A lightweight aluminum folding ladder that doubles as a load lock for easy storage or double duty use with stabilization hooks to clip onto the top of the trailer make it accessible for a driver to climb up top from the catwalk and clear snow or other debris from the top of the trailer and thus reduce risk of suit or hampering other vehicles with sheets of snow dropping off. Section II – Company Overview Brand new startup which sees a need and fills it to help the professional drivers do their jobs while making it easier to be safe on the road.A small partnership which in two to five years will convert to a corporation to cover liabilities and taxes. One initial plant to start with and expansion as the product becomes more popular and demand increases. Section Ill – Industry Analysis 3 – Market Overview/structure There are approximately 3. 5 million truck drivers in the United States Truckling.
Net, n. D. ). A majority of them are considered dry van where there is a 13’6″ trailer attached.The structure for the market would originally be monopolistic as there is not any current competition for the product. The current business cycle is on the way up from a dive in 2009 with the drop in oil per barrel recently the expansion of trucking is likely to occur again.
- Thesis Statement
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(Young, Notes, & Firestone, 2014) 4 – Relevant Market Size There are some ladders out there for trucks mostly designed for tankers that run about 400$ and load locks run for aluminum 50$. There is no direct imputation so the market size would be all available truckers that drive a box trailer.Section IV ? Customer Analysis 5 – Target Customers Professional drivers who drive a box trailer especially in the northern locals where snowfall is an issue would be the target customers. Though any driver with a box trailer could use the product for getting rid of topside debris on the trailer. 6 – Customer Needs The needs of drivers to access the top of their trailers is there though not imperative to all drivers. Making something easy to use and have a multiuse for the weight is important. Having the dual purpose to accommodate the weight of the ladder/lock will appeal to drivers.
Being able to lock the load in place most days but when needed use the ladder to get up top and clear off the trailer will be attractive to them. Section V – Competitive Analysis 7 – Direct Competitors None currently 8 – Indirect Competitors Unique trucking equipment makes many ladders for trucks but not a duel load lock format. And most ladders run 4003 and up. Line offers aluminum load locks with rubber end load bars for 45$ (Line, n. D. ) (Unique Truck Equipment Inc. , n. D.
) 9 – Competitive AdvantagesHaving the combination of both products as one gives a unique advantage over the closest competition. Since there is not competition the elasticity of demand would be inelastic so if price went up it would not affect the sales. Procuring a patent for the design and proposed permutations of evolving ideas for the ladder lock will increase barriers to entry for the competition. Section VI – Marketing Plan 10 ? Products & Services Original design will be a compilation of the folding ladder most drivers are used to getting into their bunks with a load lock for securing their cargo.The item would be a cross between a necessity and a luxury for a professional driver.
Many shipments require a load lock but the ladder for clearing the roof is a luxury so keeping the price close to a load lock will keep it competitive. 1 1 – Pricing Pricing will start of between the price of the two outliers of indirect competition of the 50 load lock and the DAD$ ladders and be 150$ as it will be a stronger load lock and useful as a ladder as well it can be higher than a regular load lock and still keep it competitive. Line, n. D. ) (Unique Truck Equipment Inc.
, n. D. ).
As more units are sold the marginal cost can go down due to the fact that can afford to buy materials in bulk to create more product which in turn will allow the marginal revenues to increase as well. 12 – Promotions Plan The initial price will be stated as a Sale from a price point of 200$ the normal price to increase customer appeal. Non-pricing strategies will be included in advertising about the duel usefulness and craftsmanship.As the company expands also using recycled aluminum to show a green footprint as well. The pricing will be adjusted in the first 5 years to find the balance of the elasticity f pricing with trying the price changes for a quarter at a time to find the equilibrium in the market and keep it inelastic as possible. 13 ? Distribution Plan One distribution plan would be to target big trucking companies with bulk discounts to corner the market with each of the big companies to consider it a stock item for their company drivers.
For owner operators partnering with truck stops to sell it in their showroom such as the 1-80 group known for having every type of truck accessory showcasing our product would increase visibility among our target demographic. Section VII – Operations Plan 4 ? Key Operational Processes One plant to create the final product while using prefabricated parts purchased from most likely a factory in china since their prices are very low currently for manufacture of aluminum and steel goods. 15 – Milestones Single plant for fabrication expanding into 5.Then our own plant for fabrication of parts and direct sale units. Section VIII – Management Team 16 – Management Team Members Kristin smith and partner Jason Carroll 17 ? Management Team Gaps Kristin has 2 degrees in business while Jason has 10 years of trucking knowledge. Current gaps are in manufacturing so outsourcing the manufacturing would be the current gap. Section IX – Financial Plan 18 – Revenue Model We would utilize a wholesale model to distribute our goods to retailers straight to trucking companies.
9 – Financial Highlights With the prices of oil in the global market falling the availability of funds that went from a drivers pocket to his fuel tank opens up and gives us an a opportunity to make a sale where that gap in his spending is now. 20 – Funding Requirements/Use of Funds The current credit market is pretty closed comparatively to a decade ago so getting funding off of credit would not be a good options. Attempting a grounding like Streakier would be one option to get started.