBoxisinanindependentcompanyand
thusdoesnothavetotakeintoaccountthefairnessagainstallotherkiosksandmagazine
sellers.

Substitutes
Weidentifiedfollowingsubstitutesforreadingmagazines:

Watchingtelevision

Readingnewspapers

Listeningtomusic(e.g.Ipod)

Readingbooks

Browsingtheinternetforinformation

Allactivitiestospendleisuretimecouldbeconsideredasbeingsubstitutes(e.g.practicing
sports, meeting with friends, going to a pub, etc). However, MagBox tries to create value
withdifferentpropertiescomparedtothesesubstitutes.

16

MagBox

StrictlyConfidential

4. BusinessModel
InitialStage
In the first stage of the business plan, we will focus on the pilot project we set up in
Antwerp.Wewillconcentrateonthefollowing:

Approachthefourmainpublishersinordertoconvincethemofthebusinessmodel
andgetthemsignedthecontractstoworktogetherwithus.

Businessdevelopment:createexcellenceinallnoncoreactivitiesofpublishersand
distributorsinordertodifferentiatefromthecurrentmagazinevendors.

Create awareness at the most important locations by starting off with 40 vending
machinesacrossAntwerp.Financialfigures,whicharestatedlateroninthebusiness
plan, showed that we must immediately invest in a great amount of vending
machines.

Approachopinionleader:e.g.DeClient:afamoushairdresserthatispresentall
acrossBelgium.Theyareknownbycustomersfortheirinnovativepartnershipsand
wouldthereforebeanimportantlocationownertoboostawarenessandsales.

MagBoxwillinvestin:

Conductingmarketresearchandseekingforspecificlocationownerwhowouldbe
willingtoplaceavendingmachineontheirpropertyandtakeupnegotiationswith
them.Thisisashiftawayfromthecurrentsituationinwhichpublishersaskaflatfee
between200and255everytimeanewentrantwantstoselltheirproductions.

Continuouslymanaginglocationstoadaptandexpandourofferingstothespecific
locationneedsendtofollowuponnonsuccessfullocations.

Potentialexpansiontowardsother,possiblyimported,magazines.

17

MagBox

StrictlyConfidential

Financialinformation
In order to assess the financial information a financial model has been setup. A fully
detailedoutcomeofthismodelcanbeseenintheExcelsheet.Theassumptionsmadeinthe
model are based on a very conservative situation. This is done in order to avoid
overvaluationandprovideforpossibleunexpectedsetbacks.
Riskanalysis
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
showsasensitivityanalysisoftheEBITDApervendingmachineofMagBoxinfunctionofthe
number of vending machines and as a percentage of the utilization rate. The analysis
indicatesthatthescaleoftheoperationsneedstobeabove40vendingmachinestocreate
sustainablevalueforthecompany.Theanalysisshowsusaswellthattheutilizationratehas
amajorimpactontheEBITDApervendingmachine.Weassumetheutilizationratetofollow

#vendings

aninnovatorsadoptivecurveaswewillexplainlater.
Utilization rate
SensitivityanalysisEBITDA/vending
4199,39
0,1
0,2
0,3
0,4
0,5
10 6320,84 4953,03 3585,23 2217,42
849,61
20 2954,84 1587,03
219,23 1148,58 2516,39
30 1832,84
465,03
902,77 2270,58 3638,39
40 1271,84
95,97 1463,77 2831,58 4199,39
50
935,24
432,57 1800,37 3168,18 4535,99
60
710,84
656,97 2024,77 3392,58 4760,39
70
550,56
817,25 2185,06 3552,87 4920,68
80
430,34
937,47 2305,27 3673,08 5040,89
90
336,84 1030,97 2398,77 3766,58 5134,39
100
262,04 1105,77 2473,57 3841,38 5209,19
110
200,84 1166,97 2534,77 3902,58 5270,39
120
149,84 1217,97 2585,77 3953,58 5321,39
130
106,69 1261,12 2628,93 3996,74 5364,54
140
69,70 1298,11 2665,92 4033,72 5401,53
150
37,64 1330,17 2697,97 4065,78 5433,59

0,6
518,20
3884,20
5006,20
5567,20
5903,80
6128,20
6288,48
6408,70
6502,20
6577,00
6638,20
6689,20
6732,35
6769,34
6801,40

0,7
1886,01
5252,01
6374,01
6935,01
7271,61
7496,01
7656,29
7776,51
7870,01
7944,81
8006,01
8057,01
8100,16
8137,15
8169,21

0,8
3253,81
6619,81
7741,81
8302,81
8639,41
8863,81
9024,10
9144,31
9237,81
9312,61
9373,81
9424,81
9467,97
9504,96
9537,01

0,9
4621,62
7987,62
9109,62
9670,62
10007,22
10231,62
10391,91
10512,12
10605,62
10680,42
10741,62
10792,62
10835,78
10872,76
10904,82

Fig.4:SensitivityAnalysis

18

1
5989,43
9355,43
10477,43
11038,43
11375,03
11599,43
11759,72
11879,93
11973,43
12048,23
12109,43
12160,43
12203,58
12240,57
12272,63

MagBox

StrictlyConfidential

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

Cumulativeinvestmentsin
vendingmachines()

be installed over a period of 2

months. One vending machine costs

500.000
400.000

5,000,depreciatedover3yearsand

300.000

we assume to replace them after

200.000

that period. The financial model

assumesthattherewillalwaysbe40
Month1
Month3
Month5
Month7
Month9
Month11
Quarter5
Quarter7
Quarter9
Quarter11
Quarter13
Quarter15
Quarter17
Quarter19

100.000

Fig.5:Cumulativeinvestmentsinvendingmachines

machines operative, starting from

thesecondhalfofthefirstyear.

