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Industry Analysis
We are interested in reviewing applications from persons
who are able to see an opportunity, enjoy working, are people oriented, have a working
knowledge with computers and want to own and operate their own business. You must have the
ability to invest approximately $70,000 plus working capital.
Franchising has long been recognized
as a proven vehicle for:
- A. Raising capital rapidly in industries that require a large
investment in facilities.
- B. Recruiting highly motivated talent that has a vested interest in
the success of the company.
- C. Providing focused local presence in industries that are
geographically diverse.
- D. Quickly building brand-name recognition for products and
services.
The above components all apply to Quik's
strategy. However, there are additional factors at play in the Internet business that
further reinforce Quik's Internet franchise model:
- Economies of scale - Many
of the costs associated with Internet services are subject to economies of scale. For
example: a E-1 line to the Internet typically costs about $18,000 per month. However,
$200,000 per month of total E-1 purchases qualifies for a 40% discount, which allows Quik
to offer lower E-1 costs to each franchise location. Similar cost savings for volume
purchasing apply to media buys, printed materials etc. The average retail price Quik
franchise owners charge for access is $39.95 per month. In order to operate profitably at
this low price point, it is necessary to bill customers efficiently. The cost-per-customer
of billing and tracking 1,000 customers is much higher than the cost per customer of
billing and tracking 100,000 customers.
- More efficient use of bandwidth
- In order to offer a full suite of Internet services, it is necessary to host a variety
of Internet servers that place heavy demands on E-1 bandwidth. If run locally, these
servers compete with the local access traffic. Therefore, the choice comes down to either
increasing E-1 bandwidth or reducing server services such as USENET.
Quik franchises operate server services from a pool of servers in Sydney. These servers
operate independently from the local E-1 loop, therefore dramatically improving efficiency
and reducing cost without sacrificing services.
- Technology transfer -
Internet technologies are developing rapidly. It is becoming more difficult for
independent ISPs to maintain staff that have expertise in the newer technologies such as
REAL AUDIO, Java, SSL etc. Quik franchise owners are supported by our corporate office
which maintains a highly skilled technical staff whose cost is shared between all
franchises. Our staff is available for franchise support and contract work to third
parties through the franchise owners.
- Brand name image recognition,
and standardized pricing and services - No nationally recognized brand name is
associated with Internet services. The franchise model has always proven the best model
for rapid development of a service related brand name. "Quik Internet" is now
being recognized coast to coast.
Quik is dedicated to the franchise model. All Quik franchises operate under the Quik name
and offer similar products and services at a competitive price. Uniform levels of high
quality service are guaranteed contractually and by frequent inspection.
- New products - Quik is
continually coming out with new and innovative products. Quik's Virtual Machine is very
popular and still the only product of its type. A popular product for Web designers
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