Your Furniture Solutions Provider Presented to ABC Company April, 2010
What new initiatives or special projects are you anticipating? How do you cover the gap between budgeted funds and any unanticipated needs? Post crisis, how will you acquire furnishings within 72 hours for temporary operations? Are there special events or conferences requiring specialty furnishings for a day, a week, a month? OPERATIONAL CONSIDERATIONS
OPERATIONAL CONSIDERATIONS CORT provides options that allows you to more effectively manage furniture assets for: Training Centers Business Continuity New Program Initiatives Relocation Special Projects Furniture Shortage Meetings/Conventions Expansion Disaster Recovery Temporary Office Space
CORT helps companies determine the smartest furniture management solution based on the type of work environment and the longevity of the furniture need. The CORT Solution – Helping you succeed by offering a Flexible Environment that allows for the possibility of fluctuating furniture requirements due to organizational changes and unanticipated variables. SMART FURNITURE MANAGEMENT
Funding Furniture Requirements
Full funding at time of order
Permanent furniture as asset on balance sheet
Rental with Purchase Option
Funding can be provided by quarter, bi-annually, or annually
Rental considered an operating expense
Operational Flexibility: The ability to pro-actively manage and accommodate
fluctuating requirements of company operations.
CORT’s flexible rental terms allow companies to adjust furniture assets according to
current actual need, conserving a company’s capital budget.
Efficient Management of Assets: Balancing inventory supply with fluctuating demand.
CORT gives companies flexible rental terms that allow them to use only what they need,
when they need it, which lowers asset costs and saves budget funding.
THE VALUE OF RENTAL Allocation of Budget Funds: The allocation of funds to best support operational initiatives. Rental is typically funded by an operations budget, thereby freeing up acquisition funds to support greater company initiatives and return on investment (ROI).
The Disposal Process: The timely and efficient disposal of underutilized
CORT’s rental services provide companies the ability to reduce the amount of
excess and/or obsolete furniture that is stored and to reduce the costs associated
with eliminating the excess furniture out of the system.
Crisis Management: Continuity of Operations Planning pre-crisis and subsequent
reinstatement of operations, post crisis.
CORT’s experience in providing rental services in crisis situations is used by
companies to create Continuity of Operations Plans, allowing them to source and
secure timely and effective solutions following any disaster for their employees and
Maintenance & Repair: Ensuring the continued condition and functionality of the inventory.
CORT is responsible for the ongoing maintenance and repair of the furniture,
which reduces operational costs and increases employee productivity.
THE VALUE OF RENTAL
THE VALUE OF RENTAL Quality and Consistency of Inventory: Maintaining standards of quality, style and function to accommodate specific end-user needs. CORT’s commercial grade furniture lines are ANSI/BIFMA tested and approved which means quality construction and functionality to keep employees productive. CORT maintains furniture inventories of over $300M nationally which allows companies to easily secure consistent quantities of furnishings as needed. Rental Project Management: The coordination of services, supplies, and vendors to fulfill scope of work requirements. CORT manages the inventory logistics, installation timelines, and maintains communication with all involved parties to ensure seamless coordination for all project sizes and improved employee productivity.
A Berkshire Hathaway Company. Berkshire Hathaway’s subsidiaries cover a diverse spectrum of businesses, including insurance, utilities and energy, finance, manufacturing, retailing and services.
The largest national furniture rental provider with over 38 years experience.
National company-owned operations consist of 61 Districts,120 showrooms, 75 distribution centers, and 400 trucks.
2,300 highly trained expert employees in sales, operations, and administration located all across the country.
CORT has an operational resiliency plan for the purpose of Continuity of Operations so you can be confident in receiving continued services, post any disaster.
Geographic coverage allows services to 75 to 80% of the U.S. population. Operations also exist in the UK.
Customized National Account Programs for over 1,200 corporate customers, offering centralized account management and comprehensive terms.
The premier rental services provider on GSA Schedule for over 13 years.
GS-28F-7018G, SIN 71 97 Rental of Office Furniture. Provider of 507 Office Locations for Census 2010.
As one of the nation’s largest purchasers of furniture, CORT stocks over $300m
in furniture inventories.
