CARGO EXPANSION NORTH AMERICA
CARGO MINI-HUBSOPERATING MODEL AND     GUIDELINES
OUR DEFINITION• Within Shuttling Range of Major LBC  Warehouses.• Will be supported by those LBC Warehouses  thru Shuttler...
WHO WILL USE THESE MINI-HUBS?     CARGO PARTNERS      LBC COURIERS          and ?
ADVANTAGES  • Extends LBC Presence and             Coverage    • Easily Manageable SBU  • Convenient for PC’s / WC’s• Tool...
CURRENT MINI HUB - OXNARDAP23 OXNARDMONTH:     Jan-12                                                               Dis ta...
What comes first?    The CHICKEN OR THE EGG ?             COURIERS OR PC’S?Set-Up PC’s First, and hire Full-Time Courier a...
Courier – PC ComparisonCOURIER OR PC?At 50% Efficiency                                   FT/ COURIER               PC     ...
Start UpPC’s and WC’s make more         sense!When do we know when to  start hiring Couriers?
Courier – PC Comparison @ 400 UnitsCOURIER OR PC?                                                    FT/ COURIER          ...
MINI-HUB OIS COURIER @MAX. EFFICIENCYAT MAXIMUM EFFICIENCY                  FT/ COURIER                               UNIT...
WHAT IF YOU HAVE 3 OR 4 OF THESE?$10K X 3 = $30,000 A MONTH
What Next?Look at Recruiting, “Pirating” Competitors’                  Agents!           Tools to Recruit         Convenie...
ORDER OF ACTIONCARGO PARTNERS (PC’s, WC’s)          THEN        COURIERS          THEN   WE PIRATE / RECRUIT    COMPETING ...
WHERE ARE POTENTIAL SITES?Area I• Redding / Tracy / Modesto AreaArea II• South Orange County / Oceanside /Escondido / Palm...
DAY TO DAY OPERATIONFor: PC’s and WC’s• Fax Access / Scan to Drop Box Access• $$ Turn-Over to Shuttler / EFT Process?For: ...
Expectations             Two (2) Per Area           Minimum of 300 Units           25% Net Profit Margin       No Overtime...
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Mini hubs

  1. 1. CARGO EXPANSION NORTH AMERICA
  2. 2. CARGO MINI-HUBSOPERATING MODEL AND GUIDELINES
  3. 3. OUR DEFINITION• Within Shuttling Range of Major LBC Warehouses.• Will be supported by those LBC Warehouses thru Shuttlers.(Schedule dependent on Volume)• Primarily be Storage Spaces (e.g. Extra Space, Public Storage)• Essentially an extension of LBC Warehouse
  4. 4. WHO WILL USE THESE MINI-HUBS? CARGO PARTNERS LBC COURIERS and ?
  5. 5. ADVANTAGES • Extends LBC Presence and Coverage • Easily Manageable SBU • Convenient for PC’s / WC’s• Tool for Recruitment / “Piracy”
  6. 6. CURRENT MINI HUB - OXNARDAP23 OXNARDMONTH: Jan-12 Dis ta nce from Nea res t Whs e / Bra nch(R/T) 70 Avera ge Fuel Cos t UNITS AMOUNT $ 4.50REVENUE: 259 $ 15,022.00 Vehicle Fuel EfficiencyAverage Selling: $ 58.00 10PERSONNEL EFFECTS-SEA Shuttling Frequency / Ra tio Per MonthGROSS UNITS - SALES $ 15,022.00 2 8.67NET REVENUECOST OF SALES 48% $ 7,210.56GROSS INCOME $ 7,811.44OPERATING EXPENSEMARKETINGSALARIES $ 2,079.96 Cou.Sa la ry/Hr. $ 12.00PAYROLL TAXES $ 159.12 7.65%OFFICE EXPENSESRENT - VAN LEASE $ 650.00REPAIRS / MAINTENANCEGAS $ 500.00TAXES / LICENSES (ANNUAL/12) $ 38.00TELEPHONE - TMOBILE $ 50.00TELEPHONE - DATA CARD $ 50.00INSURANCE - VAN $ 210.75INSURANCE - MEDICAL $ 218.25TOTAL OPERATING EXPENSE $ 3,956.08 Less: Rent - Storage $ 277.00 Cost of Shuttling $ 273.00 NetNET INCOME $ 3,305.36 Profit Margin 22%
  7. 7. What comes first? The CHICKEN OR THE EGG ? COURIERS OR PC’S?Set-Up PC’s First, and hire Full-Time Courier as Volume Dictates
  8. 8. Courier – PC ComparisonCOURIER OR PC?At 50% Efficiency FT/ COURIER PC UNITS AMOUNT AMOUNTREVENUE: 242 $ 14,036.00 $ 14,036.00Avera ge Selling: $ 58.00PERSONNEL EFFECTS-SEAGROSS UNITS - SALES $ 14,036.00 $ 14,036.00NET REVENUECOST OF SALES 48% $ 6,737.28 $ 9,123.40 for PC 65%GROSS INCOME $ 7,298.72 $ 4,912.60OPERATING EXPENSEMARKETINGSALARIES $ 2,079.96PAYROLL TAXES $ 159.12OFFICE EXPENSESRENT - VAN LEASE $ 650.00REPAIRS / MAINTENANCEGAS $ 500.00TAXES / LICENSES (ANNUAL/12) $ 38.00TELEPHONE - TMOBILE $ 50.00TELEPHONE - DATA CARD $ 50.00INSURANCE - VAN $ 210.75INSURANCE - MEDICAL $ 218.25TOTAL OPERATING EXPENSE $ 3,956.08 $ -Les s : Rent-Stora ge $ 277.00 $ 277.00 Cos t of Shuttling $ 273.00 $ 273.00NET INCOME $ 2,792.64 $ 4,362.60NET PROFIT MARGIN 20% 31%
  9. 9. Start UpPC’s and WC’s make more sense!When do we know when to start hiring Couriers?
