Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Franchise presentation
1.
2. The word “TENDER” means….
“to make an offer”
The word “TENDER” means….
“to make an offer”
3. Tender Center has physical stores at which
vendors display items for sale
Tender Center sells the items to the highest
tender on a commission basis.
Tender Center has physical stores at which
vendors display items for sale
Tender Center sells the items to the highest
tender on a commission basis.
4. Tender Center is similar to a group of auction
houses…
… except it is a “single bid, blind auction”
Viewing is every Friday, Saturday and Sunday
Tenders close 3pm Sunday, and the highest bid
wins.
Tender Center is similar to a group of auction
houses…
… except it is a “single bid, blind auction”
Viewing is every Friday, Saturday and Sunday
Tenders close 3pm Sunday, and the highest bid
wins.
5. We sell almost anything…
Items $1 to $100,000…
We have even sold airplanes…
We sell almost anything…
Items $1 to $100,000…
We have even sold airplanes…
6. Sounds easy….. it isn’t
26 stock turns a year. No repeat stock
1000’s of different vendors
10’000’s of different buyers
We need extremely efficient systems
The Tender Center is a software package
Sounds easy….. it isn’t
26 stock turns a year. No repeat stock
1000’s of different vendors
10’000’s of different buyers
We need extremely efficient systems
The Tender Center is a software package
25. Franchise Advice Consultants
Pets Paradise
Autobarn
Forty Winks
Pack & Send
Bakers Delight
Fisher and Paykel,
Nando’s
Noodle Box
The Weight Works
National Australia Bank
Pets Paradise
Autobarn
Forty Winks
Pack & Send
Bakers Delight
Fisher and Paykel,
Nando’s
Noodle Box
The Weight Works
National Australia Bank
26.
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50. Competitors that have closed
Grafton
Cairns
Nerang
Southport
Alice Springs
Gosford
Nundah
Darwin
Gatton
Springwood
Cardiff (Newcastle)
Mildura
Rockhampton
Tamworth 2x
Wanganui - New Zealand
Hastings – New Zealand
Palmerston North – New Zealand
Bundaberg – Currently for sale
Competitors that have closed
Grafton
Cairns
Nerang
Southport
Alice Springs
Gosford
Nundah
Darwin
Gatton
Springwood
Cardiff (Newcastle)
Mildura
Rockhampton
Tamworth 2x
Wanganui - New Zealand
Hastings – New Zealand
Palmerston North – New Zealand
Bundaberg – Currently for sale
51. Tender Center has spent
$ millions
on software development
Tender Center has spent
$ millions
on software development
52. Tender Center Business System
Larger stores handle
1500 new lots - 750 Tender forms - 3000 tenders
Every week
This large volume of information must be handled
Accurately
Efficient Communication
Maximising Sales
Minimising Costs
Automating the system as much as possible
Prompting the Manager what needs doing
No loose ends
Tender Center Business System
Larger stores handle
1500 new lots - 750 Tender forms - 3000 tenders
Every week
This large volume of information must be handled
Accurately
Efficient Communication
Maximising Sales
Minimising Costs
Automating the system as much as possible
Prompting the Manager what needs doing
No loose ends
53. The Tender Center Business System
Efficient Communications
• Brenda Phone system – Answers all telephone calls 24hrs, 7 day a week
– Tender Results
– Vendor Results
– This system uses Text to Speech Software – it can even say Names and Lot Descriptions!
– Handling both incoming and outgoing calls
– Caller ID
• Results Online – My Tender Center – all Tender and Vendor activity on one screen
– Tender Results -
– Vendor Results –
• Bulk SMS – automatically send SMS’s to customers
• Automatic Emailing
• Automatic Post Generation
Maximising Sales
• Online Tender Sale - Selling goods online in an eBay type environment
• Inbuilt Automatic Customer Loyalty Programs
• Inbuilt Negotiation Prompts to get the negotiating ball rolling between Vendors and Tenderers
thereby creating higher turnover
• Systems to recognise staff that are good negotiators and who are making money for the store
The Tender Center Business System
Efficient Communications
• Brenda Phone system – Answers all telephone calls 24hrs, 7 day a week
– Tender Results
– Vendor Results
– This system uses Text to Speech Software – it can even say Names and Lot Descriptions!
