City Cycle Glasgow Why we love our business: Unique – New in Scotland Affordable – Low hire and membership cost Personal – There to suit the customer Environmental – In impact and output Modern – Brings the classic together with the techy
Day to Day Service Offer hire from high foot flow areas. Give customers access to quality KONA bikes picked specially for the Glasgow terrain
Few staff monitor each station and take payment and deposit. Encourage people to become members and join the City Cycle family Be a customer friendly business … they pick up and drop off wherever suits them Encourage non-residents of the city to ‘hop on their bike’
Financial Summary Membership from as low as £2pm PAYG for up to 20% discount. Low entry price point at just £8 for day hire, £40 for Week and £120 per month. (approx. 30% Disc for Long Term Use) Revenue can be vast- we are gearing usage at only 50% capacity to start with being pessimistic Want to have 100 bikes on hire revenue of 134K with profit of 40K (30% Margin) Advertising on bike hoped to be another viable income source of £17K extra of pure profit. Sponsorship by companies from £0.50 per bike per day
What makes us Unique Exploits council investment in existing infrastructure (ÂŁ6 Million) Worlds fist mobile application of its kind ! We want to create a buzz around the city for cycling Encourages a health lifestyle in the city
Its affordable for customers
Target Market A vast target market can be split in two: Tourists and Residents of the City Residents want a Healthy, Cheap, viable transport not to be stuck in traffic or crowds Tourists want a new way to see the city from street level that is quick and affordable.
Identified the Commonwealth Games as a key market to make our mark on the city and build our reputation. Capitalise on influx of tourists - Scottish Tourism have a target to increase by 60%!
Limitations and Solutions Bikes and stations are expensive, need ÂŁ3K for bikes and a further 5-7K for hire stations. Overcome it with strategic partnerships - KONA bikes, Glasgow Council and sponsors. Hope for extended credit and reduced initial costs from suppliers. Advertising online and in local areas - around 10% sales. Benefit from skills of others
The Ugly Bit The matter of money and percentagesâ€Ś.. We ask you Dragons to Value our business!
Ask a parent to put a price on their child they will say pricelessâ€Ś. However ask a parent how much it would take to help them develop and they will listen. We want your help to get our baby off the ground and grow we are more than willing to take any offer of investment for a share of the joint success.
Published on Feb 25, 2013