Business Plan
2009
ANPR Ltd Trading as RING&REG Created By Trevor Whitehouse Chairman & Founder 2007 Saturday 22nd August 2009
Executive Summary ANPR Limited (UK registration 6129797) is the trading proprietor of RING&REG. The concept of RING&REG is a membership scheme that holds and matches the registration number of a vehicle to the motorist (members) credit card details. Using Automatic Number Plate Recognition (ANPR) the member's vehicle, upon entry to the car park or toll barrier is instantly recognised as known to the company. The cost of the stay or passage is calculated and deducted from the members credit card, and the motorist (member) receives a text message as to the charges levied on exit. RING&REG is a new innovation to the UK car parking management sector and initially ANPR Ltd will target its marketing effort on car park operators and owners, property management companies and procurement officials within the public sector including hospitals, councils and railways. ANPR Ltd anticipates that the RING&REG Scheme on a reasonably busy 1,000 space car park will take £2,000 per space, per year (Gross profit 10%). Assuming the company sell and install two new 1,000 space sites per week in one year and with a predicted membership of just one hundred thousand subscribers with a minimum members deposit of five pounds, the estimated group turnover is Commission on Car Park fees
£11,406,100
Profit from SMS text messages
£67,050
Sign Rental
£600,700
Total
£12,073,850
Other Incomes Deposit in hand
£500,000
Fixed Penalty Notices
£1,540,000
Vehicle Immobilisation
£1,400,000
Total
£3,440,000
RING&REG for a Simpler Stay
Executive Summary
Contents The Concept 2 Executive Summary 3 Contents
The Product 5 Hardware 6 Software 7 Proprietors Agreement 10 Enforcement Hand Over Period The Target Market 12 Group 1 Group 2 Group 3 13 Feeder Lanes
Costs & Overheads 14 Company Formation Business Formation cost Intellectual Property 14 Letterheads and logo's 17 Marketing Costs 21 Accountant Management 22 Production Costs Installation costs On-going costs 23 Vehicles
Staff & Recruitment 25 Present Future Requirements Training Manning Levels Telephone Auto Attendant Website & Database 29 Web Integration 30 Functionality
Marketing 34 Direct sales Company Structure 35 Sales Plan
Company Structure 36 Formation Manning levels Out side contractors Suppliers Aids and advisor's Resources 37 Certificate of Incorporation
Contents
03
Finances 38 Estimated turnover 40 Profit Margins 41 Cash Flow 42 Budgets 43 Overheads Forecasts 44 Profits & Loss Forecast S.W.O.T 48 Strengths Weaknesses Opportunities 49 Threats
Sensitivity Analysis 50 Minimum Profit required Minimum Sales Figures
Questions Answered 51 What was the context in which the technology was developed? How large is the organisation? What is the history of technological development within the organisation? 52 What prompted the development? When and where did the project take place? What were the time-scales? What improvements was the technology intended to make? 53 What changes were identified? What were the problems the current technology faced? What cost savings or efficiency gains were planned? How was the technology developed? 54 Who was consulted and to what effect? What obstacles had to be overcome? Were sensible performance measures in place to judge the success of the technology? How was the project led and managed? 55 What results did the technology achieve, both directly and indirectly? How did the technology improve service/performance? How will the technology be accepted? Is the technology environmentally friendly? Is the technology cost-effective? Extremely so in comparison to existing Pay & Display. 56 What are the long term benefits of this technology? Is the technology transferable? What benefits does the technology bring as regards to Civil Enforcement? What benefits does the technology bring to the general public?
04
Becoming a Member 57 Becoming a Member 58 The Proprietor
Trade Associations 59 The British Parking Associations The DVLA Approved Operator Scheme The Institute of Parking Professionals
Contents
Hardware The system uses specially designed ANPR Cameras that have the ability to remove head light glare, recognise number plates at high speed over long distances from acute angles in poor lighting conditions and extreme weather. The cameras require high shutter speeds, variable lenses, IR (Infra red) illumination, IR Cut Filters, heated and fan assisted housings, PTZ (Pan Tilt and Zoom) is not required. A multi port port DVR: (Digital Video Recorder) analyses the relevant number of cameras at 25fps frames per second searching for motion, then number plates. Having located the number plate it will cross reference the database to determine whether or nor the vehicle belongs to a member of the scheme and whether or not it is entering or leaving a scene and then acts accordingly. Access to the Web: Robust and reliable routers that access the internet using ADSL or higher speed of course is the essence. An on site PC and DVR, which is basically a personal computer specially designed for CCTV operation commonly known as a DVR *Digital Video recorder (particularly engineered for Digital Signal Processing (DSP)) Monitor, Keyboard mouse and printer. Servers: strategically placed to provide instant access for data and photography retrieval. A Tri-box¨ telephone Auto Attendant answering machine: with the facility to handle thirty telephone calls simultaneously permitting the motorist the ability to register during a call using Voice recognition software. See page 31.
The Product
05
Software The Company has developed its own software which not only eliminates the need for re-licensing each site annually, but permits the designers the ability to add and expand, modernise and integrate as and when required. The design team feel at this period, that the company product could be described as one of the best in the UK and perhaps placed in the top ten in the world. With the introduction of Ondrej Martinsky from Brnu University, Slovakia on the 2nd of November and the fact that the company owns the source code, the company can even surpass the companies own capabilities. Ondrej is a Master of Science and engineering with specialities in Number plate pattern recognition and neural networking. The software is written in C++ using a Java interface and will be compiled into 'Assembly' then embedded into the DSP (Digital Signal Processor) of the DVR (Digital Video Recorder). Similar to installing a new television and an on-screen menu. The same algorithms will be used to produce 'Sesame' and 'Cheater' which along with RING&REG constitutes just three of the twenty-two programs that make up VPScript¨. The software is similar to a home PC and its virus checker as it updates its database and software modifications daily.
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The Product
Proprietors agreement The agreement has been formulated and is already in use. The contents of the agreement are the creation of the writer and finalised by James Cuzons, barrister at law. A4 in size, Black upon white, the typeset in Arial on NCR double sided paper with a terms and conditions on the year and a schedule on the front, it gives a clear and concise interpretation of expectations. It is based upon the already successful, tried and tested Private Parking agreement used by National Clamps (Hereinafter known as NC). Its inauguration was in 1989 and has been constantly updated as and when required. A sample is available overleaf.
The Product
07
COMPANY/PROPRIETOR AGREEMENT. Shereton House, Preston, PR12QP Telephone 01772 882 999 This agreement : is made between ANPR Ltd (UK company number 6129797) hereinafter referred to as "The Company" and The Landowner/Proprietor hereinafter referred to as "The Client" as notated in and whilst operating at the property specified in the schedule below. The Company will provide to the Client (herein defined as the landowner or proprietor or managing agent for the landowner), specifically designed ANPR cameras, computers, and routers, at the cost to the client as specified in the schedule below, such equipment is to operate twenty four hours per day and to monitor the area utilising the web. It is the client's responsibility to provide the best available ADSL broadband where possible together with requisite safe power supply (at no cost to the Company) And in the unlikely event that electricity or access to the web has been interrupted, it is the responsibility of the client to ensure that all equipment is reignited and functioning correctly. Meanwhile the company cannot be held responsible for any lost revenue to either the client or the Company in such an event. It is the Client/s responsibility to arrange and hold adequate insurance to cover all normal risks in respect of the ANPR equipment that is on the Client/s site. Signs declaring 'RING&REG MEMBERS ONLY' will be placed where bound to be seen from a vehicles parked position to ensure conformance. Should they become damaged, defaced, or torn down, they will be replaced as a matter of urgency. It is the responsibility of the proprietor to notify the company of the deformation of said signs. These signs warn that parking a vehicle without following the guidance on the said signs will cause the company to 'Breach this Contract' with the proprietor. Signs placed at the entrance have no legal significance. When the payments reach ninety percent, then it is a requirement of the Company that all other forms of collection must cease. This period is defined as "the handover period" when the company will guarantee the client one hundred percent of the actual revenue. All visitors to the site will be subsequently charged as prescribed by the Client. The responsibility of the collection of parking fees will then rest with the Company and all revenue, less agreed expenses incurred, will be deposited into the Client's chosen bank account. On an agreed day of the week/month and the subsequent anniversary there of. Prior to 'Handover' all non Members that visit the site will be given a predetermined and agreed upon time to register, failure to abide will result in a Fixed Parking Notice being issued via the post for liquidated damages. A 50% discount is permitted if payable before 10 days with 30 days to pay the remaining fee and escalating charges thereafter. Following Handover, further infringement can expect vehicle immobilisation. The proprietor permits the collection of any outstanding fees which have occurred on other sites. Contract Parker's, Staff, Auxiliary workers. All can be added /removed to your granted list. Not making the necessary amendments to this granted list will lead to unnecessary penalisation and costs involved. We are keen to help avoid this issue from arising but we cannot incur unnecessary and avoidable mistakes, permits will be supplied free of charge on a requirement need basis. All photographic evidence is the sole property of the companies and will be destroyed after 3 months unless a court hearing has been instigated. In the unlikely event this occurs then the proprietor will be expected to provide all necessary non fiscal help and in doing so, the company will indemnify the client / proprietor 100% against any form of prosecution. The fee of £50 per sign per year fractionally covers the cost of the installation and maintenance of said signs/cameras. Least alone Public and employees liability insurance these are all subsidised by the penalisation of those who cause a breach of this contract. These fees certainly do not cover the cost of the removal of signs nor the equipment and these must be returned no less than 14 days prior to agreement termination. This agreement is for an initial period of one year and thereafter and is subject to termination in accordance with the terms and conditions set out overleaf. This agreement is made between ANPR Ltd and the client/proprietor named below for the provision of providing an alternative to pay and display machines at the premises named below. ANPR agrees to carry out its obligation is clause 3 overleaf in consideration for the charges for the terms and conditions set out overleaf. The Authorised signatory on this agreement has been granted sufficient Legal commendation that would not be questioned by the proprietor.