– Handling both incoming and outgoing calls
– Caller ID
• Results Online – My Tender Center – all Tender and Vendor activity on one screen
– Tender Results -
– Vendor Results –
• Bulk SMS – automatically send SMS’s to customers
• Automatic Emailing
• Automatic Post Generation
Maximising Sales
• Online Tender Sale - Selling goods online in an eBay type environment
• Inbuilt Automatic Customer Loyalty Programs
• Inbuilt Negotiation Prompts to get the negotiating ball rolling between Vendors and Tenderers
thereby creating higher turnover
• Systems to recognise staff that are good negotiators and who are making money for the store
54. The Tender Center Business System (cont)
Minimising Costs
• Data Entry using OCR (Optical Character Recognition) Scanning
– 3 Times faster than manual data entry
– Tender / Vendor Form is instantly available as an image on the computer screen.
Which is very helpful later in the sale because you do not have to keep flicking
through a big pile of Tender / Vendor Forms
• Accountable Cash Procedures to counter Staff Theft
• Use of offshore staff
Legal
• Trust Accounting
• Police Records
• Motor Dealers Records
Other
• Delegating Tools and “What to do now” prompts
• Self service systems
The Tender Center Business System (cont)
Minimising Costs
• Data Entry using OCR (Optical Character Recognition) Scanning
– 3 Times faster than manual data entry
– Tender / Vendor Form is instantly available as an image on the computer screen.
Which is very helpful later in the sale because you do not have to keep flicking
through a big pile of Tender / Vendor Forms
• Accountable Cash Procedures to counter Staff Theft
• Use of offshore staff
Legal
• Trust Accounting
• Police Records
• Motor Dealers Records
Other
• Delegating Tools and “What to do now” prompts
• Self service systems
55. OCR Data Entry
High speed data entry that we outsouce to India for lower costsHigh speed data entry that we outsouce to India for lower costs
56.
57. New 3 tier architecture
• Desktop web
• Mobile web
• Iphone
• Ipad
• Android phone
• Android tablet
New 3 tier architecture
• Desktop web
• Mobile web
• Iphone
• Ipad
• Android phone
• Android tablet
58. Online Sale - integrated systems
• Tmail – 130,000 email addresses
• Instore Printouts - Photo on the wall of every Tender Center in Australia
• Home page features
Vendors see the value of this – No Sale No Charge
Online Sale - integrated systems
• Tmail – 130,000 email addresses
• Instore Printouts - Photo on the wall of every Tender Center in Australia
• Home page features
Vendors see the value of this – No Sale No Charge
59. For example
• Sellers reserve = $1000
• Highest tender = $900
• Tender Center needs to facilitate a
negotiation between the buyer and
seller
• The Tender System tracks staff and
automatic systems negotiating
statistics
Negotiating Champion
For example
• Sellers reserve = $1000
• Highest tender = $900
• Tender Center needs to facilitate a
negotiation between the buyer and
seller
• The Tender System tracks staff and
automatic systems negotiating
statistics
60. Best of Both Worlds
• Tender Center program integrates with ebay – uploading lots,
downloading bids etc.
• Ability to charge vendors for this (print a receipt from the PDA)
• Some items achieve 1000 page views
• Listing includes Tender Center logos, viewing times, store address
and phone number
• eBay has 200 million users…
• For those of you in New Zealand, South Africa, or the UK, this is no
problem in refining this system for Trademe.co.nz, ebay.co.za.
ebay.co.uk
Best of Both Worlds
• Tender Center program integrates with ebay – uploading lots,
downloading bids etc.
