Change to Vehicle Supply Strategy:-
- In addition to the existing vehicle supply model whereby vehicle providers retain ownership, Carly will secure a number of vehicles byleveraging its own capital. This may involve indirect control of vehicle supply, direct purchase, lease or a combination of models.Under the new strategy, Carly will define which vehicles are purchased, when the vehicles are available, the price at which they are subscribedand where they will be located. This will enable Carly to more adequately satisfy demand for vehicles from consumers and businesses.
- Increasing Vehicle Supply:- In addition to the existing vehicle supply model whereby vehicle providers retain ownership, Carly will secure a number of vehicles by leveraging its own capital. This may involve indirect control of vehicle supply, direct purchase, lease or a combination of models
- Taking Control of Type, Timing, Pricing and Location. Under the new strategy, Carly will define which vehicles are purchased, when the vehicles are available, the price at which they are subscribed and where they will be located. This will enable Carly to more adequately satisfy demand for vehicles from consumers and businesses
- Improving Margin Greater control of vehicles will enable Carly to retain a higher proportion of revenue which will deliver higher margin and enable more funds to be allocated to vehicle handover and management
- Expanding the Footprint Carly will manage the vehicles secured under the new strategy and intends to establish ‘high street’ retail handover locations, the first of which is planned for the inner west of Sydney. This will enable Carly to manage the subscription lifecycle more effectively and provide an excellent opportunity to develop the Carly brand image through a branded location
Before we outright purchase hundreds of vehicles and fit out a store front with a "high street location" lease arrangement (costs). I do wonder if we've considered a 12 month vehicle supply rental return guarantee. i.e. supply DMC a Subaru or Hyundai whatever for 12months and we'll guarantee a return of $10K ($5K upfront and 5K vehicle return or in installments)!!.
This allows CL8 to truly back its business and rent them out. Even if CL8 rent it out only for 6months it's near enough breakeven, however anything over that time period is all profit. This puts CL8 cash return to better use IMO; provides huge certainty to suppliers, also entices private suppliers with $5k upfront (general public who may want some quick cash).
This model you could easily obtain 200 vehicles for initial payment $1M outlay, then you're generating revenues straight away (if the business is viable) to pay the final repayments and build your profit margin. Also you carry no depreciation of asset costs.
It may not need to be $10K, but you get the concept.
Any other thoughts to attract supply??
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