SCHEDULE Site Address
Post Code
Name
No of Permits
£
N/A
Company
No Of Cameras
£
N/A
Address
No of Routers
£
N/A
Other Considerations
£
:
£
:
Vat: £
:
Total Payable: £
:
Town/City
Vat Number:
Post Code
No Of Signs
@£50
Email address:
Tel.
Fax:
Mobile:
Signature on behalf of Client
Signature on behalf of the Company
Name Block Capitals
Company Name Block Capitals
Commencement Date
/
/
RING&REG® is the trade mark of ANPR Ltd who is registered in England & Wales as a company No 6129797 ANPR Ltd. is wholly owned by ANPR Ltd. of the British Virgin Isles Reg No: 1397353
Terms & Conditions RECITAL : ANPR Ltd (a company registered in England and Wales, Company Number 6129797) hereinafter referred to as "The Company", has developed a parking system using Number Plate Recognition software to determine the duration of which a vehicle has, upon entry to the landowners / proprietors car park, and stayed upon the proprietors car park. The system uses appropriate software to time stamp all vehicles that enter and leave the site, and the driver/registered keeper will be charged by the Company in respect of that period of time. The Company have developed the system to be known as RING&REG (trademark pending) 1. DEFINITIONS: The Following terms shall have the following meanings 1.1 Conditions : The provisions set out below which shall be incorporated into this agreement in its entirety. 1.2 Payments. The amounts specified in the schedule overleaf or as otherwise may be agreed from time to time by the parties and confirmed in writing by the Company to the Client. 1.3 Premises :Premises. Property including land, car parks, off road drives, roads or other places listed in the schedule overleaf. 1.4 Term. An initial period of one year from the commencement dare and thereafter from year to year unless terminated by the provisions of paragraph four below. 1.5 Warning Signs/Notices : Signs placed around the premises that enlighten a motorist that a parking control system is in place and that failure to heed the warning of non compliance to the terms and conditions of those signs will indeed result in damage/debt recovery. 1.6 Equipment : Cameras, Routers, Computers ADSL Modems anything belonging to the Company and used at these premises by ANPR Ltd, its franchisee's, Approved agents, subcontractors or members of staff that monitor, recognise and indemnify motor vehicles that wish to use the premises and pay for that privilege. Likewise to recover damages from those that fail to pay. 1.7 Damages. Such sums displayed from time to time on the warning signs (referred to in 5 above) which a trespassing motorist must pay of they choose to park on the premises in a manner that is not prescribed as the proprietor's wishes. The Company may recover these damages (and reasonable collection costs) by any lawful or UK civil court proceedings. 2. ANPR OBLIGATIONS 2.1 ANPR Ltd. From the commencement date and during the term unless and until determined in clause 5 and 6 shall: 2.2 Erect and place car warning signs on the premises of the client and thereafter maintain in good repair and to effect such repair and maintain and repair promptly on receipt of written notice from the client that such repairs are reasonably required. 2.3 Install ANPR cameras at all of the entrances and exits on the premises of the client and thereafter maintain in good repair and to effect such repair and maintain and repair promptly on receipt of written notice from the client that such repairs are reasonably required. 2.4 To provide good car park management by such reasonable and industry recognised methods including, but not limited to wheel clamping and fiscal punishment. 2.5 ANPR Ltd must insure, keep insured its employee's, franchisee's or subcontractors for any personal injury or death caused by them in the course of carrying out their duties for the client and unless such injuries shall be due to the act of neglect or default of the client or any person for whom the client is responsible. ANPR Ltd will indemnify the client against all such actions claims and demands in respect of injury. 3. CLIENTS OBLIGATIONS 3.1 To pay ANPR Ltd the sums agreed in respect of provision, erection and /or installation of the ANPR equipment and warning signs as specified in the schedule, such sums to be paid prior to the erection of the signage and equipment. 3.2 To pay the annual sums agreed in respect of maintaining the warning signs and equipment as specified in the schedule in full within 14 days of being notified of such sums being due on each anniversary of the commencement date. 3.3 To pay VAT. on all sums and costs due or incurred under this agreement. 3.4 To insure, keep insured and indemnify ANPR Ltd against accidental damage to premises caused by securing the signage and equipment to the walls and in respect of the attachment or removal of wheel clamps i.e. tarmac the client must indemnify ANPR Ltd against all claims, actions and demands in respect of such accidental damage. 3.5 To inform ANPR Ltd of any vehicle which parks on the premises without permission /authority or not in accordance with the warning signs 3.6 To inform ANPR Ltd in writing of the need to repair or replace any faulty equipment or damage to the warning signs 3.7 To permit any employee, franchisee, or sub contractor of ANPR Ltd to enter upon the premises to perform their duties under this agreement 3.8 To give ANPR Ltd not less than 14 days written notice of cancellation of the contract, prior to the end of the initial term of one year or any subsequent anniversary thereof, and return all signage and equipment to ANPR's head office by recorded delivery on cancellation of this contract. 3.9 To provide any non financial support required by ANPR Ltd to defend any litigation made by third parties as a result of the services provided by ANPR Ltd its Agents franchisee's or employee's 3.10 To provide ANPR Ltd reasonable facilities for the placement and removal of warning signs and the ANPR Equipment 3.11 To ensure that the premises the subject of this agreement are at all times under full control of the client and that no other party has an interest in or has rights over the subject property and / or land 3.12 To inform ANPR Ltd in writing of the sale/disposal and/or change of managing agents immediately as soon as such change occurs 4. TERMINATION 4.1 If any of the payments or any part of them shall remain unpaid for a period of 14 days after the sums shall have become due or the client is in breach of any of his obligations ANPR Ltd may give the client 7 days written notice to terminate this agreement unless such sums shall have been paid before the expiration of such notice or such breach of obligation has been remedied, this agreement upon such expiration terminate and ANPR Ltd obligations under it shall cease but without prejudice to the liability of the client in respect of such or other breach of this agreement. 4.2 Both parties shall be released from their respective obligations in the event of prohibitive National or local Government regulations statute or bye laws or other cause beyond the control of the parties whereupon all payments due under this agreement shall be paid immediately. 4.3 This agreement may be terminated at any time by either party giving 14 days written notice of its intention not to continue with the contract. In the event of termination after the start of any subsequent term, the sums of the full term shall remain due. 5.GENERAL 5.1 Each party shall be liable to pay the other damages for any breach of contract of this agreement and all expenses incurred by that party in enforcing its rights under this agreement 5.2 Headings contained in this agreement are for reference purposes only and should not be incorporated into this agreement and shall not be deemed to be any indication of the meaning of clauses. 5.3 The client may not transfer or try to transfer any of your rights and responsibilities under this Agreement 5.4 This agreement shall not confer any benefit on a third party under The Contracts [Rights of Third Parties] Act 1999 5.5 English Law will apply to this agreement and any disputes will be settled in the Courts of the United Kingdom. 5.6 If a clause or condition of this Agreement is not legally effective, the remainder of this Agreement shall be effective. ANPR Ltd can replace any clause or condition that is not legally effective with a clause or condition of similar meaning that is. RING&REG速 is the trade mark of ANPR Ltd who is registered in England & Wales as a company No 6129797 ANPR Ltd. is wholly owned by ANPR Ltd. of the British Virgin Isles Reg No: 1397353
Enforcement Using the threat of Fixed Parking Notices and vehicle immobilisation a site can easily be managed, converted and maintained. Signs that deliver an unequivocal message must be placed Òwhere bound to be seenÓ, enlightening a would be offender as to the consequences of their actions. Public awareness of vehicle immobilisation is premium at the present and is an extremely potent tool in latter day car park management. There is a need to introduce a 'Hand over period'. You cannot enforce any infringement whilst tickets are available on the car park, this would not only create confusion, but could provide an offender with the opportunity to obtain a valid ticket from unauthorised means. Hand over period It is essential and good PR to have a minimum period of six weeks between the out going 'Pay & Displays' machines and the incoming RING&REG system. Signage will encourage the change over to the new scheme by clearly displaying that the site is now 'RING&REG MEMBERS ONLY'. The company will provide the proprietor with self adhesive tape that is similar to the 'POLICE DO NOT CROSS' tape that is seen at crime scenes. Our message reads 'NOT IN USE PLEASE RING: 01772 882 999Õ By using the process of elimination the proprietor removes the use of each machine starting with the most conveniently placed units that are sited closest to the pedestrian exits. During this period the cameras are 'trained' to ensure 100% reliability. The software contains a Neural network which basically rectifies mistakes and learns from them. The process can take a few days and requires supervision. Mock FPN's (Fixed Parking Notices) are applied to the windscreens with a message 'not this time' but register soon! When the car park reaches 90% RING&REG members and only 10% use the remaining pay and display machines then those machines must be turned off and discontinued. The Enforcement company chosen by the proprietor applies wheel clamps to those vehicles that are in contravention to the rules. RING&REG now guarantees that all vehicles entering and leaving the site will be charged for, and a small commision of 10% will be removed from the takings to cover all expenses incurred, i.e; SMS messages, non payment of fees, breakdowns, insurance policies, public and employees liability.
