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?
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
