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SMaturin

07/28/10 11:05 PM

#32862 RE: Balanced Attack #32856

Thank you, sir! Exactly the sort of breakdown we need!

The $100K figure has a sort of built in economy of scale for a 7-store local franchise chain. $30K of it is the server (and I am assuming that includes all software and support costs). That still means about $10K per store of individual hardware costs. The per store cost is about $17K if a central server is required. This is where the SaaS/cloud model will look much more attractive! Let somebody else worry about maintaining the vital central server; outsource the problem to experts!

Single store FIRMS cost is (hypothetically)

sign up costs = $2000
plus maybe 5 iPads= $2500
wifi router or three = $500 (plan for redundancy, we may need repeater for the back partyroom, etc.)
a wireless printer = $500 (if you throw in a year of ink?).


We are up to less than $6K hardware cost, about half of the single store hardware costs excluding server and software for your client, less than a third if the full distributed server-based system cost is figured.

We can even afford a nice laptop for the manager's office, a kitchen terminal to receive orders (if it is not an additional ipad serving this role) and a wifi-connected desktop for the hostess desk up front to manage reservations, and still be way ahead of the hardware costs of your hardwired POS system.

If we assume the hostess carries an ipad and phone to manage the reservations, then the additional terminal up front can be eliminated.

When you add in the economy of scale for multiple business locations included under the initial $2K signup fee, it gets even cheaper per store!

The only remaining question: how soon will the restaurant owner be getting his yacht? ;-)
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StockVoyager

07/29/10 12:27 AM

#32863 RE: Balanced Attack #32856

7 store example-5yrs LCRE=0.5M vs. 0.275M (Sigh)!

LCRE:
14,400.00 <- a year per store (12 x 1200 mo.)
72,000.00 <- 5 year cost per store
504,000.00 <- 5 year cost for 7 stores cost of ownership
Note: Costs do not include hardware = more

Competition:
100,000.00 <- Initial cost and setup for 7 stores
5,000.00 <- Maintenance per store high estimate
275,000.00 <- 5 year cost for 7 stores cost of ownership

100,000.00/7 + 35K year for maintaince (very high estimate)

Numbers do not lie - what is it you can't see with an
actual real world example not even presented by me!
What is it you can't see? Break it down for yourselves!
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fairandbalanced

07/29/10 4:24 AM

#32872 RE: Balanced Attack #32856

yacht boy sounds like he knows what he's talking about...but your examples in Vegas, are they in strip casinos?