Cell Phone VendingThe Tshwane Case Study

Dirk Pieterse

Dr. Walter Smuts

Outline The System (Walter)

The Project (Dirk)

System Design Objectives Job Creation Many Sales Points Mobile Sales Points Reduced Risk

Technologies Used Point-of-Sales DeviceStandard cell phoneCommunicationSMSUSSDGPRSAdministration TerminalsStandard PC with Web browser

Project

The ProblemCrowds at payment pointsDistances to payment pointsMaintenance of payment pointsRisk

Implementation StrategyControlled roll-outRequirements:Permanent Tshwane addressNo debtR 5000 first paymentCell Phone ContractGPRS phone

Vendor Business CaseVendor runs independent businessVendor pays GPRS comms costVendor receives 5% commission (ex VAT)Top Vendors:

PeriodTurnoverCommissionDailyR 5,000R 219.30MonthlyR 125,000R 5,482.46AnnualR 1,500,000R 65,789.47

Statistics

ParameterValueActive Consumers 110 000Vendors on 31 July 2006120Total Sales (1Jul 05 to 31 Jul 06)R 25 MillionSales for July 2006R 2.7 MillionTransactions for July 200683 000Highest Vendor Turnover for July 06R 135 000Average transaction sizeR 30.00

Statistics

Chart1

0.082672

0.527923

1.068337

1.627311

1.875323

2.320393

2.067913

2.158848

2.448983

2.140344

2.7339694

2.7007194

2.764268

Monthly Turnover (Million Rand)