We expect the turnover to start

Expectedutilizationrate(%)

picking up after one year. At the

Quarter19

Quarter17

Quarter15

Quarter13

0%
Quarter11

themachine.

20%
Quarter9

issue of magazines is entered into

40%

Quarter7

provideswillbesoldbeforethenext

60%

Quarter5

first only 20% of what the machine

80%

Month11

utilizationrateof20%.Thismeansat

100%

Month9

machine

Month7

Month5

assume

Month3

we

Month1

start

Fig.6:Expectedutilizationrate

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
locationsshouldprovideahighutilizationrate.Wewillalsoknowwhichmagazinestoput
wherethankstomoremarketresearchofeachlocation.Tostayconservativethemaximum
utilizationrateis83%.
19

MagBox

StrictlyConfidential
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

shows

the

accumulated profits and losses after taxes

duringthefirstmonths.Breakevenshould
Fig.7:ExpectedTurnover

beachievablestartingtheseventhmonth.

50.000

Accumulatedprofitaftertaxes

Accumulatedprofitaftertaxes()

40.000

30.000

20.000

10.000

0
Month Month Month Month Month Month Month Month Month Month Month Month
1
2
3
4
5
6
7
8
9
10
11
12
10.000

20.000

Fig.8:Accumulatedprofitaftertaxes

Figure9showsthetreasurypositionwithoutfinancing.Weexpecttoburncashtoatreasury
position of minus 245,414 in month 9. If the cash burn rate is assumed to be linear, it
shouldamountto27,000permonth,moreorless.Thiswillbefollowedbyarecoveryto
reach a 0 treasury position between quarter 8 and 9. Quarter 12 and 13 are marked by a
bump in cash flows due to reinvestments to replace the initial vending machines after 3
years.
20

MagBox

StrictlyConfidential

Treasurypositionwithoutfinancing()
1.400.000
1.200.000
1.000.000
800.000
600.000
400.000
200.000

200.000

Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
quarter5
quarter6
quarter7
quarter8
quarter9
quarter10
quarter11
quarter12
quarter13
quarter14
quarter15
quarter16
quarter17
quarter18
quarter19
quarter20

400.000

Fig.9:TreasuryPositionwithoutfinancing

To measure up to the necessary financial resources to start up this new enterprise, the
entrepreneurswillinvest120,000ofequityandrequireashortterm1yearloanof50,000
with immediate monthly payback and a long term 3 year loan of 100,000 with monthly
repaymentsstartingafter12months.Ashortsummaryoffinancials,afterimplementationof
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
sufficientcushionagainstunexpectedsetbacks.

21

MagBox

StrictlyConfidential

GrowthStage
InthegrowthstageMagBoxshouldenlargeitsportfolioindifferentdirections:

Byextendingthecustomerbaseinonespecificcity.Moresalespervendingmachine
aswellasanincreaseintheamountofvendingmachines.Wemusthowevertake
thecompetitiveenvironmentintoaccounttonotoverloadthemarketinonearea.

ByextendingtowardsnewcitiesinBelgium.Theonlineresearchweconducted
provideduswithsomenewpotentiallocations(e.g.nearthebeachattheBelgian
cost).Thisinformation,combinedwithpotentialfutureinsights,mighthelpusto
furtherexpandthehorizonofMagBoxfromtheinitialtestcityAntwerptowards
otherplacesinBelgium.

Byconsideringanexpansiontowardsotherproductsthatcanbesoldinthevending
machines,e.g.newspapersandbyapproachingotherpublisherstofurtherextend
ourofferings,e.g.importmagazinesfromtheNetherlandssuchasEllefromQuote.

Figure10showsanexpectedsteadyincreaseincashflowasfrommonth12.The
modelassumestheinstallationof40vendingmachinesduringthefirstyear.The
latterwillgeneratecashthatcouldbeusedtoinvestintomoremarketstudiesin
ordertodecidewheretoplacemoremachinesandtooptimizethelocations.

Treasurypositionincludingfinancing
()
2.000.000
1.500.000
1.000.000
500.000
0

Fig.10:Treasurypositionincludingfinancing

22

MagBox

StrictlyConfidential

5. FinancialPlan
Revenuesandcostassumptions
Revenues

Fixedfeeof200permonthandavariablefeeof12%marginontheendsaleprice
of magazines. Pricing mix and tactics based on sensitivity analysis and pricing
scenarios are available in the excel file attached. Turnover is expected to start
pickingupaftermonth12.