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The Product
WARNING! PARKING A VEHICLE WITHOUT PERMISSION OR NOT USING A DEDICATED SPACE WILL CAUSE NATIONAL CLAMPS TO BE IN BREACH OF CONTRACT WITH THE PROPRIETOR. THE MOTORIST/TRESPASSER WILL PAY £80 COMPENSATION AS LIQUIDATED DAMAGES FOR SUCH A BREACH.
NATIONAL CLAMPS MAY USE
WHEEL CLAMPS (£80 for PLG’S AND £150 COMMERCIAL VEHICLES) WHICH IS PAYABLE PRIOR TO CLAMP REMOVAL! YOU MAY BE INVOICED BY THE USE OF A FIXED PARKING NOTICE AT £80 PLUS ESCULATING RECOVERY COSTS, PAYMENTS BY CREDIT CARD ATTRACTS A FURTHER 3.75% & THIRD PARTY INVOLVEMENT SUCH AS TOW TRUCKS ATTRACTS VAT.
NATIONAL CLAMPS.COM
01-772-882-992 NATIONAL CLAMPS IS CONTRACTED TO ENSURE THAT IN THIS AREA THERE IS
NB: Neither National Clamps, its associate companies, agents or servants, nor the proprietor of the land or agent for the landowner can be held responsible for any damage caused whilst applying a fixed penalty notice or other documentation, nor gaining reasonable access to the vehicle for relocation or whilst a wheel clamp or other deterrent is being reasonably attached or removed By parking your car you are agreeing to pay liquidated damages.
The Target Market Group 1 It is paramount that the system commences with the existing NC customers where a certain credibility exists and room for errors can be excepted yet still ratified as urgent. Even the best made plans go wrong therefore it is essential that the company do not receive adverse comments at this stage. The board also recommends we target smaller car parks that are privately owned. For example smaller sized hospitals, shopping centres, colleges and local councils. Group 2 As and when the systems have stood the rigour and problems that modern day motoring can provide, the company can expand its intentions and open up the market place. It is foreseen that the company could introduce larger clients like railway networks, airports, multi-storey car parking, hospitals and universities. Group 3 Having a formidable database that extends to millions of members, the technology that is used in 'feeder lanes' and the knowledge that integration into existing systems should be of ease for attracting clients like The Humber, Avon, Forth, and Thames toll bridges. The Tunnels at Birkenhead, Wallasey and Dartford would all welcome anything that eases congestion and helps traffic flow whilst cutting down on man hours and the cost of cash in transit. The M6T uses the same technology. The hardware is unobtrusive and consumes very little electricity and is easily installed and integrated with existing systems. In the year 2010, the London Congestion Scheme is up for tender and new bids will be welcomed. The position of the company will be in advantageous.
12
The Target Market
Feeder Lanes
Toll Booth’s
This is a One Barrier System The Anchor is on the right Rise and Fall A Traffic light system using red and green lights to determine lanes
The Target Market
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Company Formation ANPR Ltd (a company registered in England and Wales, Company Number 6129797) hereinafter referred to as 'The Company', has developed a parking system using Number Plate Recognition software to determine the duration of which a vehicle has stayed upon the proprietors car park or an incurred toll. The system uses appropriate software to time stamp all vehicles that enter and leave the site, and the driver or the registered keeper will be charged by the company in respect of that period or passage. 'The Company' have named the system as 'RING&REG' (trademark pending). The companies (ANPR Ltd & RING&REG Ltd) are both registered in England and Wales as limited companies. The shares and intellectual property are fully and wholly owned by ANPR Ltd, Road town, Tortola, The British Virgin Isles registered number 1297353.
Business Formation cost
Company formation and registration has taken place. Several variants of the RING&REG name has been directed to the Website. These have been acquired to prevent 'passing off'. Ring and Reg is now a limited company although non trading. Ring&Reg, Ring N Reg, Ring and Reg, is incorporated in the registered trade mark of ANPR Ltd. Several logos have also been registered and are awaiting approval although their use at present is not restricted.
Intellectual Property
ANPR or License plate recognition is not new to the UK. Unbelievably It was invented in 1976 at the Police Scientific Development Branch in the UK. Prototype systems were working by 1979 and contracts were let to produce industrial systems, first at EMI Electronics then at Computer Recognition Systems (CRS) in Wokingham UK. Early trial systems were deployed on the A1 road and at the Dartford tunnel. The first arrest due to a detected stolen car was made in 1981. Its progress in the private sector was limited due to concerns that these systems have centered on privacy fears, and of the government tracking citizens' movements and media reports of misidentification and high error rates. As they have developed, the systems have become much more accurate, reliable and accepted. Their use is public domain and cannot be restricted, licensed or protected. The software that ANPR Ltd has created is protected from copy right fraud by a 32 bit encryption code and in the unlikely event that the code is 'cracked' several safeguards have been installed to identify the user and location using their IP address and web integration.
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Costs and Overheads
P.O. BOX ONE, Preston PR2 0NF Tel: 01772 882 999 Fax: 01772 882 882 Email: info@ringandreg.com Web: www.ringandreg.com
RING&REG速 is the trade mark of ANPR Ltd who is registered in England & Wales as a company No 6129797 ANPR Ltd. is wholly owned by ANPR Ltd. of the Bri sh Virgin Isles Reg No: 1397353
John Smith
Sales Represen ve P.O. BOX ONE, Preston PR2 0NF Tel: 01772 882 999 Fax: 01772 882 882 Email: john@ringandreg.com Web: www.ringandreg.com
P.O. BOX ONE, Preston PR2 0NF Tel: 01772 882 999 Fax: 01772 882 882 Email: info@ringandreg.com Web: www.ringandreg.com
With Compliments RING&REG速 is the trade mark of ANPR Ltd who is registered in England & Wales as a company No 6129797 ANPR Ltd. is wholly owned by ANPR Ltd. of the Bri sh Virgin Isles Reg No: 1397353
Marketing Costs
PUBLIC RELATIONS PROPOSAL PREPARED FOR RING&REG By Apple Creative Design
JULY 2009 Introduction
NC (National Clamps) is one of the UKÕs leading providers of parking area management. With over twenty years experience within the sector and a client list in excess of 850 in over 365 towns and cities throughout the UK, the business has earned a reputation in the industry that is second to none. The company has developed a new product called Ring and Reg which uses modern technology enabling customers who have registered their details to park at any Ring and Reg car park and not have to worry about finding change for a ticket machine. On entering the car park the customerÕs car registration number is recognised by the ANPR cameras. They are then sent a text message to their mobile phone welcoming them to the car park confirming time of entry. When the customer exits the car-park, the camera once again logs their registration number and the software sends the customer a text to inform them the length of time they have been at the car park and the charge that will be debited from their registered card. In essence, Ring and Reg could spell the end of pay and display parking as the country knowÕs it and eliminate the hassle of finding small change for the ticket machine. The Ring and Reg system gives car park owners the opportunity to dramatically reduce their overheads. Initial set up costs for Ring and Reg start from as little as £2,500. The cost of a Pay and Display machine can vary from a little over £3,000 up to £6,500. Given the associated costs of operating pay and display including salaries, maintenance contracts and number of machines, the approximate cost of operating this system could exceed £85,000 per year. Modern payment technology is moving at a terrific pace and is being embraced by many blue-chip companies throughout the world such as Mastercard and Visa. This increases consumer trust in the technology and general acceptance as a natural way to pay for items and services now and in the future.
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Where possible the NC name is not to be associated with Ring and Reg.
There are currently no live sites using Ring and Reg, but it is hoped that a full company launch can be expected in the first week of November 2009.
Costs and Overheads
The brief Ring and Reg is a new innovation in the car parking management sector and it is important that its concept is introduced to as wide an audience as possible. Particular emphasis should be placed on informing existing and new customers of its benefits and ease of use. It is essential that there is an initial burst of PR activity to ensure that the relevant media are all aware of the new system and that all relevant trade media features are targeted. An on-going PR programme will then be introduced to ensure that the system and its benefits remain in the mind of operators. Key targets include car park operators and owners, property management companies and procurement officials within the public sector.
Initial tactics It is important that before any engagement with the media is undertaken, a live test site should be in operation. It is absolutely essential to get support from journalists and without a proven, working system in operation they are unlikely to be interested. Modern technology spells death of pay and display An initial generic press release should be drafted which would be issued to the national media (technology and business correspondents) and accompanied by a photograph illustrating the story. The issuing of this release will be followed up by the PR team with a view to securing visits to the live sites or interviews with the companies CEO (Chief Executive Officer). This release would also be issued to the key regional broadcast media with a view to securing interest in a Ônorth-west business which is about to change the face of car parking across the UKÕ. The PR team will also investigate opportunities on national broadcast media 'The One Show', 'BBC Click Online' and 'BBC Digital Planet'. Specific sector releases A number of releases will be drafted specifically targeting different sectors (NHS/Retail/Business/Leisure). These will highlight the benefit of the Ring and Reg system to their industry, with specific comment from the company CEO as to why it is relevant to them and the cost savings offered. These releases will again need to be accompanied by strong photography illustrating the story.
