FabBox
FabBox / Company ABN: 389 4284 5309 ACN: 488 933 283 23 Sydney Road Richmond VIC 3121 Date Established: 1st July 2016
1
CONTENTS
FabBox
2
OWNERS
WHO WHOWE WEARE ARE
WHO WE ARE
DIRECTOR DIRECTOR PARTNER PARTNER / STUDIO / STUDIO MANAGER MANAGER GIOVANNI GIOVANNI GUNAWAN GUNAWAN MUHAMMAD MUHAMMAD ZHARIF ZHARIF RAFIQ RAFIQ BIN BIN ROZLAN ROZLAN Pei Ern Ho Muhammad Zharif Rafiq Bin Danica Yee
Rozlan
PARTNER PARTNER / M/ MI HAO MI HAO CHUA CHU
Mi Mi Hao Hao comp com Giovanni Giovanni completed completed hishis Bachelor Bachelor Zharif Zharif completed completed hishis Bachelor Bachelor Masters Masters in Arc in and and Masters Masters in Architecture in Architecture at at andand Masters Masters in Architecture in Architecture at at Melbourne. Melbourne H Zharif completed his Bachelor Danica completed her Bachelor Pei Ern completed her Bachelor RMIT, RMIT, Melbourne. Melbourne. He He has has extensive extensive RMIT, RMIT, Melbourne. Melbourne. HeHe hashas since since at Kristin at Kristin Gree G work work experience experience in Asia in Asia with with and Masters in Architecture and Masters in Architecture at in Environments at Melbourne worked worked with with Paul Paul Minifie Minifie locally, locally, a keen a keen interes inte bgnrArchitects bgnrArchitects in Indonesia in Indonesia and and more more extensively extensively with with Veritas Veritas RMIT, Melbourne. He has since University and her Masters in at RMIT, Melbourne. She has new new technolo techno SAANA SAANA in Tokyo. in Tokyo. Giovanni Giovanni hashas a a Architects Architects in Kuala in Kuala Lumpur Lumpur andand worked locally atRENDERING Hayball worked with Paul Minifie locally, PARTNER Architecture at RMIT, Melbourne. DIRECTOR / STUDIO MANAGER PARTNER /design MARKETING, produce produce outst ou passion passion for for the the design process process and and is aisregistered a registered architect. architect. Zharif Zharif and Particular Architects, as more extensively with Veritas She has work experience in GIOVANNI GUNAWAN MI HAO CHUA MUHAMMAD ZHARIF RAFIQ BIN ROZLAN has has experienc experie is chiefly is chiefly an an architect, architect, however, however, specialises specialises in using in using parametric parametric andand hashas work wo Architects in Kuala Lumpur design and at projects idprojects Architects well asfivefive Konzepte hishis rolerole at studio at studio extends extends to to& Design design toSingapore create to create innovative innovative Mi Hao completed his Bachelor and Giovanni completed his Bachelor projects. projects. Mi M H Studio Studio Manager Manager and and head head of the of the Zharif Bachelor Zharif International in Kuala Lumpur. is a completed registeredhisarchitect. and locally at Williams Boag andand hashas experience experience with with engaging engaging in in Masters in Architecture at RMIT, and Masters in Architecture at passion passion for for co administrative administrative staff. staff. and Masters in Architecture at pedagogy. pedagogy. Her workHehas been published specialises in using parametric Architects, WOWOWA and Ewert Melbourne. has since worked as as RMIT, Melbourne. He has extensive studio studio five’ fi RMIT, Melbourne. He has since demonstrating design to create innovative work Lea experience Danica hasinbeen a registered atinternationally Kristin Green Architects and has Asia with worked with Paul Minifie locally, DIRECTOR DIRECTOR PARTNER PARTNER / CREATIVE / CREATIVE DIRECTOR DIRECTOR high work quality. ofShe projects and with hasVeritas experience bgnrArchitects and practicing architectand for the aher keen interest in the application in Indonesia more extensively DANICA DANICA YEEYEE PEIPEI ERNERN HOHO new technologies and methods SAANA Tokyo. and Giovanni a with engaging in pedagogy. last sixin years has has a passion has a keen eye for to visual Architects in Kuala Lumpur and produce outstanding projects. He passion forarchitectural the design process and is a registered architect. Zharif Danica and architectural aesthetics. to see innovation Danica completed completed herher Bachelor Bachelor PeiPei ErnErn completed completed herher Bachelor Bachelor andand has experience in sustainable design is chiefly an architect, however, specialises in using parametric in Environments be usedatasMelbourne tool to improveMasters and in Environments ataMelbourne Masters in Architecture in Architecture at RMIT, at RMIT, and has worked on several notable his role at studio five extends to design to create innovative projects University University andand herher Masters Masters in in Melbourne. She She hashas worked worked locally develop living standards forMelbourne. all. projects. Mi Hao has alocally visible Studio Manager and head of the and has experience with engagingArchitecture inArchitecture at RMIT, at RMIT, Melbourne. Melbourne. at Hayball at Hayball and and Particular Particular Architects, Architects, passion for connecting with people administrative staff. pedagogy. She She hashas work work experience experience in in as as well well as as Konzepte Konzepte & head Design & Design as studio five’s of marketing. Singapore Singapore at id at Architects id Architects andand locally locally International International in Kuala in Kuala Lumpur. Lumpur. DIRECTOR PARTNER / CREATIVE DIRECTOR at Williams at Williams Boag Boag Architects. Architects. Danica Danica HerHer work work hashas been been published published DANICA YEE PEIaERN HO hashas been been registered a registered andand practicing practicing internationally internationally demonstrating demonstrating herher architect architect for for thethe lastlast sixsix years years andand high high work work quality. quality. She She hashas a keen a keen Danica completed her Bachelor hashas Ernto completed her Bachelor and a passion aPei passion see to see architectural architectural eyeeye for for visual visual andand architectural architectural in Environments at Melbourne innovation Masters inused Architecture innovation be be used as as a tool a tool to at toRMIT, aesthetics aesthetics as as Studio Studio Five’s Five’s Creative Creative University and her Masters in Melbourne. She has worked locally improve improve andand develop develop living living standards standards Director. Director. Architecture at RMIT, Melbourne. for for at Hayball and Particular Architects, all.all. She has work experience in as well as Konzepte & Design Singapore at id Architects and locally International in Kuala Lumpur. at Williams Boag Architects. Danica Her work has been published has been a registered and practicing internationally demonstrating her architect for the last six years and high work quality. She has a keen has a passion to see architectural eye for visual and architectural innovation be used as a tool to aesthetics as Studio Five’s Creative improve and develop living standards Director. for all.
