9 REASONS why X-PERIENCE MAKES SEN$E

1. 9 REASONS why X-PERIENCE MAKES SEN$E

2. 1. DEMAND 8 short years ago in 2003, 90% of all malls in A or B markets had music stores within them. The biggest chain of stores in the mall at the time was Sam Goody with over 700 stores. In January 2006 Musicland, the parent company of Sam Goody, filed Chapter 11 bankruptcy and immediately closed 341 locations. In March of 2006, Trans World purchased the remaining stores. In 2007, after a very dismal 2006 fourth quarter, Trans World announced more store closings. By the end of 2008, 90% of all music stores located in malls were closed. The major chains failed to correctly analyze the market trend. The reality was the music industry consumers didn’t disappear; they just found other ways to get music. The downward sales trend for the music industry was mostly attributed to Internet downloading. Consumers didn’t trend away from music, in fact they trended more towards it. According to a survey by Nielsen’s Media, the average person’s music inventory has almost doubled since 2003. Devices such as iPods hit the market in 2001. As the popularity of this and other similar devices began to grow, retailers took advantage of the sales implications and helped to sell iPods and other MP3 players but never made attempts to service them with music. With the X-Perience Digital Kiosk, you now have the technology, the know-how, and experience to not only service these devices but to even further diversify the market with sales of that and many more such devices. The difference is, instead of letting the consumer just purchase the device and be on their way, you can offer a full digital one stop where consumers can buy and upload right there at the kiosk. Based on our research, many of the 90% of malls that had music stores a mere 10 years ago, and even those that didn’t still have a demand for music stores. According to Butch Knerr, senior VP of Leasing for Simon Malls, music stores account for the 3rd most requested store in their malls all across the country. .

3. 2. Low Cost & Overhead X-Perience Digital Kiosk is a very cost efficient business. According to allbusiness.com, The average cost of a business that can generate 200k to 400k in its 1st year of business is at a cost of around $500,000. X-Perience Digital Kiosk cost around $65,000. In addition, because of the size and custom ability of each kiosk, the overhead in most malls will come at a fraction of the price of an average in-line store while still maintaining the ability to sell just as much inventory and turn just as much profit. Mission

4. 3. Inventory X-Perience Digital Kiosk contains more music than any brick & mortar store every could. The Virgin Tower Mega in New York City was over 30,000 square feet and had a little over 75,000 different titles from a wide array of genres. The kiosk is usually around 150 square feet in total size and it has over 64 million titles with hundreds of different genres of music including thousands of international titles. And this inventory can be delivered in ANY platform the customer wants. With the digital music library growing at such a rapid rate, there will be over 200 million titles available by the end of 2013!

5. 4. Profitability Because of the digital concept, inventory is never an extreme cost issue with the X-Perience Digital Kiosk. Inventory cost isn’t incurred until the product has already been sold. There is well over a million dollars worth of inventory at the customer’s finger tips that doesn’t cost anything until the product is sold. There is also a wide array of accessories ranging from high end products such as mp3 players, tablets, or video players to lower end but still very profitable head phones, usb flash drives, or sd cards. These products have extremely long shelf life so there is no need to change inventory until inventory is sold. Most kiosks start paying for themselves in less than 3 months and get completely out of the red in less than a year.

6. 5. Eye Candy X-perience Digital Kiosk comes with all the bells and whistles that make it one of the most eye catching kiosks. Each corner showcases a very user friendly touch screen monitor with vivid displays of some of the hottest album covers from past to present releases updated daily. In addition, there are Flat screen tvs playing the newest, hottest music videos as well as step by step instructional videos. To round out the kiosk on display will be some the hottest mp3 players, tablets, etc on the market. And to give it that music store touch, you can include hard copies of any cd title!

7. 6. Easy Set Up & Mobility Depending on the build-out most X-Perience Digital Kiosks can be broken down to 9 different pieces. A typical kiosk can be completely put together with every part, inventory, wiring, and set up in about 8-10 hours after delivery. Each piece can be easily detached, moved with ease and reattached together if need be.

8. 7. Customer Service & Product Support Each X-Perience Digital Kiosk comes with product support and customer service that is available 24 hours a day 7 days a week. Knowledgeable tech service reps can log into the system at any time and help trouble shoot or just answer questions. In addition there is an on- site training period to equip new owners with the know- how to take full advantage of what the kiosk offers. X-Perience also offers management programs to help with everything from payroll to sales support.

9. 8. Diversity With millions of songs, thousands of albums, and hundreds of different genres, X-Perience Digital Kiosk embodies a very diverse product line. No matter what the surrounding area demographics are, the kiosk can deliver. There are even thousands of international titles available.

10. 9. Growth The growth potential of the X-Perience Digital Kiosk is staggering. Alongside music, movies are now becoming a digital entity. Businesses such as Red Box have already proven the demand for movies on the go and X-Perience Digital Kiosk is already built to deliver. With sales for electronic mediums almost doubling every year, it is not unreasonable to envision a time when most customers will look to digitally grow their entertainment library. From music, to books, to movies there will be a constant demand for the technology that is already at your finger tips.