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Costs and Overheads
Feature stories Key trade media publications publish an annual features list detailing the topics it is covering on a monthly basis. On appointment The PR team will request features lists for all the relevant and present a list of all the features that are applicable to Ring and Reg and will target accordingly. For example: Shopping Centre magazine is running a Parking feature in their December issue. Deadline for the submission of editorial is mid November. The PR team would contact the features editor with a view to securing an interview with the company CEO or placing a case study. Case Studies Third party endorsement is a great way of illustrating the success of a product or service. Therefore the PR team will seek to develop a catalogue of case studies, focusing on different sectors that could be used to secure additional coverage in relevant trade media features. Photography will need to be used to support these case studies.
Innovation story
Initially the business and local media are always interested in reading about investment and innovation in their area, especially during these tough economic times. Whilst the Lancashire Evening post is not a favoured publication there is no reason why a good business story such as this should not be publicised across the north-west. The Manchester Evening News has a very well respected business desk and the PR team would also investigate and secure interview opportunities in titles such as North West Business Review and Lancashire Business View.
On-going activity
Community awareness programme As and when a new contract is awarded and the technology implemented, a community based PR programme should be initiated to inform end users of the change and how to use the new parking facilities. The Schedule will consist of a press release to the local media informing them of the new system, taking for example; ÔRomford' gets first cashless Ôpay on lineÕ web based car park in EssexÕ.
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During the change-over period and before it is complete, the car staff could hand out leaflets informing users of the change and encouraging them to register their details so they can continue to use the car park seamlessly.
Costs and Overheads
Ring and Reg success stories It is essential that the Ring and Reg brand continues to be drip fed not only to the trade media but also to the local business media in order for it to remain front of mind but also to maintain its position as an innovator in the field of modern car park payment. A range of stories could be issued on a monthly basis including: ¥ Contract wins ¥ Milestones ¥ New appointments ¥ Technology developments ¥ Survey based stories on parking habits Press office function On appointment, The PR team will provide Ring and Reg with a Ôpress officeÕ function which would service the organisation 24 hour 7 days a week. Therefore all media enquiries could be directed straight to The PR team who would respond accordingly to information, comment and image requests. It would be essential for The PR team to hold a library of high resolution jpeg images for issue to the media.
Getting started Before a rolling three month programme is developed and presented for signoff, the PR Agent will embark on an intensive period of client familiarisation to establish a full understanding of the offering proposals. They would then explore and establish the key messages (benefits, USPÕs (Unique Selling points) and positioning) as well as agree areas of focus. Agreed key messages will be incorporated into every communication that is drafted. Media lists will also be reviewed with a view to establishing the key media targets, and key spokespeople. Press release sign off procedures will also need to be agreed. It is proposed that the First floor of the Holiday Inn Preston is to be reserved for a day in the first week of November. A Powerpoint presentation is to be made to guests from the Royal Preston Hospital, Preston Railway Station, Preston City Council, St Georges Shopping centre, The Debenham Centre and Lancashire County Council. The room comfortably accommodates fifty people. Other speakers should be from British Telecom and the CEO of Ring and Reg.
20
Costs and Overheads
Account management The PR Agent takes a rigorous approach that ensures account management that guarantees efficient reporting and therefore agreeing that the following becomes standard routine: ¥ 1 x monthly client meeting to report on activity and results and to plan forthcoming activity. ¥ 1 x contact report (following monthly PR meeting) outlining future action and responsibilities. ¥ 1 x monthly press cuttings service containing most recent coverage.
Budget
In order to undertake launch activity and a sustained rolling PR programme that would look to support all elements of the campaign envisaging four days of activity per month for the first two months, reducing to two days a month thereafter. Consultancy day rate Ð 8 hours £330.00 Activity for Ring and Reg at 4 days per month (Aug/Sept) £1320.00 per month Rolling activity for Ring and Reg at 2 days per month (Oct onwards) £660.00 per month Time scales and estimates are reviewed quarterly. We feel that £5,000 is a reasonable figure to cover all forms of corporate advertising. Additional costs Any additional costs over and above the agreed fee will require written client approval and will be invoiced directly to the client by the supplier.
Costs and Overheads
21
Production Costs Production having tested the market extensively over the last two years, the companies IT department have decided that the best value for money that provides substantial components is the Lanner VW-1104GW. Its capabilities using a duo processor is unique and well within company remit. $600
Cameras are provided by 'Shany PLC' which incorporate the Sony CCD 560 TVL High Definition Processor with IR cut filter, they come complete with housing, heating, fan assisted cooling, and mounting bracket for $175. A varifocal multi coated lens with a range of 5-55mm costs $70. All product prices are in US dollars and attract import duties or value added tax.
The ANPR Software is developed to a very high standard and has cost in the region of £250k. The company has set aside a further 100K Sterling for upgrading their data base rational, Web interfacing, and Telephone integration as the company expands. The company can also foresee that a further two years will be invested in product development, improvements and governmental compliance.
Installation costs
Each site and installation may vary dependant on the number of entrances and exits which also determines the number of cameras required, their location, supply of electricity to the cameras and access to the web. A thousand pounds can cover all installation costs above ground. There are many private alarm companies who are extremely well trained and experienced in CCTV installation, i.e. ADT specialise in such installations and are well versed in ANPR, BT are well versed in all aspects and provide prestige and warranty, we anticipate £2,500 to be an average cost.
On-going costs
The proprietor is responsible for ongoing site costs i.e Electricity and access to the web. Sales personal will be encouraged to lease/purchase a vehicle from the company. The system that is currently in operation at NC is a no deposit interest free pay over time agreement that creates loyalty and ensures the vehicles are kept pristine at all time . (See pages 22 and 23)
Premises: The premises at Ormskirk Road are sufficient at present and have three years remaining on their lease, which should co-inside with relocation.
22
An emergency ÔFlying squadÕ must be available at all times and paid double time on 'call outs' during out of hours.
Costs and Overheads
Staff & Recruitment At present the company has five telephone staff and five in the IT room. The company has one full time sales person and five non executive directors who control and administrate the enforcement. The company also has thirty staff on the ground issuing Fixed Parking Notices and applying Wheel clamps. Future Having the facility to provide 100 extensions on 30 lines using Voip (Voice Over the Internet Protocol) on a calls answered commission only basis and the structure can be increased by adding to the ISDN30 and the Voip license. Requirements Sales personal, sign erectors, telephone staff, and installation engineers. Training The company have two City & Guilds trainers and the company CEO who can also carry out and provide further education up to NVQ level 3. The Company has designed and been accredited to National level 2; 'The Vehicle Immobiliser', 'The Ticket issuer' and 'The ANPR Operator'. The company board room is an Ed-excel approved training facility for 8 persons. Manning Levels The opportunities are limitless. You have a cycle of needs of equal proportions, new sales requires more installations, the more installations you have, the more enforcement you'll require, more enforcement equals more revenue! So on and so forth. Training and licensing of enforcement personnel is critical. Telephone Auto Attendant The companies goal is to automate where possible and the telephone answering auto attendant is such an example. It will not be possible to create a totally idealistic sequence therefore there is a need to have operators on Ôstand byÕ who are paid on both new subscriptions and trouble shooting. We require the minimum of information to open up an account and we divert where possible to the web site.
Staff and Recruitment
25
This is to certify that
Brian Hargreaves has successfully completed the
Level 2 Certificate in Automated Number Plate Recognition
This is to certify that
tehouse has successfully completed the
Level 2 Certificate in Vehicle Immobilisation
This is to certify that
Hayley O’Conor has successfully completed the
Level 2 Certificate in Ticket Issuing
Web Integration Although the Auto Attendant will be useful to most in the short term i.e. on site and first encounter, we anticipate that most motorists will customise their details by personally visiting their account ÔOnlineÕ. We have designed this portal in a manner that is a combination of ease of use but with sufficient hurdles in place to demonstrate consent. The first of which will be a single tab on the website ringandreg.com entitled: JOIN US Please enter your email address; safe in the knowledge that we do not provide your information to third parties resulting in SPAM. False or fictitious emails will result in membership rejection, and loss of functions.
NO SPAM promise
email:
jsmith123@hotmail.com submit
Your email address has become your Username. You also need a mobile telephone to receive cost per stay, balance updates and low balance notification. We do not give this telephone number to anyone, you will not receive any telephone sales call.
ZERO
sales calls code:
+ 44
mobile:
07800012345 submit
Your mobile has become your password. When you press ÔsendÕ a four digit pin number will be sent to your mobile phone, you will need to enter this pin number in the confirmation email that we have sent you.
