“The size of the store signals the importance of the brand”
Considering Facebook shareholders, management and employees desire facebook to become the most successful company on the planet in all areas. Alongside Criss Cox’s wish to connect facebook to everything you use is not an imaginary evolvement. Given the framework to excel the idea of Facebook Stores is an obvious extension to Facebook Gifts and “Lx”.
How will Facebook Stores excel?
The top 10 percentile of good, products, real estate and services initiative is on its own enough to warrant the term “a significant improvement over most or all competitors”.
Within Mall based retail, the physical stores themselves, the quality of service and the enthusiasm offered by staff are also pivotal to achieving greatness. We have already discussed the substantial location enhancing initiatives; however said location enhancements were specific to the resort as a single unit. Within the resort itself their will be a variance in the “Location, Location, Location” principal, and example in real estate would be a property that garden opens out only a lake, or built on a mountain. In retail within a Mall or a Mall within a Marina, there are of course higher and lower traffic areas.
As Facebook Stores themselves will become location-improvement event they shall receive the fist pick of location within the Malls, a significant advantage and an immediate boost to their capital asset, as a prime high traffic location within a Mall could see two maybe three times the sales of its low traffic counterpart.
The cost of building a Mall is in the region of $400 per square ft, add the infrastructure and land and a figure of $532 per square ft is arrived at. For Facebook Stores we are considering 25,000 sq ft per store, a size equal to Bloomingdales outlet stores and slightly bigger than Apple’s largest store. The cost per store equals $13,300,000 add $2,325,000 for shop fitting and miscellaneous expenses and we come to $15,625,000 per resort, which when multiplied by the 256 resorts gives an even $4Billion initial investment.
The average staff levels within a Mall retail store are one per 1,000 square feet, in the financials one per 800 sq feet is presented. The average Apple floor staff wage is between $9 and $15 per hour, for Facebook Stores entry level staff a basic of $15 per hour plus profit share and commissions is offered, which if distributed evenly would double their salaries to a figure in excess of $60,000 a year. However profit share and commissions are awarded on a performance and customer rating statistics, alongside QE & EEE points (to be clarified later). This will have the effect of seeing exceptional performance being rewarded with plus $100,000 salaries often for US citizens without 16 plus education.
This exercise along with the desired glamour’s stature of being a Facebook Store delegate is designed to create the enthusiasm akin to that of flight attendant in the 60’s and 70’s, as highlighted in Leonardo DiCaprios film “Catch me if you can” At the end of the day, these staff initiatives boil down to one objective, to motivate to generate as much revenue as possible whilst increasing facebook’s brand image on a daily basis.
Before we look at the figures, let’s examine the see the original opening paragraph to the Facebook section. “On the subject of making profit when I worked out the “American Butterfly” enabled Facebook 22 year profit forecast, I felt like the Italian Scientists at Cern when after they broke the speed of light, there simply had to be a mistake. From the parent resorts alone, from a $4 Billion investment, without a single customer moving a mouse or paying a cent in cash we were just under $1.5 Trillion, what on earth was the figure going to be when we added paying customers, e-commerce and revenue from the sibling resorts? I checked and rechecked, but I could find no errors. This becomes possible due to the $425 Million resort network economic stimulus initiative.
Seeing as Facebook Stores sell will just about everything including holidays, Concept cars, Real Estate, Solar Arrays and Financial Services alongside standard retail and apparel, it’s fair to direct $100 Million of the economic stimulus their way.
The following spreadsheets are available at www.s-world.biz/downloads, the one presented is a condensed version, first we look at the amount of staff and their basic salaries.
Facebook Stores: Profit, Dividends & Capital Assets.
Above we see the $100 Million economic stimulus return $24,369,441 after a 50% mark up on costs of goods, including staff operations and sales tax.
American Butterfly Question – AB9: Is this figure a reasonable assessment?
Higher ________ OK ________ Lower ________?
To clarify the second half of the spreadsheet:
The “Half Dividends Reinvented” column see’s the choice of any company re-investing their dividends into the next resort network; if this is enacted POP 1 profits are redirected to balance the books.
The POP 2 Column represents the 52.5% “POP Cash Injection” into sibling resorts, which pays for their next store within the next report.
Facebook Stores 2036 Profit & Assets Forecast
This analysis accounts for three location improving factors, before addressing the long term desire for properties to become more affordable.
- Locations Butterfly: The previously highlighted premise that due to the 16 location enhancing exercises, properties within resorts will be worth double their infrastructure, land and building costs.
- Prime Position: Introducing the unique once off factor “first choice of location within the mall” and whilst it has been mentioned, that foot traffic could double or triple in a prime positioned store for safety a 50% improvement in foot traffic is presented.
- Economic Recovery: The general principal that once growth returns all properties will rise by 70% to their 2006 value.
- Affordability: The “American Butterfly” desire to increase living standards for all as illustrated earlier on sees a 50% reduction in property.
Once the dividend yields, general profits and the second phase of resorts are accounted for, all in, by 2038 the economics stimulus is generates facebook $1.5 Trillion.
Before we get into Facebook 2018 profits from paying customers we have one last efficiency enhancing exercise needs to be described “Network Cities of Science”