Hanna McLachlan, Bree Atherfold, Melanie Kennedy & Ben Grave
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Presentation Speech
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Why is it called Postal Delivery if most of the time you have to go pick it up yourself?
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Rosie is a 24 year old retail manager living in Wellington city. Like many in her generation she is a frequent online shopper.
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Unfortunately for Rosie her central city living situation and 9-5 lifestyle make it incredibly hard for her to receive the packages she orders. Whether its due to the fact that courier drivers cannot get through her apartment door or that the rigid delivery options don't cater to her schedule, she finds herself having to pick up the package herself, ultimately defeating the purpose of getting her package ‘delivered’ in the first place. Rosie is frustrated with the current delivery process and wishes there was a delivery service that catered to her. And she’s not the only one.
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According to National Customer Service manager at New Zealand Courier, the industry was not prepared for the increased demand online shopping would put on their delivery services. Residential deliveries has dramatically increased in the last 10 years and with it the number of failed deliveries has risen also. This has resulted in extra admin and cost to organise redeliveries, at the couriers expense.
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In the UK there is a failed delivery rate of 12%, which has lead to a whopping 851 million pounds in swallowed costs.
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Delivery companies aren’t the only ones dissatisfied with these results. 80% of customers want updates on all types of delivery. 72%of customers will only shop with the supplier again if they have a good delivery experience. And 82% of customers want time delivery slot options
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Delivery companies are avidly seeking ways to improve their services to reduce swallowed costs. Current options include authority to leave, which is great if you have a covered bbq outside your front door, or click and collect which is pretty inconvenient for walkers if your parcel is large or heavy.
But what if you don’t have a secret covered spot outside your home or a car to make carrying larger parcels easier? We have a solution.
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Introducing Pinpoint. A real time network that gives customers the ability to manage and optimise their parcel delivery experience. Customers can interact with drivers through notifications and visibility of a real time GPS track and trace service. Customers can choose a delivery time-window, and even change this en route if it’s not longer convenient.
Pinpoint will allow companies to prioritise customer convenience and eliminate failed deliveries of parcels in urban areas. Post companies will see benefits like guaranteed first-time delivery, improved route efficiency, and reduced mileage, which will decrease their swallowed costs.
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We are the bridge product between businesses and consumers. These are the major players in the market that we would approach.
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We are selling to existing logistics and delivery businesses and designing for their customers, benefiting those who struggle to receive mail. Failed deliveries are a result of issues such as: they live in an apartment, have a dog, have a large gate to their property or are not home during delivery hours. This target market will benefit from Pinpoint’s interactive technology.
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This is the process in which pinpoint caters for users like Rosie
Through the pinpoint application Rosie has received a notification that her parcel has arrived at the wellington depot.
She now has the ability to select a delivery date and time window that will cater to her schedule, to ensure she is home to meet the driver when they arrive.
By being able to set the date and time of the delivery, and see the driver on their way, Rosie has full involvement and clarity in the delivery process. Rosie is confident that her parcel will be delivered to her and the driver doesn’t have to worry about wasting time on a failed delivery.
Rosie is notified when the delivery driver is enroute to her address. She can now track the real time location of her parcel. This allows Rosie to meet the driver at the door of her apartment. Ensuring a successful delivery, the first time.
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Consumers are not the only ones that will benefit from reduced failed deliveries. Post companies will save large amounts on previous swallowed costs. To facilitate this we propose an application for drivers to manage their deliveries. This will lead to route optimisation, improved first time delivery rates, enhanced route efficiency and increased deliveries per day.
Each delivery has an individual digital pin which will confirm that the parcel is delivered to the correct customer. Instead of allowing anyone to sign for your parcel, the digital pin will match the code on the driver’s app, ensuring correct and successful delivery.
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In order to achieve maximum efficiency we propose a central system for businesses that monitors and shows analytics of their deliveries. The system will ensure that post companies have full visibility on their drivers productivity.
The operating system will automatically optimise the courrier driver’s daily routes, ultimately saving the business time, fuel and vehicle costs - all while increasing the number of freight movements per day.
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Blackbay, Get swift and UberRush are companies that provide a similar service to Pinpoint, however no one has successfully implemented their service in New Zealand.
These companies operate independently to post services, whereas we would work with them.
