1 Chase Corbridge, Mike Wille, Jordan Furniss, Taylor Moss

Customers Interviewed:

2

Pain

3

Solution

Tech comes to home only to diagnose

problem

Business model canvas construction

5

What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

For whom are we creating value?Who are our most important customers?

What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?

What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?

What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

Day Month Year

No.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Tech comes to home only to diagnose

problem

Business model canvas construction

Not profitable

7

Pain

Customers Interviewed:

8

Solution

9

Tech comes to home only to diagnose

problem

Business model canvas construction

Not financially feasible with cost

structure / revenue stream

Diagnose auto body repairs with picture uploaded to web for

bid

Visit 10 local auto body shops

Too difficult to accurately assess

damage from a photo

Interviewed:

10

Re-Interviewed: Shadowed:

15-90 minutes per estimate

3-4 every day

11

Pain

12

Interviews Confirming Pain :

13

Solution

14

Our Customer

Shops Interviewed:

15

Customer   Amount   From   Date  

$895.85   Geico     7  Nov  2011  

Richards,  John   $5,336.71   State  Farm   1  Nov  2011  

Petersen,  Sco?   $2,986.28   All  State   26  Oct  2011  

$7,542.99   Geico   25  Oct  2011  

Liddle,  Steve       $627.66   Bear  River   25  Oct  2011    

Corbridge,  Chase   $1,294.45   State  Farm   22  Oct  2011  

Brown,  Stephanie   $519.07   Progressive   15  Oct  2011  

furnissj  

Wille,  Mike  

Smith,  John  

Jordan  Furniss  furnissj@autobid.com  

Join  AutoBid  Plus  Account  seTngs  

Sign  out  

Customer   Amount   From   Date  

Smith,  John   $895.85   Geico     7  Nov  2011  

Preliminary  EsWmate    Vehicle:  1999  SUBA  Legacy  L  4D  SED  4-­‐2.2L-­‐FI  Black    Customer:  SMITH,  JOHN          Line  OperaWon  DescripWon      Qty  Extended    Labor  Paint  

         Price  $  1         REAR  BUMPER      1.0  2  R&I  bumper            1.0    3  Bumper            1.0  2.4  

Category        Basis      Rate  Cost  Body  Labor        2.0  hrs      @      $42/hr  84.00  Paint          8.0  hrs      @      $42/hr  302.44  Grand  Total    

               386.44  

furnissj  

Original  

Import   To  Audatex  

furnissj  

ImporWng…  EsOmate  

Successfully  Imported!    

View  in  Audatex  

19

Tech comes to home to diagnose

maintenance need/collision repair

Business model canvas construction

Not financially feasible with cost

structure / revenue stream

Diagnose auto body repairs with picture uploaded to web for

bid

Visit 10 local auto body shops

Too many variables that bids can’t be given from a photo

SaaS that can convert between all major

estimating software

Shadowed body shops and created a MVP

MVP solves a huge headache for the

shops!

Yearly

$540,000,000

20

Time spent by employees re-entering bids

300 hours/year shop average 60,000 US body repair shops

21

$2.5 M

$2.5 M

$1 M

This is wonderful! –Owner, Sergio Martins

When can we start using this? –Owner, James Nichols

This is a serious thing for the auto industry. –Owner, Ray Banks

8 Commitments 3 States

22

Shop Owners Interviewed: States:

23

315 shops 116 shops 85 shops 256 shops

24

What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

For whom are we creating value?Who are our most important customers?

What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?

What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?

What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?

What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

Day Month Year

No.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/

or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Auto body shops

Monthly recurring

fee

*Sales groups

*Direct sales

Personal account

reps Time saving

Software platform

*Signing up clients *Developing lean SaaS

Eliminate human error

Hosting and Development

Increase Productivity

APU Solutions

Pay per use

Estimating Software: *Audatex

*CCC *Mitchell

$81 Million / year Largest 10%

$199/month * 34,000 shops

$816 Million / year North America, Europe, China

$199/month * 340,000 shops

$1.5 Billion / year Worldwide

$199/month * 625,000 shops

TAM

SAM

Target Market

25

26

Lessons Learned Build an MVP asap

Shadow to Learn

Fail Fast

Flaws cannot be Hidden in the Canvas

27

Taylor Moss – VP of Sales / front end web developer •  Klymit •  TruConnect Mobile •  Oak Strategy Partners

