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 Becoming a DBS Dealer
through AFE, Inc.
A dealer enrolling in AFE/NASCorp's Digital Satellite Service will commit to convert a portion of their existing customer base to satellite subscription programming. The dealer will provide the propane consumer a FREE satellite dish, receiver, and remote control and perform a professional installation. The dealer will invest according to the number of monthly installations to be installed over a three to five year term. A dealer's initial investment for 20 DBS installations per month is $8,360.00. This covers a dealer's cost of 20 systems, freight, ancillary parts, 1000 feet of coax-cable and installer training.
There will not be any restrictions for a dealer selling a DBS system to homes connected to other utility services. Additional revenue will also be derived from service performed on a dealer's own DBS installations and those of other manufacturers or dealers.
AFE maintains a complete sales and service support group with shipping and warehousing facilities located in Nashville, TN. and St. Louis, MO. AFE's "Level Three" certified installation and service department will provide the propane dealer with a forum for exclusive installer training and trouble shooting. Dealer activation, accounting and administrative assistance programs are also available.
Each natural gas liquids distributor who signs up with AFE will receive complete detailed instructions. A Policy and Procedure Manual, with periodic updates, will be furnished to every Propane Dealer which enrolls in this program. In addition, corporate staff will be maintained to assist AFE wholesale accounts with any questions or to monitor activity.
Over a five (5) year term a dealer may realize $350,402,00 in Gross margins for activation of one (1) DBS system per working day (20 units per month). Dealer economic projections for a business installing 20 DBS systems per month would be as follows:
Dealer Economic Projections
I. Unit Sales:
Installed Units (Per Month) 20.0
Annualized x 12.0
Annual System Activation's 240.0
ll. Revenue Or Revenue Equivalent:
Activation Spiffs (@ $270.00) $ 64,800.00
Equipment Buy Down (@473.00) 99,120.00
Monthly Residuals (@$1.15 X 626.4) 3,312.00
Customer Charge back Recovery (@ 50%) 1,523.55
Parts Revenue 6,600.00
Service Labor 4,213.33
Reconnection Of Charge backs (50% @ $120) 1,880.00
Total Revenue .............................................$ 184,484.88
lll. Cost of Goods Sold
COGS Equipment (@ $225.00) $ 99,120.00
Parts COGS 2,640.00
Parts, Fittings & Cable (@10.00) 2,400.00
Total COGS ..................................................$ 104,106.00
Gross Margin ........................................................$ 80,488.88
lV. Operating Expense
Charge back from Disconnects $ 9,047.28
(1) Personal Cost (@ 15.00) 5,400.00
Vehicle Expense (39.5 cents p/mix 4800m) 1,896.00
Insurance/Telephone/Postage 2,333.33
Shipping/Freight (@ 7.00 ea.) 1,680.00
Total Operating Expense .............................$ 20,356.61
V. Operating Cash Flow (EBIT-DA) ...................................$ 59,932.27
(1) If dealer uses existing employees, expense may become incremental income(s).
(2) Business Value would Increase to $ 299,661.35
(5x EBIT DA of $59,932.27.)
If you are interested in becoming a DBS Dealer through AFE, Inc. then please fill out the form below...
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