Wednesday, June 16, 2010

From Service Point - An Innovative Diversification Idea. WHAT? HUH?

Service Point, the second largest reprographics services enterprise in the world, just issued a press release to announce its newest innovative product line - The Concept Store!

Here's a portion of the press release:

15 June 2010. – The Norwegian subsidiary of Service Point Solutions, S.A. (stock market ticker: SPS.MC) has inaugurated an innovative digital print centre called the Concept Store in downtown Oslo. This centre provides new digital printing services combining all manner of materials.

The Concept Store is a new class of service centre that puts digital printing at the service of individual creativity. “We are using technology to make the world more personal, more creative,” says Joan Carles Peiró, COO of Service Point, “Customers coming in to print or photocopy on paper are leaving with personalised tiles, lamps and cushion covers.”

The Oslo centre is serving as the pilot for Service Point’s plans to launch more Concept Stores in other operating markets, most imminently the UK, German and Spain, under the umbrella of a diversification strategy designed to leverage innovation to extend traditional B2B (Business-to-Business) services to the B2C (Business-to-Consumer) channel.

Service Point’s goal is to open 15 new Concept Stores in Norway by year-end. This new business line is expected to generate revenue of roughly €500,000 in 2010 alone.

According to Joan Carles Peiró, COO of Service Point Solutions, “We are focusing strategically on innovation. “And innovation is not only about technology: it is an attitude. The idea is to enable the customer to attain his or her goals more efficiently and effectively. We have selected Norway as the pilot market for this business model because of the recurring nature of our earnings in this country, where our brand recognition is excellent. In 2010 Norway is expected to be the biggest contributor to Group cash flow generation and profits.”

You can access the Press Release at this Internet address:

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Joel's math:

500,000 Euro x 1.25 = approximately $625,000 USD

$625,000 USD / 15 stores = $41,667 USD (Average Revenue per store expected in 2010 from the 15 new stores expected to be open in 2010) Rock and Roll!

Okay, I know what you're saying, "Joel, these 15 new stores will all be in their "start-up" phase in 2010, so it's not fair to compute average store revenue as you've shown it."

Joel's comment:

There is that old saying, "nothing ventured, nothing gained." But, after reading the press release, I could not help myself from asking, "WHAT? HUH?"

At least I know where I'll be able to get a personalized lamp-shade when I visit Norway early next year. For that matter, maybe a couple of personalized photo-realistic pillows. Or, how about some ceramic tiles - showing images of me skiing the slopes in Aspen - for my bathroom renovation project? Waaaay cool, huh? As the COO said, it's all about attitude and creativity. Express yourself? I hope they set up a web-site for ordering over the Internet!

1 comment:

  1. WHAT? HUH? was much kinder than what I thought. The revenue model does not seem to work. There was a store in a mall in Phoenix, AZ who did 3D models of your kids faces for you to give as gifts... closed 4 months after opening. Apprently people didn't really want to express themselves.