| All
the information you need - TRAC Return on Investment
Joe Smith
buys a TRAC scrolling advertising truck
Joe’s mission: to present this exciting advertising medium to local businesses
and secure verbal commitments from interested business owners.
He will need to sell only 6 advertising spaces on his truck to reach breakeven
point and begin turning his business into a profit machine - 6 billboards
out of 50!
Approximate lead time for a TRAC truck is 90 days.
On the day of the purchase TRAC will provide sample promotional material
including:
PowerPoint presentations for sales, sample rate cards, reservation forms,
sample routes, sample billboard displays, videos, industry research, valuable
information such as traffic count reports, how to calculate cpm, links
to valuable websites, discount structure, comparative analysis of the various
advertising mediums, etc.
| Summary* |
| 6 Monthly fixed operating expenses: |
| a) |
monthly truck payment: £1,212 (10% down 60 months o.k.) |
| b) |
insurance: £3000 |
| c) |
fuel: £300 approximately |
| d) |
two part - time drivers paid £700 pcm each, exclude
if you drive the truck yourself |
| e) |
yearly maintenance and storage: £1,200 |
Total Operating Expenses per month: £3,250 (self drive £1,850)
Average Weekly rate per billboard: £100 + a one-time production cost
£150
Conclusion
Out of a total of 50 advertising spaces on the truck, Joe will only need
to sell 8 spaces to breakeven (5 if he self drives). This leaves him
with 42 more potential profit making spaces to sell
Question
The question the prospective buyer should ask himself: Can I sell this
product?
Can I sell at least 8 (5 if I self drive) billborads? If the answer is
yes, then this is for you!
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