Website and Database
29
Website & Database Functionality What happens when you drive on to a RING&REG Site? I the writer have decided to put myself in an emphatic position by pretending to be ÔThe driverÕ. I use this car park regularly and I can see that the Pay & Display machines have a Yellow tape across it indicating that it isnÕt functional. I can see that all the others are similarly marked, there appears to be additional multi coloured signage warning me of ÔClamping in OperationÕ and as I donÕt want to be ÔClampedÕ I do as asked. I telephone 01772 882 999 where I am greeted by an Automatic telephone attendant explaining about the concept and how it works. IÕve decided I donÕt want to do that as I just want to pay for my parking so I press Ô0Õ. The telephone operator answers and takes my mobile number, the car registration number and a deposit from my credit card. The telephone operator inputs all this information directly to a website and a customer ÔaccountÕ is opened on my behalf and charges will be debited as required dependant upon product i.e. car park stay, or toll. Top Up The customer can top up their account by visiting the website, inputting their Car Registration number or mobile number and pin number to access their personal account. Alternatively, if the customer gets to a car park and realises they donÕt have enough credits, they can phone and purchase more from the telephone operator. Additional Services Each time the customer ÔpurchasesÕ a RING&REG product, for example parking, a confirmation text would be sent to the mobile with the cost per stay, likewise on exit the cost incurred. Also there is a low funds warning, auto add of funds and a balance warning. The customers online ÒcreditÓ account is debited and a receipt is posted on-line which can be downloaded (for claiming expenses).
30
Website and Database
Proprietors Part of the website will be given to the land owners (car park owners and toll bridges tunnel operators). They will be able to charge for parking, per passage or type of vehicle.
Car Parking Fees
Cost
Toll Bridge and Tunnel
Cost
Up to 1 hour
£1.00
Between 1 and 3 hours
£2.00
Motor cyclist
£1.00
Over 3 hours
£2.75
Light Private Goods
£2.00
All Day (Over 4 hours)
£6.00
Car and Trailer or Caravan
£3.00
Daily Inclusive Overnight
£12.00
Commercial Vehicles
£5.00
Monthly Contract
£60.00
HGV or Ar culated
£8.00
Extras A function is available for families and companies alike to register unlimited vehicles under one registration. This would require a substantial deposit and auto top up is compulsory. A second function is available to find participating car parks and a facility is provided for direct debit where a motorist is also a contract parker.
Website and Database
31
Grey: Observa!on Yellow: Procedure Blue: Voice Prompt
Incoming call Is there a Caller ID? Yes
Your Phone is ‘Caller withheld’ or you are ringing from a landline. Please redial from a mobile that sends Caller ID
No
Do we recognise the number? Call up database and await instruc ons
No Welcome to ANPR Ltd & RING&REG The telephone number you are calling from is not registered with. Please press: 1) If you want to hear how the RING&REG system works 2) If you are a proprietor and you are interested in our service 3) If you are a new driver and you wish to register with us 4) If you are already a member but on a different number 0) If you wish to speak to an operator, have a wheel clamp removed or pay a fixed penalty no!ce
1 2
Yes MAIN MENU “Hello” “Mr Database” Welcome to ANPR & RING&REG “We have five op!ons available for you to press” 5) Check your status or top up your balance 6) Change your PIN number 7) Add or remove a registra!on number 8) Change your personal details 9) Open up an account or change account details 0) For the operator or if you wish to report fraudulent use
ANPR Ltd introduces RING&REG, which is a new and revolu!onary car parking system that is replacing the old ‘Pay & Display’ machines at a phenomenal rate. At the entrance of a public car park is a special camera that catches the details of a number plate and then sends a message to the drivers mobile phone which provides them with a cost per minute should they wish to stay. Likewise a second camera also sends the dura!on and cost of the stay to the driver when the vehicle leaves the site. For more informa!on, details are available by visi!ng www.ringandreg.com Thankyou for calling, there are several details we need to discuss with you, but in private. Please enter your post code and press #. A local surveyor will call you as soon as possible. Hold or press 0 and an operator will assist your call.
3
4 5 6 7
We have sent a four digit PIN number to your mobile, now press Op!on 6. Enter you PIN number followed by # and the change it to a more suitable and convenient number of your choice. You have now got !n status with us. To increase this in Op!on 9 we will require your credit card details and a very small deposit. All these op!ons may be carried out online. Enter your telephone number and then #. Again your PIN number then # to add the number you are calling from.
“Enter your PIN number please”
Refer to the database
5) Your balance is £
A er status then return to main menu
6) Enter new PIN and confirm
Your status
7) Enter Reg Number & press #
8
You will need to go online www.ringandreg.com
Is now ‘Tin’ Has risen to ‘Bronze’ Congats your ‘Silver’ Bingo your ‘Gold’ You are now ‘Pla!num’ your higness ‘Black’: You are to be penalised
9
Enter your credit card number # exp date # 3 digit security number
Press 0 to listen to your en!tlements and how to progress
‘Your Status Is’ Explana ons Tin You are at the entry level, your mobile phone has been recorded and a temporary PIN number is sent. You are asked to change your PIN number to one that is more to your liking. Your vehicle can be used on this site today but on this one occasion only. None payment will transfer this vehicle to the blacklisted forever un l payment is made plus interest at 12% APR.
Bronze Mobile number recorded, PIN changed and your registra on number has been added. Your membership is considered to be rela vely new and you have up to 30 days to se le this account. But no further use of any parking facili es is permi ed un l this account is se led.
Silver We now have your registra on number, PIN code and mobile number recorded. Simply add your credit card details with a small but reasonable deposit, you s ll have limited use and you are restricted in the sites that are available. You cannot add a second phone or a land line and or a mul ple registra on numbers.
Gold Name and address is now added, your email address is added to your account and verified. All ameni es are now available to the owner, payments are made by account monthly, extra sites, premium places, a starter pack sent in post with maps, permits, telephone numbers for premium parking and access to the members area of the website.
Pla num A proprietor who adds a site and offers free parking to other pla num members. You may use any facili es on a credit basis i.e. one hour offered equals one hour received. Free from any charges you may park anywhere in the country BUT only with permission from the proprietor. You request sites available and we’ll provide contact detail. On the day in ques on you approach the proprietor and ask for permission quo ng dura on. Viola on or breach will incur suspension even vehicle immobilisa on.
Black A vehicle that is blacklisted is in viola on of the terms and condi ons with this company. The vehicle is ear marked to be wheel-clamped on any future visits to any site in the country. The aforemen oned levels are to be sent out, word for word in a TXT or an SMS message, on the telephone auto a endant and if requested by emails as and when possible. The 'Members area' on the website is accessed by mobile phone number and the 4 digit PIN number. As and when the status rises then an email address can be used.
Marketing Advertising will be conducted via the PR and marketing team. Direct sales The 'Sales' department is to develop leads and approach the proprietor (or an approved agent acting for and behalf of the above) and introduce the benefits of changing to the RING&REG System. Having converted them to the scheme by the signing of an agreement, they must then facilitate the transference of funds which would complete the duties of the sales department. The agreement is for an initial period of one year and thereafter is subject to termination in accordance with the terms and conditions set out in the proposed agreement. The agreement is made between ANPR Ltd and the client for the provision of an alternative to Pay and Display machines at the premises of the proprietor. It is agreed that the fee of ÂŁ50 per sign per year marginally covers the cost of the installation and maintenance of the signs or cameras and does not cover public and employees liability insurance. These and other factors are all subsidised by the penalisation of those who cause a breach of the terms of use of the car parking facilities. These fees certainly do not cover the cost of the removal of signs nor the equipment and these must be returned no less that 14 days prior to agreement termination. Company Structure Sales personnel will be remunerated by salary, bonus and benefits generated from agreement signings.
34
Marketing
Sales Plan Sales personnel will be required upon appointment to attend a two day training course prior to commencement of their employment, the course being provided by the company and expenses for attendance will be paid. Earnings will commence from the first daysÕ work after the training course. It will be made clear that employment is subject to a probationary period of six months and evaluation periods. Evaluation Periods After week one, then after the first month followed by quarterly meetings thereafter. Training Course Day 1 After product familiarisation training the candidates will spend a day on cold canvassing covering all aspects from the approach to closure. Approaches to car parks in their own area will be encouraged in an unofficial role to test their cold canvassing skills, at this stage salesmen should be sufficiently confident to obtain details of potential clients. The prospective employee should then be completely enthused and fully prepared to commence work two or three weeks after training. Month 2 The starting date. At this time the company will not have incurred costs other than that of training providers, travelling expenses and hotel. The salesman will have cold canvassed in their area and will then be provided with the company sales kit following receipt of their sales leads by the telephone sales personnel. The sales staff will be made aware that they are part of a 20 strong team and that a website will be available indicating the number of signs sold and revenue received from the whole team. Each sales person will have a target to achieve 10 signs per week (£500) and this level of sales is the minimum to retain employment by the company. Bonus of 50% of the generated sales above the 800 per month team target, pays for their first month remuneration. The website analyses performances and if one person fails to reach their target no bonus is payable to anyone. Month 3 After salary payment of 2000 and hopefully a share of the bonus they will qualify for the supply of a new car on a rental basis, at this stage the sales target is increased to 15 signs per week or 60 per month, failure by any salesman will result in dismissal. Following Month A good sales force should have been established at this stage with high moral resulting from successful selling, good basic salary and high bonus earnings. There should be a high level of on-going enquiries and sales awaiting conversion.
