Ship Your Luggage Deck4.2
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Total Travel Convenience<br />
It’s about...time<br />
A global luggage shipping company focusing<br />
on groups and the meetings industry
The Problem<br />
Customers<br />
• Long lines at baggage check-in, security and luggage carousel<br />
• Lugging heavy bags point-to-point repeatedly throughout the journey<br />
• Insufficient insurance for personal belongings<br />
• Increasing travel restrictions<br />
• Rising baggage fees<br />
Groups & Meetings Industry<br />
●<br />
●<br />
●<br />
Increasingly difficult to differentiate their offerings from major online travel<br />
agents (OTA’s) like Expedia, Priceline, Travelocity etc.<br />
Looking for increased margins in a world where hotel and airline<br />
commissions continually decrease<br />
None of the major shippers (FedEx, UPS, DHL) provide the platform to ship<br />
groups of travelers, only a retail engine to ship individuals - one at a time
The Solution<br />
Groups, Meetings & Incentives<br />
• Provides a way to delight their premium travelers (e.g. rewarding executive<br />
performance, removing hassles, reducing overall travel time)<br />
• Turn-key offering, M&I companies simply include the cost of luggage shipping<br />
as another value added amenity in the overall group or meeting package<br />
• Creates three new revenue streams:<br />
1. Commissions on group orders<br />
2. 100% margin on Non-Use<br />
3. 20% commissions on repeat business<br />
Customers<br />
• Departure Trip: <strong>Ship</strong> <strong>Your</strong> <strong>Luggage</strong> picks up at the home and has the<br />
traveler’s luggage waiting at the hotel or destination point upon arrival<br />
• Return Trip: Leave your luggage at the hotel, golf course or pickup address of<br />
your choosing, travel hands free and your luggage arrives safely home<br />
Book Pack Tag <strong>Ship</strong> Delivery
The Product - Group Travel<br />
• Proprietary technology creates hundreds or thousands of shipping labels in<br />
seconds. This type of technology is not available on FedEx, UPS or DHL<br />
• Label creation, pickup scheduling, automated tracking emails, and insurance<br />
booked the moment the order is submitted<br />
• Print hundreds of shipments with a single click of a button<br />
• Limited back-end access provides partners the option to create and print labels<br />
onsite for their travel groups for same day pick up
The Product - Retail Travel<br />
• Once group travelers enjoy the service, they can then book personal luggage<br />
delivery using our co-branded partner website thru links posted on partner's<br />
promotion thru emails, website links etc.<br />
• Proprietary technology allows individual travelers to book, arrange pickup and<br />
insure shipment in 2-3 minutes - a fraction of the time it takes with major shippers<br />
and at the same rate on most all shipments
Leadership & Advisors<br />
Ken Kuhn<br />
• Founder & CEO<br />
• Successfully developed, launched<br />
and operated companies since<br />
2005. This is Mr. Kuhn’s 3 rd start up<br />
that draws from more than a decade<br />
of prior success and experience.<br />
Andrew Hougan<br />
• Sales & Marketing<br />
• Intensely focused on sales and lead<br />
generation, successfully identifying<br />
and on-boarding partners within the<br />
Meeting industry<br />
Cristian Miclea<br />
• IT – full stack engineer<br />
• Experienced application design and<br />
development, database architecture<br />
mgt. & optimization, E-commerce<br />
and user interface<br />
• Prior experience within travel<br />
industry and an approach that<br />
effectively troubleshoots business<br />
issues in advance as it relates to IT<br />
Justin Milano<br />
• Advisory & Consultation<br />
• Former Director Strategic<br />
Partnerships at <strong>Luggage</strong> Forward<br />
• CEO, and top executive coach at<br />
Good Startups for rapid growth<br />
startups
Market<br />
$600<br />
$500<br />
$400<br />
$300<br />
$200<br />
$100<br />
$0<br />
1980 1990 2000 2010<br />
Real Cost Pre Mile x 1000<br />
Fares Before Fees<br />
Fares With Fees<br />
• Partnerships within M&I industry create the<br />
ability to bundle luggage shipping service as<br />
value added amenity to packages already<br />
being sold thereby introducing large volumes<br />
of customers to our product<br />
• The Meetings and Incentives (M&I) industry<br />
offers a centralized access point to the largest<br />
single segment of the travel population - 205<br />
Million in 2016<br />
• Of the $865 Billion spent on Travel & Tourism<br />
in 2016 15% ($130 Billion) was from M&I<br />
• M&I is projected to grow 33% from 2012-<br />
2022, much faster than average growth of all<br />
occupations (11%)<br />
• 205 million attendees for Meetings contribute<br />
$907 Billion thru direct and indirect spending<br />
in 2016<br />
• Airlines generated a record $4.2B in baggage<br />
fees alone in 2016 and are increasing<br />
dependent on fees they are charging to<br />
travelers as air fares continue to decline
Competition<br />
Focus<br />
on M&I?<br />
Automated<br />
Group<br />
<strong>Ship</strong>ping<br />
Software?<br />
Retail<br />
Travel<br />
Expertise?<br />
X<br />
X<br />
X X X<br />
First Mover<br />
Advantage<br />
X<br />
X<br />
Own the<br />
shipping<br />
channel?<br />
X
Business Model<br />
Profit margins on various shipping levels<br />
(Domestic 1, 2, 3, & 5 day and International Standard and Priority)<br />
Service Domestic International<br />
Overnight 30%<br />
2-day 30%<br />
3-day 25%<br />
5-day 45%<br />
Export<br />
Import<br />
International Standard 60% 51%<br />
International Priority 66% 56%<br />
M&I Partners include cost of shipments in overall package,<br />
thereby masking the rates and creating annual continuity volume revenue.
