Recommended
Recommended
More Related Content
What's hot
What's hot (16)
Similar to EpiCenter Pitch
Similar to EpiCenter Pitch (20)
Recently uploaded
Recently uploaded (14)
EpiCenter Pitch
- 1. EpiCenter
- 3. Purpose of a Dealership • Managed to maximize wealth of dealership owners – Choose better over bigger – Achieving “profile” lets you be average, at best – There is always a better way – always explore alternatives
- 7. EpiCenter EpiCenter helps Dealers organize and manage their Reconditioning Inventory Benefits: Decrease Age of Inventory = Get vehicles Front Line Ready faster Track Tech performance = Operational efficiency & Cost Savings Apply Cost controls = Improve Cost to Market Ratio
- 8. Executive Summary What is it? • EpiCenter is a web based application empower Dealers to improve service operations-primarily in their process • Track and prioritizes Customer and inventory • Improve communication internally vendors • Manage Costs over time as EpiCenter process Why EpiCenter? • Dealers have a hard time accounting for their reconditioning inventory • The service department has conflicting priorities which need to be managed • Inventory gets old and costly • Service Communication is scattered and not organized Business Model • ReconTrak is a SaaS business that is entering the market as a niche product with the intent to capture share and expand with new product penetration over 3-6 month development cycles.
- 9. Description Bottom Line: Get your inventory to the front line faster Value Proposition: EpiCenter is a exhaustive, one-stop Service Management tool for mid- optimize their service operations. Dealers can utilize each module to internal communication, client communication, vendor management, auction coordination. The product streamlines administrative tasks communication and consolidating data inputs resulting in direct cost inventory holding costs in addition to improving the customer
- 10. MVP
- 11. Purpose of a Dealership • Managed to maximize wealth of dealership owners – Choose better over bigger – Achieving “profile” lets you be average, at best – There is always a better way – always explore alternatives
- 12. Market Analysis
- 13. Market Size
- 14. Customer Profile
- 16. Competition
- 17. Competition Direct • Rapid Recon • greenCLOUD • AMT Technologies Indirect • Excel • Google Docs • Existing DMS • vAuto How we win • RO creation and storage history • Focus on Analytical Reporting • Vendor integration • New Module Development • Regional Target Market • Usability/ease of use • Elegant design – Data Visualization • Domain Expertise
- 19. SaaS Model • Subscription Model – No contract but offered at discount • EpiCenter will be the anchor product • A new module each Development Cycle (3-6 months) • Free customer service and data hosting up to 2,500 vehicles – Small premium added at various storage thresholds • Long Term Service Model – Account Managers – Free Support, efficiency consulting – Boots on the Ground = Customer Insight for future products • Company Focus – Maintain a 90%+ retention rate (LT = 95%) • Requires a strong Customer Service Department and Account Management Team – Maximize Customer LTV – Cross Sell with each Development Cycle
- 20. Pricing Strategy • Tiered Pricing Scheme EpiCenter - $500 • Midsize Dealers >30 cars/month EpiCenter - $200 • Smaller Dealers <30 cars/month • We will Price Discriminate • Bundling & discount opportunities will exist with new modules • New Modules will be sold ala carte if necessary but at a premium (Base = $500 for Midsize)
- 21. Revenue Streams • Recurring Subscription Revenue • New Customers • New Product penetration • Aggregated Industry Data collected over time • Partnerships
- 22. Cost Drivers • Main Cost Driver = Human Capital – Requires a strong development team – Strong account management team • Salaries, Taxes, Healthcare, Benefits, equipment • Dec = $20K Marketing Expense – NADA Expo
- 23. Products Goal: Own the service department EpiCenter – Recon Solution AuctionPro – Module for auction and dealer communication VendorPro – Tool for vendors to understand dealers needs SupplierPro – Tool for dealers to manage suppliers DispatchPro – Real time shop Scheduling AdvisorPro – Compete Service Center Management System CustomerPro – Mobile app for customer alerts GaragePro – Lite Version for body shops/small garages/dealers
- 26. Financials Milestones Month 16 Operational Breakeven 3 Year 325 active customers $2.2 mil ARR 8 employees 5 Year 962 active customers $7.9 mil ARR 14 employees
- 27. Headcount Headcount will grow with each development cycle Goal: Rev/Employee < 30% More $ = Condensed Phasing
- 28. Revenue Drivers • EpiCenter is beachhead product until bundling opportunities exist • Focus: Increasing new product penetration
- 29. Seeking $100,000 18 month burn rate
- 30. Use of Funds Use of Funds • Development Costs • Hiring a full time CTO – Full Stack Developer • Marketing • Legal Fees • Working Capital
- 31. 5 Year Exit Strategy 5 Year proj. valuation = $60 mil – 7x Sales – 1000 Customers Acquisition Target Companies – AutoTrader (Cox) – Cars.com – CarMax – PE Firm
- 32. Our People
- 33. Meet the Team Scott Kunes, CEO Scott has been in the automotive retail sector for ten years. He has worked at the corporate level of Dealer Groups and now is active General Manager of two franchised dealers. Scott has been recognized for his expertise in automotive retail and most recently was featured in Automotive News “Top 40 Under 40.”