Marketing
35
Company Structure Formation The companies (ANPR Ltd & RING&REG Ltd) are registered in England and Wales as limited companies whose 100 shares and intellectual property are fully and wholly owned by ANPR Ltd of the BVI registered number 1297353. Manning levels It is the intention of the company to restrict the staff levels to minimum requirements and automate where possible in areas such as accounting, general administration, communications and technical support. Sales personnel should be self motivated, yet if possible, self monitored. Outside contractors Initially required will be sales trainers with product knowledge, the company CEO will contribute and facilitate their education. House trainers Brian Hargreaves and Haley O' Conor will train installation engineers to Level 2 ID required. Sign erectors will be scrutinised by James Fairclough, the current company sign erector who is well versed in company standards. Self employed Installation/Alarm engineers with CCTV knowledge should only require on site instructions but will be expected to co-work with ground workers where sub soil cabling is required. Suppliers The company requires mainly Cameras (Shany PLC) and DVR's (Lanner Ltd) which originate from China and Taiwan respectfully. Cables and other electronic devices such as power supplies, baluns, cables etc will be sourced from CPS in Preston, signage is from CG Signs Adlington Nr Preston, and printed stationary will be provided by Ashton Print, Preston. Aids and advisors James Cuzons (Barrister) of Cheshire Legal Services, Warrington. Peter Howarth Tax Advisors and Accountants, Southport Road, Ormskirk. Lancashire. Colin Wilson Former CEO Bostic Consumer Products UK and Director of Shell Livewire. Resources The British Parking Association. The Legal Services, The Lancashire Office of Fair trading, Preston.
36
Company Structure
Estimated turnover Starting in the fiscal year beginning 1st November 2009, it is estimated that by attaining the services of a small sales force of just 20 personnel who achieve their targets of 40 signs each per month, the turnover of the company would circa £12,000,000.
Outside influences such as the involvement of BT, ADT, Virgin or others within the communications industry, can and will multiply this revenue even higher and potentially faster. The board however believes it only fair to anticipate that there will be none, and should a 'partner' join forces then a more substantial business plan will be formulated on the joint venture based upon the articles below.
NC ensures that one sign is visible per ten spaces and each sales person has a minimum base line of ten signs per week therefore; Signs x Persons x Weeks = Signs x Spaces = Users 10 x 20 x 50 = 10,000 x 10 = 100,000
There are three category Parkers in our ÔGroupÕ (Page 11). There are the Ôshort term shoppersÕ who stays for 3 hours & pays £4 for the stay. The ÔtripperÕ on airports and railway stations who pays £12 per day, and the Ôoffice workerÕ who pays £80 per month. Our thousand space car park is equally divided between all three. Shopper Spaces x Days per week x Year x Rate per stay = Receipts per annum 333 x 6 x 52 x 4 = £415,584 Tripper Spaces x Days per Annum = Rate per stay = Annual Receipts 333 x 365 x 12 = £1,458,540 Contract Spaces x Rate per Stay per Annum 333 x 80 x 12 = £319,680
Therefore our car park of a 1,000 spaces has a turnover of £2,193,804 or £2193.80p per space per year. The sales personnel hit their targets of just ten signs per week meaning that we have 100,000 spaces. Principal Rule ÒOne space generates £2,000 per annumÓ.
Spaces x Receipts per thousand = Turnover Ð Commission = Gross profit 100,000 x £2,193,804 = £219,000,000 - 10% = £21,900,000
38
In addition we generate Signage: Per week x Persons x Year x Fee = Turnover 10 x 20 x 50 x 50 = £500,000
All ÔEnforcementÕ belongs to National Clamps and should not be included although overleaf is a break down. Finance
FPNÕs (Fixed Parking Notices) NC are members of the DVLA, AOS (Driver and Vehicle Licensing Association, Approved Operator Scheme) which means that they are entitled to access the register using the EDI System (Electronic Data Interface). Assuming that a sales person hit the target of ten signs per week, and that those ten signs were located solely on one car park, with the addition of the cameras issuing two FPN's (Fixed Parking Notice) or 'tickets' per day: If the first ticket is paid prior to the ten day deadline it qualifies for the 50% discount of £40. The second ticket having attained the name and address of the registered keeper from the DVLA, and pays after 40 days they will pay the full £80. The income can be estimated at £540,000 after 12 months with half the amount again outstanding in uncollected debts. NC have a system that returns 91-94% of all tickets issued, 46% pay online under ten days. We can multiply this figure by the twenty sales personnel. Vehicle Immobilisation A 'Wheel Clamper' averages 20-25 vehicles per week, and even though they would like to do more, they need to patrol various sites to achieve this target. An average site of 500 spaces would be added to that patrol, it wouldn't warrant a permanent and static unit on site. NC has a network of franchisee's that can be added to as and when required. They have a strict code of conduct which surpasses that of the BPA (The British Parking Association). The current wheel clamp release fee of £80 is divided in three ways. £30 is retained by the VI (Vehicle Immobilise), £20 goes to the Franchisee whilst the remaining £30 is that of the Intellectual property owner and subsidises the running of the communications centre. The selling of the warning signs (£50 per sign, per year) only contributes to a sales personÕs salary, the installation of the ANPR equipment is taken from the Directors loan account and is returned on the annual anniversary or resale of those warning signs.
Finance
39
Profit Margins Car parking under the RING&REG scheme equals 9% Net profit. Assuming one sign equals 20 spaces, our site holds 1,000 spaces. Therefore signage generated £2,500 which was offset by salaries paid to sales. The installation cost of 4 cameras equals £2,500 and the running costs of the SMS (Short Message Service) is £0.04p per transaction. No fees are required for electricity to the equipment and ADSL access. Un-charged Messages per day x Days per week x Weeks x Cost per SMS 330 x 6 x 50 = 99000 messages at 00.04p = £3,960. Call outs, break downs, vandalism, replacement cameras, down time and lost revenue is second guessed at £2,000 per site, per annum. Total Expenditure: £7,960. Our commission on £1,900,000 at 10% = £190,000. Profit: £190,000 - £7,960 = £189,204 equates to 0.4% overheads. Adding Vehicle Immobilisation: 25% Net per Annum. Fixed Parking Notices: 40% Net per Annum.
40
Finance
Cash Flow Having supplied sufficient funds to create the system it becomes self funding as every member is paying for the parking facility up front by depositing funds into a 'top up' account. Potential members are encouraged to match the registration number of a vehicle to a valid credit card. The telephone receptionist is paid on a commission only basis and is encouraged to recommend that the motorist/ vehicle owner deposits more than the minimum of ツ」5 and no more than the ツ」35 ceiling (see: The office of fair trading rules on 'Distance selling'). Using the APACS 30 system, the company add funds and retain data at will. A monthly 'Contract Parker' will wish to pay by 'Direct Debit' using 'BACS Standard 40'. The funds are removed and deposited into the companyテ不 account one month in hand.
Finance
41
Budgets Emphasis must be on acquiring and achieving new sales. The sales department is self funding and is without support. 30% of the sales turnover must be found each year with an initial capital injection of around ÂŁ200,000 from the directors loan account. The Voip infrastructure exists to facilitate new members and in development the pay online website, a small sales commission is required for telephone sales staff which is taken from payments received. The figure is insignificant and is below 0.05% of the turnover. ADSL communications site electricity is provided by the proprietor and photographic evidence is kept on site. The main data storage and website hosting is provided by the parent company in Gibraltar. It is recommended that we exchange Oracle which is an improved database than MSSQL which is in use today.
42
Finance
Overheads Remuneration Commissions Salaries Installations Cameras DVR & Router Cables and Connectors etc Posts Barriers Communications SMS messaging Web Hosting Marketing Media Vehicles Purchase costs Running costs Taxation Insurance Fuel Depreciation Premises Furniture Heating Lighting Electricity Gas Rates Other Communications Computers & Printers Other hardware Software Salaries Commissions Bonuses Expenses
Forecasts Estimated group turnover, the company foresee expected targets to be exceeded. Should the company sell and install two new sites per week for one year, it is predicted that membership will have in excess of 100,000 subscribers. FPN's will generate £1.54m, vehicle immobilisation £1.4m and car park management £19.7 million.
Finance
43
Ring & Reg - Notes to the P & L Forecast Revenue:Car Park Owners Income per space = £2000 and 1 sign = 10 spaces R & R Revenue per space = £200 and Revenue per sign = £2000 Annual Revenue per sign = £2000 and monthly revenue per sign = £167 SMS Text Messages = 6p profit per text = SMS Cost x 10/4 Page 35 Month 1 = 600 signs x 1/2 month Of which is received in: Month 1 = Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
= = = = = = = = = = =
600 1400 2600 3800 5000 6200 7400 8600 9800 11000 12200
+ + + + + + + + + + +
800 signs = 1400 1200 = 2600 1200 = 3800 1200 = 5000 1200 = 6200 1200 = 7400 1200 = 8600 1200 = 9800 1200 = 11000 1200 = 12200 1200 = 13400
Month 2 = Month 3 = Month 4 = Month 5 = Month 6 = Month 7 = Month 8 = Month 9 = Month 10 = Month 11 = Month 12 =
600 signs x 1/2 month 600 + 800 = 1400 1400 + 1200 = 2600 2600 + 1200 = 3800 3800 + 1200 = 5000 5000 + 1200 = 6200 6200 + 1200 = 7400 7400 + 1200 = 8600 8600 + 1200 = 9800 9800 + 1200 = 11000 11000 + 1200 = 12200
Commissions will start after 6 weeks Sign Rental Page 35 Month 1 sales of (10 signs x 20 salespersons x 3) x £50 Month 2 sales of (10 signs x 20 salespersons x 4) x £50 Month 3 sales of (15 signs x 20 salespersons x 4) x £50 Expenses: Page 35 Training - Month 1 £200 x 20 people Salaries based on 20 staff @ £2000 per month from month 2 Bonuses 50% of signs sold > 800 SMS Text charges £3960 per car park Based on a car park of 1,000 spaces, no of car parks per month will be Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 6 14 26 38 50 62 74 86 98 110 122 134 23,760 55,440 102,960 150,480 198,000 245,520 293,040 340,560 388,080 435,600 483,120 530,640 1,980 4,620 8,580 12,540 16,500 20,460 24,420 28,380 32,340 36,300 40,260 44,220
44
Sales persons cars will be bought in month 3 by the company @ £10,000 x 20
Finance
Page 40 Car Park Costs (Repairs to equipment) Based on car parks of 1000 spaces per month @ £2000 Admin Expenses: Based on 3 full time staff in an office, increasing to 6 in month 7 RING&REG - Notes to Cash Flow VAT 2009 @ 15% VAT 2010 @ 17.5% Capital Expenditure: Equipment Installation capital expenditure @ £2500 per car park N.B; Cars for salespeople 20 @ £10,000
Finance
45
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S.W.O.T
Strengths NC has an established customer base, a viable and reliable track record, access to the DVLA. They are a brand leader and recognised within the industry, their systems are tried and tested. They also have well trained staff, offer good PR whilst carrying out enforcement and can provide substantial funding. ANPR Ltd provides reliable royalty free software that has the capability to update. CPS Ltd: (Car Parking Services) Access to the DVLA, a 90-95% recovery rate on all outstanding FPN's, tested and approves systems, friendly and helpful telephone receptionists.