Sheet1

Daily Transaction Statistics

DayTotal TransactionsNumber of SalesSalesAverage sale

3/1/0650694771R 239,210.00R 50.14

3/2/0617281402R 64,245.80R 45.82

3/3/0650885068R 222,969.40R 44.00

3/4/0631973171R 130,680.00R 41.21

3/5/0622512237R 93,275.00R 41.70

3/6/0618861874R 72,985.00R 38.95

3/7/0617941784R 71,852.80R 40.28

3/8/0616751667R 61,213.00R 36.72

3/9/0611511143R 39,420.60R 34.49

3/10/0617341721R 57,767.20R 33.57

3/11/0616221610R 52,258.20R 32.46

3/12/0615041491R 47,956.00R 32.16

3/13/0617191711R 53,808.00R 31.45

3/14/0625552537R 90,556.00R 35.69

3/15/0624322412R 81,435.80R 33.76

3/16/0614831474R 44,601.40R 30.26

3/17/0626462640R 81,555.20R 30.89

3/18/0623162309R 66,667.00R 28.87

3/19/0622832277R 65,328.80R 28.69

3/20/0625522537R 70,746.00R 27.89

3/21/0630082992R 87,617.00R 29.28

3/22/0633223320R 95,866.20R 28.88

3/23/0621972195R 62,920.80R 28.67

3/24/0637203717R 96,703.20R 26.02

3/25/0631573116R 87,005.20R 27.92

3/26/0630423039R 85,848.00R 28.25

3/27/0630743074R 85,895.20R 27.94

3/28/0635503546R 105,142.40R 29.65

3/29/0644744471R 139,520.20R 31.21

3/30/0622692267R 72,971.40R 32.19

3/31/0643364329R 134,873.80R 31.16

Total:$2,411,190.40

HourTotal TransactionsNumber of SalesSalesAverage sale

0:0055$126.80$25.36

1:0000$0.00$0.00

2:0000$0.00$0.00

3:0011$100.00$100.00

4:0065$1,009.00$201.80

5:002822$989.40$44.97

6:00225205$8,068.60$39.36

7:0012441217$42,103.80$34.60

8:0048304742$157,681.60$33.25

9:0069686939$226,286.00$32.61

10:0070246971$229,224.60$32.88

11:0062706214$206,034.00$33.16

12:0058655781$184,088.80$31.84

13:0053815260$169,774.20$32.28

14:0053905208$163,021.40$31.30

15:0068316678$205,714.00$30.80

16:0077487551$234,771.80$31.09

17:0070266827$217,699.40$31.89

18:0064886309$194,163.80$30.78

19:0041323989$113,777.00$28.52

20:0015381474$42,050.40$28.53

21:00327289$10,558.80$36.54

22:008880$3,021.00$37.76

23:001818$926.00$51.44

Jul-05R 82,672R 0.08

Aug-05R 527,923R 0.53

Sep-05R 1,068,337R 1.07

Oct-05R 1,627,311R 1.63

Nov-05R 1,875,323R 1.88

Dec-05R 2,320,393R 2.32

Jan-06R 2,067,913R 2.07

Feb-06R 2,158,848R 2.16

Mar-06R 2,448,983R 2.45

Apr-06R 2,140,344R 2.14

May-06R 2,733,969R 2.73

Jun-06R 2,700,719R 2.70

Jul-06R 2,764,268R 2.76

31122277$110,604.00$48.57

3/2/0630432900$128,913.00$44.45

3/3/0638013776$157,296.00$41.66

3/4/0634783380$135,173.20$39.99

3/5/0614581332$52,048.40$39.08

3/6/0626572647$99,790.80$37.70

3/7/0620762067$79,878.60$38.64PeriodTurnoverCommission

3/8/0618021799$65,695.20$36.52Daily$5,000$219.30

3/9/0614641451$52,458.80$36.15Montly$125,000$5,482.46

3/10/0618331828$63,146.20$34.54Annual$1,500,000$65,789.47

3/11/0619461942$61,332.80$31.58

3/12/0610431033$31,525.20$30.52

3/13/0618391826$53,830.00$29.48

3/14/0620502046$62,821.80$30.70

3/15/0621692168$73,858.80$34.07

3/16/0621062103$68,469.00$32.56

3/17/0625952592$78,915.80$30.45

3/18/0628792875$87,461.00$30.42

3/19/0611631158$32,603.80$28.16

3/20/0632553252$88,035.80$27.07

3/21/0622602258$59,649.40$26.42

3/22/0626892683$65,756.80$24.51

3/23/0626992693$66,156.80$24.57

3/24/0630323027$86,372.00$28.53

3/25/0634523444$99,953.00$29.02

3/26/0614151403$36,873.20$26.28

3/27/0637273723$95,101.80$25.54

3/28/0632333231$82,014.40$25.38

3/29/0632563255$80,808.40$24.83

3/30/0630983024$78,102.40$25.83

3/31/0628032592$76,544.00$29.53

$31.47

Sheet1

Hour

Total Transactions per hour for March 2006

Sheet2

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Date

Number of Transactions per DayMarch 2006

Sheet3

Monthly Turnover (Million Rand)

7/1/0650694771R 239,210.00R 50.14

7/2/0617281402R 64,245.80R 45.82

7/3/0650885068R 222,969.40R 44.00

7/4/0631973171R 130,680.00R 41.21

7/5/0622512237R 93,275.00R 41.70

7/6/0618861874R 72,985.00R 38.95

7/7/0617941784R 71,852.80R 40.28

7/8/0616751667R 61,213.00R 36.72

7/9/0611511143R 39,420.60R 34.49

7/10/0617341721R 57,767.20R 33.57

7/11/0616221610R 52,258.20R 32.46

7/12/0615041491R 47,956.00R 32.16

7/13/0617191711R 53,808.00R 31.45

7/14/0625552537R 90,556.00R 35.69

7/15/0624322412R 81,435.80R 33.76

7/16/0614831474R 44,601.40R 30.26

7/17/0626462640R 81,555.20R 30.89

7/18/0623162309R 66,667.00R 28.87

7/19/0622832277R 65,328.80R 28.69

7/20/0625522537R 70,746.00R 27.89

7/21/0630082992R 87,617.00R 29.28

7/22/0633223320R 95,866.20R 28.88

7/23/0621972195R 62,920.80R 28.67

7/24/0637203717R 96,703.20R 26.02

7/25/0631573116R 87,005.20R 27.92

7/26/0630423039R 85,848.00R 28.25

7/27/0630743074R 85,895.20R 27.94

7/28/0635503546R 105,142.40R 29.65

7/29/0644744471R 139,520.20R 31.21

7/30/0622692267R 72,971.40R 32.19

7/31/0643364329R 134,873.80R 31.16

Statistics

Problems EncounteredDatabase SpeedVAT and CommissionDouble Redemption

Problems NOT EncounteredImpostersGSM CoverageTransaction SpeedWriting ErrorsVendors Charging More

Newer Trends3rd Party VendingOutsourcingFranchise Model

The Bigger Picture

ConclusionTechnology matureResidents embrace solutionCell Phone Vending is here to stay

Contact InformationDirk PieterseChief EngineerCity of Tshwane012 358-9449www.tshwane.gov.za

Dr Walter SmutsManaging DirectorExpertron Group (Pty) Ltd012 844-0330walter@expertron.co.zawww.expertron.co.za