3
FabBox
FabBox is an architectural design and building manufacturing company providing prefabricated modular houses for home owners in the outer suburbs of Melbourne. The service includes the design and documentation of the house, including communication to clients via an application designed for tablets and smartphones. FabBox then manufactures these designs in a remote location and transports the modular building components on-site for assembly.
Screen A 2x Bondor Insulated Panel Colourbond Rool Top Ridge Capping Bondor Insulated Panel + Slate Roof Cover
Base Module
Colourbond BGC Square Gutter + Rectangular Downpipe
Corridor Module
Polar Eco-View Double Glazed
Polar Eco-View Double Glazed Plyco American Cherry Crown Cut Bondor Insulated Panel Skid
We seek to deliver the full range of design and production services to ensure our clients receive a high-quality, architecturally designed home.
Screen A 2x Bondor Insulated Panel Corridor Module
FabBox
4
VISION
MISSION
GOALS
FabBox desires to provide affordable and high-quality ‘forever homes’ for a new generation of home owners that are sustainable and architecturally designed.
FabBox is a manufacturing and construction company that functions primarily as a design office led by a team of architects. Our mission is to use this architectural expertise to design and develop efficient, sustainable and high quality housing to cater for middle income Melbournians. We desire to provide architectural services that are accessible to the first home owner.
FabBox exists to provide an alternative to ‘build off the plan’ new homes purchased from corporate developers and builders. 1. We want to advocate for the value of the architectural profession in home design. 2. We want to position ourselves as accessible in the market in terms of price and service, changing the predominant thought that architectural services are simply for the wealthy. 3. We want to develop the application for smartphones and tablets as a viable means of communication with clients in the architectural profession.
5
PROCESS
FabBox delivers the full range of services required to design, customise and build a family home. 1. Clients engage FabBox through the application available for tablets and smartphones
Client
2. Clients design and customise their FabBox home 3. The FabBox design is refined and developed by in-house architects in collaboration with our clients and consultants
Application
4. The FabBox modules are built in our warehouse 5. The FabBox modules are transported on-site and assembled by a team of skilled builders and contractors 6. The FabBox is finished and ready for move-in within 20-22 weeks.
Professionals
Prefabrication FabBox
6
TARGET MARKET
Unique Selling Position
Customer Demographics
Customer Management
FabBox is unique because it provides an affordable and bespoke alternative to the housing developers already saturating the market. The main difference is that we market ourselves as an architecture & design firm, and not simply build-off-the-plan developers with little flexibility for personalised and unique solutions. We fill the gap for clients seeking out the design for a unique house that is new build, designed by them, approved by architects and delivered and constructed onsite very quickly. The time frame for delivery of services is halved through our prefabrication model making our solution very attractive in comparison with long drawn out building processes.
Our target customers are 25-40 years of age who are looking to own and build their first long-term family home in Melbourne’s outer suburbs.
We will maintain a good relationship with customers through efficiency and care in communication. This is achieved through the application for devices allowing clients to contact an architect easily, minimising the need for face-toface meetings.
7
These clients are middle income earners who are technology and possibly design-savvy looking for alternative bespoke solution to the traditional housing developer. They are people who are busy and always on-the-go.
We seek to uphold excellent customer service standards, primarily focusing on delivering a personalised service for each client, ensuring that our clients’ needs are met. Finally, we operate under the Architects Accreditation Council of Australia (AACA), as Registered Architects with the Architects Registration Board of Victoria (ARBV) underpinning our work as competent architects, ensuring the architectural services delivered are of a high standard.
MARKET ANALYSIS
Target Market Locations
Target Market Suburbs
Value to Customers
Our target market locations are in the outer suburbs of Melbourne where there are currently newly developed plots of land available for purchase. According to our research, we believe the City Council Wards in Victoria that fall into this category are:
Within these newly developed suburbs are plots of land ready for construction (see land developments overleaf). The suburbs where we see the most available land and therefore, the greatest potential for interested clients are:
Our customers will view our product and service partly as a necessity as many will approach our product already owning a vacant piece of land and needing to build a new home, however, the additional architectural advice and customisable model is a luxury that acts as an added alluring bonus for the client.
