1. Jacq van der Merwe June 2010
http://www.spacemakerinc.com
2. Who we are
SpaceMaker Systems Inc is the sales & marketing arm of
Storage Management Systems. We are part of the Park Plus
Group, based in Oakland New Jersey. We design, develop
and manufacture material handling products that are sold
worldwide. Our current focus is the development a channel
& supply partner network in North America to
manufacture, sell and service Pallet Mole.
14. Pallet Mole I
Pallet Mole is an automated pallet retrieval
system. It provides high density storage of
pallets in so called “deep tunnels”. The pallet
mole is effective in a low SKU, high number of
pallet position environment. It competes with
drive thru racking and flow racking, but is more
cost-effective.
17. Size of the Market
Country 08 GDP in $ billion RACK MARKET ($mil) EST. % Flow & Drive Target Market ($m) No of Positions No of Moles
USA $14,600 $1,400 15.00% $210 600,000 600
CANADA $1,500 $229 15.00% $34 98,143 98
MEXICO $1,090 $120 15.00% $18 51,429 51
RSA $276 $41 15.00% $6 17,571 18
TOTAL ESTIMATED SIZE OF MOLE MARKET IN NORTH AMERICA $269 750
21. Typical Costing
INDICATIVE DEALER MARGINS Totals
1,000 POSITION x 20 SKU SYSTEM
Basic Racks (± 44,000 lbs) $50,000.00
Mole Rails & Brackets $65,000.00
Moles & Spares $90,000.00
Installation (Non Union) $19,240.00
TOT Dealer Margin $59,244.00
Final Retail Price ~ Total $283,484.00
Final Retail Price ~ per SKU $283.48
Dealer Profit on Deal $59,244.00
Dealer Ave GP% 20.90%
Note: Above margin assumes 10% mark-up on Racks & 36% mark-up on Mole.
22. A New Way of Selling
ALTERNATIVE SALES MODEL ~ OPERATIONAL LEASE
Tot Cost Cost per Position
Sell Price of 1200 Pos x 20 SKU System $330,024.00 $330.02
Operational lease over 5 years @ 10% ~ p.m. $7,012.00 $7.01
Operational lease over 7 years @ 10% ~ p.m. $5,480.00 $5.48
Notes:
• Dealer gets full margin upfront
• Customer has no capital outlay
• Improved R.O.R on Capital
• Fixed cost over term
• Free Maintenance & Service
• Free up-grades
23. Partner Value Proposition
Increase the scope of racking solutions you provide
Increase the size of your target market & deal value
Improve the average GP % of your racking solutions significantly
Create an ongoing after sales revenue stream
Share 50/50 in a local marketing campaign through a rebate system
Be able to offer customers alternative financing options for racking
Be on the forefront of new racking technologies
24. Service & Support
Customer gets 1 year warrantee (free parts/pay for service)
Mole to be serviced once per quarter / every 400 hours
Recommended Price of Service ~ $300 per Mole + parts + travel
Dealers to stock critical list of parts
Dealers to train technicians for local support
26. Service & Support
Customer gets 1 year warrantee (free parts/pay for service)
Mole to be serviced once per quarter
Recommended Price of Service ~ $300 per mole + parts + travel
Dealer to stock critical list of parts
Dealer to train 2 x support technicians
27. Strategic Objectives
Market Share, Brand Recognition & National Presence
One or two Strategic Partners that can help us achieve our goals
A committed & enabled Dealer Network
90% Sales Footprint in North America
Sustained marketing effort
Short Term ~ Early Success