Turnover
300.000
250.000
200.000
150.000
100.000
50.000
Month1
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
quarter5
quarter6
quarter7
quarter8
quarter9
quarter10
quarter11
quarter12

Fig.11:Turnover

Costs

Variablecosts:
o Rentofmachinelocation:100pervendingmachinepermonth;thesecosts
mayvarysignificantly;electricitycostatlocationwillbeincludedaswell.
o Maintenanceandrepairofmachines:calculatedas5%ofinvestmentcost.
o Vending taxes, permits, etc.: for the pilot project in Antwerp there are no
vendingtaxes,butwewillhavetoapplyforcityplanningpermitsincasewe
wanttoplacemachinesinpubliclocations.
23

MagBox

StrictlyConfidential

Directvariablecosts
6.000
5.000
4.000
3.000

Vendingtax/Placement
permissionlicense

2.000

Maintenance

1.000

RentVendingLocation

Fig.12:DirectVariableCosts

FixedCosts
o HR

nomanagementremuneration(managersareshareholders:sufficient
incentive; if management has to spend significant amounts, this
decisionmayberevised)

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

thevendingmachinesat3,500permonth

o Infrastructure&Operations

LogisticCenter:250asamarketaverageforaratherspaciousgarage
thatwillbeusedforbothtransportparkinganddepot

Fuel:240permonthforabout2,500kms(cityenvironment)

Transportation:fulloptionleasingofavanat600permonth

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

marketingandrelatedadministrative,managerialandoperationscosts

RegisteringcostCVBAat1,250thisisagoingmarketestimate

24

MagBox

StrictlyConfidential

Coststructure:fixedandvariable()
16.000

14.000

1.000
600
240
250

1.000
600
240
250

1.000
600
240
250

1.000
600
240
250

1.000
600
240
250

1.000
600
240
250

7.000

7.000

7.000

7.000

7.000

7.000

800
833

800
833

800
833

800
833

800
833

800
833

4.000

4.000

4.000

4.000

4.000

4.000

Month7

Month8

Month9

Month10

Month11

Month12

12.000

10.000

8.000

6.000

1.000
600
240
250

1.000
600
240
250

3.500

3.500

1.000
600
240
250

1.000
600
240
250

3.500

3.500

200
208
1.000

200
208
1.000

2.000

2.000

Month1

Month2

Month3

Month4

4.000

400
417

2.000

1.000
600
240
250

1.000
600
240
250

3.500

3.500

600
625

600
625

3.000

3.000

Month5

Month6

400
417

RentVendingLocation

Maintenance

Vendingtax/Placementpermissionlicense

Fixedremunerations

Logisticcenter

Fuel

Transportation

Marketingexpensesandrelatedverhead

25

MagBox

StrictlyConfidential

Fig.13:CostStructure

Financialstatements

BALANCE SHEET

sem 1, year 1

sem 2, year 1

year 2

year 3

year 4

year 5

ASSETS
Tangible fixed assets
Stock and work in progress
Accounts receivable
Cash
Total assets

133.333
0
48.201
91.058
272.592

150.000
0
99.928
36.566
286.493

83.333
0
186.769
207.300
477.402

16.667
0
241.253
633.719
891.639

150.000
0
241.253
1.004.750
1.396.003

83.333
0
241.253
1.575.781
1.900.368

EQUITY AND LIABILITIES

Share Capital
Accumulated P/L
Debts payable after 1 year
Debts payable within 1 year
Accounts payable
Negative treasury
Total equity and liabilities

120.000
-1.126
76.111
73.889
3.718
0
272.592

120.000
37.905
51.496
71.515
5.577
0
286.493

120.000
304.047
0
51.496
1.859
0
477.402

120.000
769.780
0
0
1.859
0
891.639

120.000
1.274.144
0
0
1.859
0
1.396.003

120.000
1.778.509
0
0
1.859
0
1.900.368

Fig.14:Balancesheetprojections

26

MagBox

StrictlyConfidential

P&L STATEMENT
Vending Machine fixed fee
Vending Machine variable fee
Turnover

sem 1, year 1
24.000
46.439
70.439

sem 2, year 1
48.000
136.202
184.202

year 2
32.000
575.334
607.334

year 3
32.000
875.313
907.313

year 4
32.000
933.014
965.014

year 5
32.000
933.014
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
Infrastructure and operational costs
- Depreciation
Operating Profit

21.000
10.450
16.667
4.173

42.000
12.540
33.333
62.528

84.840
25.080
66.667
408.214

85.688
25.080
66.667
707.344

86.545
25.080
66.667
764.188

86.545
25.080
0
830.855

Financial charges
Exceptional costs
Profit before tax

-3.208
0
964

-3.970
0
58.558

-4.969
0
403.245

-1.689
0
705.656

0
0
764.188

0
0
830.855

0
964

19.527
39.031

137.103
266.142

239.923
465.733

259.824
504.364

259.824
571.031

Tax
Net Profit
Fig.15:P&Lstatementprojections

27

MagBox

TREASURY POSITION
sem 1, year 1
Operational result
2.083
+ Depreciations
16.667
- Change in net working capital need
-44.483
Cash Flow from operations
-25.733
- Reimbursements
0
- Interest
-3.208
- Investments
-150.000
- Taxes
0
+ Share capital
120.000
+ Debt
150.000
Cash Flow
91.058
TREASURY POSITION
91.058

sem 2, year 1
62.528
33.333
-49.868
45.994
-26.989
-3.970
-50.000
-19.527
0
0
-54.493
36.566

