Price schemes
The toilets are rented out for a weekly service fee.
Franchisees offer the toilet at different price schemes to two different market segments:
Franchisees offer the toilet at different price schemes to two different market segments:
- Commercial customers, e.g., small sanitation entrepreneurs who operate "pay per use" semi-public toilets and landlords who let their tenants use the toilet
- Private customers, either single families or two families that share one toilet (max. 10-12 people per toilet).
If broken down to the costs per person and day, the toilet rent per person and day is 3.5 cents if two families (10 people) share one toilet.
The business is only attractive for the franchisor and franchisees if they can reach the break-even point fast. Receiving upfront installation fees from their potential customers would facilitate this. Therefore, commercial customers would pay an upfront installation fee of USD100 and private customers would take out a microcredit loan to cover this fee. Paying the microcredit loan back in small regular payments makes the toilet affordable for the poor, and ensures that the private customers can afford to make the weekly service payments to the franchisor and franchisees. Both customer groups will pay the weekly service fee during the subsequent ten years that will cover all toilet investment costs and the operative costs for the collection and treatment of the urine and faeces. For private customers, the weekly service fee is higher in the first year because they have to pay back the microcredit loan. Small sanitation entrepreneurs can recoup their upfront installation fees within one year if they receive 4 cents per toilet visit from each customer.