1. Casey (South-East) 2. Cardinia (South-East) 3. Wyndham (North-West) 4. Melton (North-West) 5. Whittlesea (North)
FabBox
1. Cranbourne, Casey City 2. Clyde, Casey City 3. Officer, Cardinia City 4. Tarneit, Wyndham City 5. Rockbank, Melton City 6. Plumpton, Melton City 7. Beveridge, Whittlesea City 8. Wollart, Whittlesea City
8
7
WHITTLESEA HUME
8
MELTON 6 5
4
MELBOURNE
WYNDHAM
CARDINIA 3 CASEY 1 2
Target Market / City Council Wards
9
1 Cranbourne 2 Clyde 3 Officer 4 Tarneit 5 Rockbank 6 Plumpton 7 Beveridge 8 Wollert
MARKET ANALYSIS
KURUNJANG MELTON PLUMPTON
BROOKFIELD
HILLSIDE
ROCKBANK
BURNSIDE
DERRIMUT
TARNEIT
WERRIBEE
POINT COOK
MAMBOURIN
Currently Under Development Newly Development Target Suburbs
Target Market / Urban Growth Maps
FabBox
10
BEVERIDGE
KALKALLO DONNYBROOK
WOODSTOCK
MICKLEHAM
SUNBURY
MERNDA YUROKE
WOLLERT
GREENVALE
Currently Under Development Newly Development Target Suburbs
Target Market / Urban Growth Maps
OFFICER NARRE WARREN SOUTH
CRANBOURNE WEST CRANBOURNE EAST
PAKENHAM
CLYDE NORTH
CRANBOURNE SOUTH JUNCTION VILLAGE
CLYDE
Currently Under Development Newly Development Target Suburbs
Target Market / Urban Growth Maps
11
MARKET ANALYSIS
Target Market Demographics As our target market locations are relatively new suburbs, the population demographics are also relatively young, fitting in with our target age range of 25-40 year olds. The amount of housing in these locations are also growing, demonstrating potential positive growth for the FabBox business.
FabBox
12
60-85+ 13.2% CASEY 1
0-17 27.9%
50-59 11.7%
Cranbourne
2 18-24 9.7%
Clyde
35-49 23.2%
25-34 14.4%
2016
2021
127,790
2026
112,653
2021
98,583 2016
376,441
334,669
297,034
AGE DEMOGRAPHICS
2.99
2.95
2.93
2026
2016
2021
2026
HOUSEHOLDS
POPULATION
AVERAGE HOUSEHOLD SIZE
Target Market / City of Casey
60-85+ 15.5% 0-17 27.8%
50-59 11.6%
CARDINIA 3 Officer
35-49 22.3%
18-24 9.1% 25-34 13.5%
POPULATION
2016
2021
49,540
2026
41,706
2021
33,598
116,291
2016
138,084
94,492
AGE DEMOGRAPHICS
2.79
2.77
2.76
2026
2016
2021
2026
HOUSEHOLDS
13 Target Market / City of Cardinia
AVERAGE HOUSEHOLD SIZE
60-85+ 10.6%
4 Tarneit
WYNDHAM
0-17 27.8%
50-59 10.3%
35-49 23.5%
18-24 9.4% 25-34 18.4%
85,340
71,137 251,722 2021
295,283
209,750 2016
100,503
AGE DEMOGRAPHICS
2026
2016
2021
2026
2.92
2.93
2.92
2016
2021
2026
POPULATION
HOUSEHOLDS
AVERAGE HOUSEHOLD SIZE
POPULATION
HOUSEHOLDS
AVERAGE HOUSEHOLD SIZE
Target Market / City of Wyndham
60-85+ 10.8% 0-17 28.9%
50-59 10.8%
MELTON
35-49 23.3% 6
25-34 17.2%
Plumpton
5
18-24 9.2%
Rockbank
167,022
2016
2021
POPULATION
FabBox
71,382
210,883
133,010
44,411
55,971
AGE DEMOGRAPHICS
2026
2016
2021
2026
HOUSEHOLDS
Target Market / City of Melton
2.95
2.93
2.91
2016
2021
2026
AVERAGE HOUSEHOLD SIZE
14
60-85+ 10.8%
7
Beveridge
0-17 24.8%
50-59 11.6% WHITTLESEA 8
35-49 22.0%
Wollert
18-24 9.8% 25-34 16.3%
241,057
2016
2021
POPULATION
93,788
275,743
202,731
68,504
81,915
AGE DEMOGRAPHICS
2026
2016
2021
2026
HOUSEHOLDS
Target Market / City of Whittlesea
15
2.94
2.92
2.92
2016
2021
2026
AVERAGE HOUSEHOLD SIZE
S.W.O.T. ANALYSIS
Strengths
Weaknesses
Opportunities
FabBox offers a fast construction timeframe
FabBox has to deal with “Occupational Health & Safety� Risks that other design firms would easily bypass due to the manufacturing stage involved in our process
FabBox could help to advance the profession of architecture, bridging the gap between offering a service and offering a product
FabBox offers a product that is cheaper or comparable to other builders and developers FabBox offers a customisable layout FabBox has the ability to more closely monitor quality control as the modules are prefabricated in our own warehouse FabBox makes architecture accessible to clients who would otherwise not consider hiring an architect FabBox offers a design process that is easily understandable and engaging for the clients due to the application for devices
FabBox is viewed as a company with higher financial risks that a traditional design firm as the product and service are both relatively new in Australia
FabBox could build on customer base through word of mouth, when clients are happy with the end product and share the application with friends and family
FabBox will require both additional rental costs and material costs associated with the holding and supply of materials used for construction
FabBox can connect with those clients who may find engaging an architect or builder intimidating through the accessible use of the application for devices
FabBox may not be accessible to those who are not technologysavvy as they cannot operate the applications
FabBox are able to market a highly customisable product for a similar price to a set planned house
FabBox architects offer advice through the applications resulting in less face-to-face meetings
FabBox
16
Threats The start up cost is potentially very high since it involves the design firm, development of application for devices and manufacturing component to be up and running at the same time FabBox face competition in other ‘big name’, well-established builders and developers such as Metricon or Henley that are already well-known by customers and are currently in active operation across the same target locations as FabBox
17
S.W.O.T. ANALYSIS
Weakness / Threat FabBox has to deal with “Occupational Health & Safety� Risks that other design firms would easily bypass due to the manufacturing stage involved in our process