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Our first year will involve the design, development and refinement of the applications. Then we will product test through a free delivery promotion, aimed at creating awareness and testing the service. We plan for product implementation to occur in 2019 with Pinpoint being sold to postal companies as a premium delivery method, providing a return on investment stream. Subsequent success will promote Pinpoint to the primary method of postal delivery. In 2021 we envision a more personalised delivery method, with technology advances allowing customers to get deliveries to their location, not their door.
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We have estimated our specific start up costs and the annual overheads of the first year to be $760,000. We would appreciate your investment in Pinpoint, through expertise and guidance or monetary funds.
This investment will carry us over the initial 12 months of development and testing. We are aiming to see partial return on investment within 3 years with the majority seen in 5.
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Help us give customers the ability to interact with their delivery experience and give them the control they need with Pinpoint.
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Week 8 Speech
Why is it called Postal Delivery if most of the time you have to go pick it up yourself?
According to National Customer Service manager at New Zealand Courier, they were not prepared for the impact online shopping would have on their delivery services. Residential mail has increased by 35% across Australasia and the number of undelivered parcels has dramatically risen also. It’s resulted in extra admin and cost to organise redeliveries.
Delivery companies are avidly seeking ways to improve their services to reduce swallowed costs. Current options include authority to leave, which is great if you have a covered bbq outside your front door, or click and collect which is pretty inconvenient for walkers if your package is large or heavy.
But what if you don’t have a secret covered spot outside your home or a car to make carrying larger parcels easier? We have a solution.
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Introducing Pinpoint. A real time network that gives customers the ability to manage and optimise their parcel delivery experience. Customers can track, react and interact with deliveries through notifications and visibility of real time track and trace services.
PinPoint runs on a real time network, offering choice of delivery time-windows, GPS tracking right to your door and the ability for customers to specify new delivery day or times en route. PinPoint will allow companies to facilitate customer convenience by eliminating failed deliveries of parcels in urban areas. They will see benefits like guaranteed first-time delivery, which will reduce swallowed costs of failed deliveries, improved route efficiency and reduced milage.
To allow for widespread use we plan to provide this software to postal services on a subscription basis.
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Over 80% of customers want updates on all types of delivery. 72% of customers will only shop with the supplier again if they have a good delivery experience.
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and 82% of customers want time delivery slot options. These stats prove that a service like pinpoint would be welcomed by businesses as well as consumers.
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People who struggle to receive mail due to issues such as: they live in an apartment, have a dog, have a large gate to their property or are not home during working hours. This target market will benefit from the interacting technology of pinpoint.
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This is the development of Pinpoint within the first 5 years of start up.
We would begin the process with software design and development, creating one app for the customer and another for the delivery driver.
In the second year we will user test our service by creating a testbed in Wellington city, we would run a promotional campaign where we offer our services free of charge to a local company and act as a delivery service between them and their customers.
After successful user testing we would sell our service to postal companies for implementation as a premium delivery method, before becoming the primary postal delivery method.
As we advance and develop our technology further we aim to deliver a future-focused product, that delivers your parcels to where you are, rather than where you live.
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The approximate expenses for pinpoint are $370 -470,000. The main cost is design and development but will also cover research, advertising, promotion, legal fees, equipment, facilities, supplies and employee expenses. We have also estimated the annual ongoing costs in order to keep the pinpoint service evolving with the times, staying on the front edge of delivery and technology services.
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We need capital from investors, in order to get pinpoint up and running. We will then sell it to delivery companies. It will minimise their failed deliveries therefore saving post companies money, as well as benefiting their customers. This is a win for companies, win for the customer and win for you as you will see your investment returned in threefold.
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Why is it called postal delivery when the majority of parcels require the customer to go and pick it up?
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http://theregister.co.nz/news/2017/03/online-retail-spending-new-zealand-16-percent
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Validate Business
What are the reasons?
What does success look like?
Do you buy into it?
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Founder of Zoomy feedback
Hi Melanie
Unfortunately, I’m not going to be able to answer some of your questions as anything to do with initial setup costs and profitability are commercially sensitive to the business, and we wouldn’t want them to be in the public.