CORT COMPANIES CORT Office Furniture Rental CORT Residential Furniture Rental Apartment Search by CORT CORT National Accounts Program CORT Clearance Center CORT Housewares CORT Trade Show Furnishings CORT Events CORT on GSA Schedule CORT Global Network CORT Project Management
CORT FURNITURE LINES CONFERENCE & MEETING ROOMS Tables Seating Conference Support CASEGOODS Desks Returns Credenzas Lateral Files Bookcases Storage SEATING Multi-Purpose Task Mid-Level Executive Reception WORKSTATIONS Herman Miller Electrified Configured per site specifications FILES/STORAGE Lateral Vertical Cabinets Shelving
CORT FURNITURE LINES TRAINING Stationary Mobile Modular SPECIAL PURPOSE Folding Tables Stack Chairs Mobile Screens LIGHTING Desk Table Task Floor AESTHETIC Plants Area Rugs Art COMPUTER SUPPORT CRTs Ergonomic Task Seating Keyboards
People – Our Experienced Staff
Administrative and A/R
Timely and responsive communications
Consolidated invoices and account maintenance
On site survey – post delivery and installation
CORT is responsible for maintaining inventory during the rental agreement
Full in-house repair department
Project Management and Logistics
CORT meets with you to finalize quantities and product and detail each strategic step through to delivery
Our Asset Management Team centrally places all furniture orders, then tracks and manages the timely receipt of all shipments
Delivery made by CORT distribution employees, in CORT trucks, with CORT on site management
Our Distribution Centers employ the Best Demonstrated Practices in the industry….from receiving, handling, and storage to staging, loading, delivery and installation
CORT will conduct a pre-delivery site survey to determine all building requirements and to review actual space as compared to floor plan
The customer can pre-plan and choreograph data, cabling and phone
Installations are turnkey
CORT works with your designated main contact to execute your order, usually within 48 business hours
Proposal for Cambridge Innovation Center – Rental with Purchase Option
The majority of the furniture proposed will be the following:
Kitchen/Dining Area Tables
Trak Chairs – all purpose seating (Executive, Guest, Conference). Replacement for Aeron.
Vista Chairs – Dining
Evaluating Rent to Buy vs Purchase
Rent to Buy
Investment return rate (benefit)
Interest earned on cash savings using investment rate of return
Income tax deduction (benefit)
35% of total rental and other non refundable expenses
Total Rent To Buy Cash Outlay Minus Tax Advantages
Depreciation expense (cost)
Local property tax rate (cost)
Income tax deduction (benefit)
35% of depreciation and property tax
Total Purchase Cash Outlay Minus Tax Advantages
Value, Flexibility and Option to Buy
CORT will offer a 36 month lease with a $1.00 buy out
CORT will rent the furniture for an initial period of 2 years (24 months). At the end of this period:
CORT will allow all or part of the furniture to be returned
To purchase the furniture after the initial period – CORT will drop the rental payment by 50% and require 12 months of payment or the Cambridge Innovation Center could pay another 6 months at the original rental rate or make a 6 month lump sum payment. Purchase of the furniture is then complete.
The Cambridge Innovation Center can schedule the 3 rd and 4 th floors to be done together or stagger the delivery of the 2 floors
Delivery and installation charges will be approximately $28,500 based upon a walk through of the space and delivery requirements (any pick up charges will be billed at the end of the term)
CORT will service/maintain the furniture during the contact term
Possible Next Steps
CORT can deliver samples of key product (s) that are specified
CORT would walk the job site to determine the specific product list by office/space and finalize monthly pricing
CORT – Columbus, Ohio
Bob Laning – Account Executive 614-985-7368 [email_address]
Richard Wilson – Territory Sales Manager 513-720-9760 [email_address]
John Roby – District General Manager 614-596-6008 [email_address]
Laura Smith – Regional Sales Manager 317-291-1754 [email_address]
Paula Green – RVP of Sales 301-324-8601 [email_address]
CORT is ready to provide the you with a flexible environment and quality, affordable products. Your success is our success. Thank you for the opportunity to provide our services.