SPACEMAKER SYSTEMS INCJacq van der Merwe June 2010
http://www.spacemakerinc.com
Who we areSpaceMaker 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.
Corporate Structure
Park Plus Inc SMS RSA SpaceMaker
USA
SMS Holdings
100% 80% 50%
Park Plus Inc
High Density Vehicle Storage
“Big Dipper”
WAREHOUSE OFFERINGS
• Pallet Mole Racking
• Racking & Shelving• Hänel HDVS
Systems• ONYX – Size &
Weighing Systems
We build deep tunnels
Our Customers
http://www.youtube.com/watch?v=hh24-NGYmWY
Today is about the Pallet Mole
Mole in Action
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.
Typical Operation
Understanding the Market
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
Pallet Storage Modes
Warehouse Shipping Mix
Market per Territory
12
34
S1
S20
200
400
600
800
1000
1200
1400
Territories
Value
Size of market
Series1 Series2
Mex
RSA
Can
USA
Total = 750
Typical CostingINDICATIVE 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 $283.48Dealer 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.
A New Way of SellingALTERNATIVE 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
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
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
The Competition
Drive Thru Racking
Flow Racking
All Purpose Racking
Ignorance!
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
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
TargetsUSA 50Canada
9
Mexico 4
Thank You
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