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I took a very hard look at Gamestop, and thought what do they do right??
They have the largest selection of games
They trade used & new games
They do not spend unnecessary money on advertising...the game producers do that for them.
Now what do they do wrong??
They don`t rent games...renting fees are not taxed.
They don`t deliver.
They are not open at midnight when many games are purchased.
They do not provide an area for gamers to really experience the games they are trying to sell.
They do not take advantage of gaming tournaments...more lost sales.
They do not show any customer appreciation.
They do not provide good customer service.
They do not sell food & drinks...if you already have the gamers and they are immersed in the new game, take advantage of that point of sale your missing.
My business model does all those things and more.
"Not Just Games!" addresses all these things.
We
deliver, we host tournaments, we sell food, we provide online gaming
for up to 12 customers at a time, we provide all the things "the
customer asked for!" All these things mean one thing...a bigger bottom
line! Nearly double what Gamestop`s average yearly sales! What is that
number? They have a store average of 1.38 million, while we are looking
at 2.9 million. All this from addressing what the customer "Asked for!"
Revenue
or
How does NOT JUST GAMES!
make money???
We make money from from four different sources.
movie & game rentals
The average earnings from your everyday Blockbuster, Movie Gallery...is $33,000 a month
(they don`t deliver)
Movie & Video Game & equipment sales & trade
The average earnings of Game Stop is $1,380,000 million year each store.
(they don`t deliver) & when games are released at midnight those people who have to have the game now go to Wal-Mart more sales out the window.
Food delivery, take out,in house sales
well let`s take the average of 14 Jimmy John`s their yearly sales are $1,134,667.
$396,000
$1,380,000
$1,134,667
total sales a year $2,910,667
I don`t fore see sales this high the first year, but by the second, Yes definitely.
now remember we talked about 4 resources for our money...here is the 4th.
We have a video game work shop incubator. We provide 2 computers and the soft ware & the resources for free to our customers to make their own games. The cost is minimal and self funding, after start up. We own the games and sell them. They get credit, experience, new insight, as well as a portfolio of their work. This business has never been done. What is it worth?? Maybe nothing....but what if the next big thing is made?? Maybe millions....I think being on the ground floor of the possibility is priceless. They make the games...for free & they eat our food, buy our games, rent our movies. Even if we gave them 10 0r 20% percent of any games sold. We win & they win.
Now we weigh the potential of what this business is worth against the start-up cost.
$125,000 minimum $167,000 optimum.
potential yearly sales $2,910,667
Research
Research should always be the key in preparing for any business. Lexus proved this through intensive questioning of their market customers. They focused on their target group the Mercedes Benz customer asking them what they wanted in their car...and Lexus was born.
I paid three separate groups to compile my research.
Wal-Mart electronics department
Game stop
Domino`s Pizza
Blockbuster Video
X-box Live
Each group was given a check list and sometimes a tool to measure the information I needed to compile.
Wal-Mart`s
check list asked 100 parent`s & relatives how many games they buy
their kids in a year. The average was 3! Also we found the single
parent or both parents that work all the time bought their kids 3 to 4
times as many games a year & rented movies constantly sometimes as
many as 10 a month.
Gamestop they had two checklist asking how many times are games traded? and what is the average age of a gamer buying for themselves and on release date where do you buy your games?
A sticker was put inside the inside case of 100 traded games...the average number of times a game was traded was 4. You just doubled your money on one game!
Average age of gamer`s was 31 years old!
On release date they ran to Wal-Mart to buy their games at midnight! 44% percent of the time they were out of their game. They threw that info in for free.
Domino`s Pizza out of a 100 customers 62% were either watching movies or gaming!
Blockbuster Video
Out of 100 customers how many were getting food to go, or delivered?
48%
Xbox Live
Out of 100 people what are you eating & drinking while you play? Why are you eating that particular food? Are you alone or with your friends?
Chinese was 43% why because they deliver!
Pizza was 42% because they deliver!
Subs, Cheese Steaks, and Mexican rounded out the rest of the field.
Drinks
sodas were 61%
energy
drinks & caffeine based products such as Starbuck`s double shots
rounded out the rest. Beer was also a big factor...we are still weighing this as a possibility.
These numbers gave me my target customer base, single or working parents, and the hardcore game! They are the ones who will buy my products on a consistent basis.
This is not a restaurant....not a video store...not an internet cafe it is the culmination of research to identify who buys, rents, and what they eat & drink. We have no waitresses, no formal dining area. This not for children!! They have Chucky Cheese they don`t need another. Giving these people what they want and how they wanted it is the key to this business succeeding!
What I am proposing doe not exist “anywhere” It is completely self funding after start-up. I know that the next great game will be made by gamers...not corporations. The proof?? Games like Portal, and user content in Little Big Planet has astounded the gaming industry. If we provide them the tools, they will use them.
How will this be done??