- 34. Meet the Team Ben Peterson, Consultant Ben has been a product manager at FactSet for 5 years. He is actively pursuing his MBA at the University of North Carolina, Kenan-Flagler School of business and expects to graduate in October 2015. Ben’s interests are in process management and operational efficiencies.
- 36. Appendix
- 37. Milestones
- 40. Inventory is Expensive to Hold
Editor's Notes
- Slide Purpose: Provide a visual cue on what the presentation is about
- Pitch Talking Points: Question: Why is a dealership in business? Increase Wealth for Owners How? Focus on the listed suggestions. What’s the point? In this Pitch we will show how EpiCenter can help you accomplish each of these goals. Segway: Problem we are solving. - Slide unaltered and sourced from NADA slide deck Pitch Notes: This Slide frames our pitch and value prop. Dealers ultimately want to increase owners wealth by following the ensuing guidelines. Our Pitch will focus on each guideline by showing how EpiCenter can provide value at each level
- Pitch Talking Points: Old inventory is bad Depreciation costs are only one piece of the puzzle Opportunity cost of capital can also erode value Cuts into Gross PUVR Keeps money tied up which can’t be used for additional purposes Profitable dealerships control levers to maximize their gross PUVR and/or increase their inventory turn Unless you are simply a showroom, holding old inventory is not a good business practice Segway Question: Dealers obviously understand this so what’s the problem?
- Pitch Talking Points: Dealers, like any retail business, hold inventory. This inventory is expensive and depreciates Depreciation is a real cost and it can’t be recouped despite a dealer’s perspective* NADA’s latest estimate puts monthly depreciation at 1.5% which in isolation isn’t much, but is amplified over time and over 10s of thousand dollars of inventory A dealer that has held 50 used vehicles at an average of 15000 for 30 days would see a depreciation expense of nearly $7000 Slide Note: *(http://www.firstinnovations.com/news-events/news/why-dont-dealer-owned-vehicles-depreciate)
- Pitch Talking Points Reconditioning is a necessary part the a dealers operations. According to NADA 66% of all used vehicles are sourced from trade-ins. These vehicles need to be inspected, serviced and detailed to ensure they are ready for resale. Problem: Most dealers don’t have a good way to account for these vehicles as they go through the multi-step reconditioning process. Customer Service ROs often get prioritized ahead of recon inventory which leads to more delays. Parts may not be available, body shop work needs to be ordered or outsourced. Communication is also a problem as the car goes through many touch points in the process. UCMs need to approve several steps but may not be informed or may not be at the office. Overall it is a logistical problem All, this leads to an average days in reconditioning time of 10+ days (need source) Imagine the time and cost savings if a UCM could manage this process online from his office or mobile device
- Pitch Notes The auto retail market has been changing over the years. Information has become more symmetric empowering consumers Gross Margins on each sale have been shrinking Dealers can overcome these challenges 3 ways Improve their operations Sell more volume quicker Drive Revenue from other departments - F&I, Service etc.
