5. PRODUCTS/SERVICES
5.1 Product/Service descriptions
Monthly motoring (print) magazine, with website (updated daily) and weekly industry newsletter. Social media activities within three months. Electronic ‘digizine’ and iPad editions within six months. Other brand extension activities to follow in year three.
5.2 Stock Analysis
Type of stock
Magazines (mainly held by distributor and at retail outlets where they are sold).
Average. stock value
R300 000 – assuming an initial print run of 10 000 issues. This will increase as demand increases. The print run at end of year one is estimated at 12 000, giving a stock value of R360 000.
Stock turnover
Approximately 80 – 85% of print run. The remainder to be used as promotional copies for marketing purposes, or sold for pulping.
Seasonal variances
Low December/January sales and advertising revenue.
Ordering lead-time
Fourteen days from final layout to on-shelf.
5.3 Technology usage
| Apple Macs for page layout/design | two |
| Mecer laptops for editorial staff | four |
| Mecer laptops for advertising staff | two |
| Mecer laptop for marketing staff | one |
| Mecer desktops for support staff | two |
| NP Electronics road test/measuring equipment ‘basic’ package | one |
| Nikon FT8 digital cameras for editorial purposes | two |
5.4 Supplier research
While there will be a core full-time staff complement at Wheels Alive!, numerous key functions will be outsourced in line with industry norms. These include, printing, distribution of the print edition, high-level photography, website management, video/TV production, management of the IT network.
Key suppliers
(Freelance writers/journalists): Eric Barton; Gerald Motau; Calvin Naidoo; Phil Weaver; Gift Mkondo.
(Freelance photographers): Rob Walley; Susan Blake; Jakes Makasser.
(Freelance designers): Bernice Holiday; Annetjie Landman.
(Videographer/s): TBA
(Printer): Logan’s Web Printing.
(Back up printer): All Africa Print.
(Distributors): National Magazine Distributors.
(IT Support): Dan the Computer Man.
(Website Support): Crazyweb.
Credit policy
All 30 days, except Logan’s Web Printing, which will accept 50% payment on 30 days and 50% on 45 days. For the first and second issues, some suppliers (particularly printers) will require an up-front deposit or part-payment.
History & reliability
All individuals and organisations listed as key suppliers are well established and reliable. All are known to the directors.
Shortages/Unavailability of skills
Unlikely, due to the slow economy and competitive environment.
Cost fluctuations
Increases are evaluated by all suppliers on an annual basis. However, due to the slow economy and competitive environment, it is likely that these will be minimised or, in some cases, absorbed for the immediate future.