StrictlyConfidential

year 2
408.214
66.667
-90.560
384.321
-71.515
-4.969
0
-137.103
0
0
170.734
207.300

year 3
707.344
66.667
-54.484
719.527
-51.496
-1.689
0
-239.923
0
0
426.419
633.719

year 4
764.188
66.667
0
830.855
0
0
-200.000
-259.824
0
0
371.031
1.004.750

year 5
764.188
66.667
0
830.855
0
0
0
-259.824
0
0
571.031
1.575.781

Fig.16:Treasurypositionprojections

28

MagBox

StrictlyConfidential

6. Marketingmix
Servicesoffered
MagBoxwantstosellaservicetopublishersthatwillcontainfollowingelements:
MagBox vending machines will create an extra sales channel for Belgian magazine
publishers.Moreovertheywillbeabletoobtainahighermarginthroughthatchannel;we
expectanincreaseingrossmarginonthesalesofmagazinesofatleast15%.Thebusiness
modelaimstoofferaservicetothesepublishers.
MagBoxwillbeinchargeoftheownership,thelocationconsulting,theplacementandthe
maintenance of the vending machines. All these activities are noncore activities for the
publisher and the distributor. For this service we charge a fixed fee of 200 per vending
machineandavariablefeeof12%onmagazinesales.Withthispricesetting,MagBoxtries
tomaximizetheprofitforbothparties,takingintoconsiderationthepossiblerisks.
Publishers:
Ourservicewillfirstofallcontainmarketresearch,thismeansthatwewilllookforpossible
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
negotiationswiththem.Wewillalsotakeupthemaintenanceofallthevendingmachines.
Whenamachinebreaksdown,wewillbecontactedandwewillbeconsiderateoftechnical
problemsandmaintenance.Furthermore,wewillconductlocationmanagement,thismeans
thatwewillfollowupreactionsfromlocationsownersandendcustomers.Thiswillcreate
thepossibilitytoadapttheofferedmagazinestothelocationofthevendingmachines.We
will also identify successful and nonsuccessful locations to see if locations of vending
machinesshouldbereconsidered.
Locationowners:
Wewouldliketoofferpublicandprivateinstitutionsthepossibilitytoofferanextraservice
totheircustomersandvisitors.
29

MagBox

StrictlyConfidential

Endconsumer:
Wewouldliketoofferourcustomersfastandeasyaccesstotheirfavoritemagazineson
accessiblelocations.

Productdescriptionandproperties
VendingMachine

Fig.17:VendingMachine

Thevendingmachinesareavailableinwhitealuminumortrafficred.Weoptforthesetwo
colorssinceredwillattractattentionofpassersbyonthestreets.Whiteontheotherhand,
30

MagBox

StrictlyConfidential

willhaveamorehighendlookandwillbemoreattractivefortheprivatelocationssuchas
hairdressers.
Themainfeaturesofthemachineare:

Illuminatedshowcasefor8differentmagazineswithacapacityof40piecesper
magazine.

Twodifferentpaymentprocedures:coinsorbanknoteswithanintegratedreturn
buttonformotordrivencoinreturn.

Easyexchangeofprices.

Stainlesssteelcontrolpanel.

Programmablemicroprocessorcontrolunitwithdatastorageandtestprograms.

Quickandeasyconversionofcompartmentstodifferentpapersizes.

Productdeliverybyneedledrive.

Dimensions:
o Height:183cm
o Width:87cm
o Depth:87cm
o Weigth:318334kg

Powersupply:
o 230Volts
o Extralowvoltagesupplyforinternalfunctions

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
differentmagazinesasyoucanderivefromfigure18.Neverthelessitmightbepossibleto
enlargethevarietytoimportedmagazinessuchasElleandMarieClaireaswebelievethat
forexamplehairdresserswouldliketohavetheseones.
31

MagBox

StrictlyConfidential

Price
ThepriceMagBoxchargestothepublishersisbasedonafixedfeepervendingmachineplus
avariablefeebasedonapercentageofsales.Sincethepricesofthedifferentmagazinesare
fixed,ouraimistoincreasetheprofitsofpublishersbyprovidingwithanewsaleschannel
bywhichtheycangenerateahighergrossmarginonthesalesofmagazines.Bydelivering
theseservicestothepublishersMagBoxwilltakeariskbecausethecompanywillhaveto
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
MagBoxsignificantly.
ThetradeoffbetweenthetwopossibleactionsforMagBox,beingafixedoravariablefee,
were tackled by doing a variability analysis for MagBox and the publishers. By combining
theseanalyses,plusaddingariskfactortothedifferentrevenuemodels,thepriceMagBox
will charge to the publishers, in order to maximize the value for both parties, is a fixed
monthlyfeeof200pervendingmachineandvariablefeeof12%onthesales.Thedetailsof
thepricesettingcalculationscanbefoundinAppendix5.
The prices charged to the endcustomer, being the buyer of the magazine are fixed (see
figure18).
PUBLISHERS
Sanoma

ThinkMediaMagazines

DePersgroep

Roularta

MAGAZINES
Humo
Flair
Goedele
Glam*it
Story
Libelle
TEVEblad
Feeling
Pmagazine
Ch
DagAllemaal/Expres
TVFamilie/Blik
GoedGevoel
Knack
Trends

PRICES
2.40
2.10
4.20
3.25
1.90
2.15
0.95
3.90
2.20
4.95
2.00
1.50
3.90
4.00
7.00

Fig.18:Magazinepricesandtheirpublishers

32

MagBox

StrictlyConfidential

Place
First MagBox will address the most important publishers, being Sanoma, Think Media
Magazines,DePersgroepandRoulartainordertoconvincethemofourbusinessmodel.
MagBoxwilloperateasafullservicecompany,thisalsoincludesthemarketresearchofthe
mostrelevantlocations.Fromoursurveyandtheinformationwereceivedfrompublishers
we can conclude that customers would like to have their magazines available at any time
andspace.Antwerphoweverisyetaquitesaturatedmarketandthereforewewouldfocus
moreonprivatelocations.Thiscanbelowendaswellashighend.

