Partnership
- Advantages
Huge Partnership Synergy Will Saves Newspapers Millions -
Give Local Shopper Unique Competitive Advantages
For newspapers
the synergy from cost savings will offset the start-up costs
-- $1 - 3 Million dependent on market size – of the
TMC Shopper:
Drastic
Reduction of Postage Costs for Shopper Advertising Programs:
Merging newspaper and TMC Shopper partner’s distribution
systems will reduce substantially existing newspaper’s
TMC products postage delivery expense which will save newspapers
millions in postage costs. See article -- Newspaper Postage
Costs Skyrocketing
 Utilize
Newspaper Printing Press Capacity: Decreased circulation
and advertising has resulted in many newspapers print facilities
having excess capacity. For newspapers, the TMC Shopper will
be a large multi-million dollar print customer -- For example,
“The Flyer” in Tampa annually prints 65 million,
24 page shoppers – significantly helping newspapers
print facilities economics by utilizing excess capacity.
Platform
for New local Media Ventures: One of the major recommendation
on the Newspaper Next Project was that newspapers should
launch a new local centric media ventures to create a portfolio
of media properties. A TMC Shopper will result in Newspapers
being in contact with all consumers in their market and an
ideal large platform to launch new media businesses, like
a competitive response to Craigslist.
Financial
Performa:
The combined newspaper synergy should result in each joint-venture
having 45%+ profit margins The TMC distribution savings alone
should offset the start-up costs of launching the TMC Money
Saver Shopper. The following summary assumes a market population
of 1,000,000 and a weekly mailing of 357,000 households.
| TMC
Shopper Model |
Year
1 |
Year
3 |
Year
5 |
Revenue
|
$7,178,188
|
$11,137,536
|
$14,244,390
|
| Profit |
$1,896,046
|
$4,423,014 |
$6,478,203 |
| Margin |
26% |
40% |
45% |
| Enterprise
Value @ 10 times |
$18,960,460 |
$44,230,140 |
64,782,030
|
For detailed Performa
and Scenarios -- See Targeted Media Partner Financial Model.
Newspaper Joint Venture partners will have the option to buy
shares in the Targeted Media Partner venture.
|
