TechMall Case Analysis 
TechMall Case Analysis
Jermrit Deeprom 303228476 BUS512A Fall2014
1. What are the revenue streams for TechMall ?
The revenue streams for TechMall generally divide into three parts. First revenue stream stems from merchant one-time setup fee 750$, but there is an exception for merchants who set up since Beta period. Second is monthly statement fee, which basically charge merchants monthly except no charge for the initial set up month. The last one is transaction fee, which charges 2% for each transaction by customer and the maximum is 200$.
2. What drives each of the revenue streams and how much does TechMall expect to earn from each stream?
For overall growth of TechMall, specifically initial success is driven by the marketing strategy that creates the partnership with merchant aggregators. This is the key that brings the customer to TechMall and generates a large one-time set up fee. In order for TechMall to grow, they need to bring more merchants to the system. More importantly, they also need to help merchants grow their business. Similarly, for the monthly fee, they must continually add the merchants so that this revenue stream keeps growing. Besides, for the transaction fees, they can grow this revenue stream by increasing advertising to attract potential customers to their website.
This following are what they expect to earn from each stream.
- Setup fee: $750 (nonrefundable) except for merchants who set up in beta test period.
- Monthly statement fee: $50 (no charge for initial month).
- Transaction Fee: 2% of total sales dollars from each transaction ($200 maximum), which split 30% to merchant aggregators.
3. Given the level of activity in each revenue stream, compare the amount of revenue expected from each revenue stream with the actual revenue. Is TechMall getting their expected revenue from each of the revenues streams?
It is apparent that TechMall is not getting their expected revenue from each of the revenue streams, especially by analyzing
Jermrit Deeprom 303228476 BUS512A Fall2014
1. What are the revenue streams for TechMall ?
The revenue streams for TechMall generally divide into three parts. First revenue stream stems from merchant one-time setup fee 750$, but there is an exception for merchants who set up since Beta period. Second is monthly statement fee, which basically charge merchants monthly except no charge for the initial set up month. The last one is transaction fee, which charges 2% for each transaction by customer and the maximum is 200$.
2. What drives each of the revenue streams and how much does TechMall expect to earn from each stream?
For overall growth of TechMall, specifically initial success is driven by the marketing strategy that creates the partnership with merchant aggregators. This is the key that brings the customer to TechMall and generates a large one-time set up fee. In order for TechMall to grow, they need to bring more merchants to the system. More importantly, they also need to help merchants grow their business. Similarly, for the monthly fee, they must continually add the merchants so that this revenue stream keeps growing. Besides, for the transaction fees, they can grow this revenue stream by increasing advertising to attract potential customers to their website.
This following are what they expect to earn from each stream.
- Setup fee: $750 (nonrefundable) except for merchants who set up in beta test period.
- Monthly statement fee: $50 (no charge for initial month).
- Transaction Fee: 2% of total sales dollars from each transaction ($200 maximum), which split 30% to merchant aggregators.
3. Given the level of activity in each revenue stream, compare the amount of revenue expected from each revenue stream with the actual revenue. Is TechMall getting their expected revenue from each of the revenues streams?
It is apparent that TechMall is not getting their expected revenue from each of the revenue streams, especially by analyzing