Successful products = Business opportunity

Posted: September 29, 2010 in Business

Any new/old successful products can create another business opportunity for others . If people don’t like coffee “Star bucks” wont be happy , Imagine we suddenly become vegetarians ! What will happen to McDonald’s – Burger King – Johnny .. etc.  you can see that behind any successful product there is a business opportunity .

I have small-simple-easy Idea for Cafes that will help them to increase their profits . And I mean any cafe mn Gahawy el Shesha ley Star Bucks  I did small study and I think it’s worth to share it with you  “Adre ma7ad fekom 3enda cafe 6aa7 7athkom” J/K ;]  . We used to see big game machine eb gahawy el shesha it’s look like the below picture bas eshwaya ghair .

The problem that the above machine is very big so it take space, it works with electricity  “wires on the ground” , it’s expensive “one machine = 1200 to 1400 kd” and finally it’s old fashion .

I noticed a lot of people use Ipad and enjoy their time by playing and browsing . Ipad is very cheap “moqarana bel above game machine”and it’s  full of games, it’s the latest fun device, I think people would like to enjoy the Ipad experience while drinking something or sitting in one of the cafes . I did “quick” assumption about how much can a cafe owner make just from Ipad and I think it’s worth to give it a try . double click on the below picture to see it larger :

Ipad price = 215 Kd from amazon.com, in one month you will cover the cost if customers used it only 5 hours a day “1h = 1.25 kd” it’s very reasonable price for an hour with amazing latest entertainment device “Ipad”  you will increase your profit 200kd  monthly with Only one Ipad! that’s 1000 kd for five Ipads , maybe you will make less then that but I’m sure it will be around this numbers .

Anyways I made a chart for the assumptions “el ba6alah o ma etsawy :r “

Questions  :

1- Etha a7ad Eksera ??

24h eb eed e3yal ekhty and they are only 5 years old o ma ekseroh “3al aqal lel7en :r” b3dain et7e6la case o 7emaya o aslan el Ipad sa3ba yenkeser ela etha elwa7ed qased yaksera .

2- Ballah a7ad baga ??

Security problem wont be big deal tegdar et7e6la stand thabet bel 6awla or lock I’m sure you will find a way  “eshda3wa ga3den ef bangaladesh”

3- Ballah ma7ad estakhdema ! :

when you do any business you have to take the risk , and I don’t see any big risk in that Idea at least you can sell the Ipad again as used, wana ma atwaqa3 mara7 eyser 3alaih 6ag e3sy .

P.S : Behind many products you can see business opportunities and behind me you can see nothing but me”Shako! :I “

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Comments
  1. K.D says:

    interesting!
    both are good ideas..
    and here’s how you can make it better!

    make it free!
    the word free is very powerful!.. people will come more often and will stay longer.. and buy more beverages and snacks.. and thats where you can increase your mark up!
    the customers would pay slightly more for a cup of coffee at a place that provide such services for free..!.. dont ya think?!
    the ultimate success will be.. providing these services for free and maintain the same mark up!.. depending on the old fashion supply and demand.. i say you have a pretty good chance there! 🙂

    have a good day

  2. ba6alah says:

    K.D :

    you are right but i think people are willing to pay for it at the main time so you can take that advantage now and later when others follow you and copy your steps , you can make it free .

    Thanks khaled for your useful point 🙂

  3. K.D says:

    see.. that could work.. but you’ll risk your business!

    coz someone.. (like me).. could think ahead of ya.. and offer it for free.. then you’ll be the copier!
    beside.. lets talk money wise.. your ipad will give you limited profit.. coz not everybody will pay.. if we said 50% of your customers is welling to pay.. however if it was for free.. that number might increase to 70% to 80%!.. coz its freeee.. people like freeee 😀

    trust me with a slightly higher mark up on the beverages and snacks.. you’ll make a higher profit.. do the math 🙂

    and you’re welcome.. i mean whats better than talkin business even when you are takin a break! 😀 lol

  4. ba6alah says:

    K.D : I’m talking about who have an existing business based on beverages and sandwiches not to build up a business on Ipad Idea lol! you didn’t get what I’m trying to say , it will increase the cafe profits that doesn’t mean it will be the core of the business .

    You can buy water from any jam3eya eb less then 100 fils did that effect people who pay more then 500 fils in other places like restaurant ?!

    if there is people who are willing to pay , then what’s wrong ?! let them pay .

    Every business offer their products with high prices in the beginning and after testing the market they can think of the pricing .

    if you offer it for free it might also etkhaly el customers eygazronha eb cham chay o 7aleb weynaam eb your cafe noom and I don’t want this kind of customers :] , and if you increase your soft drinks prices people will notice it but if you let them pay for their entertainment they will be satisfied with the reasonable prices .

    what’s business without risk ?! and talking about offering free as a risk for other cafes makes me smile . because in the worst scenario i’ll do the same and let me be the follower but at least I had a big chance to make more profit then you . and the one who can come up with one Idea , can create more and more and this is what they call it market competition .