How FabBox will address the weakness / threat Putting into place stringent guidelines for construction in warehouse. Ensuring that FabBox is adequately insured and staff are well-trained and qualified. Ensuring that FabBox purchases adequate OH & S Insurance. FabBox is viewed as a company with higher Study precedents in the industry such as ArchiBlox financial risks that a traditional design firm as the or Mima (overseas example). Investigate processes product and service are both relatively new in for both the design aspect, similar to a traditional Australia architecture company setup as well as the additional processes involved for manufacturing, material holding, transportation and construction onsite. FabBox will require both additional rental costs Setting per unit sales goals for each quarter (?) in and material costs associated with the holding and order to achieve the cash flow required for the supply of materials used for construction rental of warehouse space. Keeping a record of initial orders so that material projection may be produced for future material orders. Charge clients extra for certain materials that are difficult to obtain or harder to store FabBox may not be accessible to those who are not technology-savvy as they cannot operate the applications The start up cost is potentially very high since it involves the design firm, development of application for devices and manufacturing component to be up and running at the same time
FabBox
Offer tutorial videos via the company website that can help clients through the steps for designing their own FabBox ??
18
Weakness / Threat FabBox face competition in other ‘big name’, well-established builders and developers such as Metricon or Henley that are already well-known by customers and are currently in active operation across the same target locations as FabBox
19
How FabBox will address the weakness / threat Promote FabBox through design blogs, home magazines & social media as an alternative that is highly customisable, affordable and placing emphasis on the architectural service provided Design blogs (such as The Design Files, Yellowtrace) and home magazines (such as Better Homes & Gardens, Real Living, Belle) in particular will provide credibility for FabBox as a design company rather than simply a construction & developing company, ensuring clients receive an innovative and unique housing solution for their needs
COMPETITORS
FabBox vs. Competitors
Metricon
Weaknesses
Our business improves on what our competitors offer in terms of price and timeframe as well as customer service. As aforementioned, our price point is in the mid range of pricing for many of our competitors’ products, ensuring it is an affordable and viable alternative.
Founded 1976 1000+ Staff 50% Market Share
Metricon’s housing models are standardised and do not offer customers much flexibility in terms of customisation or bespoke solutions
We are an innovative and forward-looking business, using current technologies such as smartphone and tablet technologies for communication, design and collaboration with the client. Furthermore, our product is delivered and completed much faster than our competitors. Since our products are prefabricated, we are able to put into place a more stringent and consistent quality control system. Our product model enables us to provide excellent personal customer service to each client.
FabBox
Metricon offers a broad range of housing & land package options, predominantly targeting the outer suburbs of Melbourne. Metricon provides the most options in terms of locations included in land packages and housing models available for purchase. Strengths Metricon is a very established company Offers a broad range of options for housing & land packages Offers options for each price point range, targeting first home owners all the way to those looking to build luxury homes
Metricon faces difficulties in quality control of their construction as they hire a broad range of building contractors to carry out onsite building Metricon’s standard lead time from the time of engagement until completing the end product is relatively long and variable (35-58 weeks) Metricon is not an architectural design company, rather, they market themselves as builders and developers
Metricon offers a traditional & familiar approach to home building
20
Henley
Weaknesses
Founded 1989 400+ Staff 20% Market Share
Henley housing models are standardised and do not offer customers much flexibility in terms of customisation or bespoke solutions
Henley offers both ready built homes and housing and land packages for purchase. They operate in a variety of new suburbs, particularly the outer suburbs of Melbourne. Strengths Henley is a very established company Henley offers a range of housing & land packages to suit various budgets Henley offers a traditional & familiar approach to home building Henley places emphasis on environmental sustainability in their designs as well as their corporate philanthropic work
21
Henley faces difficulties in quality control of their construction as they hire a broad range of building contractors to carry out onsite building Henley is not an architectural design company, rather, they market themselves as builders and developers Henley does not provide customers with a large range of options for land package locations
Archiblox
Weaknesses
Founded 2009 16 Staff 10% Market Share
Archiblox sits at the high end price range for our target clientele
Archiblox offers environmentally sustainable homes that are architecturally designed and prefabricated. These houses are designed and constructed quickly (12-28 weeks) as they are modular and prefabricated.