Promotion
Thevendingmachinesformagazineswillbepromotedviathefollowingchannels:

Directcontactwithpartners(publishersanddistributorbeingAMP).

Abrochureinordertoprovideadditionalinformationabouttheconcepttoour
partners.

Acompanywebsitetoreporttothelocationowners.

Facetofacevisitswiththeintentionofconvincinglocationownerstoplacethe
vendingmachinesandtotakeadvantageofourfullserviceconcept.

Atelephonelineforlocationownerstocallincaseofstockouts,changeof
assortment,maintenanceanddefects,etc.

ParticipationataspecialistfairsuchasDeBoekenbeurs.

33

MagBox

StrictlyConfidential

7. Humanresources
ExecutiveManagement
CEO

FlorisVanden
Broeck

CFO

NicolasMacharis

KULeuvenMasterCommercialEngineering
VlerickMasterFinancialManagement
UniversityofGhentMasterCommercialEngineering
VlerickMasterFinancialManagement

COO

GeorgesNde

KULeuvenMasterCivilEngineering(MajorElectronics)
VlerickMasterFinancialManagement

VPLocations

NathalieMonsieur

UniversityofAntwerpMasterinAppliedEconomics
VlerickMasterinMarketingManagement

VPMarketing

MaaikeJoris

ArtesisHogeschoolAnterwpenMasterinProduct
DevelopmentVlerickMasterinMarketingManagement

VPSales

JulieEerdekens

UniversityofAntwerpMasterinAppliedEconomics
VlerickMasterinMarketingManagement

BoardofDirectors
ThecompanyboardwillincludetheExecutiveManagementandStrategicPartnersthatare
interested.

Strategicpartners

SanomaisaleadingBelgianPublisherwithabroadrangeofmagazines.MagBoxhas
establishedpreliminarycontactsthatwillbedevelopedintoafullpartnership

AMP is the main distributor in the Flemish magazine market. With the support of
publishingpartners,MagBoxwillestablishastrategicrelationship.

Wrlitzer is a German producer of automated vending machines. MagBox will

partnerupwiththiscompanytosecurelongtermsupplyofvendingmachines.

Ownershipstructure
MagBoxwillbeownedbyitsExecutiveManagement.Eachofthesesixwillinitiallyhold16.7
%(or1/6th)oftheshares.TheMagBoxshareholdersareopentoexternalinvestors.
34

MagBox

StrictlyConfidential

8. Appendices
1. Businessplanquestionnaire
1. Gender
- Male
- Female
2. Age
- ...
3. Whatmatchesbestforyou?
- Student
- Working
- Other
4. Whendoyouliketoreadyourfavoritemagazine?
- 6am9am
- 9am11am
- 11am2pm
- 2pm6pm
- 6pmmidnight
5. Imagine magazines and newspapers would be available 24/7 through vending
machinesdeployedinpublicspaces.Example:Youareinatrainstationearlyin
the morning before opening hours and you would be able to buy your favorite
magazine/newspaper.Thiswouldalsocomeinhandywhenthereisalongqueue
infrontoftheshop.Wouldyoubeinterestedinthisconcept?
- Yes
- No
6. Ifno,whynot?
- ...
7. If you think this is an interesting concept, where would you like to see these
vendingmachine?(morethanoneanswerispossible)
- School
- Work
- Street
- Trainstation
- Bakery
- Hospital
8. Othersuggestionsoflocations?
- ...
9. Inwhichmagazineswouldyoubeinterested?(morethanoneanswerispossible)
- Humo
35

MagBox

StrictlyConfidential

- Knack
- DagAllemaal
- Story
- Elle
- Feeling
- Cosmopolitan
- Joepie
- GQ
- Sportweekend
- Blik
- Autowereld
- Geo
- Goedgevoel
- Goedele
- Newsweek
- TheEconomist
- Trends
- PMagazine
- Ch
- MarieClaire
10. Othersuggestions?
- ...
11. Howfrequentlywouldyoumakeuseofsuchavendingmachine?
- Daily
- Weekly
- Monthly
- Lessthanmonthly

36

MagBox

StrictlyConfidential

2. Questionnaireresults

37

MagBox

StrictlyConfidential

38

MagBox

StrictlyConfidential

3. Conductedinterviews
3.1NoraPeeters(Sanoma)
(InterviewconductedoverthemonthofJanuaryviatelephoneandemail)
Markettrends:
Theamountofmagazinessolddeclineseveryyearby2%.Thesaleshoweverdonotdecline
sincethereareregularpriceincreasesandaddedproducts(suchasDVDs,CDs,)thathigher
the turnover. Two reasons for this decline are the extensive attachments of newspapers
duringtheweekendandthetrendofdecliningyouththatreadmagazines.Everythingthey
wanttoknowisavailableonlineforfree.
Importedmagazines:
Mrs.NoraPeetersrecommendednottoputtheseinthevendingmachine.Asalesfigureof5
to 10 pieces would not be profitable relativelyto other magazines such as Feeling, Vitaya,
Goedele,GoedGevoel,..
Imported Magazine
Cosmopolitan
Fancy

Belgian sales per year (excl. Subscription)

6,974
6,286

Conditionsofdelivery:
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
fixedamountonlyones.
Publishersarenotallowedtomakeagreementsonthis,thiswouldbeacartelandisillegal.
However iff.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.
Categoriesofshops:
Sanoma segments their customers into three categories based on yearly turnover
concerningtheirmagazines:
39

