Approach to North American Projects
We typically proceed with projects on a step-by-step basis in three basic phases of work. However, since each project and client is unique, we tailor our services to the particular project and client’s needs, so the following is only intended as a general guideline.
Phase 1
This first phase is an evaluation of the proposed site(s) and a preliminary market evaluation:
- We develop trade area maps based on our initial estimate of the project's trade areas:
- Using computer-generated drivetime studies
- Identifying and taking into account any obvious geographic or psychological market barriers
- Identifying any competition and its location
- Our CEO will then visit the location to:
- Inspect and evaluate the site
- Conduct market reconnaissance
- Evaluate any direct and indirect competition
- Hold discussions with our client
Based upon the above, we will determine basic market feasibility and recommend a preliminary project concept, including the mix of entertainment and/or edutainment, dining and other key components. This also clarifies basic site requirements, approximate building size, etc.
The fee for this phase of work in the United States varies between $3,000 and $4,000 plus travel expenses. *
Sometimes, if the size of the market is questionable from the start, we break the above into two steps. First we evaluate the market as described in #1 above to determine if the market is large enough to support the project. Then if the results are positive, we proceed with the visit to the location for further analysis as described in #2 above. If Phase 1 is broken into two steps, the fee for the market evaluation is $795 and the location visit is $2,600 plus travel expenses.
Phase 2
This is the full market and financial feasibility analysis and report that usually includes:
- Detailed market analysis
- Mix of attractions of other components
- Preliminary site and floor plan (needed to develop a cost estimate)
- Cost estimate
- Attendance and per capita revenue projections
- Pro forma financial projections of revenues and expenses.
The Phase 2 report is typically required as part of the business plan in order to obtain financing and/or investors. We give our clients a fixed fee proposal for Phase 2 work once the concept is defined and agreed upon in Phase 1, as we need to know what the concept is, the general size of the project and whether it is a new building or renovation in order to determine the amount of work, including design work, required in order to calculate our fee for Phase 2 work.
Phase 3
This is full project design, specifying and procurement of all equipment, and assistance with startup management. Until the preliminary plan is developed in Phase 2, we cannot determine the fee for this phase, as our design team needs to see exactly what the project will include, the size of the site and building, equipment included, etc., in order to determine the amount of required design work. The other issue we need to sort out with our client before we can determine the Phase 3 fee is the required scope of our consulting and management services, as well as what design work we will do and what will be done locally.
We do not require a client to commit to all phases of work at once, only one at a time, i.e., a client can contract for the 1st phase of work before committing to Phase 2 work, and can commit to Phase 2 work before committing to Phase 3 work.
Approach to International Projects
To read about our approach to international projects, click here.
* Fee is current as of January 1, 2015 and subject to change. Travel expenses include a 5% administrative fee.