Archiblox models already have a set layout and selection of materials making bespoke changes more expensive
Strengths Archiblox provides relatively affordable houses for those seeking an environmentally sustainably designed home
Archiblox is still a relatively new product and concept for the house construction market in Australia so many customers are still unsure of its outcome
Archiblox houses are designed and constructed within a short timeframe (12-28 weeks) due to prefabrication and its modular design Archiblox offers an alternative housing product that can be bespoke and personalised Archiblox is an architecturally designed product
FabBox
22
Competitor Project Locations
Melbourne CBD
Metricon Developments Henley Developments Archiblox Projects FabBox
Market Competitors / Locations
23
Competitor Pricing
+
+
Metricon house & land packages
Henley house only
Henley house & land packages
Archiblox (house model only)
Our proposal (house model only)
$200,000 - $1,080,000*
$187,900 - $399,900
$370,225 - $677,842
$101,205 - $446,600
$200,000 - $450,000
*Metricon “freedom� range (house model only) $137,000+
Market Competitors / Cost
Metricon vs. FabBox Timeframe Metricon
35-58 weeks Completed home 6-8 weeks Preliminary Costing
6-8 weeks Permits & Contract Approvals
6-8 weeks Selections
1-2 weeks Pre Site Prep
16-32 weeks Onsite Construction
Our proposal
20-22 weeks Completed home 4 weeks Concept
6 weeks Permits
5 weeks Factory Prefab
4-6 weeks Onsite Assembly
1 week Finishings
Market Competitors / Timeframe
FabBox
24
MARKETING STRATEGY
Design Blogs The Design Files, Real Living Blog, Better Homes & Gardens Blog Cost of Promotion: ? Percentage of Sales: 15% Advertising FabBox on design blogs will target our technology and design savvy customers. The feature on the blog will increase exposure to the FabBox product and lend credibility to FabBox as a design firm. The feature on such blogs may include banner or sidebar advertisement spaces, or preferably even a writeup on the work of FabBox. A writeup would be more effective as it will show our clients the people and work behind the brand.
25
Online Newspapers The Herald Sun Online
Print Newspapers The Herald Sun Print
Cost of Promotion: ? Percentage of Sales: 15%
Cost of Promotion: ? Percentage of Sales: 10%
The Herald Sun is a newspaper that is more widely read amongst our target market. As such, advertising in the Herald Sun Online will target our technology savvy customers, particularly those who are on-the-go and reading the news on their phones. The feature on the newspaper will increase exposure to the FabBox product and generate curiosity or interest behind the brand, product and services.
The Herald Sun is a newspaper that is more widely read amongst our target market. As such, advertising in the Herald Sun is another avenue for branding exposure. Aside from a simple newspaper advertisement, there is the possibility for a writeup about the startup business giving our brand a face and personality for our clients.
Home Living Magazines Real Living, Better Homes & Gardens, Belle, Houses
Facebook FabBox Facebook Page FabBox Facebook Advertisements
Pintrest Pintrest Account Pintrest Buttons on Website
Cost of Promotion: ? Percentage of Sales: 15%
Cost of Promotion: ? Percentage of Sales: 20%
Cost of Promotion: Free Percentage of Sales: 10%
Home living magazines will target those in our market who are looking for ideas and inspiration for home design. It will enable us to target designsavvy customers, conveying FabBox as a credible design firm. Appearance in such magazines will allow for the company to gain exposure in interior design and architecture spheres, and help to target potential clients.
Facebook will offer FabBox the opportunity to directly connect with customers through the Facebook page. This will enable us another platform to engage with past, current or future clients and also allow customers to discuss with each other and provide feedback on services and products.
By using a public Pintrest account, FabBox can showcase both their own work as well as home inspiration ideas for their current and potential clients. Pinning the company’s own images will allow for other Pintrest users to spread the product and service of FabBox while looking for home ideas. Additionally, for current clients, the Pintrest board will provide ideas found from current design trends to help with the design and customisation of their FabBox home.
FabBox
Apart from the Facebook Page that can be setup, FabBox can also opt to pay for Facebook advertisements that will appear in potential customers’ newsfeeds. As Facebook selects advertisements based on the user’s history, those who see the FabBox advertisement will likely be interested in the product and / or service provided.
The FabBox website can also provide images and process diagrams that can be pinned easily to help with greater brand exposure through social media.
26
Instagram Instagram Account Instagram Advertisements
YouTube / Vimeo YouTube Account Vimeo Account
Cost of Promotion: ? Percentage of Sales: 5%
Cost of Promotion: ? Percentage of Sales: 10%
By using a public Instagram account, FabBox can showcase aspects of office life, manufacturing, design process, as well as finished FabBoxes in order to engage potential clients. The use of Instagram adds a personal dimension to the company allowing current and future clients to see snapshots of FabBoxes behind the scenes or under construction.