    Thanks Bo waled 🙂

  5. ba6alah says:

    By the way check my assumption table it’s based on “only five people per day” y3ny I’m talking about afshal gahwa bel kuwait and I know guys 3endehom cafes o adre how much they make from video games “PS3 and other money games machine” 🙂

  6. K.D says:

    hahahahaha.. god bless your heart

    im fully aware of what you are talkin bout.. and i totally agree with
    all im saying that in my opinion it would be more attractive for your business to have a free non-core business services!

    as a matter of fact you think of it as a marketing strategy!.. in terms of marketing budget.. like wifi!.. a non-core business services that people start to use a marketing tool!.. so a sign that says free wifi is as good as the one that says free ipad experience!

    at the end there’s no right or wrong here.. im a business owner myself.. and i’d probably use your idea.. thanks btw! ;p.. but i’d offer it for free.. why.. coz i think it’ll help my business on the long run.. and i am takin a risk by doin that.. so again at the end we are both takin a risk.. free or no free!

    and your chart for the assumptions… is AWESOME! 😀
    really nice discussing it with ya

  7. ba6alah says:

    KD : hehehe you wont lose anything if you offer it for reasonable price and you can make it free after a while if you didn’t gain that much . Don’t compare our market with out side markets “by using free Wifi example” because it’s absolutely different and you should know that as a business owner here in kuwait . Why star bucks didn’t offer a free internet from the beginning ?! you think they cannot handle the cost ?! coffee bean offer free internet but when you buy a drink or anything and for only one hour per Drink , you think they are not smart ?!

    If there is a chance to make more money for short and long term why do you keep your eyes on only one of them . you should see all the picture not half of it .

    Thanks Bo waled o Emwafag, elmafroth ta36eny 3omola 3ala el fekra bas hal mara samaa7 :]

  8. msha3erha says:

    5al abda mn aa5er jomlah lek
    ‘ and behind me you can see nothing but me”Shako! :I “
    Behind you ana ashoof dollars 😛 like elma9arwa lama yshoofon elkhaleejyeen te6l3 dollar sign in their eyes ;P lol

    Elomohem nerj3 lesalfatna, You did a very interesting study and I can see it is a real opportunity for cafe owners (6b3n ana ma 3endi cafe l2n 6aye7 7a’6i you know :P)

    1 point here:
    Your thirs assumption is really odd :O No one used it?!!! Nooooooooooooo way 😉 3yalna kellah wala tgool 3anhom ma y3arfoon 7g eltknlogia wo dam elnas haba bel iPad these two days I guarantee you everyone will use it 😉

    Good work =)

  9. ba6alah says:

    msha3erha : leflos wara el mohandezeen ya handaza 😉

  10. weight says:

    i see what you did there

  11. Ali M. says:

    Great business opportunity .. I think this would not work with Starbucks but definitely with the gahawi ib man6aqa il 7urra.. I don’t think that it should be offered for free because:
    1) Maintenance/replacement expenses: if an ipad circulates through more than 20 people a week.. it is more than bound to be dropped and broken at least once a week. If not physical damage, there are people who will probably download apps that will damage the operating system.
    2) Cleaning/cover replacement expenses: when it comes to gahawi sheesha you’re gonna have a lot of people that will eat fries as they browse the ipad.
    3) Internet expenses: when you have 20 ipads out in use at the same time, you’re gonna have high traffic on the internet and might cause a slowdown. So you would probably need another connection.
    4) Other expenses: There are sick people in this world that will attempt steal them, so you need to have someone at the door to check people coming in and out. At least if you’re going to have more than 20 iPads. That’s an extra employee = extra expense

    Keep these as ground rules:
    1) Never give out anything for free.. In america for example, they say “Free, Free, Free” like 10 million times over the radio, internet and TV.. But there is always a catch.. and the reason is a business cannot incur heavy costs simply for customer satisfaction. In your case, someone could just walk in and use the iPad, destroy it and walk out without even spending more than 1 KD.
    2) Every item in a business depreciates due to extensive usage, eventually equipment has to be replaced. In your case, iPads are gonna need to replaced at least once every 1-2 years. If you offer them for free, then you’re basically canceling out the profits that you made out of people who bought the beverages.

    Good work, this is a great business booster for people that own cafes and definitely makes a much more enjoyable experience at the cafe then those retarded table arcade machines with the same games!

  12. ba6alah says:

    you said very useful points thanks to you 🙂

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