Mike Wille - CTO •  Bamboo Forever •  Raging Bull Marketing •  Platinum Protection

Jordan Furniss - COO •  Vivint •  Façade Clothing •  Dowser

Chase Corbridge – CEO •  Security One •  Bulls Eye Pest Control •  Incite Marketing

Advisors Scott Petersen-Industry Advisor

Robert Wille- Technical Advisor

James Nichols- Industry Expert

Peter Hamilton – Programmer RoR

28 Chase Corbridge, Mike Wille, Jordan Furniss, Taylor Moss

29

“The Big 3” There are presently five companies in the United States that  sell Estimatics: CCC, Mitchell, Audatex, Web-Est LLC (“Web-Est”), and Applied Computer Resources, but the three major

competitors in the Estimatics market today are CCC, Audatex and Mitchell, which collectively hold the lion’s share of the

market — approximately 99% — thus earning the nickname, the “Big Three.”

From the FTC’s documentation of their case against CCC. http://www.ftc.gov/os/caselist/

0810155/090309cccmitchellpublicopinion.pdf

30

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

2012 2013 2014 2015 2016

Sales

COGS

Gross Profit

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

2012 2013 2014 2015 2016

Sales

Gross Profit

Net Income

31

The CIECA suite of exchange standards/messages are based on XML, eXtensible Markup Language. The strength of XML is that it provides a generic way to process data on the internet and an efficient way to transfer data between applications and business partners. CIECA refers to these standards/messages as the BMS (Business Message Specification). In the Collision Repair Industry, CIECA BMS/XML provides a foundation for real-time exchange of data between repairers, insurers, car rental companies, parts & materials providers, and more. Implementing the BMS standards within the collision repair industry results in more efficiencies, consistencies, cost savings, and vehicle owner satisfaction - saving the industry time, effort, money, and customers.

The BMS/XML includes messages for transactions relative to Vehicle Damage, Glass, Rental, Salvage Assignments, Estimates, Salvage Dispositions, Attachments (images), Parts and Materials Procurement, Repair Status, Authorizations, Invoicing & Statements, Rental Locations, and Subrogation. Twice annually CIECA produces a Release Package which includes the BMS, the XML schema, and the Code Lists. This provides developers and business partners with predictable systems development cycles

http://www.youtube.com/watch?feature=player_embedded&v=PwL3FnRBHtQ

32

SEMA Show takes place October 30 - November 2, 2012 at the Las Vegas Convention Center.

The SEMA Show is the premier automotive specialty products trade event in the world. It draws the industry’s brightest minds and hottest products to one place, the Las Vegas Convention Center. In addition, the SEMA Show provides attendees with educational seminars, product demonstrations, special events, networking opportunities and more.

SEMA Show 2011 drew more than 60,000 domestic and international buyers. The displays are segmented into 12 sections, and a New Products Showcase featured nearly 1,500 newly introduced parts, tools and components. In addition, the SEMA Show provides attendees with educational seminars, product demonstrations, special events, networking opportunities and more…

33

APU Solutions is the technology leader for the insurance, collision-repair and alternative parts-supply industries.

APU's web-based network provides nationwide parts availability, quality, pricing and procurement, plus tools to track and manage Alternative Parts Utilization.

• PartsNetwork

• SubroNetwork

• TotalLossNetwork

• DataNetwork

34

Employee work time spent on entering estimates

* 50 min/bid * 30 bids/month = 25 hours/month

* 25 hours * 12 months/year = 300 hours/year

* $30/hour * 300 hours = $9,000 year per shop

* $9,000/shop * 60,000 shops = $540,000,000

35

Specifications: Estimating industry just beginning to embrace SaaS estimating platforms. Wide open spaces for SaaS solutions that improve the functionality of these estimating platforms.

Peter Hamilton – Back-end engineer 140 hours to working MVP 1-2 months Ruby on Rails development of the XML code