YouTube or Vimeo can be used to publicise the FabBox design process, FabBox inspirations, FabBox construction process, or even FabBox ‘how-to’ videos for those who may struggle with using the application for tablet or smartphone.
Instagram advertisements can also be purchased and will appear on potential clients’ newsfeeds allowing for another exposure point to the business for clients who are particularly technology-savvy.
27
These videos can be embeded into various social media platforms including the FabBox website and the FaceBook page, creating another point of exposure for the Youtube / Vimeo channel.
PRODUCT COST
Product / Service
Description
Cost Price
Selling Price
Module A
Bedroom, Living and Dining room modules excl. furnitures
$ 14, 279.34
$ 20, 000
Module B
Materials required: • Colourbond BGC Square Gutter • Colourbond Rool Top Ridge Capping • BGC Rectangular Downpipe • Bondor Insulated Panel • Polar Eco-View Double Glazed • Plyco American Cherry Crown Cut • Mahjong Outdeco Gardenscreen • Skid-Steel Tubing • Slate Roof Cover • Labour cost
$ 57. 42 $ 28. 80 $ 51. 53 $ 2, 186 $ 1, 098 $ 783. 75 $ 1, 424 $ 47.60 $ 1,125 $ 7, 477.74
Kitchen incl. fixtures
$ 17, 558.33
$ 23, 000
Materials required: • • • • • • • • • • • •
Colourbond BGC Square Gutter Colourbond Rool Top Ridge Capping BGC Rectangular Downpipe Bondor Insulated Panel Polar Eco-View Double Glazed Plyco American Cherry Crown Cut Mahjong Outdeco Gardenscreen Skid-Steel Tubing Slate Roof Cover Chef Upright Cooker Gas 5 Star Chef Range Hood Kitchen Cabinets + Polyurethane Gloss White • Labour cost FabBox
$ 57.42 $ 28.80 $ 51.53 $ 2, 186 $ 1, 098 $ 783.75 $ 1, 424 $ 47.60 $ 1,125 $ 688 $ 139.99 $ 2, 451 $ 7, 477.74 28
Product / Service
Description
Cost Price
Selling Price
Module C
Bathroom & Laundry incl. fixtures
$ 21, 305.81
$ 28, 000
Materials required: • Colourbond BGC Square Gutter • Colourbond Rool Top Ridge Capping • BGC Rectangular Downpipe • Bondor Insulated Panel • Polar Eco-View Double Glazed • Marble Mosaic Tiles Tundra Grey Honed • Mahjong Outdeco Gardenscreen • Skid-Steel Tubing • Slate Roof Cover • Ht-003 Squafull Ceramic Back to Wall Faced Toilet Soft Close Seat • Frameless 10mm Safety Glass Shower Screen • SALZBURG 100-180cm Drop-in Cast iron bathtub • Bathroom Vanity Unit, High Gloss Finish, Ceramic Basin • Exhaust Fan White w/ Window Kit & Back-Draft Shutter • Labour cost
29
$ 57. 42 $ 28. 80 $ 51. 53 $ 2, 186 $ 1, 098 $ 1, 500 $ 1, 424 $ 47.60 $ 1,125 $ 519.98 $ 254.95 $ 443.64 $ 279.95 $ 67 $ 7, 477.74
Product / Service
Description
Cost Price
Selling Price
Module A
A box module acting as transitional circulation space between rooms
$ 1, 710.40
$ 2, 300
Materials required: • Colourbond BGC Square Gutter • Bondor Insulated Panel • Plyco American Cherry Crown Cut • Mahjong Outdeco Gardenscreen • Skid-Steel Tubing • Slate Roof Cover • Labour cost FabBox App
FabBox
A platform used to communicate between clients and FabBox co. A platform for design of client’s modular house
$ 19.14 $ 437.20 $ 104.50 $ 178 $ 15.70 $ 125 $ 830.86 FREE for trial version, $2.99 for full version
30
COST OF ONE UNIT
SCENARIO 1 Standard 2 Bedroom House Modules Required: • • • •
Module A x 4 Units Module B x 1 Unit Module C x 2 Units Module D x 10 Units
COST PRICE Cost to Build $ 137, 082.71
+
Onsite Cost $ 68, 541.40
=
Total Cost $ 205, 624.11
SELLING PRICE Selling Price $ 182, 000
+
Onsite Cost $ 91, 000
=
Total Cost $ 273, 000
PROFIT Selling Price $ 273, 000
-
Cost Price $ 205, 624.11
=
Total Profit $ 67, 375.89
31
SCENARIO 2 Standard 4 Bedroom House Modules Required: • • • •
Module A x 8 Units Module B x 1 Unit Module C x 3 Units Module D x 20 Units
COST PRICE Cost to Build $ 220, 942.95
+
Onsite Cost $ 110, 471.48
=
Total Cost $ 331, 414.43
SELLING PRICE Selling Price $ 313, 000
+
Onsite Cost $ 156, 500
=
Total Cost $ 496, 500
PROFIT Selling Price $ 496, 500
-
Cost Price $ 331, 414.43
=
Total Profit $ 138, 085.57
FabBox
32
33
PROFIT PROJECTION
$120,000 July 2016
June 2017
10 units
We project a $120,000 profit for the first year from July 2016 to June 2017. In order to achieve that targeted profit projection, FabBox will need to produce at least 10 units in that year.
