Project Everest

Cost Structure

[Cost Structure]: Solar Consulting - Malawi July 2019

The cost structure segment of the lean canvas identifies the costs associated with the business. These costs are categorised into fixed and variable costs.

Currently at this start-up phase of the Moyo Energy business, calculating exact costs are difficult since there are many unexpected factors in play. That is why it is important to constantly update this document and to record the variable costs in order to find trends that in the future can be used to estimate these approximate costs.

Fixed costs: 

USSD (not being utilised currently): 

  • The initial payment of the Airtel USSD system cost 30,000 MWK (note - this does not include TNM USSD system)
  • The cost to renew the USSD system per month is 15,000 MWK
  • The cost to facilitate the server per month is 1,479 MWK
  • The cost to have a website domain per year is 739 MWK

 

ZOHO (CRM) → $18 AUS p/m (malawi.workhub as the user)

 

Solar Phone → one off 39,000 MWK 

 

Variable costs:

Solar Units: 1 x GD-8017A by GD - LITE → Limbe Markets for 8,930 MWK (location on Customer/Agent Locations Map)

 

Agents:

Chiefs Agents (see adopted experiment)

  • Upfront Sale → 1,400 MWK
  • Payment Plan Sale → 400 MWK sign up commission | 400 MWK at halfway payment (3 months) | 800 MWK at the completion of payment plan (6 months) 

 

Airtel/Mpamba Vendors (see experiment)

  • Upfront Sale → 1,400 MWK*
  • Payment Plan Sale → 400 MWK sign up commission | 400 MWK at halfway payment (3 months) | 800 MWK at the completion of payment plan (6 months) 

*Airtel Agent Francis in Nancholi is receiving 5,000 MWK commission for upfront sales due to miscommunication

 

Teacher Agents (see experiment)

  • Upfront Sale → 5,000 MWK
  • Payment Plan Sale → 400 MWK sign up commission | 400 MWK at halfway payment (3 months) | 800 MWK at the completion of payment plan (6 months) 

 

Field Agent (Interns) → To be finalised (see adopted experiment)

 

Transportation:

Public transport accounts for 600 kwacha per person per round trip

Printing (approx. will vary depending on location):  

  • 1 x A4 colour page printing → 250MWK
  • 1 x A4 colour page photocopy → 200MWK
  • 1 x A4 B&W page print → 100 MWK
  • 1 x A4 B&W page photocopy → 50 MWK
  • 1 x Sales Agreement Forms (3 pages) → 300 MWK p/customer
  • 12 x Moyo Energy Flyers (w. payment information for EOI) → 250 MWK

 

Solar Phone Expenses:

Airtel:

  • Airtime: 1000 MWK p/ week 
  • 1GB Internet Bundle: 3,500 MWK p/ month

TNM:

  • Airtime: 1000 MWK p/week 
edited on 25th July 2019, 06:07 by Vicky Chang

Grace Blackford 6 months ago

Status label added: Cost Structure

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Grace Blackford 6 months ago

Status label added: Revenue Stream

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Grace Blackford 6 months ago

Status label added: Proposed Experiment

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Grace Blackford 6 months ago

Status labels removed: Proposed Experiment, Revenue Stream, Cost Structure

Reply 0

Grace Blackford 6 months ago

Status label added: Cost Structure

Reply 0