Go-To Market Strategy<br />
Phase 1 (Completed)<br />
Research and Development:<br />
• Business Model<br />
• Partner lead identification<br />
• Proprietary Technology<br />
•<br />
Phase 2 (12 Months)<br />
• Partnerships with<br />
major Travel and<br />
Meetings & Incentives<br />
Players<br />
• 20% Commission<br />
• No Upfront Costs<br />
Phase 3 (24 Months)<br />
• Word of mouth -<br />
partners introduce<br />
premium travelers to<br />
our service who in turn<br />
build a customer base<br />
by utilizing service<br />
going forward<br />
Phase 4 (36 Months)<br />
• With thousands of M&I<br />
customers using the<br />
service, retail bookings<br />
growing, and brand<br />
equity increasing, we<br />
make a large push into<br />
retail (SEM, advertising,<br />
Retargeting, etc.)
Financial Projections<br />
($200,000) $800,000 $1,800,000 $2,800,000 $3,800,000 $4,800,000 $5,800,000 $6,800,000 $7,800,000 $8,800,000 $9,800,000<br />
Revenue<br />
COGS<br />
Gross Margin<br />
Team<br />
Marketing<br />
Operations<br />
EBITDA<br />
Cash<br />
Year 1 Year 2 Year 3 Year 4 Year 5
Financial Projections detailed<br />
Year 1 Year 2 Year 3 Year 4 Year 5<br />
Revenue $112,000 $1,450,231 $3,233,822 $5,805,101 $9,630,330<br />
COGS $55,401 $671,264 $1,496,831 $2,396,993 $4,444,844<br />
Gross<br />
Margin<br />
$57,572 $778,967 $1,736,991 $2,687,023 $5,185,486<br />
Team $132,691 $379,186 $598,717 $1,190,263 $1,492,026<br />
Marketing $31,042 $327,904 $816,726 $536,347 $2,362,019<br />
Operations $29,129 $69,247 $138,802 $208,250 $285,650<br />
EBITDA (-$135,290) $2,630 $182,746 $1,183,218 $1,045,791<br />
Cash $136,429 $173,982 $212,411 $1,136,563 $1,791,314
Capital Raise<br />
Founder $150,000<br />
Revenue/Equity Based Financing $200,000<br />
• 5% of sales returned quarterly to investors<br />
until a 2X return is generated, at that time half<br />
of investor shares returned to company<br />
• Valuation ($1.8M pre-money, $2M post-money)<br />
Use of Funds/Milestones<br />
• Develop M&I partnerships and drive annual continuity revenue<br />
• Operations managers to ensure delivery and customer service<br />
• Founder salary for full-time focus on <strong>Ship</strong> <strong>Your</strong> <strong>Luggage</strong><br />
• Further development of proprietary technology<br />
We will know we are successful if:<br />
• We have driven more than $1M in top-line revenue by the close of 2018<br />
• 8+ net promoter scores from our partner’s premium clients<br />
• We turn a monthly profit in fall 2018<br />
M&I Partnerships<br />
Operations Managers<br />
Proprietary Technology<br />
Founder Salary
Future Raises<br />
• Funding 1<br />
• $150K (Founder)<br />
Jan 2016<br />
June 2017<br />
• Funding 2<br />
• $200K (Angel Round)<br />
• Funding 3<br />
• $100K (Bolster Cash Flow)<br />
June 2018
Investment Return<br />
Goal is to drive<br />
sustainable<br />
revenues and<br />
return investors<br />
5% of gross<br />
sales each<br />
quarter until a<br />
2X is achieved<br />
Once 2x is<br />
achieved,<br />
investors return<br />
half of the<br />
shares (5% of<br />
10% initial<br />
allocation)<br />
Thereafter,<br />
investors will<br />
benefit from<br />
share of annual<br />
LLC profits.<br />
Plus the potential<br />
of an acquisition.<br />
Major shippers,<br />
TMC, shipping<br />
insurer/labeler,<br />
<strong>Luggage</strong> Delivery<br />
Competitors, M&I<br />
company. etc.
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