MagBox

StrictlyConfidential

A=Bestones,turnover>30,000
B=Turnover20,00030,000
C=Turnover<20,000
Thenumberofmagazinesyougetfromeachbrandishoweverdeterminedbythepublisher
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.
Marginsandpricesoftheirmagazines:
Sanomaappliestwodifferentmarginsdependingontheclient:

Kiosks:25%commissiononsales
Supermarketsandbookstores:20%commissiononsales

Figure:PricechangesontheirmostimportantDutchmagazines

40

MagBox

StrictlyConfidential

3.2PeterBouckaert(DePersgroep)
(Interviewviatelephone19thofJanuary9.30)
DePersgroepalreadytriedtheideaofvendingmachines,theystoppedthishoweverfortwo
reasons;

MachinesboughtinGermanythathappenedtohavealotoftechnicalproblems.
(Peoplewhostillhavevendingmachines,builtitthemselves.)

Those machines were filled by storekeepers. It was hard to find a location and you
createcompetition.Ifyouareapublisheryoushouldbeabletoofferthesevending
machinestoallyourclientsandnotjustbyone.Thiswouldcreatedisparitybetween
shopkeepers.

Conditionsfordelivery:
If you want to distribute their magazines, they will first do a market research in order to
decideiftheywanttoprovideyouwiththeirbrands.Thecostofthisstudyequals220.We
negotiated that we do not have to pay for each vending machine. Instead we will pay the
fixedamountonlyones.
Ifyougettherighttodelivertherearetwopossibleoptions:
1. metrechtvanretour:Youareabletoreturnallunsoldmagazinesinordertolimit
yourrisk,hereforeyoucouldget15%marginonthesellingprice.Thismargincanbe
higherifyougivethemexclusivity.
2. zonderrechtvanretour:Youarenotabletoreturntheunsoldmagazines.

Location:
Hebelieves,Antwerpisasaturatedmarket.HealsomentionedthatPresshop(Relais)have
exclusivityrightsforthestationsandBrusselsAirports.Thereforeherecommendstofocus
somemoreonprivatelocationssuchasuniversities,hospitals,hairdressers,.

41

MagBox

StrictlyConfidential

3.3JanMey(Krantenautomaat(NL))
(Informationgivenbyemailon19012010)
As from April they will launch the concept of newspaper vending machines in the
Netherlands.Wesubtractedthemostimportantinformationfromhisemail;
Marketsituation:
TheprintrunofpublishersintheNetherlandsconsistsof70%ofsubscriptions.Inthefuture
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).
Targetgroup:
Themostpotentialtargetgroupforthefuturearepeoplewhentravelingfromhometowork
andviceversa.Theydonotwanttocommittoasubscriptionbuttheydohoweverwantto
readnewspapers(lookatthesuccessoffreenewspapersdistributedinMetrostations).60%
ofthisgroupisyoungerthen35yearsoldandtheyhavearatherhigheducation.Amarket
shareof5%wouldbeenoughtocounterthelossinsubscriptions.Thevendingmachinescan
be filled with newspapers before opening hours of kiosks and attract early travelers.
ResearchinGermanyshowedthatbefore8oclockinthemorning75%ofsalestakeplace.
Locations:
When focusing on homework travelers, ideal locations would be train stations, metro
stations,etc.Bigofficesandhospitalsarealsointeresting.Weareactuallylookingforplaces
wherepeoplehavetowait/stayforawhile.
Permits:
Theacquisitionofpermitsfromthegovernmenttobepresentinpublicplaceswillbeavery
difficultprocess.Permitstobepresentinrailwaystations,metrostations,hospitals,etc.are
mostofthetimelessdifficulttoacquire.

42

MagBox

StrictlyConfidential

Estimatedsales:
Theirtargetisaminimumof20newspapersadayforpopulartitels.Thosenewspapersfora
specialtargetgroupandwithahigherpricehaveanestimationof10newspapersaday.
Prices/marginsandotherrelatedfinancialinformation:
Priceswillbeinbetweenpricesforsubscriptionsandkiosks.Customerswillbeabletobuya
cardwhichwillbesomesortofasubscription.
Recoverthecostofthevendingmachines:whenbuyingorleasingthemachinesinvestments
willberecoveredin3yearswhenonaverage12newspapersaresoldaday,atanaverage
priceof1.
Financing:Investmentswillbefinancedbythebankbasedonbuy/leaseagreementswiththe
publishers. For the first part of the project, credit guarantee is offered by the
Stimulatiefondsvoordepers.
Distribution:
Thevendingmachineswillbefilledonceaday.Morningnewspaperswillbefilledbefore6
aminthemorning.Eveningnewpaperswillbefilledataround4pm.Thiswillbedonebythe
distribution organization of the publishers. We estimate that a minimum of 10 locations
mustbevisitedinoneandahalfhour.

43

MagBox

StrictlyConfidential

3.4JohanVerrue(ProfessoratHogeschoolGent)
(Interviewconductedon19/01/2010Korenlei22,9000Gent)
Students at the Hogeschool Gent (2nd Bachelor) created a business plan concerning vending
machinesfornewspapers.Theyfoundouthowever,thatthisconceptwouldnotbeprofitable
(mainly because of the small margins). Their business plan was based on selling a concept
(creatinganoverviewofthemostimportantprocesses).
Hesuggestedustodothemarketresearchourselves(e.g.useofGoogleMapsandlookforthe
emptyspots)andtodefinethetargetgroups.Thiswaywecouldofferconsultancyservicesfor
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
suggestedtoworkasacontactperson;e.g.ifthemachinebreaksdown,theclientscontacts
usandwearrangereparations.
Someattentionpointswecouldderivefromthisinterview:

ContactSovoreg(socialevoorzieningHogeschoolGent).Theywereinterestedin

thisconcept!