- Slide Notes: Pain Points Dealerships: Mismanaged Process costing money in holding costs and technician labor costs Mismanaged internal communication Time lost, expensive admin labor Tools limited to excel and crude databases Several applications to log in to that don’t talk to each other All this adds up to costs Customer Dealerships – Service Management, internal communication, inventory management, customer interaction Vendors – Dealer to Vendor Communication and automation, data feeds Auctions – Dealer to Auction Communication and automation, data feeds Customers – Mobile app for communicating with service centers Service Centers/Detailers/Oil Change Centers – Module to communicate with Customers Beachhead Customer Dealerships – Middle tier Purchasing Motivation Efficiency leading to cost savings, time savings, and more time for selling and driving business Product Description EpiCenter is a exhaustive, one-stop Service Management tool that dealerships can use to optimize their service operations. Dealers can utilize each module per their need to improve inventory turn, internal communication, client communication, vendor management, cost management, and auction coordination. The product streamlines administrative tasks while centralizing communication and consolidating data inputs resulting in direct cost savings on labor and inventory holding costs all while improving the customer experience and allowing dealers to stay more competitive in the service marketplace. Revenue Streams Base Module Incremental Add-ons Efficiency Consulting (High Price with out product – included with full package) Vendor Data Feeds Pass through 3rd party content commission Potential Ad revenue (limited in scope) Aggregated Service Data – Market Data Solutions for Dealers EpiCenter = base required – Track internal service department - reconditioning process and wholesale inventory Add –on Premium Modules Parts Management and real time parts pricing – Vendor integration Auction Management – Coordinate with Auctions Customer Service – Prioritize Customer work along with internal work – Provide customers online work approval, tracking and invoices Solutions for Vendors (separate Value Prop) Parts Module Dealer Data feeds- Track market requirements so stock the right parts Tire Dealers – Data Feeds Solutions for Customers Free mobile app for approving and tracking work Provide real time estimates of work Schedule time (like X-time) Solutions for Auctions Standardized outputs and delivery/pickup logistics Online auction capabilities USP Get your vehicles front line ready quicker and cheaper
- Slide Notes: Need to create a USP Bottom Line Options? – Short and sweet EpiCenter provides a competitive edge in service marketplace Get your inventory to the front line faster 3 day Reconditioning turn
- Pitch Talking Points: Discuss MVP and where the product can go
- Pitch Talking Points: Better over Bigger EpiCenter is certainly not the biggest but we are definitively a better alternative to business as usual. Profile is only average – [Frames our Customer as Competitive and Driven – useful for sales pitch as well] Epicenter's Customers are wired to be successful. These dealers want to spend their time adding value to their business instead of worrying about their service inventory. They are often on the move and want a solution they can take with them. Unfortunately, before EpiCenter they simply weren’t empowered with the tools EpiCenter provides. There is always a better way EpiCenter is the better way. Dealerships simply do not have the appropriate tools to manage their Reconditioning inventory in the long run. From day one, EpiCenter will help manage the inventory and will continue to “learn” about your operations. Over time, EpiCenter becomes even more useful as it provides historical tracking of bottlenecks and inefficiencies. Need accurate and timely information EpiCenter consolidates all vehicle information throughout the entire reconditioning process and disseminates that information to the appropriate stakeholders. UCM on the road are able to view their inventory alerts on a mobile device and approve each item in real time. Management is about decision making EpiCenter creates reports and outputs based on the service operations allowing Managers to make the most informed and wisest decisions about what parts or service to approve, or when to wholesale the vehicle. EpiCenter’s customers spend less time worry about their process and more time selling and driving value.