Weaknesses
No ability to secure intellectual property. A patent of the idea cannot be attained other than those under copyright and trademark agreements already sort. Enforcement other than a 100 mile corridor that encompasses the M1 M6 corridor NC are not currently represented. Devon & Cornwall, Somerset, Bristol and the North East. Scotland does not even permit wheel clamping and could prove to be an issue. The current ruling Carmichael v. Black in the High Court of Justiciary HCJ Appeal, The Lord Justice-General (Hope), Lords Allan, Bridge and Cowie could be challenged and possibly over turned. (future reference only) This innovation is being mistaken and dismissed for other practises that are being employed in London and the South. 'Ringo' is purely SMS or text messaging whereas you text the location and your estimated length of stay to command. Personally we would rather use a meter, whilst Parking eye is providing protection for retail outlets by using ANPR technology to provide photographic evidence of an overstay.
Opportunities
The opportunity to monopolise is closing and it is necessary that the company seek a 'partner'. This business plan is designed to encourage a company that adds to the strengths such as a sales force, technical assistance, installations and the running of the infrastructure. BT (British Telecom) seem to be the most likely of choices but only assuming terms and conditions are correct, time is not squandered, and finally the criteria and standards required don't exceed budgets, this partnership could prove phenomenal.
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S.W.O.T
Threats 1. 2. 3. 4. 5. 6.
Once the company launches others will emulate. The Disabled Drivers association are reluctant to release their data base. System breakdown and Virus attacks. Credit card fraud. Car Registration Plate copying. The Home office intervention in 2011 on Vehicle Immobilisation and towing away.
We expect emulation but CCTV engineers cannot provide enforcement like NC. And most vehicle immobilisation companies don't employ ANPR. Our systems are tailor made, cost fortunes and are not for sale 'off the shelf'. Within time RING&REG will acquire its own data of disabled drivers, nurses and doctors on call and a 32 bit encryption code that protects the database with a second and third line of defence being in-cooperated. NC are registered by the Data protection agency and achieve ÔSafeÕ status by Barclays Merchant Services. We find it hard to believe that someone will be stupid enough to use a stolen card to register their vehicle as all cards are instantly checked. Furthermore it is impossible to acquire a new number plate without a replacement and a like for like swap or the production of current and relevant documentation. Scrap dealers face a £3,000 fine or three months imprisonment for failure to dispose of a number plate. It is anticipated that the release fee of a clamped vehicle will be capped by the government below the £130 BPA recommended release fee. As NC only charges £80 and doesn't tow away vehicles unless in extreme conditions, there is no need to show concern over legislation (ironically NC seems to welcome it). Steps are in progress to become an SIA approved contractor. The company CEO is more than willing to take any questions.
S.W.O.T
49
Sensitivity Analysis The CEO has good judgement which comes from a sound knowledge and excellent understanding of the concept. He has twenty years experience within the private parking industry. His former IT department is now called ANPR Ltd which has spent 2 years on this project. They have shared his thoughts, and with others of high intellect and they have overcome every objection. The former IT department and NC believe that the company have a formidable product and an illustrious future. Minimum Profit required Holding companies and the CEO have invested over ÂŁ400,000 into this project and intend to add to that total a further ÂŁ100,000. This figure should create the ability to launch and progress. After six weeks the company should be self funding. All investments are in the Directors loan account and attracts tax relief until the loan is repaid. Minimum Sales Figures It is thought that the company can attain and keep a sales force of twenty people strategically placed throughout the UK. The fee of ÂŁ50 per sign, per year is insignificant to the cost of the ANPR equipment and service that the client receives and is considered to be easily attainable. There are currently 66 cities in the UK with 124 post code areas, it is predicted that by the end of year 2012 that the RING&REG service will be available in every one of those areas. Our three year business plan is based upon several objectives. 1. The M1 M6 Corridor which is prevalently covered by the National Clamps service and their ability to enforce. Group 1 sales only (page 11). 2. Year 2, Group 2 and annual renewals. The existing sales force is to consolidate and ensure the resigning of existing contracts they should introduce at least four new staff with similar targets of ten signs per week, each member of staff will be allocated the first two digits of a postal area i.e. PR Preston which will open up new territories other than those encompassed by the M6 M1 motorways raising the manning levels to 100 throughout the UK and Ireland. 3. Year 3, Groups 1, 2 and 3. The renewal of the previous two years sales must be consolidated. Chosen from the remainder of the original twenty people there are now five regional directors with at least twenty staff each. They cover twelve shires with thirty major towns or cities in their jurisdiction.
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4. Manning levels to be reduced to a minimum of ten regional directors, choosing five more from the second year group.
Sensitivity Analysis
Questions Answered Since 1989, National Clamps (NC) have been at the forefront of protecting the rights of property owners and the public by providing high quality parking control through a range of highly specialised services. The company now operates in over 365 UK towns and cities and counts major universities, high street retailers, police forces and local councils amongst its 870 plus client base. NC immobilises over 10,000 vehicles per year and issues 5,000 FPN's. 1. Providing enforcement on public and private car parks, the company saw the potential of an alternative technology to the current 'Pay and Display' system and 'Pay on Foot' that are operational in the majority of British car parks. The company has developed their own ANPR system and proprietary software to enable car parks to control authorised use of car parks. Mobile phone or online registration is carried out by users to a central database which then authorises the parking and charges for use, or applies a charge for unauthorised parking by collecting number plate information and cross matching it to data held. Having created a massive database of 'Members' NC can approach the operators of the Avon, Humber and Thames toll bridges, The M6 toll road and the Dartford and Birkenhead tunnels and ask to introduce the system into the high speed feeder lanes.
What was the context in which the technology was developed?
The technology is a better alternative to the current Pay & Display technology, that relies on expensive capital investments and high running costs, having the need for operators, coinage movement and security, servicing, repairs and manual checking of tickets showing duration of stay and payment status. 1.1 How large is the organisation? The organisation, NC, employs thirty-five full time staff and has a technical team responsible for the development and application of the technology of six, led by the chairman of the company, Trevor Whitehouse who is supported by five non executive directors. 1.2 What is the history of technological development within the organisation?
Questions Answered
Since the organisations formation in 1989, there have been many technological developments. The Chairman, Trevor Whitehouse was responsible for the design and manufacture of the patented Press-on Clamp, which is now the most popular and widely used clamp design in the country. NC can also demonstrate technological development in web based payment systems. NC was one of the first clamping companies in the UK to routinely accept payments via an online system. They have also developed their own proprietary software for managing all business functions at an enterprise level, linked to individual team performance monitoring, real-time statistical analysis, data capture and interrogation, financial controls and office administration.
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1.3 What prompted the development? With emerging technology of ANPR hardware and associated database software the recent ability for them to ÔtalkÕ via wi-fi communications. The company recognised the potential for a far more viable and cheaper alternative to Pay and Display. The working title of the technology is Ring and Reg. In brief, a customers car is recorded on entering and leaving the car park via a single high resolution ANPR camera positioned to capture number plates. The camera sends the number plate information to the software, which checks it against a database. If it is a new customer, they are asked to park in a space, ring the number on a sign and register. Upon registering a customer can use the car park, or any other car park in the scheme nationally, without the need for coinage. The camera simply records their information and bills their credit card based on duration of stay. Pay and Display costs on average £80,000 per year on a standard multi-storey car park. Ring and Reg will potentially save thousands of pounds per year, as the system does not rely on machinery and labour, and associated cost of coin movement and security. 1.4 When and where did the project take place? The technical development and testing of system integration has taken place at National ClampÕs head office in Preston Lancashire from the first quarter of 2008. Technology partners for programming and components were sourced in January 2009. 1.5 What were the time-scales? Initial project was split between research and software development which took place over the first three month period from March 2008. Sourcing of appropriate technology partners was planned to continue to the end of 2008. Manufacture of camera units and applications testing was scheduled to August 2009. Building of the business model, linked to the technology, with site trials from July 2009 until present day. Final software debugging and initial product manufacture is in progress until end of August 2009. Final roll-out is to be planned from 1st November 2009.