I will live on site, and be working a minimum of 70 hours a week. This is to cut cost, I will buy most of my equipment used...kitchen equipment, video game units, and some furnishings. Me and 2 others will renovate the building ourselves to cut cost even further. Why?? because I am cheap, but i don`t cut cost where it counts. The food & service must be top of the line. I will hire 5 people to execute day to operations.
What is an example of a hybrid??
My business proposal is for a video game retail “hybrid”. Hybrids have proven their success over the years, while single minded entities have struggled.
Dave & Busters food games (they proved people love games & food but you cannot buy & take them home] Chucky Cheese (combining cheap food & arcade machines) Hastings (selling books, movies, video games & coffee) UWINK INC. (food,games)
This
hybrid goes much further than any other combing video game (sales,
rental, and trading)movies (sales, rental, and trade) food (dine in,
carry out, and deliver) gaming area (Xbox Live hosting up to 12
people & tournaments) and game development area (computer with
Maya & Xna studio software) We work with our customers to develop
games for Xbox, we sell the games and they get a greater
understanding of what goes in the gaming industry.
You can have all rights to any other
locations that open. What I propose is you help me get this prototype
off the ground for which you receive 45% profit for the next 5 years
and own any franchise rights. You provide the money and I use my food
& beverage skills to create an ever evolving business.
Our goal is to offer movies, video games (used & new), and food...all
delivered*!
We offer all
our video games for rent for $1.00 day....you pick your package 5,
10, 15 days.
and remember we deliver*. Want to trade in your games
no problem, you can even trade for credit on your rental
account!!
Food, we have an incredible selection of pizza,
pasta, salads, soups, egg rolls, and cheese steaks.
Hosting all X-box
live games as well as tournaments....(All of this with surround sound
and comfortable seating) This adds up to hosting up to 12 players
on-line at the same time. We have weekly tournaments and all headed
to the yearly final.
the cost for tournaments is
$5.00 entry fee as well as 1600 Microsoft points....remember there is
a weekly iron man tournament....the grand prize is all the Microsoft
points currently in our war chest!!!
Eat, drink, watch, heck
get involved and pick up some tips, or just play!!
We also
have an in house video game workshop...ever wanted to make your own
video games??? Or asked yourself how do I get involved...well with
Microsoft`s XNA studio we have monthly projects where we all work
together to make our own games...these can be ported straight to
X-box 360.
Ever had to wait in line for your new game on
release date??? Why??? When we deliver all newly released games to
our pre-order customers at midnight!!! Of
course we charge them for delivery.
Below you will see where that money goes.
|
Tv`s & monitors $7,600 |
Xbox $1,600 |
|
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Games & movies $16,600 |
cables & hubs $520 |
|
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headsets $800 |
seating $5,800 |
|
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computers & software $5,770 |
leasing building $5000 a month (first three months) *plus 3% of sales at end of year this comes out of my end |
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insurance $240 |
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kitchen equipment & food $16000 |
||
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installation & shipping $4500 |
license & legal $875 |
|
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fixtures & lights $2200 |
cleaning painting $3000 renovation cost $9600 |
|
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salary`s for 5 employees for 3 months $30,000 |
cleaning equipment & supplies $1800 vehicle leasing and insurance $3400 |
|
This being a start-up which has been researched for over 4 years, feel confident in it`s survival as well as it`s franchise possibilities. Blockbuster, Game stop, and any restaurant business`s are limited in their scope. They fail to provide one complete service, people flock to buy their games at midnight on the release date. So why shouldn`t it be delivered?? Makes no sense to me, in delivering you gain the trust of the consumer as well as loyalty to your brand. Blockbuster only serves to overprice their rentals hence alienating them. We should embrace the customer`s needs and in turn make them apart of our team.
1st year projections
Food sales monthly projections (these numbers are based on very low projections)
Pizza Large 25 units at $18.00 ($450.00) a day a month ($13,500)
Medium 15 units at $10.00 ($150.00) a day a month ($4,500)
Small 20 units at $5.00 ($100.00) a day a month ($3,000)
Cheese Steaks 20 units at $8.95 ($179.00) a day a month ($5,370)
Egg rolls 50 units at $1.50 ($75.00) a day a month ($2,250)
Salad 20 units at $4.75 ($95.00) a day a month ($2,850)
this is not the complete menu it only shows just enough to show diversity
Food Cost is 25.6%
Video game & movie rentals, sales, & trade
video games 400 units $52.00 ($20,800) every 2 weeks a month ($41,600)
rentals 200 units $2.00 a day ($400) a month ($12,000)
tournaments 60 units $5.00 Mon, Wed, Fri 60 units $10.00 *micro-soft points
a week $900.00 a month ($3,600)
Total sales for the first month $110,792.50
The Cost for movies & games varies between 47% & 50%
Management Overview
Highly adaptable to this ever changing industry. Key member in identifying and eliminating any problematic situations in any team settings. Excel at analyzing products, procedures, and key players to improve efficiency and company goals.
Always looking to the future, and how current business affects that future and the company.