• Ability to charge vendors for this (print a receipt from the PDA)
• Some items achieve 1000 page views
• Listing includes Tender Center logos, viewing times, store address
and phone number
• eBay has 200 million users…
• For those of you in New Zealand, South Africa, or the UK, this is no
problem in refining this system for Trademe.co.nz, ebay.co.za.
ebay.co.uk
61. Revenue Streams
Commission
A Tender of $100
Buyer pays 20% + $2 = $122
Vendor pays 20% = $20
Vendor paid = $80
Revenue for Tender Center = $42
Sale of abandoned stock
Online Sale Upgrades
Deliveries / Pickups
Drinks and Snacks
Margin on shipping
Revenue Streams
Commission
A Tender of $100
Buyer pays 20% + $2 = $122
Vendor pays 20% = $20
Vendor paid = $80
Revenue for Tender Center = $42
Sale of abandoned stock
Online Sale Upgrades
Deliveries / Pickups
Drinks and Snacks
Margin on shipping
62. Franchise System
• Group Marketing
– Group Wide Publicity Promotions – Camp Quality Fund Raising Tender Sale
– Marketing Cooperation – Pooling our marketing dollar creates a better impact
• Group Bookkeeping System
– The Tender Center centralised bookkeeping system takes the stress out of accounting
– The system will provide you with a monthly Financial Profit and Loss statement within days
of the end of the month allowing to see exactly how you are going
– Quarterly profiling / benchmarking
– BAS is lodged for you (optional)
– It allows you to concentrate on the most important thing – running your business!!!
– You will still use your own accountant for advice / annual figures
• Group Purchasing
– Stationary / Printing / Clipboards / Pens /
Franchise System
• Group Marketing
– Group Wide Publicity Promotions – Camp Quality Fund Raising Tender Sale
– Marketing Cooperation – Pooling our marketing dollar creates a better impact
• Group Bookkeeping System
– The Tender Center centralised bookkeeping system takes the stress out of accounting
– The system will provide you with a monthly Financial Profit and Loss statement within days
of the end of the month allowing to see exactly how you are going
– Quarterly profiling / benchmarking
– BAS is lodged for you (optional)
– It allows you to concentrate on the most important thing – running your business!!!
– You will still use your own accountant for advice / annual figures
• Group Purchasing
– Stationary / Printing / Clipboards / Pens /
63. Franchise Support
Initial Training
• We will ask you to come and experience 3 Tender Sales in 3 different existing stores.
A Representative of Tender Center Franchising will accompany you for this training
and will and ensure you understand all aspects of the business
• A representative of Tender Center Franchising work with you in your store for your
first 3 sales.
Ongoing Support
• Monthly Teleconference
– Reviewing previous months financial figures
– Reviewing and modifying the Cash Flow Budget projections
• Weekly Statistics Comparisons
– so you can see where your stores strong and weak points are compared to the
rest of the group
Initial Training
• We will ask you to come and experience 3 Tender Sales in 3 different existing stores.
A Representative of Tender Center Franchising will accompany you for this training
and will and ensure you understand all aspects of the business
• A representative of Tender Center Franchising work with you in your store for your
first 3 sales.
Ongoing Support
• Monthly Teleconference
– Reviewing previous months financial figures
– Reviewing and modifying the Cash Flow Budget projections
• Weekly Statistics Comparisons
– so you can see where your stores strong and weak points are compared to the
rest of the group
64. Automatic training for new staff
• Tender Center Software commences a training program on the employee’s first day
• Prints one page per day for the employee to sign and file in their training log
• This is a 30 day program
• Tender Center Software commences a training program on the employee’s first day
• Prints one page per day for the employee to sign and file in their training log
• This is a 30 day program
66. Group Skype
Feed
• Recognizing good performance
• Important statistics and KPI’s
• Creating camaraderie
• Recognizing good performance
• Important statistics and KPI’s
• Creating camaraderie
73. Tender Center Real Estate sub-rental
Rent is paid by the Real Estate Franchisee directly to the
Tender Center General Goods Franchisee.
The rent is paid monthly in arrears calculated proportionally to commissions
earned by each business during the previous month
Example
Showroom Monthly Rent = $12,000 100%
Tender Center General Goods gross commissions for month = $45,000 75%
Tender Center Real Estate gross commission for month = $15,000 25%
Tender Center General Goods rent payable = $9,000 75%
Tender Center Real Estate rent payable = $3,000 25%
Tender Center Real Estate sub-rental
Rent is paid by the Real Estate Franchisee directly to the
Tender Center General Goods Franchisee.