2. What improvements was the technology intended to make, and how was it planned?
Pay and Display is inefficient as it relies on a human operator to record vehicles, check for violations and also to service and operate the machinery, as well as dealing with the public, handling cash and picking up the litter that is left from discarded tickets.
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Ring and Reg doesnÕt need tickets, it doesnÕt need expensive capital purchase of machines that are prone to breakdown and theft. It doesnÕt tie up human resources in operation, enforcement, repair, cash movement and replacing ticket rolls.
Questions Answered
2.1 What changes were identified? A more reliable system of car park management and enforcement, lower capital investment and running costs, the harnessing of modern technologies that are faster, more accurate and less labour intensive to operate. 2.2 What were the problems the current technology faced? Primarily cost, accuracy and harm to the environment. Pay and Display is several machines, prone to breakdown, prone to vandalism and misuse. High initial purchase price, high degree of manpower to run, expensive coinage collection and movement every day. Customers pushing to be able to use credit and debit cards as they do for many other modern purchases. Current technology generates carbon to manufacture machines, generates tonnes of litter per year that is often thrown away in the immediate vicinity of the car park. 2.3 What cost savings or efficiency gains were planned? Current purchase cost of a single Pay and Display machine ranges from £3,000 - £6,500, add running costs per annum of approx £1,000 (excluding repairs) then add salaries and labour costs of operatives £15,000 per person per annum. Based on an average car park having ten machines which need replacing every three years and four staff then the total approximate cost could equate to £85,000 per annum. The RING&REG system for the same car park having invested money on 4 x cameras, I x DVR £1,000 and installation without subsoil work. Which equates to a total of £2,500. There would be annual occurrences of the twenty warning signs at £50.00 per sign plus the 10% commission handling fees of £35,000 which means a potential cost saving of £49,000 within the first year. Efficiencies in materials, i.e. no expensive machinery to install, no paper waste, fewer operatives, fewer repairs, no on-site cash collections required and no banking charges all make Ring and Reg an attractive alternative.
How was the technology developed? What was the process behind the development?
A combination of feasibility studies, planning the type of technological platform for database and software programming platform. Research of robust technology for hardware and ANPR equipment designed for low maintenance. Project model development and sourcing of appropriate technical partners for manufacture and systems integration. Development of a time scale for key stages of final release and first installation.
Questions Answered
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Who was consulted and to what effect? Software developers and appropriate technology manufacturers were consulted to test the model of delivery. Patent lawyers to ensure protection of the technology, bespoke equipment and systems to prevent copyright issues both during and post development. The board also found the partnerships the company formed were instrumental in allowing us to progress the project more quickly, particularly in the early developmental stages. What obstacles had to be overcome? Recognised at an early stage was that the whole success of the project was about getting the back end of the database function right, it was particularly time consuming and required very detailed discussions and testing with a number of experts, who were developing parts of the program concurrently whilst providing feedback to the NC management on progress and adherence to the tight time-scales. The co-ordination was a challenge at the early part of the project. The other main obstacle was keeping the cost of the overall project to a point where it had a clear benefit over traditional Pay and Display. This has now been overcome and the company have a highly effective solution that is affordable to operators. Were sensible performance measures in place to judge the success of the technology? The company paid particular attention to rigorous testing to ensure the loads on the software were well within normal operating extremes. Every part of the system has been exhaustively tested for reliability, on-site suitability, durability for temperature and humidity, robustness of the back-end programming including contingency planning for factors such as power outage or mobile network failure. How was the project led and managed? The overall project was led and managed by NC Chairman, Mr Trevor Whitehouse. His IT team was led by his brother George Whitehouse who held regular weekly team briefings and video conferencing with other IT support organisations and was remotely managed via email communication. Ongoing measurement of KPIテ不 (Key point indicators) ensures the project is kept on track.
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Questions Answered
What results did the technology achieve, both directly and indirectly? How did the technology improve service/performance? As the official roll-out is not until 1st November 2009, the company can only take data from live projections to answer this question. The technology will improve service by allowing the process of car park management to be carried out in a far more efficient way, utilising technology to make the simple action of parking and paying for parking, much easier and more in tune with modern customer requirements. It is anticipated that with much lower administration costs the price for the consumers could also be lowered attracting re-sales. From the operators perspective, there is the knowledge that every violator refusing to pay for parking will be recorded and auctioned, without relying on an operative who may or may not record parking ticket violations.
How will the technology be accepted?
Current National Clamp customers who have received a demonstration of the technology have been very impressed and there is a lot of interest from customers who have already seen the benefits over existing Pay & Display and Pay on foot systems. Of the several hundred customers in the NC database, most have stated that they see the new technology as being both worthwhile and necessary. Is the technology environmentally friendly? Much more so than ÔPay & DisplayÕ or ÔPay on footÕ as there are no heavy machines to be manufactured and moved, there is no consumption of paper for tickets and there is far less electricity used per site. There is no movement of coins requiring vehicle journeys and resultant high CO2 emissions. There are less journeys for the purpose of maintenance, service and repair of machines by manufacturers. Is the technology cost-effective? Extremely so in comparison to existing Pay & Display.
Questions Answered
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What are the long term benefits of this technology? Is the technology transferable? Yes it is entirely transferable to many scenarios and can be expanded to even the largest of car parks, both nationally and potentially internationally. The technology is built upon existing Microsoft Windows operating systems, so can be used on virtually any PC network world wide. What benefits does the technology bring as regards to Civil Enforcement? It is a much easier to use system, offering greater levels of accuracy and a higher degree of control in enforcing correct parking procedures. It offers cost savings, is environmentally friendly and can be installed to full operation within days. It requires far less administration freeing up operatives to be able to care about customers and site maintenance without the need for time consuming patrols and refilling tickets. Using CPS car parking services all vehicle owners are contacted and pursued following an infringement. What benefits does the technology bring to the general public? The technology is far more in keeping with the modern consumers who may not always have sufficient and appropriate change to pay for parking. With Ring and Reg, once registered the consumer can easily park and has the peace of mind knowing that it will be charged to their specified debit/credit card upon leaving the car park. No more fumbling for the right change, no more rushing back to beat the ticket time, no more long walks trying to locate a machine, only to find it has no more tickets or is out of order. The ability to choose and use any participating Ring & Reg car park anywhere in the country, further more beating the queues at toll roads, bridges and tunnels is such an added bonus.
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Becoming a member
Becoming a Member Motorists who use pay and display machines and tolls that wish to become a member of the RING&REG system, may do so by using five portals that aid registration. 1. 2. 3. 4. 5.
The motorist may go ÔOnlineÕ Text messaging Telephone call Telephone operator Reply post
Our objective was to make the job as easy as possible, keeping security uppermost in our mind, yet providing sufficient inconvenience to prove consent. Until we receive data that proves otherwise, we can anticipate 25% will make first contact via their mobile phone from the location. They will be greeted by the tri-box auto attendant that analyses the incoming number to determine that the caller is not registered. If not they will be asked to join. A text message is automatically sent to their phone with a pin number, the caller may now go online and enter the web site using both the mobile number and the pin number, or they can redial and enter Ô6Õ to change the pin number to one that is more convenient and memorable. Next the caller would press Ô7Õ to receive a text message asking them to enter their registration number. You simple enter the registration number and press reply. For those who find themselves in a quandary, they can simply press Ô0Õ for assistance. (Refer to pages 26 & 27). Others may ring from a land line when they get home or enter their place of work, again they are greeted by the tri-box but they must press Ô0Õ for assistance. An operator will be pleased to take the call and enter their personal details on the callers behalf. Finally mock ÔFixed Parking NoticesÕ will be issued during the ÕHand over periodÕ. These FPNÕs have a self addressed post card with an application form on the rear. This can be completed and returned. A post box will be made available on site, emptied daily and the contents will be analysed by the car park attendants and the details will be entered via the web on site. The post card can be discarded. At any time the motorist may go online and enter the web site. They may have many choices available to them. Enter and register using: 1. 2. 3. 4.
Mobile and pin Car registration number and pin Email address and password User name and password
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We do not force users to use upper and lower case, a minimum amount of characters and incorporate at least one number. The chosen word is theirs, we will incorporate a security question such as place of birth, first school, mothers maiden name, favourite pets name etc.
Becoming a member
The Proprietor Will need evidence and feel secure that the public is being charged at the right price and that their money is guaranteed. Reassurance will be required that no one is inconvenienced and motorists are encouraged to use the facilities and are not being forced away. The proprietor will have a website that is specific to their site, they can watch data being collected and monitor all vehicles that enter and leave their site. They can bank weekly or monthly and the proprietor can add vehicles to their Ă&#x201D;Guest or Exempt listĂ&#x2022; and remove them at will.
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Becoming a member
Trade Associations The British Parking Association http://www.britishparking.co.uk/ British Parking Association Stuart House, 41-43 Perrymount Road Haywards Heath, West Sussex, RH16 3BN The DVLA Approved Operator Scheme http://www.britishparking.co.uk/info_page.php?id=73&info_id=21 The Institute of Parking Professionals http://www.theipp.co.uk/
Trade Associations
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P.O. BOX ONE, Preston PR2 0NF Tel: 01772 882 999 Fax: 01772 882 882 Email: info@ringandreg.com Web: www.ringandreg.com