Estimate the market size for printing kiosks in marts

Market sizing
New answer on Sep 17, 2019
1 Answer
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Anonymous A asked on Sep 16, 2019

Hello, I have a question regarding market sizing:

There are 300 family marts in country A, operating for 24 hours/day.

The client needs to install mobile printing kiosks in those marts, but not sure whether it is a good idea.

How to calculate the market size for the client?

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Best answer
Andrea
Expert
replied on Sep 17, 2019
OW | HEC Paris | Helped 20+ people entering BCG, OW, ATK etc.

Hi,

Step 1: ask to define "good idea". In general it will be some king of IRR / payback period. So you will have to analyse investment, revenue and cost.

Step 2: calculate revenue
Rev= % of FM using mobile printing * 300 *kiosk per FM * # of transaction per kiosk (here you can break down hourly) * revenue per transaction

Step 3: calculating cost
Variable cost = operating cost (maintenance) + fee to the FM

Fixed cost = mainly SG&A here

Step 4: upfront investment

Cost of 1 kiosk * # of kiosk you buy

Step 5: calculate IRR and payback period

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Andrea

OW | HEC Paris | Helped 20+ people entering BCG, OW, ATK etc.
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