Whatcanmakeyouasacompanyunique?

Howtomakeitdifficultforcompetition?

ComparisonCocaCola/Cigarettes/Magazines

Exploitationbusiness

PortGhent/Antwerp?Butwemusttakeotherelementsintoaccount!

Sanoma:askfortheirMarketResearch

44

MagBox

StrictlyConfidential

3.5FilipHebb(ownerofKioskBredakrantinAntwerpMerksem)
(InterviewviaemailconductedonTuesday19thofJanuary2010)
Momenteel zijn er slechts 2 grote verdelers van tijdschriften op de markt namelijk AMP en
Imapress.
ErvindteenjaarlijkseherzieningplaatsbijAMPvanhetzakencijfervanelkedagbladhandelaar
(alsstarterwordtereenschattinggemaakt).Startersbeginnenookaananderevoorwaarden,
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
maandcijferafgehoudenvandeleveringengedurendediemaand.Concreet,jebenteenklant
van10,000/maanddanbetaaljealsdagbladhandelaarwekelijkseenvoorschotvan2,500.Op
het einde van de maand krijg je uw credit en debet en wordt op het 1ste van de maand het
saldoverrekendvandevoorbijemaand.
Metanderewoordenikbetaalde8,15,22ende28steeenvoorschotvandegeleverde,indit
geval van de maand januari, eind februari krijg ik mijn overzicht met de daarop betaalde
voorschotten,envermeerderingofverminderingvanjanuari, de1stemaartbetaalikoftrekik
terug, opdezemanierheeftAMPzekerzijncentenvanwatzeleverdenenvoldoendetijdom
allesteverrekenenquaaanvoerenretour, sommigecollegasopterenvoor3voorschottenen
1grotereafrekening, dezemoeteneenwaarborgbetalenvan1maandgemiddeldeomzet,in
vormvanbankwaarborg, ookkanergenegotieerdwordenomtrentdezeregelingen, degrotere
klantenhebbenbv.demogelijkheidom1xtebetalen,30dagennahetgeleverde,warenhuizen,
ketense.d., dezelfstandigeuitbatersontkomennietaandemonopoliepositiewatAMPinfeite
heeft.

45

MagBox

StrictlyConfidential

3.6Mr.DeVos(DeVosDagbladen)
(Interviewviatelephone12thofJanuary15h10)
Mr.DeVosoperatesabout15machinesinBrugesandnearbyvillages.Throughthesevending
machineshesellsbreadandnewspapers.Heownsanewspapershopandtourthatis
responsibleforabout3000newspapersubscriptions.
Themarginhereceivesfromnewspaperpublisherontheendsalepriceis25%.Heindicated
thatsimilarmarginsaremaintainedonmagazinesale.
Hisaverageincomeamonthfromsalesisabout40eurospermachinewhichmoreorless
covershisotherexpenses(electricity,locationrent&tax)relatedtothemachineoperation.
Thevendingmachinesarefilledeverymorningbytheguysresponsible.Oneofhismainissues
isthefactthatheneedsthenewspapersfromthepublisherbefore04am.
Hemoreoverdoesnotbelievethattheconceptofvendingthroughmachineswillbesuccessful
aslongaspublishersripoffsmallnewspaperstoresandpressrepresentatives.Formagazines
hesawmorepotential,thehigherincomeshouldbeabletomoreeasilycoverfixedcostswhile
sufferingfromlesslogisticcomplications.

46

MagBox

StrictlyConfidential

4. DealwithINGBank

GeorgesenNathalie,

Ikhebhetbusinessplanevensneldoorlopeneninmijnogenzithetconceptgoedinelkaar.
Ikmisechterwelwatinfooverhetgebruikvandegevraagdebankfinancieringen...Waarvoor
gaandezeleningenspecifiekgebruiktworden??
Ikneemaandatdeleningop3jaarbedoeldisvoordeaankoopvandeeerste40vending
machines?Inditgevalzouikaanradendezemachinesteleasenop4jaar.Leasingisimmerseen
assetbasedfinancieringwaardoorhetrisicovandebankbeperktwordtenvoorjullieheelwat
flexibiliteitinhoudt.Eenleasingkanzoweloffalsonbalancegenomen,inheteerstegeval
wordendefinancielelastenrechtstreeksinderesultatenrekeninggeboektwaardoorde
solvabiliteitvandeondernemingnietwordtaangetast.
De50.000isbedoeldalswerkkapitaal?Inditgevalzouikvoorstellenomeenstraightloan(of
INGOpticash)van50.000toetekennen.Dezewordttoegekendtotnaderbericht.

Hetfeitdatdezaakvoerderseeneigeninspanningleverenvan120.000bevestigdhet
vertouwenvandezaakvoerdersenstaatmooiinverhoudingmetdegevraagde
bankfinanciering.Inprincipeverwachtdebankeenminimumeigeninspanningvan20%.