The rent is paid monthly in arrears calculated proportionally to commissions
earned by each business during the previous month
Example
Showroom Monthly Rent = $12,000 100%
Tender Center General Goods gross commissions for month = $45,000 75%
Tender Center Real Estate gross commission for month = $15,000 25%
Tender Center General Goods rent payable = $9,000 75%
Tender Center Real Estate rent payable = $3,000 25%
74. Tender Center Real Estate Sub-rental
Example #2
Showroom Monthly Rent = $12,000 100%
Tender Center General Goods gross commissions for month = $45,000 50%
Tender Center Real Estate gross commission for month = $45,000 50%
Tender Center General Goods rent payable = $6,000 50%
Tender Center Real Estate rent payable = $6,000 50%
Tender Center Real Estate Sub-rental
Example #2
Showroom Monthly Rent = $12,000 100%
Tender Center General Goods gross commissions for month = $45,000 50%
Tender Center Real Estate gross commission for month = $45,000 50%
Tender Center General Goods rent payable = $6,000 50%
Tender Center Real Estate rent payable = $6,000 50%
76. In 2006 we were
still operating on
Visual dBase
A 1996 language
we that
URGENTLY
needed to replace
In 2006 we were
still operating on
Visual dBase
A 1996 language
we that
URGENTLY
needed to replace
95. Our current office in 2015
40+ full time engineers
Approx 3 - 5 dedicated to Tender Center
Space for 80 Engineers
Have signed lease for the 2nd floor
Continue Tender Center Development
Do development for clients of Tender Software
Our current office in 2015
40+ full time engineers
Approx 3 - 5 dedicated to Tender Center
Space for 80 Engineers
Have signed lease for the 2nd floor
Continue Tender Center Development
Do development for clients of Tender Software
96. Tender Center
offshore IT Office
Photos taken Dec 2013
Our Software Engineers have
- Minimum 3 years University
(most have 6 years)
- Minimum 2 years industry experience
(most have 4+ years)
- All qualifications and past experience
is thoroughly checked
- Applicants are put through rigorous
written and practical examinations
- Only 5% of applicants pass
our recruitment testing
- 90% staff retention
97. New Systems
Streamlined Stock Control / entering goods into online sale
via PDA on wireless network
Booking goods in - Entering goods into the Tender
Center Online Tender Sale is now VERY easy
1. Scan the barcoded lot number
2. Stand back and take a photo
3. Select the online category
4. It’s done. PDA on wireless network
uploads the item to Tender Online
Booking goods out
1. Scan the barcoded lot number
2. System will check to ensure it is
paid for and display a photo of the
item as it was when it was booked in
Online Tender payments and self printed receipts
Booking goods in - Entering goods into the Tender
Center Online Tender Sale is now VERY easy
1. Scan the barcoded lot number
2. Stand back and take a photo
3. Select the online category
4. It’s done. PDA on wireless network
uploads the item to Tender Online
Booking goods out
1. Scan the barcoded lot number
2. System will check to ensure it is
paid for and display a photo of the
item as it was when it was booked in
Online Tender payments and self printed receipts
99. Offshore Call Centre
- full centralised VOIP system
- stores now down to 1 phone line with internet
- Offshore workers making and receiving
phone calls
- full centralised VOIP system
- stores now down to 1 phone line with internet
- Offshore workers making and receiving
phone calls
100. Direct Marketing Systems
1. Brenda calling classifieds
(VOIP)
2. Garage sale flyers
(Electronic lodgment coming soon)
3. Business direct marketing
Business database of territory
included in the Tender Program
for marketing to businesses
(Electronic lodgment coming soon)
1. Brenda calling classifieds
(VOIP)
2. Garage sale flyers
(Electronic lodgment coming soon)
3. Business direct marketing
Business database of territory
included in the Tender Program
for marketing to businesses
(Electronic lodgment coming soon)
101. • Tendering in the store
(Tender form replacement)
• Photos while booking goods in
• Tendering at tender.net.au
• Results after the sale
• Tendering in the store
(Tender form replacement)
• Photos while booking goods in
• Tendering at tender.net.au
• Results after the sale