Accumulated Profit
120k 100k 80k 60k 40k 20k 0
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
June
Months
-20k -40k
In the year 2016, we estimate a slow growth in profit due to the new start up of the company. Our greater profit would begin from November as a few projects have reached completion. Febuary and March we anticipate to be difficult months as the year has just begun and the amount of public holidays will affect the business. By the end of June, we project to reach our targeted profit of $120,000.
FabBox
34
$1.5M Year 1
$3M Year 5
110 units
230 units
Year 10
From the first year profit projection, we estimate to make a profit of $1.5M in 5 years and then reaching to a full capacity after 10 year with a net profit of $3M.
Accumulated Profit
3.0M
2.1M/2022
2.5M 2.0M
0.7M/2018
1.5M 1.0M 0.5M 0 -0.5M
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
-1M
We projected our profit to steadily grow with a small drop due to investment in research and development as well as production capacity in year 4. We would be able to boost production onwards to year 7 where we will start to expand our market area. By the tenth year, we projected to reach our $3 million profit.
35
Years
GROWTH PROJECTION
250
230
House Sold
200
160
150
140
Year 6
Year 7
110
100 50
130
200
80 10
20
Year 1
Year 2
40 Year 3
Year 4
Year 5
Year 8
Year 9
Year 10
Sales Projections
Year 1 will be a challenging year because of the existing competition and public awareness of Fabbox. Following the next two years, we estimated a steady growth as people would start familiarize with the Fabbox Application proccess but we investing in our production line. Year 4, we estimated with the famiarity of the process and solid production line we can boost the sales up to year 7. After the expansion of the company and a full production capacity, we extimated to produce up to 230 units by year 10.
FabBox
36
$50
140units 2022
Millions
$40 $30
40units 2018
$20 $10
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Sales Revenue Projections
Sales revenue is based on the number of homes sold and the selling price of those homes. Using the sales projections above and an estimated price of $273,000 for a standard 2 bedroom home, the following graph of revenue projections is created. Modular builders typically receive 20% of the sales price as a down payment, with the balance due before delivery of the home. With our estimated sale price of $273,000, this translates to $54,600 up-front payment for each home, with $218,400 due before delivery.
37
INVENTORY
Inventory Item
Unit Price
Colourbond BGC Square Gutter
$ 19.14 LM
6
$ 114. 84
Colourbond Rool Top Ridge Capping
$ 9.60 LM
6
$ 57.60
BGC Rectangular Downpipe
$ 51.53 mm
2
$ 103.06
Bondor Indulated Panel
$ 218.60 mm
20
$ 4,372
Polar Eco-View Double Glazed
$ 549 mm
4
$ 2,196
Plyco American Cherry Crown Cut
$ 52.25 mm
30
$ 1, 567.50
Mahjong Outdeco Gardenscreen
$ 89 mm
32
$ 2,848
Skid-Steel Tubing
$ 15.70 mm
6
$ 94.20
Slate Roof Cover
$ 125 sqm
18
$ 2,250
Marble Mosaic TIles Tundra Grey Honed
$ 15 sqm
200
$ 3,000
Ht-003 Squafull Ceramic Back to Wall Faced Toilet Soft Close Seat
$ 259.99
2
$ 519.98
Framless 10mm Safety Glass Shower Screen
$ 254.95
2
$ 509.90
SALZBURG 100-180cm Drop-in Cast Iron Bathtub
$ 443.64
2
$ 887.28
Bathroom Vanity Unit, High Gloss Finish, Ceramic Basin
$ 279.95
2
Exhaust Fan White w/ Window Kit & Back-Draft Shutter
$ 67
2
$ 134
Chef Upright Cooker Gas
$ 688
2
$ 1, 356
5 Star Rangehood
$ 139.99
2
$ 279.98
Kitchen Cabinets + Polyurethane Gloss White
$ 2, 451
2
$ 4, 902
FabBox
Quantity in Stock
Total Cost
$ 559.90
38
START UP COST
START UP COSTS Registrations Business Name Licences Permits Domain Names Vehicle Registration Membership Fees Accountant Fees Solicitor Fees Rental Lease Cost (Rent advance/deposit) Phone Connection Internet Connection Training
COST ($) 34 200 200 200 896 2, 230 1, 750 19, 760 4, 245 125 125 3, 000
Insurance Vehicle Public Liability Professional Indemnity Product Liability Workers Compensation Printing Stationery & Office Supplies Marketing & Advertising
156 47 677 47 154 2, 230 1, 540 2, 200
Website & Development Research & Development
65, 000
Total Start-Up Cost
39
104, 616
EQUIPMENT / CAPITAL COSTS
COST ($)
Plant & Equipment Vehicles Computer Equipment Computer Software Phones Machinery & Tools Security System
20, 000 6, 000 12, 672 320 22, 000 2, 300
Inventory (Start Up) Gutter Ridge Cap Downpipe Insulated Panel Glass Plywood Gardenscreen Tubing Roof Cover Fixtures Tiles
