How a successful multiplex deal could show our leasing man his own motorcycle diaries!
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| Hey! Who moved my CBR? |
The youngest man in the Pillars clan was looking pretty
serious at his desk today, which is quite opposite his Jumping Jack nature. On
probing, it was found that today he had a final meeting with a multiplex
operator. If the deal gets through, he can buy his Honda CBR motorcycle. (The
money for the two wheeled purchase, will be mostly taken care of by the
incentive he expects from this deal. Lol).
Abhijit Roy, the man in question and our upcoming leasing superhero will take it
from here on.
* How the show started *
Took a cab (my boss calls it ‘le taxi’…weird guy) to our
destination for the long awaited closure meeting of this multiplex. If this
deal gets through, I will be taking my girlfriend to Goa, on the new Honda CBR
bike, which I am gonna purchase from my incentive money. There were butterflies
in my stomach. Boss, was in his own world. No worries, no tensions. Bindass. That gave me more butterflies!
Like all things come to an end, our cab journey came to an
end, when we reached the multiplex operator's office. Took the visiting slip from the security,
entered our details and went up to the office of the Multiplex MD, who is also an
actor. Perched on his magnum chair, smoking India Kings and watching some crime
soap on the tele, the MD looked pretty relaxed. Prayed to God that the deal
should go through (you know, why). We made ourselves comfortable in the plush
office. Along with the Managing Director (MD), the Business Development (BD) Head of the company, wearing a cool goatee was
also around. For the record, the BD Head is a nice guy. He invited me for the League of Stars but
because of my Boss, I couldn't attend. Thank you for asking.
“So tell me, what’s the deal, dada?” asked the Multiplex MD.
By the time, the MD nodded, my Boss, was ready with his
calculations he had made in his diary.
“See Sir, with the three screens that we have, there can be
fifteen shows per day!” --- Boss
“Yes” --- MD
Boss got up from his chair & went up to the white board
with a marker and scribbled these numbers.
* The Arithmetic *
15 shows per day * 30 days = 450 shows per month
Total number of seats: 800; Considering 30% occupancy (Min.
Average): 240 seats/ show.
That makes 450*240 = 108000 seats/tickets per month.
Considering lowest ticket size as Rs.120/-, the total
revenue comes to 108000*Rs.120 = Rs.12960000/-
Back at his chair and bossman speaks again, “You can see
Sir, even if you pay the lowest Revenue Share(RS) of 10%, you will be paying
more than Rs.12 lacs. Whereas, I am asking you for a Minimum Guarantee(MG) of
Rs. 12 lacs, which should be a win-win situation for both you and the
developer.”
The Plex MD gave it a thought. Looked pretty impressed. Then
asked the BD head to get their GM-Accounts. On the CCTV he was found loitering
in the lobby in front of the MD’s office, ready to go home at 4.30 pm (some
people have nice office timings). He was called in the office and was asked by
the MD to go through the calculations my boss had presented. So he started to
explain.
* The Data Sync *
“See, Mr. GM, if you consider occupancy at 30% on average….”
He was cut out by the GM immediately.
“No, no, no that’s the mistake you people do. You cannot
take average like that. Weekdays and weekends should be calculated differently.
It cannot be same.” Said GM accounts, stopping for a sip of water.
“Fine, but then an average has to come out from the 2
parameters. And, since the city has hardly any options for movies, the
occupancy cannot go below 30%.” My Boss said.
“Yeah, that’s right. And if you are considering separately,
then you must consider Friday also separately, because that’s the movie release
day.” The Plex MD pointed out to his GM accounts.
Mr. GM asked for a calculator and started calculating. My
boss was looking around the office. Nice pictures of the MD with different hair
styles adoring the walls. Then he got interested in the Srimad Bhagavad Gita which was kept on the MD’s wooden table. There was probably enough wood in it to build a small ship! The GM got busy
with his calculations. For my boss, all those calculations seemed too complex,
so he got busy with Lord Krishna’s teachings.
The GM finished and came up with a figure which was
one-third of my Boss’s figure. F***! More butterflies. But my boss was unfazed,
looking as cool as a cucumber.
“Someone has made a calculation mistake” rightly observed
the MD.
Now, since my Boss didn't show any interest, I was asked by
the GM to look into his calculations. On going through his papers it was found
that, Mr. GM had made his projections considering only 5 shows daily instead of
15 shows. Small mistakes happen. Part of life. GM got busy rectifying his calculations.
And the end result was that both the multiplex guys and us, were on the same
page.
* My Motorcycle Diary *
“Sir, now we have seen, both ways that there’s no way your
revenue can go below the figure which I mentioned earlier. So, I hope you’ll
understand that I am not unreasonable if I am asking for an MG of Rs. 12 lacs.
And, also, let me tell you Sir, this is not the only deal I am looking to do
with you. So, next time when I come, I want to be in a position where you
cannot say no to me.” Said my boss, pretty dramatically. Wonder if he is looking
at getting casted or something.
“Ok, make its Rs. 11 lac and close it” said the MD with a ‘Branson’
look.
“Sir. Now this is not expected from a person of your
stature. Lets close it at Rs.12 lacs.” Said my boss with a smile.
“Ok. Get the papers ready”, said the MD to my Boss.
“Thank you, sir. We will run this final proposal with the
developer and draw up the paperwork if all is well”, the bossman said, as he shook
hands with the MD.
To close the commercial deal for a multiplex, the simplest
thing to do is to put the figures in front of the operator and let him realize
his minimum revenue, so that the MG or RS figure does not seem unreasonable to
him. And to get that projected revenue realistic, you have to do your homework
well.
Get that in order and you would be one step closer to the
right side of the deal. Like we are, today. But there is still some distance
between the cup and the lips. Till then, I am praying and saving up for that
tank bag that I will need for such a long road trip on the CBR. Okay, you can turn the page.
Cheers!
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