Piso Net, Is Really that Easy?

The Piso Net as a business model is taking off and the proof of this is that big companies are taking notice and started creating a marketing campaign based on this model. The Piso Net model involves setting up of internet kiosk terminals in different places where people could get internet access. The computer units are individually placed in specially built cabinets and is managed by a coin operated timer that turns off the monitor once the time is up. Need more time just insert more coins in the system. Depending on the preference of the operator the Piso Net system accepts One Peso, Five Peso, Ten Peso or all of these coins. For a One Peso coin one could get on the average about four (4) minutes of internet access.

Some internet cafe owners have opted also to operate a Piso Net system along side of their regular internet cafe. Through a 60 – 40 percent partnership arrangement with the site owner they are able to operate more internet access sites with a minimum supervision. Internet cafe owners also use the Piso Net system in order to recycle their old computer systems to make it profitable instead of selling them at the lowest possible price. It has become a very big issue among internet cafe owners since most consider the Piso Net system as unfair competition.

Enter the big companies, these are the ISP and computer hardware providers, into the fray with their aggressive marketing campaigns to sell more of their products.

Its quite understandable that they have to make this presentation as simple as possible since the primary objective of any marketing and selling campaign is to encourage as many people as possible to purchase their products or services. Let me just point out a few things that they might have overlooked.

    

There are some things that they should have considered in their income and expenses presentation

1. According to them for one unit of Piso Net you will have a gross sales of Php7,200.00 per month if you operate it at 16 hours per day for 30 days. Everybody knows that it would be impossible to have your computer units occupied for a total of 16 hours per day every day. Based on experience of internet cafe operators most of the time their computer units are occupied 70 percent (the kids are in school while others are at work) of the time every day. The most reasonable sales projection would be (Php15.00x (16 hours x 70%) x 30 days) Php 5,040.00 per month.
2. As for the computation of the expenses there are a few things that I need to point out.

• The monthly electric bill per computer at Php1,000.00 per month seems reasonable since the computer unit will be on for 16 hours a day not unlike a regular internet cafe that they can turn off the whole unit when not in use.
• The monthly broadband bill of Php999.00 is what is stated in the package.  I don't really know the capacity of this internet connection.  Is it good only for one or two computers? Since operating a computer access station is based on the number of units then the Cyberia plan might not be enough if would connect a number of Piso Net units.  Since game lag is one of main issue of an internet access station the operator might be forced to upgrade his plan when he starts loosing customers.
• Even though there is minimum supervision in the operations of a Piso Net system it doesn't really mean that nobody is going to check it every now and then most especially if you are operating 16 hours a day. There might be some minor problems that needs to be taken cared of. It would be reasonable to add an additional Php100.00 per day for the cost of supervision.
• Operating 16 hours a day takes it toll on the keyboard and the mouse of the computer system. An allowance of Php100.00 a day must be set aside to cover the replacement and maintenance of the computer systems.

   3. There are other factors also to consider:

• Internet access business is one of the most regulated business by the local government units. It would certainly require to have a business license to operate.
• It did not mention the computer specifications that is included in the package. It must have the minimum specifications available to run most of the only games decently.
• It did not mention what kind of Windows Operating System is included in the package at that price it would be probably Windows 7 starter. For computers being used in the internet access business what is allowable is on the Windows Professional Edition with the additional Rental Rights Agreement license. You would be enlightened with this if the Pilipinas Anti Piracy Team comes by your place for a visit and starts confiscating your units.

The whole point is that operating a Piso Net System is not really that simple as seen in the video presentation. Those who would like to invest must learn the ropes first. This marketing campaign could get the ball rolling but ask questions first before you invest your hard earned money into the business.

Two minutes from publishing this post a friend who operates a Piso Net System sent me an IM in Facebook in order to correct certain portions of this blog.  I will be posting our conversation in Facebook as is.  The bold portion is my friend and the rest is my reply.
 

• anjan ka?

• bakit po ha ha ha ayoko ng pizza mo

• may ilan mali artikol mo

• alin? doon?
  
  
• isa isahin ko

• oks boss

• According to them for one unit of Piso Net you will have a gross sales of Php7,200.00 per month if you operate it at 16 hours per day for 30 days. Everybody knows that it would be impossible to have your computer units occupied for a total of 16 hours per day every day. Based on experience of internet cafe operators most of the time their computer units are occupied 70 percent (the kids are in school while others are at work) of the time every day. The most reasonable sales projection would be (Php15.00x (16 hours x 70%) x 30 days) Php 5,040.00 per month.
  
  
• walang kumikita ng per unit ng ganito pwede 2unit or 3unit cell ganito kita

• ok
  
  
• The monthly electric bill per computer at Php1,000.00 per month seems reasonable since the computer unit will be on for 16 hours a day not unlike a regular internet cafe that they can turn off the whole unit when not in use.
  
  
• 1k is way to high computatin ng 3 units namin is 500-600 a month

• The monthly broadband bill of Php999.00 is what is stated in the package. I don't really know the capacity of this internet connection. Is it good only for one or two computers? Since operating a computer access station is based on the number of units then the Cyberia plan might not be enough if would connect a number of Piso Net units. Since game lag is one of main issue of an internet access station the operator might be forced to upgrade his plan when he starts loosing customers.
  
  
• ang typical net is wimax system which will go for 549-799 wil comfortably support 6 pcs

• pero lately ang trend kumukuha sila ng disconnected units and pinapakabit ng hacked system

• ok

• 2500 one time guaranted for 2 years

• ng hacked system? anong isp?

• globe at wimax ng liberty

• Even though there is minimum supervision in the operations of a Piso Net system it doesn't really mean that nobody is going to check it every now and then most especially if you are operating 16 hours a day. There might be some minor problems that needs to be taken cared of. It would be reasonable to add an additional Php100.00 per day for the cost of supervision.
  
  
• it's actually 100 per site per week

• ok

• and u need to tell them 70 per cent of pisonets arent operated by internet cafe owners usually tied in sa existing business like parlor, sari sari story spa store saka lottohan
  
  
• ok
  
  
• End of conversation