4, 210 3, 202 8, 361 30, 739 15, 686 16, 023 16, 146 3, 349 8, 000 7, 845 3, 500
Office Equipment Furniture Shop Fitout
10,000 1, 850
Total Equipment / Capital Cost
192, 203
Total Direct Project
EXPENSES Direct Project Costs Production Fees
Total Income excl. GST
Opening Bank Balance INCOME Project Income excl. GST
97, 508
23, 947
6, 587 850 540 925 150 3, 320 1, 540 2, 200 0 850 300 6, 685
32, 436 32, 436
41, 125
41, 125
54, 600
54, 600
83, 181
JULY Actual
(4, 721)
207, 821
26, 852
6, 587 1, 780 910 925 150 2, 540 1, 850 3, 200 0 1, 250 975 6, 685
32, 436 32, 436
148, 533
148, 533
203, 100
203, 100
40, 273
AUGUST Actual
3, 454
(32, 098)
235, 498
30, 117
6, 587 1, 430 670 925 210 4, 540 1, 930 3, 500 550 1, 950 1, 140 6, 685
36, 286 36, 286
169, 095
169, 095
203, 400
203, 400
35, 552
SEPTEMBER Actual
26, 323
22, 869
307, 431
33, 470
6, 587 1, 998 870 925 320 6, 540 2, 530 3, 900 330 1, 575 1, 210 6, 685
36, 286 36, 286
237, 675
237, 675
330, 300
330, 300
3, 454
OCTOBER Actual
29, 785
3, 462
250, 443
28, 491
6, 587 2, 030 930 925 320 2, 134 2, 530 1, 700 0 3, 200 1, 450 6, 685
36, 286 36, 286
185, 666
185, 666
253, 905
253, 905
26, 323
NOVEMBER Actual
98, 619
68, 834
406, 123
28, 745
6, 587 1, 590 780 925 240 1, 760 2, 103 3, 210 700 3, 200 965 6, 685
36, 286 36, 286
341, 092
341, 092
474, 975
474, 975
29, 785
DECEMBER Actual
Capital Cost per month : $ 6,685
Initial Capital $ 380, 000 to be paid back over 5 years with an interest rate of 5%
JULY 2016 - DECEMBER 2016
CASH FLOW PROJECTION
Salaries Salaries incl. Super + tax Total Salaries
(42, 908)
35, 552
Actual closing bank balance
Profit / Loss excl GST
Total Expenses excl. GST
Total General Expenses excl GST
General Expenses Rent Electricity, Gas, Water, Cleaning etc Communications - telephone, internet etc Insurance Staff Amenities Computer Expenses General incl stationary etc PR + Marketing Repairs + Maintanence Transportation Printing Capital Cost
40, 273
40
FabBox
PROFIT & LOSS SHEET
1ST JULY TO 31ST DECEMBER 2016
TOTAL ($)
INCOME Project Income excl. GST
1, 520, 280 Total Income excl. GST
EXPENSES Direct Project Costs Production Fees
1, 520, 280
1, 123, 186 Total Direct Project
Salaries Salaries incl. Super + Tax
1, 123, 186 210, 016
Total Salaries General Expenses Rent Electricity, Water, Security, Cleaning etc Communications - Telephone, Internet etc Insurance Staff Amenities Computer Expenses / Leases General incl. Stationary etc PR + Marketing Repairs + Maintenence Transportation Printing Capital Cost
39, 522 9, 678 4, 700 5, 550 1, 390 20, 804 12, 483 17, 710 1, 580 12, 025 6, 040 40, 110 Total General Expenses excl. GST TOTAL EXPENSES excl. GST NET INCOME
41
219, 016
171, 592 1, 504, 794 15, 438
RISK MANAGEMENT
Risk
Likelihood
Impact
Strategy
Financial losses for any legal action taken against the business for services or advice we have provided
Unlikely
High
Professional Indemnity Insurance
Personal injury suffered by a client or member of the public
Unlikely
Medium
Public Liability Insurance
Bodily injury or property damage arising from goods supplied by the company
Unlikely
Medium
Product Liability Insurance
Risk of worker getting hurt during manufacturing
Likely
Low
Workers Compensation
FabBox
42
INSURANCE
Professional Indemnity Insurance
Product Liability Insurance
Professional Indemnity Cover • $ 5 million
Public Liability Cover • $ 5 million
Premium • $ 8, 126 per year
Premium • $ 566.61 per year
Excess • $ 500
Excess • $ 500
Estimated annual revenue • $ 1, 520, 000
Public Liability Insurance
Workers Compensation
Public Liability Cover • $ 5 million
Premium • $ 1, 850.01 per year
Premium • $ 566.61 per year Excess • $ 500
43
REQUIRED STAFF
Job Title
Quantity
Expected Staff Turnover
Skills Necessary
Date Required
Marketing Manager
1
2 - 3 Years
Tech-savvy, qualifications in marketing and well verse in current social media platforms
July / 2016
In House Builders
4
5 Years
Knowledge and degree in management and construction, minumum 2 years experience
July / 2016
Human Resource
1
10 Years
Good communication skills, minimum 3 years experience
September / 2016
Drafter
1
5 Years
A degree in building design or Architecture (Min TAFE)
January / 2017
Office Manager
1
5 Years
A degree in management, good communication skills, minimum 2 years experience
January / 2017
Secretary
1
3 Years
Presentable, good communication skills
July / 2017
FabBox
44