  10. 10. Courier – PC Comparison @ 400 UnitsCOURIER OR PC? FT/ COURIER PC UNITS AMOUNT AMOUNTREVENUE: 400 $ 23,200.00 $ 23,200.00Avera ge Selling: $ 58.00PERSONNEL EFFECTS-SEAGROSS UNITS - SALES $ 23,200.00 $ 23,200.00NET REVENUECOST OF SALES 48% $ 11,136.00 $ 15,080.00 for PC 65%GROSS INCOME $ 12,064.00 $ 8,120.00OPERATING EXPENSEMARKETINGSALARIES $ 2,079.96PAYROLL TAXES $ 159.12OFFICE EXPENSESRENT - VAN LEASE $ 650.00REPAIRS / MAINTENANCEGAS $ 500.00TAXES / LICENSES (ANNUAL/12) $ 38.00TELEPHONE - TMOBILE $ 50.00TELEPHONE - DATA CARD $ 50.00INSURANCE - VAN $ 210.75INSURANCE - MEDICAL $ 218.25TOTAL OPERATING EXPENSE $ 3,956.08 $ -Les s : Rent-Stora ge $ 277.00 $ 277.00 Cos t of Shuttling $ 273.00 $ 273.00NET INCOME $ 7,557.92 $ 7,570.00NET PROFIT MARGIN 33% 33%
  11. 11. MINI-HUB OIS COURIER @MAX. EFFICIENCYAT MAXIMUM EFFICIENCY FT/ COURIER UNITS AMOUNTREVENUE: 484 $ 28,072.00Average Selling: $ 58.00PERSONNEL EFFECTS-SEAGROSS UNITS - SALES $ 28,072.00NET REVENUECOST OF SALES 48% $ 13,474.56GROSS INCOME $ 14,597.44OPERATING EXPENSEMARKETINGSALARIES $ 2,100.00PAYROLL TAXES $ 160.65OFFICE EXPENSESRENT - VAN LEASE $ 650.00REPAIRS / MAINTENANCEGAS $ 500.00TAXES / LICENSES (ANNUAL/12) $ 38.00TELEPHONE - TMOBILE $ 50.00TELEPHONE - DATA CARD $ 50.00INSURANCE - VAN $ 210.75INSURANCE - MEDICAL $ 218.25TOTAL OPERATING EXPENSE $ 3,977.65Less: Rent-Storage $ 277.00 Cost of Shuttling $ 273.00NET INCOME $ 10,069.79NET PROFIT MARGIN 36%
  12. 12. WHAT IF YOU HAVE 3 OR 4 OF THESE?$10K X 3 = $30,000 A MONTH
  13. 13. What Next?Look at Recruiting, “Pirating” Competitors’ Agents! Tools to Recruit Convenient Drop-Off Point Less Overhead (Gas) for Agents More Money for them at the end of the Day
  14. 14. ORDER OF ACTIONCARGO PARTNERS (PC’s, WC’s) THEN COURIERS THEN WE PIRATE / RECRUIT COMPETING AGENTS
  15. 15. WHERE ARE POTENTIAL SITES?Area I• Redding / Tracy / Modesto AreaArea II• South Orange County / Oceanside /Escondido / Palm SpringsArea III• Northern Illinois ? Eastern Pennsylvania? Connecticut?Area IV• Outskirts of Vancouver / Whistler?Area V• Outskirts of Toronto
  16. 16. DAY TO DAY OPERATIONFor: PC’s and WC’s• Fax Access / Scan to Drop Box Access• $$ Turn-Over to Shuttler / EFT Process?For: Couriers• Laptop with Data Card / Scanner?• Fax Access / Scan to Drop Box Access• $$ Turn-Over to Shuttler / Branch Turn-Over SUGGESTIONS??
  17. 17. Expectations Two (2) Per Area Minimum of 300 Units 25% Net Profit Margin No Overtime for F/T CouriersMax Efficiency @ 22 Boxes / Day @ 22 Days 400 Unit Baseline
  18. 18. Questions / Comments

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