App development costs is definitely one of those how long is a piece of string questions - but if its locally built and on both Android and iOS platforms, it will more than likely run into the hundreds of thousands. You’ll also need to consider the ongoing support costs - typically developers charge $100+ an hour. With a stable app you might expect to need 50-75 hours a month of app support + any future enhancements/product adds. Most app businesses would also need a financial backend (process payments, run statements etc), and a separate development resource to maintain it.
We initially had a prototype version of Zoomy built overseas which was used to demonstrate the product, and raise capital but was never taken to market.
There were 2 of us who started Zoomy, and for the first 6 months we didn’t take any wages. We continued with other employed work and did Zoomy from 5pm till the early hours every day. Only when our first investors came onboard did we start taking a (minimal) salary.
Something that’s available now is the R&D tax credit system, which allows businesses to claim back development costs upfront. This is definitely worth considering for any tech start up business.
I think my advice for anyone wanting to launch an app (where the business is purely focused on the app), would be to see if you can bring on (good) developers as part of your initial team, and offer equity as part of their package. Despite our initial expectations that we would build the app and then dev costs would taper off – it wasn’t the case and I don’t think ever is. App’s need constant work and updates.
We attempted to keep our overheads as low as possible (limited salaries, shared office spaces, networking to get better deals on various aspects of work we required), but as we’ve expanded these have naturally increased. Our business focus was more based on ride volumes than what our breakeven point would be – growth rates are typically more attractive to new investors or potential buyers.
Happy to ask any other questions you may have providing there not too specific to our financials :)
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Business Benefits
All information is digital, meaning up to date and easily accessible. Could check job histories with ease.
Reduced admin time - organising reports, analysing peak times, checking job histories, communicating with managers or drivers, organising trips.
Increase productivity - automatic updates and optimised fastest route. Allows courier company to fulfil more business as well as maximise
Manage performance of delivery drivers. Ability to track drivers in real time and monitor their service - speed, efficiency and customer service.
Significant reduction in customer support enquiries/calls. Dramatically decreased in count and time.
System is easy to understand and follow, making staff training and setup easy.
Improved level of service and increased customer satisfaction.
Reduce failed deliveries.
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Slide pages
Opening slide - introduction to Pinpoint
The problem
Stats
What/who we are (fleshed out)
Why now
Target audience
Business Benefits of Technology
Customer Benefits of Technology
Longevity (fleshed out)
Journey - customer experience on the app
Journey - driver experience on the app
Expenses
*not in order
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Hi Everyone, Today's mission: More Pitching! Check Stream for more details including where you are pitching today. You might be pitching to the same tutors again, but pretend you've never met them before, and they have no idea what you're working on (because that's going to be the case with the final panel). We want to see improvement in content, delivery and overall pizazz. Show us that you're listening to the feedback, but more importantly show us that you're listening to your customers. Validation of the problem, the solution and the customer demand are more important than pretty slides or pretty products. You are not marked on design of product/output. We expect everything you do to be well designed, but in this course you are marked on the business model above all else. Your mission is to convince us that this is a viable business opportunity, the customers desperately want it, and you are the team to bring it to life. Remember, you don't have to have already done everything. Your pitch is the proof that you SHOULD go ahead and do the things. Show your proof that this should be done and then show us what you need to achieve that. Could be money, could be advice, could be more team members with specific skills, could be the use of a garage for a couple of weeks. Make it real, if you don't know something, put it on the list of things to find out. NO BULLSHIT PLEASE. Consider whether you would be willing to actually go for it. Would you? What would stop you? If you yourself are convinced this is a good idea then it'll be much easier to convince other people. And if you're not convinced, what do you need to change? It's never too late to pivot.
197465_2017_S2FS_WLGI: Week 8 Practice Pitch - [email protected] - Gmail
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Week 8 - informal practice pitch - Problem is very clear
FEEDBACK: - Tell the story of both audiences, the customer and the courier driver - Flesh out how the app would work, show/tell - spelling error ($64,000) - go next level with detail, the investors need to know how the app will work - retain the visuals on the slides, show importance, match it with audio - map out the customer experiences - clarify who and what we are - WE ARE the bridge product between... - time line more in detail - add Y axis needed in graph - scale - GIF, perhaps slower? Currently too distracting
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Logo design
We wanted something sleek and modern, to reflect our innovative technology service.
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Business Plan
Revenue - how many people will buy our product, how much will it cost etc
Not just an app but product implementation
How much they would pay for our service - is it viable?
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