Watbetreftdezekerhedenstelikvooromeen1erangsinschrijvingtenemenophet
handelsfondsvandeondernemingtbv.50.000igvdevendingmachinesgeleasedworden.
Wordendemachinesgefinancierdmeteenklassiekefinanciering,danstelikvooromnaastde
1erangsinschrijvingophethandelsfondstbv.50.000,eenbijkomendeinschrijving/lastgeving
ophethandelsfondstenementbv.100.000.

Mawpositiefadviesvoordegevraagdefinancieringen.

Alsjullienogvragenhebben,aarzeldannietommijmorgenophetwerkeventebellen.
0499/86.04.53.

groeten!!

ContactwithGuusDeBoerfromINGBank(Guus.De.Boer@ing.be)
EmailonSundayJanuary24the.

47

MagBox

StrictlyConfidential

5. OfferWurlitzer

PRICELISTN14

NewspaperVendingMachines
ConfidentialDistributors'ExportNetPriceList
EffectiveJune23,2008Cancelsallpreviouslists

MagazineVendor

MV6ND

MV8ND

Preparedforcoinchangere.g.NRIG46
StandardcolourRed(RAL3020)orwhitealuminium(RAL9006)
From1020units*
From2150units
Morethan50units

5.400,00
4.650,00
4.250,00

6.680,00
5.980,00
5.605,00

*priceforsamplesuponrequest

Optional:
NRIG46MDB

SpecialcolourMV6ND/MV8NDforlessthan12units
BillacceptorNV9MDB*
Receiptprinter**
Illuminatedtop**
Securitycoininsertion**

394,00

140,00
441,00
370,00
326,00
97,00

**onlyforMV6/MV8

Allpricesareexworks
Thislistissubjecttochangewithoutnotice
Allordersaresubjecttotheprice,termsandconditionsprevailingattimeofshipment

DeutscheWurlitzerGmbHWurlitzerstr.6D32609Huellhorst
Telephone:0049(0)57449410Fax:0049(0)5744941220
http://www.deutschewurlitzer.deEmail:contact@deutschewurlitzer.de

48

MagBox

StrictlyConfidential

6. VarianceAnalysis
ThevarianceanalysisshowsthecombinedmaximizedprofitforMagBoxandthepublishingcompanies,takingintoaccounttherisks.

%onsales

Theidealpricecombinationisafixedfee200andavariablefeeof12%onsalesofthemagazines.

1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%

fixedfee
50,00 100,00 150,00 200,00 250,00 300,00 350,00 400,00 450,00 500,00
12146073,24
10097988,25
7927816,63
5777288,678
3766534,684 1994084,938
536869,7289
549780,6528
1232135,917
1498065,774
9905892,348
7957067,939
5936246,862
3974900,849
2182901,628 648520,9298
561569,5156
1402297,978
1850192,728
1903382,035
7821619,678
5976927,988
4107081,498
2333293,378
755176,7985
549255,0715
1523589,061
2133012,001
2364310,721
2225872,051
5893255,236
4157568,397
2440320,538
852466,2672
516639,8039
1599243,066
2349188,908
2741922,722
2774489,896
2465535,821
4120799,021
2498989,165
935963,98
467580,4848
1632548,179
2501443,053
3038369,057
3229030,14
3080730,253
2622373,345
2504251,033
1001190,292
405988,1744
1626846,878
2592548,327
3255855,034
3591129,506
3594334,256
3283031,792
2696384,624
1043611,271
335828,2213
1585535,926
2625332,911
3396640,249
3862479,007
4007470,258
3837835,069
3381394,512
2687569,657
261120,2627
1512066,376
2602679,274
3463038,586
4044823,943
4321314,974
4287391,31
3959532,58
3375818,415
2595928,445
1409943,57
2527524,171
3457418,218
4139963,901
4537099,41
4632362,934
4430892,663
3959426,789
3266303,5
2421460,986
2402858,65
3382201,607
4149752,76
4656108,857
4873466,65
4795622,887
4437974,318
3837517,695
3052849,766
2164167,283
3239865,502
4076098,684
4679682,898
5011473,454
5053925,662
4811094,833
4308636,275
3593805,299
2735457,215
1824047,333
3920964,128
4609215,402
5047208,634
5206057,692
5078476,448
4678778,772
4042878,532
3228289,6
2314125,846
1401101,138
4446154,527
4981551,761
5252329,966
5239861,571
4947119,007
4398674,704
3640701,091
2740970,599
1788855,658
895328,6975
4815436,699
5193107,76
5295046,894
5112885,09
4659853,339
3970782,629
3102103,951
2131848,296
1159646,652
306730,0111
5028810,643
5243883,401
5175359,42
4825128,251
4216679,443
3395102,547
2427087,113
1400922,69
426498,8288 364694,9208
5086276,361
5133878,682
4893267,542
4376591,052
3617597,321
2671634,459
1615650,576
548193,7818 410587,8129 1118946,098
4987833,851
4863093,604
4448771,262
3767273,494
2862606,971
1800378,363
667794,3397
426338,4288 1351613,273 1956023,522
4733483,114
4431528,167
3841870,578
2997175,577
1951708,394
781334,2606
416481,5948
1522673,942
2396577,55
2875927,19
4323224,151
3839182,37
3072565,49
2066297,3
884901,5908 385497,8487
1637177,228
2740812,757 3545480,646 3878657,105
3757056,96
3086056,215
2140856
974638,665
337813,44 1700117,965
2994292,56
4080754,875
4798322,56 4964213,265

49