Introduction
The moving images have almost replaced the conventional still photographs with people opting for films of social gatherings, religious, political and marriage functions, etc. The technological advancement has brought the video close to people, which has led to tremendous growth of video studios centers even in small towns and villages. The project cost isUS$199,632 and estimated annual revenue is US$ 468,000.
Production Process, Capacity and Technology
The operating process involves simple steps. However, much depends upon the skill and acumen of the person handling the camera. Equipment; Video Recording Equipment is bought and put in place. Trained and specialized cameramen take the positions of manning this equipment. It is not easily quantifiable as this depends on a number of factors including the quality of the recordings being given out, the charges, etc
Capital Investment Requirement in US $
| Item | Units | Qty | Price | TC |
|---|---|---|---|---|
| VHS/SVHS Video camera | No | 1 | 600 | 600 |
| Lighting | No | 2 | 200 | 400 |
| External microphones | No | 2 | 80 | 160 |
| Computers | No | 1 | 500 | 500 |
| Computer soft ware | No | 1 | 40 | 40 |
| Labeling machine | No | 1 | 300 | 300 |
| Item | Units | Qty | Price | TC |
|---|---|---|---|---|
| Camera accessories | No | 1 | 200 | 200 |
| CD burning and recording deck | No | 1 | 150 | 150 |
| Editing Gadgets | No | 1 | 250 | 250 |
| Other Equipment | No | 1 | 400 | 400 |
| TC of tools & Equipment | 3,000 |
1. Production costs assume 312 days per year with daily capacity of 2 video coverage.
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. Direct costs include: materials, supplies and all other costs incurred to produce the product.
4. A production month is 26 work days
5. Currency used is US Dollars.
Production and Operation costs in US $
Direct Materials, Supplies and costs
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ month | Pdn cost/ year |
| Direct Costs | ||||||
| VHS/SVHS Video tapes | No | 12 | 24 | 288 | 7,488 | 89,856 |
| VHS/SVHS Video CDs | No | 10 | 0.2 | 2 | 52 | 624 |
| Batteries | No | 4 | 0.5 | 2 | 52 | 624 |
| Chemicals solutions for developing | Liters | 50 | 1 | 2 | 7,644 | 91,728 |
| Sub–total | 294 | 15236 | 182832 | |||
| General Costs (Overheads | ||||||
| Labour | 27 | 700 | 8,400 | |||
| Selling & distribution | 8 | 200 | 2,400 | |||
| Utilities (Water, power) | 4 | 100 | 1,200 | |||
| Rent | 4 | 100 | 1,200 | |||
| Miscellaneous expenses | 8 | 200 | 2,400 | |||
| Depreciation | 4 | 100 | 1,200 | |||
| Sub–total | 54 | 1400 | 16800 | |||
| Total Operating Costs | 63616, | 199,632 |
Project product costs and Price Structure in $
| Item | Qty/ day | Qty/ year | @ | Pdn cost/yr | UPx | TR |
| Videos, Films, Movies etc | 5 | 1560 | 150 | 234,000 | 300 | 468,000 |
Profitability Analysis in US $
| Profitability Item | Per day | Per month | Per year |
| Revenue | 1500 | 39,000 | 468,000 |
| Less: Production and operating costs | 640 | 16,636 | 199,632 |
| Profit | 860 | 22,364 | 268,368 |
Market
The use of electronic media has created a favorable climate for filming of all programmes and events among all sections of people in the society. This can be done to generate higher incomes even in rural areas. Advertising is needed for this project to quickly pick up demand.
Suppliers of Equipment
The equipment is available on the Ugandan markets, Photogenic can provide it.
Government Incentives
Start up costs 25% granted on actual cost over the first four years in four equal installments.
