Forecasting Returns & Cash Flow From Retailers And Cards In Operation

Forecasting Beep Returns Based Upon A Single Transaction and Multiple Transactions

Above is the breakdown of a typical BeepXtra transaction. The example is the breakdown given £10 spent by a customer with a single retailer offering a typical 10% discount (Can be less) this would give the customer £1 on his Beep account and 27.5p into the Beep System that enables cash to flow and the system to operate. The breakdown is 11p to Beep and 16.5p to the Payment or Compensation plan.

This can’t be an exact science so to bring the results as closely as possible I’ve used a three point estimating approach but giving 4 values to work with 25p - £1 (Minimum, Maximum and Most Likely)

	Revenue Generated Per Card/ Application/ Month.	Cards/ Apps	Revenue	Revenue	Revenue to Introducer Per Month
		Distributed Per Shop	1 Shop	10 Shops
	25p	1000	£250	£2,500	£2,500
	50p	1000	£500	£5,000	£5,000
	75p	1000	£750	£7,500	£7,500
	£1	1000	£1,000	£10,000	£10,000
	4 values that are equated to a small turnover retailer where 25p - £1 represent the proportion of spend goes to the retailer originating the card. An equal amount would go to the agent who had invited the originating retailer. Below the same example with 2000 cards given out.
	Revenue Generated Per Card/ Application/ Month.	Cards/ Apps	Revenue	Revenue	Revenue to Introducer Per Month
		Distributed Per Shop	1 Shop	10 Shops
	25p	2000	£500	£5,000	£5,000
	50p	2000	£1,000	£10,000	£10,000
	75p	2000	£1,500	£15,000	£15,000
	£1	2000	£2,000	£20,000	£20,000
	Revenue Per Card/Month v Cards	10,000	20,000	50,000	100,000
	£5	50,000	100,000	250,000	500,000
	£10	100,000	200,000	500,000	1,000,000
	£15	150,000	300,000	750,000	1,500,000
	£20	200,000	400,000	1,000,000	2,000,000
	£5 - £10/ £20 - £50 now represents the value to each retailer and introducer with an increased number of cards from 10000 to 100,000. The highlighted yellow is now the return. The period is 1 month.
	Revenue Per Card/Month v Cards	200,000	300,000	400,000	500,000
	£20	4,000,000	6,000,000	8,000,000	10,000,000
	£30	6,000,000	9,000,000	12,000,000	15,000,000
	£40	8,000,000	12,000,000	16,000,000	20,000,000
	£50	10,000,000	15,000,000	20,000,000	25,000,000
	Revenue Per Card/ Month v Cards	500,000	600,000	800,000	1,000,000
	£20	10,000,000	12,000,000	16,000,000	20,000,000
	£30	15,000,000	18,000,000	24,000,000	30,000,000
	£40	20,000,000	24,000,000	32,000,000	40,000,000
	£50	25,000,000	30,000,000	40,000,000	50,000,000
	The Scenario now follows the original example of 3.3p per £10 spent across the ranges £20- £50 per card or application. The number of cards/ applications ranges from 200,000 to 500,000, 500,000 to 1,000,000
	Revenue Per Card/Month v Cards@ 3.3p/£10 spend	200,000	300,000	400,000	500,000
	£20	13,200	19,800	26,400	33,000
	£30	19,800	29,700	39,600	49,500
	£40	26,400	39,600	52,800	66,000
	£50	33,000	49,500	66,000	82,500
	Revenue Per Card/ Month v Cards@3.3p/£10 spend	500,000	600,000	800,000	1,000,000
	£20	33,000	39,600	52,800	66,000
	£30	49,500	59,400	79,200	99,000
	£40	66,000	79,200	105,600	132,000
	£50	82,500	99,000	132,000	165,000
	Revenue Per Card/ Month v Cards@3.3p/£10 spend	1,000,000	5,000,000	10,000,000	100,000,000
	£20	66,000	330,000	660,000	6,600,000
	£30	99,000	495,000	990,000	9,900,000
	£40	132,000	660,000	1,320,000	13,200,000
	£50	165,000	825,000	1,650,000	16,500,000
	Revenue Per Card/ Month v Cards@3.3p/£10 spend	100,000,000	200,000,000	300,000,000	600,000,000
	£20	6,600,000	13,200,000	19,800,000	39,600,000
	£30	9,900,000	19,800,000	29,700,000	59,400,000
	£40	13,200,000	26,400,000	39,600,000	79,200,000
	£50	16,500,000	33,000,000	49,500,000	99,000,000
	The last set of Figures looks at 100,000,000 – 600,000,000 and 3.3p per £10 spend over the range £20 - £50.  200,000,000   –  300,000,000 is the number of fans Man Utd are beleived to have based on publicised figures. The 600,000,000 figure is the number of Chinese OnLine – Not Supporting a Football Club Currently.. Source China Info Marketing. http://chinainfomarketing.co.uk/