Renew Buses
Premise:
Take older buses from public auctions or other sources (school trade-ins), rework them and then turn them around as replacement buses for districts at a significant savings.
Instead of selling the busses, whch takes a lot of cash (capital) and reduces the borrowing power of a district, provide them on a rental basis as a taxable lease so title remains with ReMan Iron and can take depreciation and run responsible Preventative Maintenance program to keep equipment running longer and safer.
Who are we creating value for? Looking for the Perfect Client / Customer
Keep the segments small and to the point, If you think you have more than one segment make a Canvas for each one of them.
Remember, Customers or Clients are who pay you, not necessarily the same as a user. This leg is all about who is willing to pay for your idea, service or product.
As you work through your Value Propositions you will begin to understand who your perfect customer / client is
A staff of 184 certificated employees plus 177 support personnel and fifteen administrators serves 3321 students on a school calendar of 180 instructional days. The district owns 156 acres of real estate. It operates 19 buses and other vehicles for activities on 832 miles of daily routes. Students are accommodated in six schools made up of 33 buildings. The general budget is approximately $14 million.
https://www.epa.gov/emission-standards-reference-guide
Heavy-Duty Highway Compression-Ignition Engines and Urban Buses: Exhaust Emission Standards
https://www.epa.gov/sites/production/files/2016-03/documents/420b16018.pdf
Note the 2007+ engine useful lifecycle times for heavy duty diesel engines and medium heavy duty engines (school busses)
Will these insurers cover school buses like we want to handle them?
http://slspecialty.com/services/vehicle-rental-insurance/
https://www.phly.com/Files/Leasing-PrimaryInsuranceProgram_Brochure_Web31-1723.pdf
School bus operators insurance
http://www.capcoverage.com/schoolbus.html
http://5starsp.com/contractschoolbus/default.aspx
This where you figure out where the problems are your customers are wrestling with. Where do they hurt? Who is going to be your perfect customer / client?
If you can figure out three problems your market is having problems with you are on your way.
Now, how are early adopters of general business trying to solve these three problems?
This is your clear and compelling story about why anyone you are trying to reach should buy from or engage with you. It should fit within a headline.
Clearly state the Who, What and Why
CloudFire - Photo and Video Sharing for Busy Parents.
Get back to the more important things in your life.
Provides more $$s for capital needs (Buses are usually purchased with capital dollars now.)
Capital from Bond Elections is a risky proposition now. Only 50% of Bond Elections are successful in AZ now.
Investors / bankers who know our service and products deliver high, continuous value to our customers at a reasonable rate of return and are willing and eager to work with us. They understand or mission and believe in it and want to support us both financially and emotionally.
$9,000+$20,000)1.30%*2=$75,400 (*2 factor is to take care of replacement bus and warranty costs as well as facilities and administrative overheads)
recover cost over 75,000 mi = $1.00/mile
recover cost over 100,000 mi = $0.76/mile
recover cost over 150,000 mi = $0.50/mile
recover cost over 200,000 mi = $0.38/mile
These costs cover the cost of warranties, replacement bus ready to deploy. It does not cover normal fluids (oil, antifreze, transmission fluid) changes belts, lights and labor.
1,379 Route and Misc. Miles Traveled: 353,944 Net Operating Costs: $810,852 Average Cost Per Mile: $2.29 Average Cost Per Pupil Transported: $587
What value are our customers willing to pay for?
$15,000+$35,000)1.30%*2=$130,000 (*2 factor is to take care of replacement bus and warranty costs as well as facilities and administrative overheads) This rework includes a new repower with modern engine, new LED lights, (GPS tracking?), New Tires, braking system, driver seat, new seat upholstry, lettering, new AC, cover paint and clear coat (w/ UV protection?) and $10k repair reserve.
If recovered 80% of value in 5 years then $130k * 80% = $104,000 / 5 = $20,800/yr / 10000 mi = $2.08/mile
If recovered 85% of value in 8 years then $130k * 85% = $110,500 / 8 = $13,813/yr / 10000 mi = $1.38/mile
recover cost over 75,000 mi = $1.73/mile
recover cost over 100,000 mi = $1.30/mile @ 10k/yr = 10 yrs term
recover cost over 150,000 mi = $0.87/mile
recover cost over 200,000 mi = $0.65/mile
These costs cover the cost of warranties, replacement bus ready to deploy. It does not cover normal fluids (oil, antifreze, transmission fluid) changes belts, lights and labor.