- Pitch Talking Points: Emphasis on how big the market truly is Segway: Target Market
- Pitch Talking Points: Focus on who are potential customers are We are targeting dealers with 30-200 used cars per month, 30000-200000 in recon revenue per month and 300k-2 million in monthly Used car revenues Segway: Target Market sales strategy Slide Notes: These are averages. I think we may want to show the ranges instead to show breadth of the market
- Pitch Talking Points: Of the 7626 Franchised Dealers within our Target Market, 1712 are in the Midwest Region. Of those our initial beachhead customer will be those dealers in WI, IL and MN which is 613 immediate dealers to call on. Segway: Competition
- Pitch Talking Points: Innovative vs. Laggard = Who in the market is innovating with their ideas vs. those behind the 8-ball Slow/Fast = Who is making waves in the market vs who is floating in the wind EpiCenter wants to own the top-right quadrant
- Pitch Talking Points: Highlight that there is direct and indirect competition but really focus on what we do well and how we compete Better Design Better Execution More Robust Offering Ability to create new modules (Development team) Etc…
- Pitch Talking Points: Model: Saas Model has specific metrics to focus on for example Churn Make sure to explain what the metric is and how we plan maintain low churn LTV – focus on driving value over long term Build a solid support team and account management team over time
- Pitch Talking Points: Beginning with one module – EpiCenter’s Reconditioning platform We will create a tiered rate card, which will not come into play until we have exhausted our target market ($500 price point) Each new module opens up bundling opportunities to increase penetration Each existing customer will be pitched new module if applicable 3-5 years We will have a full product suite that can be sold ala carte but first product will be priced at $500 for midsized dealers
- Pitch Talking Points: Make a strong pitch that EpiCenter is only the beginning. More models will be needed and created to create a really sticky product.
- Pitch Talking Points: Business wide focus on product development 3-6 month development cycles New products will be vetted by existing and future customers and trialed Products will be sold immediately
- Need to round this Slide out Cars.com Adesa autocheck
- Pitch Talking Points: Focus on importance of Monthly Recurring Revenues and maintaining low churn Focus on Milestones ARR = Annual Recurring Revenues
- Round this Slide out more
- Pitch Talking Points: Validate Sales multiple (7x) Average of 2 recent deals done by Autotrader Sales are known as is deal value Highlight potential Suitors to make investing in our venture more attractive
- Pitch Talking Points Old inventory is bad Depreciation costs are only one piece of the puzzle Opportunity cost of capital can also erode value Cuts into Gross PUVR Keeps money tied up which can’t be used for additional purposes Profitable dealerships control levers to maximize their gross PUVR and/or increase their inventory turn Unless you are simply a showroom, holding old inventory is not a good business practice Segway Question: Dealers obviously understand this so what’s the problem?
- https://canvanizer.com/canvas/vJUJ5KUY984
- Pitch Talking Points Old inventory is bad Depreciation costs are only one piece of the puzzle Opportunity cost of capital can also erode value Cuts into Gross PUVR Keeps money tied up which can’t be used for additional purposes Profitable dealerships control levers to maximize their gross PUVR and/or increase their inventory turn Unless you are simply a showroom, holding old inventory is not a good business practice Segway Question: Dealers obviously understand this so what’s the problem?
- Pitch Talking Points Old inventory is bad Depreciation costs are only one piece of the puzzle Opportunity cost of capital can also erode value Cuts into Gross PUVR Keeps money tied up which can’t be used for additional purposes Profitable dealerships control levers to maximize their gross PUVR and/or increase their inventory turn Unless you are simply a showroom, holding old inventory is not a good business practice Segway Question: Dealers obviously understand this so what’s the problem?
- Pitch Talking Points: Dealers, like any retail business, hold inventory. This inventory is expensive and depreciates Depreciation is a real cost and it can’t be recouped despite a dealer’s perspective* NADA’s latest estimate puts monthly depreciation at 1.5% which in isolation isn’t much, but is amplified over time and over 10s of thousand dollars of inventory A dealer that has held 50 used vehicles at an average of 15000 for 30 days would see a depreciation expense of nearly $7000 *(http://www.firstinnovations.com/news-events/news/why-dont-dealer-owned-vehicles-depreciate)
- Pitch Talking Points Reconditioning is a necessary part the a dealers operations. According to NADA 66% of all used vehicles are sourced from trade-ins. These vehicles need to be inspected, serviced and detailed to ensure they are ready for resale. Problem: Most dealers don’t have a good way to account for these vehicles as they go through the multi-step reconditioning process. Customer Service ROs often get prioritized ahead of recon inventory which leads to more delays. Parts may not be available, body shop work needs to be ordered or outsourced. Communication is also a problem as the car goes through many touch points in the process. UCMs need to approve several steps but may not be informed or may not be at the office. Overall it is a logistical problem All, this leads to an average days in reconditioning time of 10+ days (need source) Imagine the time and cost savings if a UCM could manage this process online from his office or mobile device