Financial Innovation
The financial strength of Picsolve means that Picsolve is able to carry the cost of capital investment for the photo operation, leaving attractions free to invest in capital projects which help to increase the attractiveness of their park and so improve footfall.
An example is Park D, where a new building was required to house the proposed photo sales operation for a particular ride. The park owners wished to invest their capital in another area of the park. Picsolve, seeing the commercial opportunity for all, was prepared to invest the capital up front, out of its own reserves, recovering that investment through an adjustment to the revenue share agreement. As a consequence, total additional sales of £360,000 were generated in the first year. Without Picsolve's intervention, the park would not have benefited at all from this sales opportunity.
In addition, because Picsolve is so confident in its ability to drive increased sales, for example when we take over an operation from a competitor, we are prepared to contract minimum revenue guarantees as well as sharing the revenue growth.
An example is a major park in northern Europe, part of a well known group, with a very high consumer reputation. In winning the contract to supply photo services to this park, Picsolve was prepared to offer a "spend per head" guarantee that represented a 45% increase on that achieved by the previous operator.
